On May 24th I made a presentation entitled Income Strategies in Retirement at the Tower Club in Tysons to clients and prospective clients between the ages of 50 and 70.
The objective of the presentation was to provide a framework for those of us approaching retirement to help us achieve our goals and reduce the risks that get in the way. In other words, optimize sources of income (benefits, investment assets, etc.) so that they cover expenses (needs, wants, wishes, taxes, surprises) for as long as we live. And, if a financial legacy is one of our goals, leave financial resources to family members and/or favorite charities after we are gone.
Here is the final slide in the presentation:
We all would like to – and most of us need to – make the most of our financial resources after we stop working. Whether we scale back from full-time to part-time before “no” time, at some point we will no longer earn income. Human capital must be replaced by financial capital.
Here are five questions that each of us should ask and answer as we approach retirement:
• Have we optimized our social security and pension benefits?
• Does it make sense to annuitize a portion of our investment assets?
• Have we taken steps to minimize “sequence of return” and inflation risks, and taxes?
• Should we convert a portion of our traditional IRA account balance to a Roth IRA?
• Is a HECM or HELOC available to meet the surprises/unexpected?
If you would like to discuss any of these questions, feel free to contact FJY Financial at 703-889-1111. Our Senior Financial Advisors – Larry Adams, Laurie Belew, Tess Downing, Jon Yankee, and I – would be happy talk with you.