You have spent decades of your life working hard saving diligently, and now it’s time to consider retiring. This is a huge accomplishment in and of itself, and the goal is to have the time and money to be able to do more of the things you love.
We believe an additional goal should be maximizing your hard-earned savings to the greatest extent. Of course, this can be easier said than done. In our experience, it requires much more time and expertise than the proverbial asset accumulation that has been your focus for the majority of your life.
Asset allocation is indeed a major part of the decisions that should be made, but equally, if not as important, is the priority in which you spend down different buckets of funds. With a quick Google search, you can find the conventional wisdom strategy which recommends first spending your taxable account, then your tax-deferred, and finally, your tax-free bucket. The truth is that this is rarely the most efficient way, and the difference when making these decisions can mean years of spending longevity that have either been gained or lost. A Withdrawal Plan is a framework for making decisions. It includes how much and from where spending should happen in retirement. It needs to be revisited frequently to ensure it is fully optimized.
You’ve spent all this time building your race car, perfecting the engine, and are ready to go at the start of the race. However, without the right plan in place for the race, it will not be easy to perform at the level you are capable of. Take the first step towards optimizing your plan today.