Post-Retirement Planning

Be Proactive in Post-Retirement Planning

Countless studies have been done on retirement planning. It’s in the news. It’s a topic of conversation. Often those conversations do not include post-retirement planning – the process of continuing financial planning after retirement. Yet, that’s often when financial planning is most critical. Once you’ve made the decision to step out of the workforce, you want to be confident in the financial decisions you are making. That’s where post-retirement planning comes in.

Through post-retirement planning, you work toward having income for the rest of your life. The post-retirement planning process empowers you to express your ideal retirement lifestyle and make changes to get you there.

Maintaining a comfortable lifestyle in retirement requires finding ways to increase income from investments. But it also calls for risk mitigation. Uncovering opportunities that help meet your retirement wealth goals is the focus of your Windward advisor.


Considerations in Post-Retirement Planning

Maintaining income in retirement calls for carefully balancing saving and spending. A Windward advisor can help you keep this equilibrium. To make sure your finances are balanced, your advisor will talk to you about your assets and expenditures. Expect questions such as:

  • Will a large purchase (second home or dream home) or significant sale (your home or business) affect your budget in the way you expect?
  • Will your family be cared for in the way you want?
  • Do you a dream of ‘giving back’ to a meaningful cause?
  • Have you thought about readjusting your investments?
  • How do you define security?
  • What makes you feel secure?

By understanding your unique retirement plans, our financial advisors can anticipate financial considerations that may affect you. Our job is even more rewarding if we bring up something you hadn’t yet considered.


Required Minimum Distributions in Post-Retirement Planning

One of the most common financial changes after retirement are required minimum distributions. A requirement minimum distribution is the smallest amount you can withdraw from a retirement savings plan, such as a 401(k), 403(b) or traditional IRA. An RMD becomes part of your taxable income. That’s because the withdrawal came from a tax-deferred account — and with retirement comes taxes on those funds. Post-retirement planning includes strategies for required minimum distribution.

You are required to take your first RMD for the year in which you turn 70 ½. An RMD is calculated by dividing the prior year’s Dec. 31 balance by a life expectancy factor published by the Internal Revenue Service. (Check out this RMD calculator from the Financial Industry Regulatory Authority.)

Your Windward Wealth advisor can help you determined whether your retirement accounts have required minimum distributions and calculate the required rate of return to maintain your account balance following the awithdrawal. This investment analysis and tax planning for the requirement minimum distributions are critical issues in post-retirement planning.

In short, your goal is to have a retirement account withdrawal rate that meets your income needs but preserves the account principal. It’s a balance that involves the entire picture of your wealth.


Post-Retirement Planning to Fit Your Lifestyle

Whether your retirement lifestyle is well-appointed or modest, you want to make the most of every dollar. We help clients understand how investments and savings can produce income for you in retirement and the risks that come with your money options.

Managing a post-retirement budget requires savvy. While cutting back on spending is an obvious strategy, it’s not the only one. A Windward advisor may recommend the following strategies (or more) in post-retirement planning:

  • Conduct a cash flow analysis: Have a baseline for how much you’ll need each month to pay for expenses.
  • Rebalance your portfolio: Practice risk mitigation as you look for ways to increase return potential.
  • Put off collecting Social Security: Higher lifetime earnings result in higher benefits upon retirement.
  • Play catch-up: Make additional contributions to your 401(k).
  • Downsize: Move to more affordable housing and drive less expensive cars.
  • Take care of yourself: Reduce medical costs by keeping in good health.

Delaying retirement also is a post-retirement planning strategy. You and your Windward advisor may discover the financial security brought about by working a few more years is worth the time.


Holistic Post-Retirement Planning

No two retirements look the same. Your post-retirement planning will reveal different needs that require different financial products and services.

A Windward advisor can help you understand risk mitigation as you strive for financial security in your retirement. Together we look at the big picture and make a plan that brings balance to your financial life.

We invite you to discover additional retirement planning resources:

Contact Us

Windward Wealth Strategies Northeast Wisconsin Office 2370 State Road 44 STE A Oshkosh, WI 54904