Skip to main content
Created: September 19, 2021
Modified: May 14, 2024

Episode 51: How Do I Retire?

Have your question answered on the Money Wisdom Question Series!

Thank you for joining us for episode 51 of our Money Wisdom Question Series. Today’s question is, “How Do I Retire?”

Making the Transition into Retirement

We spend all these years working and saving for retirement and accumulating income. Hopefully, you grow more money as time passes. Every year you get closer to your ideal retirement date, whatever it is you’ve planned for. Of course, different people want different things. Eventually, the question becomes, “How do I take all this money that I’ve saved and turn it into income?” Sometimes people think that’s a silly question, but it’s really not.

How Taxes Can Affect Your Retirement

How many of you think taxes are going down? No one, I’m guessing. We have to anticipate that taxes are going to continue to increase. Are you doing things in the early years of retirement in regards to where you’re drawing money from that you might regret later on? Some things to consider:

  • Should you do a Roth conversion?
  • When should you draw your Social Security?

As of right now, the Required Minimum Distribution is at age 72. So, if you’ve got this chunk of money in your IRA and your 401(k) that’s growing, that’s great. You certainly want to grow your money. But is that the best way for your money to be growing? Keep in mind, that every dollar you make in your IRA increases your future tax liability. Maybe that’s the money you should be spending sooner. Or maybe you should consider a ROTH conversion.

Retirement Planning is Income Planning

We start the conversation of retirement with, “What have you saved? What do you need that money to do? What is your income going to be?” Your retirement planning is income planning and for a lot of folks, assuming you’re fully retired, that’s Social Security. Maybe you have a pension. For a lot of people, the biggest source of income is what can you draw off of your investments. We encourage you to sit down with a professional and start to talk about these things:

Click Here for Your FREE Copy!
  • How much are we going to spend in retirement each month?
  • What do we want our retirement to be like?
  • Do we want to travel during retirement?
  • Would we want to stay home once we retire, or relocate?
  • Should we give money to our kids, or do we want to spend it all during our retirement years?

Important Conversations to Have Before Retirement

These are the important conversations that you have to be having before retirement so that when you get to retirement. You can live how you want to live, because you certainly didn’t save this money all these years as a result of being frugal and making good financial decisions to make it to retirement and be afraid of spending your money.

Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.

Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

Resources by Topic

Subscribe to Our YouTube Channel

Share

Related Resources

  • Today’s Retirement Reality

    Almost one-third of Americans lack confidence that they will have enough income to cover basic monthly expenses throughout retirement. As the economic landscape continues to shift, more individual…
  • How to Prepare for Taxes in Retirement

    No matter how well you’ve saved for retirement, taxes are an unavoidable part of the process. The good news is that with the proper tax planning, you can minimize this burden and keep more of what…
  • What Are Some Unexpected Retirement Expenses to Look Out For?

    Today’s question is one we help our clients navigate all the time: What expenses might I be responsible for as I enter retirement? Nicholas J. Colantuono, CFP® joins this week’s Money Wisdom Qu…
  • Essential Steps for a Robust Estate Plan

    When planning for retirement, one crucial element that often gets overlooked is estate planning. Creating an estate plan can ensure that your assets, legacy, and loved ones are protected. While es…
  • How Can I Generate Low-Tax or Tax-Free Retirement Income?

    Today’s question is: What steps can I take to generate low-tax or tax-free income in retirement? First and foremost, it’s essential to have a tax plan – one that fits within the context of your…
  • Will I Have Enough Income to Retire?

    Once you’ve reached the retirement mountaintop, you may be uncertain about how to navigate the descent. Have you saved enough? Will your money last as long as you do? If you’re like most of the pe…
  • The Right Order to Build Your Financial House

    You wouldn’t design a house that leaves you exposed to outside elements, so why do the same when building your financial house? A well-constructed house first and foremost needs a strong foundatio…
  • Identity Theft: What to Do If Your Identity Is Stolen

    In the digital age, the threat of identity theft is at an all-time high. Sophisticated cybercrime tactics and schemes have left us more vulnerable to online scams than ever before. So, what can…
  • Don’t Let Taxes Derail Your Financial Plan

    A retirement plan that doesn’t consider the impact of taxes can only get you so far. Implementing tax-efficient strategies early on is critical to lowering your lifetime tax liability. After all, …
  • The Road to Retirement – Don’t Go it Alone

    Achieving the retirement you’ve always dreamed of often requires careful planning. While the do-it-yourself approach may be difficult to shake, consider the benefits of seeking professional advice…
    Back to top
    Our Locations
    Johnson Brunetti
    Welcome to Our New Website!
    Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
    Check out your new resource center, where everything can be organized by article type or topic
    Are you ready to speak with a financial advisor?
    Skip to content