Investment Options & Plans for Retired People

There’s a big difference between saving and planning for retirement, and officially diving into it. It’s a major change in focus: of your time, of your energy and of your money. At times, it can be uncomfortable not having as much control over your income as you did before retirement. At PDS Planning, our goal is to help you enjoy spending the extra time and flexibility you have in the ways that interest you the most. Below are some questions we’re commonly asked about taking the big step.

Will I Outlive My Money?

We’ll create a projection of how long your assets will last, taking into account inflation and a rate of growth on your investments. We’ll include income sources such as social security, pensions, and rental or business income, as well as specific expenses in areas like health care, that may have higher inflation on their costs.

Should My Investment Allocation Change Now That I’m Retired?

Some people will tell you that when you enter retirement, you should change your investment allocation. We say it depends on your age, your needs, your wants, and your tolerance for risk. We make recommendations based on the individual, not on some cookie-cutter approach.

How Do I Minimize Retirement Taxes?

A big part of our job is helping you plan to take income distributions in a tax efficient way. We can do this in various ways, first by considering the use of a combination of pretax and after tax monies or by considering Roth IRA conversions in years where it is to your tax advantage. Once we talk to you and get a clearer picture of your individual situation, we can offer suggestions that will help you in this area.

Will My Spouse Have Enough In The Event Of My Death?

We’ll evaluate whether there are financial needs in excess of the current investment assets and life insurance. If there is an additional need, we will help to provide options that can best achieve the goals for your surviving spouse.

Will My Estate Transfer As I Wish?

Your plans may include transferring assets to heirs, to organizations, or to both. We’ll review your estate documents and beneficiary designations to match them to your wishes. We’ll make sure your accounts are titled correctly, beneficiaries are aligned properly, and communicate with the attorney of your choice.

What Senior Living Options Should I Consider?

We encourage our clients to think about this earlier rather than later, while the options can be evaluated ahead of the need and decisions can be made that better align with their wishes. We can help you evaluate the financial impact this decision may have on your long term plan.

For more information regarding financial planning after retirement, contact PDS Planning today.