A Retirement Plan Is More Than a Retirement Number
Knowing whether you have enough to retire is important. But retirement planning goes well beyond reaching a certain account balance.
When should you retire? How much can you comfortably spend? And how can you turn years of saving into a strategy designed to support the life you want in retirement?
We help you consider these questions so you can approach retirement with greater clarity about both your finances and your future.
Building the Resources for Retirement
A successful retirement plan starts well before retirement. During your working years, the focus is on building the resources you may eventually rely on while balancing retirement savings with your other financial priorities.
We help you evaluate how much to save, where to save it, and how different accounts can work together. That may include making the most of your 401(k) or other employer retirement plan, evaluating traditional versus Roth contributions, funding IRAs, and considering additional savings opportunities when appropriate.
As retirement gets closer, we can also help you assess whether you're on track and identify adjustments that may strengthen your plan, such as increasing savings, reassessing investment risk, or reconsidering your retirement date.
Planning for the Decisions That Come With Retirement
Retirement introduces a new set of financial choices. We help you evaluate them in the context of your broader financial picture.
Retirement Income and Spending
We help evaluate how much spending your resources may reasonably support and develop a strategy for funding your lifestyle from investments, Social Security, pensions and other sources.
Social Security
When you claim Social Security can affect both your lifetime benefits and, for married couples, potential survivor benefits. We evaluate claiming strategies in the context of your broader retirement income plan.
Tax-Efficient Withdrawals
The account you withdraw from can matter as much as the amount you withdraw. We evaluate how taxable accounts, traditional IRAs and Roth accounts can work together to help manage taxes throughout retirement.
Roth Conversion Planning
The years between retirement and required minimum distributions can sometimes create opportunities for Roth conversions. We evaluate whether conversions make sense based on your current and projected tax situation.
Required Minimum Distributions
We plan ahead for required minimum distributions rather than waiting until they begin, considering their potential impact on taxable income, Medicare premiums and your longer-term withdrawal strategy.
Healthcare and Medicare
Healthcare can become an increasingly important part of retirement planning. We help incorporate Medicare, potential IRMAA surcharges, insurance costs and anticipated healthcare expenses into your plan.
Turning Your Savings Into Retirement Income
For most of your working life, the goal is relatively straightforward: save and invest for the future. Retirement changes the equation.
Your portfolio may now need to provide income while continuing to support a retirement that could last decades. That requires decisions about how much to withdraw, which accounts to draw from and how your investments should be positioned.
We develop a retirement income strategy designed to balance your near-term spending needs with the need for long-term growth as your circumstances and market conditions change.
Taxes Don't Stop When You Retire
Retirement can change where your income comes from, but it does not eliminate taxes.
Different sources of retirement income can receive different tax treatment, and decisions made in one year can affect taxes in future years. Income can also affect Medicare premiums through IRMAA.
Our financial planners consider these relationships when evaluating retirement strategies, helping you look beyond this year's tax bill to the potential long-term impact of your choices.
Your Retirement Plan Should Evolve Over Time
Retirement planning does not end on the day you retire. Markets change. Tax laws change. Spending changes. Families change. Your health, priorities and goals may change as well.
We continue to monitor your plan and help you adjust as your circumstances evolve, whether your spending needs change, new financial priorities emerge, or you simply begin to think differently about how you want to use your time and resources.
The goal is not to predict everything that will happen. It is to have a plan that can adapt as life changes.
When Should You Start Retirement Planning?
The earlier you begin, the more flexibility you may have. But retirement planning can be valuable whether retirement is 15 years away, just around the corner, or already underway.
You may especially benefit from retirement planning if you are:
- Building savings and wondering whether you are on track
- Approaching retirement and wondering whether you have enough
- Deciding when to retire or how much you can comfortably spend
- Navigating the transition from saving to generating retirement income
- Facing important tax, Social Security or Medicare decisions
- Already retired and looking for a more coordinated strategy
A Coordinated Approach to Retirement Planning
Investment management, taxes, Social Security, healthcare and estate planning do not operate independently in retirement.
At Core Wealth Management, our CFP® professionals work together to help you evaluate these areas as part of one financial plan. As a fee-only fiduciary firm, we provide advice designed around your circumstances, priorities and long-term goals.
Wherever you are in the process, we'd welcome the opportunity to discuss your retirement goals and how a coordinated plan can help you approach them with greater confidence.
Schedule a ConversationRetirement Planning FAQs
How much should I be saving for retirement?
The amount you should save depends on your age, income, current savings, expected retirement date, spending goals and other financial resources. Retirement planning can help determine whether you are on track and how to direct savings among a 401(k) or other employer plan, traditional and Roth accounts, and taxable investments.
How do I know if I have enough money to retire?
There isn't one retirement number that works for everyone. Whether you have enough depends on your expected spending, retirement age, Social Security and pension income, investment assets, taxes, healthcare costs and other goals. A retirement plan can help evaluate how these factors work together and whether your resources are likely to support the retirement you envision.
When should I claim Social Security?
The appropriate age depends on factors including your earnings history, life expectancy, marital status, other income and financial resources. For married couples, the decision can also affect potential survivor benefits. We evaluate Social Security as part of your broader retirement income and tax strategy.
How do I create income from my investments in retirement?
Retirement income may come from taxable investment accounts, traditional retirement accounts, Roth accounts, Social Security, pensions and other resources. Deciding how much to withdraw and which accounts to use can affect taxes and how long your assets may last, so withdrawal decisions should be coordinated with your overall retirement plan.
How can I reduce taxes in retirement?
Tax planning in retirement may involve coordinating withdrawals from taxable, tax-deferred and Roth accounts; evaluating Roth conversions; managing capital gains; planning for required minimum distributions; and considering the potential impact of income on Medicare IRMAA premiums. The appropriate strategy depends on your individual circumstances and may change over time.