Retirement Planning

What You Need to Know about Retirement Planning

There are two distinct phases in retirement planning. The first phase is the accumulation phase, where you take advantage of time, compound interest, and the right selection of investments to build a significant nest egg. When you retire, the distribution phase begins. During this phase, the goal is to create a regular income stream for you while protecting your other assets, so you don’t outlive your wealth.

We’re here to help you during both phases. CSV Financial Advisors is conveniently located in Golden Valley, MN, where we help individuals of all backgrounds prepare for their retirement years. Our experienced financial advisors can help you manage your retirement accounts and investment portfolios, create an income distribution plan for your retirement years, and support you on your journey. Our team can also help you with legacy planning and mitigating market risks for your investments.

How Retirement Income Distribution Planning Works

Retirement income planning is all about how to avoid outliving your wealth and provide a stable income source for you. Instead of making withdrawals from your retirement accounts whenever you need cash, we create a plan that helps you optimize your distributions. This gives your remaining assets time to appreciate and provides you with the peace of mind that you’re not running out of money.

For example, we can use annuities to provide a regular income stream that resembles a paycheck, allowing you to cover your living expenses each month. Annuities, which are actually an insurance product, are a great tool for lifetime income planning.

The Process of Estate Planning

As you consider your life transitions, approaching and during retirement, many items come to mind. Perhaps estate planning and/or considering how an in home or long term care facility stay for you or your loved ones may impact your financial position. We can help you consider impacts, including distributing your life's work to the next generation according to your wishes, while avoiding probate and excess taxes for your beneficiaries. Permanent life insurance is a great investment vehicle for your legacy plan. Your life insurance policy also builds cash value over time and can be used as another income source during retirement if needed.

Retirement Planning Frequently Asked Questions

How Long Will My Retirement Savings Last?

How long your retirement savings will last depends on the size of your nest egg and the frequency and amount of withdrawals you make. If you can reduce your monthly expenses, your savings will stretch farther. You may also be able to supplement your retirement savings with Social Security benefits. We can help you make the calculations for your situation and create an income distribution plan that works.

How Much Money Do We Need to Retire?

It really depends on your needs and monthly expenses. If you plan to retire early or do extensive traveling, you may need more of a nest egg than if you’re debt-free and living on a frugal budget. There’s no one-size-fits-all solution, but we can help you set a goal for yourself.

Are There Any Guarantees Available for My Retirement Income?

Yes. You can purchase annuities to turn your investments into a regular income stream you can count on. You can also rely on Social Security benefits if you qualify. Those benefits are constant and can help you supplement your income.

How Is Retirement Money Distributed?

There are different options for taking distributions in retirement. We can set up buckets inside your investment portfolio, designating the different amounts to specific timelines in your retirement. We can also use annuities to help you receive a regular income stream. The least beneficial option is to withdraw money whenever you need it, because it might cause you to run out of money too soon.

Do Retirement Distributions Count As Income?

Yes, most retirement distributions count as taxable income. The exception is income from Roth investment accounts. Part or all of your Social Security benefits may also be exempt from taxes, depending on your income bracket.

How Are Distributions Taxed?

Traditional retirement accounts allow you to deduct contributions from your tax return. But when it’s time to receive distributions, you have to declare that income and pay taxes on it. We can help you optimize your distributions to reduce your taxable burden as much as possible.

Talk to Us about Retirement Planning

If you’re ready to plan for your retirement income distributions, we’re here to help. Our goal is to ensure you do not outlive your money in retirement and receive a guaranteed retirement income to cover your expenses. Call our team at CSV Financial Advisors to optimize your retirement plan and prepare for your future.

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you.

sonjab@csvfinancial.com | (612) 638-2727