Financial Planning: Older Adults


Preparing for and living in retirement

Although many individuals nearing retirement have at least one 401(k), IRA or defined benefit plan, rarely will those income sources meet the full range of retirement expenses.

By working with us, we can help determine how much you will need to withdraw from your retirement portfolio to live comfortably in retirement. The less you withdraw, the better chance your assets can generate stable income through the duration of your retirement. The general rule of thumb is a maximum withdrawal of 4% to 6% per year, but you may need to withdraw more or less depending on your specific circumstances.

You may need to adjust your rate of withdrawal based on future market performance. The sustainable rate of withdrawal is historical and will fluctuate. If your rate of withdrawal is greater than the growth of your assets, you may exhaust your principal.

Social Security benefits are another important aspect of your retirement plan. A variety of factors, such as your age, spouse’s earnings and other sources of income, can affect when you may need to begin receiving your benefits.


Give your plan a checkup

Once you’ve retired, managing your money is more important than ever. During your retirement years, your personal goals and situation - as well as the economic environment  - are likely to shift. These changes require careful scrutiny, perhaps resulting in adjustments related to your goals, your portfolio or both.

Retirement income planning

Preserving your wealth and maintaining your lifestyle are likely among your highest priorities. You aspire to stay in your home as long as you want and be able to leave behind the legacy you had envisioned.

Because people are living longer today, the possibility of going 30 years without a paycheck takes careful retirement income planning and disciplined investing. We can create a plan for sustainable monthly withdrawals from your investment portfolio designed to make your money last your lifetime.

Healthcare considerations

Many retirees underestimate how much they’ll need to cover healthcare expenses. In fact, a Center for Retirement Research study recently estimated out-of-pocket costs for a healthy 65-year-old couple to be $260,000 to $570,000 for their entire retirement. Income from investments and Social Security can go toward paying ongoing medical costs, such as Medicare premiums, deductibles and copays, but as healthcare costs continue to rise, this could place a significant strain on your retirement. We can work together to anticipate your healthcare expenses in retirement and account for them within your overall retirement income plan.

Another risk-management option is long-term care insurance, which covers a range of nursing, social and rehabilitative services for people who need ongoing assistance due to a chronic illness or disability. While you can’t know for sure if you’ll need long-term care or for how long, a comprehensive policy can help you plan for the unexpected.

Some people choose a policy to help:

  • Protect assets
  • Add options for quality care
  • Relieve family and friends from the stress of providing care
  • Preserve their independence, dignity and financial freedom

Legacy planning

Depending on your financial situation, you may be confident you can fund a comfortable retirement and still allocate funds to leave an inheritance for family members or to donate to a favorite charity. The first priority should be ensuring your expenses can be met before you leave a monetary legacy behind.

We can assist you with your estate and legacy planning, including helping you to optimize your assets, potentially minimize tax implications, and determine the course most appropriate to your situation. In addition, we can help you select effective vehicles to implement your plans.

Contact us to learn how we can help you to optimize your assets, potentially minimize tax implications, and determine the course most appropriate to your situation, including the selection of effective vehicles to implement your plans.

There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.

Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as financial advisors of Raymond James we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.