RETIREMENT INCOME MANAGEMENT & ROLLOVER OF 401(k)s

RETIREMENT INCOME MANAGEMENT

As one prepares to retire, developing and implementing a retirement income strategy is critically important.  This involves answering questions like:

• What's the best way to generate my desired level of income during retirement?
• Which type of asset should I use first - taxable savings, annuities, IRAs, etc?
• Should I wait until age 70 1/2 to begin taking distributions from my IRAs?
• How might income "smoothing" help my overall tax situation?

A key element of developing this retirement income strategy likely includes deciding what to do with your current employer retirement account(s).  This most likely means your 401(k), 403(b), or 457 plan at work.

ROLLOVER OF YOUR EMPLOYER RETIREMENT ACCOUNT

Given that these retirement plan assets likely represent a large percentage of your investable asset base, and will likely be a key component to provide income for the remainder of your lives, it's critically important that these decisions are well thought out and integrated with an overall wealth management strategy.

Strategy, Tax Considerations and a Coordinated Approach
Many critical estate planning and tax decisions need to be made when retirement occurs and company plan assets are rolled over and integrated with other personal assets to form the overall investment portfolio that will provide income security during the retirement years.

Integration of the Rollover/Savings Plan Assets with the Investment Management and Retirement Planning Strategies
Once we have determined the most appropriate strategy for these retirement assets, they will be integrated into the overall investment portfolio. At this point, we will establish an overall asset allocation and create a well diversified portfolio, and based on each client's individual needs and "sleep comfort level" (aversion to risk), we will determine an estimated weighted average investment return for the portfolio.

This weighted average investment return will become a key input in determining our Monte Carlo retirement cash flow projections, and ultimately has a major impact on the overall probability of having a successful retirement plan.

Summary/Conclusion
Having a well developed Retirement Income and Rollover strategy is a critical ingredient in laying the foundation for a successful retirement, defined as achieving one's life goals and objectives without running out of money.