Social Security Facts

Some important facts to know about Social Security and what to expect. 

Retirement Income Distribution Things To Consider

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Retirement Distribution

  • Have you created a retirement plan and run it against scenarios to ensure you will not run out of money during retirement? 
  • Are you currently following the steps that plan requires? 
  • Have you made plans to create an “income stream” in retirement? 
  • Do you have a tax-optimized distribution strategy?


Things to consider

The first rule of retirement income planning is to never run out of money. The second rule is to never forget the first rule. Retirement distribution strategies are unique to each individual/couple, taking into account their goals, needs and ability to handle risk. Without a regular paycheck, you need to create a consistent, sustainable income stream at the lowest cost. You must make sure that your distribution strategy is tax-optimized to avoid paying unnecessary taxes.


What you need to know

Primary sources of income in retirement

  1. IRAs & Roth IRAs
  2. 401(k)s, 403(b)s & 457s
  3. Pensions
  4. Social Security
  5. Investments & savings

Distribution decisions

  1. What to use first
  2. How to optimize distributions
  3. Investment strategies (short- and long-term)
  4. Tax implications

Ideal retirement income

  1. Provide regular monthly payments
  2. Adapt to changing market conditions
  3. Guard against inflation

Required Minimum Distributions must be taken at age 70½.   


Assess your income needs

  • Estimate your living expenses for a year.
  • Subtract your predictable retirement income (Social Security, pensions, etc.).
  • Get an estimate of your Social Security benefits from the Social Security
    Administration website (https://www.ssa.gov/benefits/retirement/estimator.html).
  • The result is an estimate of income you need from your portfolio. Work
    with FIG Wealth to determine the best strategy to cover the difference.

Allocate your money

  • Set aside at least one year’s worth of income.
    • Use a checking, savings, or brokerage account.
    • Arrange to have Social Security checks and other income
      automatically deposited into a bank account.
  • Work with with us to build an appropriate portfolio to protect your
    remaining assets; along with a strategy that's consistent with potential changes to your income goals.

Plan your withdrawals

  • Pay expenses from your checking account.
  • Set up a plan to withdraw principal from your short-term reserve
    to maintain sufficient cash in your checking account.
  • Utilize a "Bucket Approach" for short term (1 year and under); mid-term and long term distribution planning with the aid of FIG Wealth's team. 

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Your "financial world" is unique and requires a firm that understands it's not how much money you have but how much you keep! We specialize in retirement income distribution where many firms focus on accumulation only. We make sure you don't run out of money with guarantees and not speculation! 

Call us today for a free retirement review with no obligations!

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