retirement distribution
What order do you plan to draw from accounts in retirement?
1 - taxable
2 - tax deferred
3 - tax free
When markets drop, do you usually buy more, sell, or hold steady?
Buy
How do you plan to manage Required Minimum Distributions (RMDs) once they begin?
take them early vs late in the year
early: good if you need (cash flow) for expenses
late: keeps money invested longer and gives you predictable (tax withholding)
What’s your plan if market returns are lower than expected early in retirement?
three buckets
How much cash do you like to keep as a cushion versus having it invested?
general rule of thumb is at least one year of cash flow
Do you know roughly how much monthly income you’ll need once you stop working?
general rule of thumb is 80% in income before retirement.
Do you know the average return you’re aiming for to reach your long-term goals?
general rule of thumb for sustainable income throughout retirement is 4%
How do you decide the right mix of asset classes (equities, bonds, alternatives) for your goals?
Have you considered how to bridge income needs if you retire before Social Security start?
Window for social security 62-70 age
rule of thumb
1. cash & taxable accounts
2. IRA/401K accounts
3. Delay social security, if possible, to maximize
How often do you review or adjust your investments?
general rule of thumb
- review at least annual
- adjust as needed