401K Roll Over, Retirement Planning, RMD, IRA Withdrawal, DE, PA

Retirement planning can be challenging to navigate on your own. At I & E planning we recognize the sensitivity and level of importance this subject carries in a household. Social security is not enough for most people to sustain their standard of living throughout retirement. The AARP reports that running out of money is the #1 concern of most American retirees. We lay out options that help you be proactive, informed and confident with your decisions.

When you have accumulated a nest egg and you are ready to start taking income, then the rules of the game change. Understanding asset allocation for distributions is challenging and we are here to help you plan out what is best for you. We will guide you through a step-by-step process to build your retirement income plan after evaluating all options. Weighing the pros and cons of each you will end up with a plan that gives you the comfort you deserve.

I&E Discussion Points

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Accumulation vs. Distribution

Your account value is determined by the number of shares multiplied by the price per share. During the accumulation period, the priority is on growing the value by accumulating shares. As ongoing contributions are being made, dollar cost averaging happens automatically. Volatility of share prices causes more shares to be acquired when prices are lower and fewer shares acquired when prices are higher.

The rules of the game are different during the distribution phase, where the priority is providing income. While selling shares, the opposite occurs. Volatility of share prices causes mores shares to be sold when prices are low and fewer shares sold when prices are high. As the number of shares reduces multiplied by the price per share, one must manage the potential of running out of money too soon.

Pensions are rare

Traditionally, retirement income came from the so-called “three-legged stool”: Social Security, Pensions and savings. However, most retirees today do not have pension benefits. How will you structure sustainable income to support your standard of living when you are no longer working full time? Social Security will help, but by itself it is not enough. Social Security replaces just 40% of pre-retirement income, on average. The team at I & E Planning will work beside you to craft a written plan for your income that will help you maintain your standard of living throughout your retirement years.

"Suitable" is not necessarily best

Most people collect a portfolio of products, over time, through a series of independent decisions. Typically, there is inefficiency which can be adjusted to deliver more value. We will recommend what to keep and what to change so you know your best path forward.

How much income do you need?

Without depriving yourself and without spending lavishly, how much money is needed for you to be happy. Everyone has a number; below which life becomes unpleasant. Our process for income planning starts with understanding your earnings and benefits statement from Social Security ssa.gov/myaccount/.

A retirement spending plan will help you keep track of monthly, quarterly and annual expenses for your needs and wants. Building assurances for your must-haves can be comforting and building in a cushion for discretionary spending can be fun!

I&E Discussion Points

Accumulation vs. Distribution

Accumulation vs. Distribution Note:

Pensions are rare

Pensions are rare Note:

"Suitable" is not necessarily best

"Suitable" is not necessarily best Note:

How much income do you need?

How much income do you need? Note: