Are You Clueless?

Retirement, Income, Tax & Estate Planning.

Are You Clueless?

August 28, 2014 Investing Retirement Planning RMDs Social Security Taxes Uncategorized 0

I know…I know…it’s a holiday weekend.  I decided to really be a bum and close our offices today (Friday) to make it a four day weekend.  If you’ve shut down mentally until after Labor Day, just put this column aside until you are ready to re-engage.

Sometimes I feel like I sound like a broken record.  (Are two “likes” ok in one sentence?)  But nothing is more critical for a successful retirement than having a comprehensive investment and income plan coupled together with a realistic spending plan.

You work and save over many years to build a nest egg for the ultimate reason in retirement, and that is to provide yourself an income throughout your retirement years.  Thus, it can be said that income is the intended outcome of retirement planning.  Read that again…it’s kind of catchy.   Unfortunately, most people, financial advisors included, are simply clueless as to how to setup their retirement plan properly for providing this lifetime income.

The retirement objective and focus changes as you enter your pre-retirement and retirement years, shifting from an accumulation mode to a preservation and distribution mode.  Taking income from your nest egg the proper way comes down to many factors and considerations.  Of course, each is based on your unique set of goals, objectives and desires, but here are some main provisions to consider.

What should you do with your money once you retire? Specifically, which accounts should you tap first and why?

How old are you?  Different plans have different age rules and requirements to tap into your nest egg, There is strategy involved here to maximize income, minimize taxes and avoid penalties.

Are you still going to work after retirement age?  If so, you need to be aware of and understand the rules and provisions that will affect savings, taxes, Social Security and RMDs. Again, different plans have different age rules and requirements.

Beware of the tax man.  Tax planning is critical in retirement.  You want to setup your income plan and distributions to minimize the taxes that you pay.  Remember, tax evasion is illegal, but tax avoidance using the right tools and strategies is not.

To rollover or not?  There are reasons that you should or should not rollover a 401(k) plan to an IRA for income purposes.  You have to find out what is best for your specific situation.

There are many more factors to consider, including one distribution strategy that should be done even if you don’t need income right away.  To learn more about all of these factors and strategies, tune into Jeremy and me on the Your Retirement Quarterback radio show this coming weekend.  The show airs every Sunday at 12:00 noon on WNTP (990 AM) or go online at to hear the recording.  As always, you can also obtain this information and the independent advice for your specific situation by contacting me at 215-657-9200 or e-mail me at [email protected].  

Have a fun & sage Holiday weekend…

Peter Signature

Your Retirement Quarterback®


Registered Investment Advisor with Franklin Retirements Solutions (FRS), Inc. and an Investment Advisor Representative of Brookstone Capital Management (BCM), LLC. Investment Advisory Services are offered through BCM, a Registered Investment Advisor. FRS and BCM are independently owned and operated. Information provided is not intended as tax or legal advice, and should not be relied on as such.  You are encouraged to seek tax or legal advice from an independent professional advisor.

The information and opinions contained herein are provided by third parties and have been obtained from sources believed to be reliable, however, we make no representation as to its completeness or accuracy. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Content is provided for informational purposes only and is not a solicitation to buy or sell any products mentioned.