Just retired? Use this checklist to review your portfolio, set a withdrawal strategy, plan for required distributions, and understand Social Security timing.
1) Review the portfolio (and the inflation problem)
Some retirees shift heavily to fixed income, but if returns don’t keep up with inflation, purchasing power can erode.
It may be worth considering keeping at least a portion in growth investments, depending on goals and risk tolerance.
2) Set a spending plan you can live with
A guideline noted in the material is to keep annual withdrawals from a portfolio at or below 4% to 6%, with the right level depending on factors like payout period length and asset allocation.
Spending too much too soon can increase the risk that assets won’t last.
3) Understand retirement plan distribution options
Many pension plans pay benefits as an annuity, and married retirees often must choose between higher lifetime benefits or smaller benefits that continue to a spouse.
Other options may include rollovers to an IRA for more flexible withdrawals.
4) Plan for required distributions
You generally must begin taking minimum distributions from employer plans and traditional IRAs after age 72, whether you need the income or not.
5) Know your Social Security timing basics
Normal retirement age varies (66–67 depending on birth year). Benefits can start as early as 62 (reduced), or increase if delayed.
Disclosure: This checklist is general information and not individualized investment, tax, or legal advice. Rules can be complex and depend on personal circumstances. Investing involves risk, including possible loss of principal.