As a physician, your career has been driven by the desire to heal and make change for the better. Your days have been filled, patient by patient, by making a difference in others’ lives. Saying goodbye to this life can be difficult, and we understand that the transition to retirement can be challenging both mentally and emotionally. One thing you don’t need during this new stage of life is financial uncertainty. You don’t have to be an expert at financial planning or investing—you just have to know who to ask. We are here to help you think about your different income sources and the implication of all those tax-deferred balances. Let’s go over the following five questions to help you think strategically about your retirement income needs.
1. What Is Your Real Need?
This question seems so simple, yet it is often overlooked. Do you even know how much income you will need in retirement? Before you can develop a plan for your retirement income needs, you need to have a goal and settle on the destination to which your plan will lead you.
2. What Income Sources Do You Have?
Once you know your goal, you need to take stock of the tools available to get you there. What income sources do you have? This could be anything from Social Security and pensions to annuities, rental income, or taxable brokerage accounts. It is important to analyze your alternative income strategies and review the cost benefits of each choice of potential income elections.
3. What Are The Tax Implications?
Having clarified the different income sources available to you, it is important to understand the tax implications of each one. You may have some accounts that are pre-tax and others that are post-tax, and then there is Social Security, which is taxed based on how much total taxable income you have. It is critical to review the tax status of your accumulated assets in order to develop a tax-efficient income strategy.
4. How Should The Money Flow?
Your cash flow is simply the flow of money into and out of your hands. A cash flow plan, commonly called a budget, is simply a written document showing where your money is coming from and where it is going to go.
While you are working, cash flow planning is simplified in that you usually only have one or two sources of income that are fairly fixed. All of your planning goes into the outflow, not the inflow, of resources. In retirement, it gets more complicated. You now have multiple streams of income and can sometimes turn them on or off at will. You need to do a more in-depth cash flow planning analysis to determine the best route for your assets to reach income.
5. What Is Holding It All Together?
You didn’t reach this milestone of retirement without years of hard work and diligent saving. Now that it’s time to begin drawing from your hard-earned resources, it’s critical to have a plan in place to protect it in the coming years. A disciplined process can help reduce the impact of short-term market volatility on your income and preserve your wealth for the rest of your life as well as the generations to come.
Retirement is a rewarding and fulfilling season of life to spend with family and friends, travel, take up new hobbies…the possibilities are truly endless. We at Haydel, Biel & Associates would love to partner with you, answer your questions, and help you retire with confidence that your funds will last as long as you do. Reach out to us to schedule an introductory meeting by calling our office today at (626) 529-8347 or email Ricky directly at email@example.com.
About Haydel, Biel & Associates
Haydel, Biel & Associates is an independent financial advisory firm serving individuals and families near Pasadena, California. The firm was founded in 2004 by Chris Haydel and Ricky Biel with a desire to provide unbiased, client-centered, community-based financial advice. Together, they have built a practice that has grown into a family of caring, smart professionals committed to blending proven investment methodologies with creative financial technologies that make it easier than ever to accomplish your goals. They strive to keep things simple and fun to give their clients peace of mind and alleviate financial stress. HBA Wealth takes care of their clients’ needs first and foremost and goes the extra mile to make their clients’ finances grow. To meet and see how the HBA Wealth team may be able to help, contact them today at (626) 529-8347 or email Ricky directly at firstname.lastname@example.org.
The commentary on this blog/website reflects the personal opinions, viewpoints and analyses of the Haydel Biel & Associates employees providing such comments, and should not be regarded as a description of advisory services provided by Haydel Biel & Associates or performance returns of any Haydel Biel & Associates Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Haydel Biel & Associates manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.