Once you have retired, you've entered the Distribution Phase of the Money Cycle, which means, it's time to start taking an income from your retirement savings.

As we like to point out, "you can't retire on assets," meaning, you have to turn your accumulated assets into an income stream to live on. This is one area that we've found is often lacking in financial planning. Many prospective clients come to us with lots of assets in various types of accounts, but no real plan for how and when to take income from these various buckets.

This is where we can provide invaluable guidance to our clients, by providing a roadmap for not only turning your assets into a retirement income stream, but also helping to develop a plan that will mitigate some of the major financial risks of the retirement years, including:

♦ Sequence of Returns Risk

This risk occurs when you pull money from market-based accounts during a down market. This greatly increases the risk of running out of money before you planned to - as we explain in this video.

To mitigate this risk, it's important to have a properly designed Bucket Plan, so that you can draw money from the correct "bucket" during volatile market conditions, without impacting the long-term growth of your other funds.

We work with our clients to help them understand how to properly manage their funds and retirement savings during the retirement years in order to avoid or reduce this common form of risk. Having a plan in place to address this risk can go a long way towards providing peace of mind during the retirement years.

♦ Longevity Risk

This simply means the risk of living longer than your retirement savings will last. This is the greatest fear of many retirees1, and it's one that we take very seriously. Our goal is to help our clients put together a plan that ensures you will have an income for the rest of your life.

To accomplish this, we offer various tools and strategies that can guarantee an income stream while you're living, while still allowing for growth and accessibility of your remaining assets - and potentially leaving a legacy if this is important to you.

♦ Healthcare Risk

This is an often-overlooked part of retirement planning, but since 7 out of 10 retirees will need some form of long-term care at some point in their lives2, it's a very important consideration to take into account when planning for your retirement years. Healthcare costs continue to increase, and even the less expensive options such as in-home care can run thousands of dollars per month.3 If you or your spouse end up needing to move into assisted living, the costs are even higher. Planning for this potential expense in advance is extremely important to ensure you don't deplete your assets sooner than anticipated.

We have trusted estate planning partners as well as an on-staff Medicare specialist to help retirees and those nearing retirement to plan for these important aspects of the retirement journey.

What Next?

No matter what your fears are regarding retirement and these risks, there are solutions that can help to mitigate your risk and provide peace of mind. We are here to help however we can, and are always happy to provide guidance and support during all phases of life - including the retirement years that you've been dreaming of throughout your working life!

Every retirement plan is different, and every retirement will look slightly different. We understand this, which is why we provide one-on-one guidance tailored to your specific needs and goals in order to help you enjoy the retirement you desire.

If you would like to review your plan and make sure you are properly prepared for these common retirement risks, please reach out to our office today for a free strategy planning session!



1.) https://www.cnbc.com/2023/06/13/retirees-biggest-fear-is-outliving-their-assets-research-finds.html

2.) https://acl.gov/ltc/basic-needs/how-much-care-will-you-need

3.) https://www.genworth.com/aging-and-you/finances/cost-of-care


This information is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.