I firmly believe that one of the most important and yet challenging jobs financial advisors are called upon to do is to establish a retirement income distribution strategy for our clients. One of the key goals of any financial plan is to produce income that ensures both enjoyment and financial independence in retirement. With this in mind, we need a sophisticated strategy due to two key facts:
- There are a large number of factors that must be taken into consideration and analyzed.
- The margin for error is extremely small.
Reaching the retirement years is a major milestone for most of us. And since retirement is often referred to as the “the golden years,” income will be the cornerstone — the gold in these golden years — for all retirees. It our job as financial advisors to look at a retirement income strategy from all angles, making sure to ask and answer such key questions as:
- How much income do you need?
- How much income do you have from other sources (such as pensions, Social Security, etc.)?
- What percentage of your portfolios should you withdraw?
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