retirement plan

Retirement Planning Overview

Retirement planning is specific to your situation, as many different factors come into play, such as portfolio values, living expenses, tax rates, healthcare costs, insurance premiums, etc. By understanding your income sources and expenses, you can construct a robust income strategy tailored to your retirement needs and goals.

Consider Income Streams

Begin by evaluating your potential sources of retirement income. Some, like employer-sponsored retirement plans and investment accounts, may be subject to market fluctuations:

  • Employer-sponsored retirement plans such as 401(k), 403(b), and 457 plans
  • Traditional and ROTH IRAs
  • Taxable (non-qualified) investment accounts

Others offer more stability:

  • Social Security
  • Pension plans
  • Annuities
  • Real estate rental income

Give Thought to Required Minimum Distributions (RMDs)

Make sure to stay compliant with required minimum distributions (RMDs) by adhering to IRS regulations mandating annual withdrawals from retirement accounts, like IRAs and employer-sponsored retirement plans, starting at specific ages. Pre-tax (non-Roth) retirement accounts subject to RMDs include the following account types:

  • 401(k), 403(b), and 457 plans
  • Traditional IRA
  • Tax-qualified annuity

Maximize Social Security

Often, there is an advantage to delaying your social security benefits. What is the value of waiting? Up to 8% per year. Consider the optimal timing and strategy for claiming benefits by visiting the Social Security Administration website, While social security benefits provide a stable income foundation, it’s typically insufficient to cover all expenses but can be used to supplement other income sources effectively.

Review Expenses

Assessing your expenses helps to provide clarity on income needs. Develop a comprehensive plan to estimate annual expenses by categorizing them into the following buckets:

Essential expenses

  • Food
  • Housing
  • Healthcare Costs
  • Auto expenses
  • Insurance Premium(s)
  • Taxes

Discretionary spending

  • Entertainment
  • Charitable Giving
  • Recreation
  • Travel
  • Gifts

Consider Longevity and Inflation

Longevity risk and inflation are two factors that can significantly impact your retirement income and expenses. With life expectancy on the rise, as you enter retirement, you must ensure income sources can support a potentially lengthy retirement period. Additionally, inflation erodes purchasing power over time, making it essential to invest in assets that maintain your purchasing power.

Both factors are best addressed by seeking investments with growth and income, balancing risk tolerance with the need for capital preservation, especially for extended retirement periods. Understanding average retirement planning and the durations can inform asset longevity strategies. For instance, knowing that a 65-year-old today may live another 20 to 30 years helps in determining how long savings should last and what level of income is required to maintain a desired lifestyle.

Factors influencing life expectancy include:

  • Genetics
  • Lifestyle choices
  • Access to healthcare

By considering these factors, you can better estimate your longevity and plan accordingly. Moreover, accounting for potentially longer lifespans emphasizes the importance of building a robust retirement portfolio that can withstand inflation.

Allocating funds across various asset classes, such as stocks, bonds, and real estate (for most people their residence), helps mitigate the impact of inflation. Diversifying investments is paramount. Historically, stocks have outpaced inflation, offering growth potential that can counteract rising costs. Exposure to the stock market is not only the growth generator in your portfolio, but it also protects the purchasing power of your investments.


We’re here to help you implement a withdrawal strategy to meet living expenses while preserving the longevity of your portfolio. This entails determining how to best utilize all income sources pre- and post-retirement.  Knowing when RMDs and social security income will kick in and roughly how much they’ll allow for appropriate portfolio construction.  Keeping expenses in mind will allow you to plan accordingly.  Understanding longevity and inflation may prompt you to prioritize health and wellness, potentially reducing healthcare costs and enhancing overall quality of life in retirement.

Here are two resources to assist in retirement planning for income during retirement:

  • RMD calculator (no login needed):
  • Social Security (create login credentials if you haven’t already):

Related Tag: Certified Financial Planner Florida