Nicole Kresge Pilo

In retirement, you don’t want to worry about where the money is coming from. That’s why you’ve worked so hard to build up your wealth. Now it’s time for you to live your life however you want. We can help you make this happen with lifetime income planning. One way to use a portion of your assets to accomplish this is through an annuity that pays you a fixed income every month.

Annuities are not the same as your other investments. As an insurance product, you can purchase an annuity for a lump sum payment and receive guaranteed or variable distributions each month for a specified timeframe. Annuities can start immediately or in the future. They’re an invaluable planning tool to streamline your retirement income.

The biggest fear of retirees is they might outlive their wealth. This is where retirement income planning comes into play. Don’t navigate this complex process alone. Structuring your assets so that they can provide an income, effectively last “forever” and also keep pace with inflation involves using multiple strategies in concert and it all depends on your specific needs and requirements. Working with our team will allow you to take advantage of our knowledge and experience to benefit you on an individualized basis.

You’ve accumulated wealth through careful planning and hard work. In conjunction with your retirement income strategy, you may be ready to engage in legacy planning. When you plan your legacy, you can get creative with how you want the money used. For example, permanent life insurance can offer a tax free lump-sum payment to one or more beneficiaries and planning for your beneficiaries on your retirement and investment accounts can make difficult transitions in a time of loss easier and can augment long-term income for your dependents. Whatever your wishes, planning in advance can help provide for the ones you love.

How Is Retirement Money Distributed?
There are actually several methods of distributing money from your retirement and investment accounts. For example, you can withdraw a fixed percentage or a fixed dollar amount. You can also set up buckets to cover different time frames of your retirement years. One thing you want to avoid is treating your retirement account like a piggy bank, withdrawing money whenever you want, without a plan. Our team can help you determine the best withdrawal strategy for you.

Do Retirement Distributions Count As Income?
If you funded your retirement account with pre-tax dollars, your distributions will generally count as income. There are some exceptions to this rule. For example, some government pensions may be income-tax free, and you may not have to pay taxes on all of your Social Security income, depending on your income level. Also, withdrawals from Roth IRA are tax free if they meet certain requirements. Investments that have been subject to capital gains during your accumulation period have differing rules depending on whether gains or principal is distributed. We can help you make sense of all of your options and deliver a plan that optimizes this for you.

When you have to work around many unknowns, including legislation changes, illness arising, or fear of outliving your wealth, it’s best to work with a financial advisor. Call Nicole Pilo today to plan for your retirement income distributions and help ensure you don’t outlive your money. Together, we will create a plan that helps maximize your monthly income, minimizes your tax burden, keeps pace with inflation, protects your wealth, provides a legacy for loved ones, and ideally allows you to maintain the lifestyle you’ve worked to enjoy throughout your lifetime.