Settling Into Retirement

The retirement parties and congratulations are over, and you’re beginning to settle into the daily routine of retirement. Here’s a list of our top considerations as you think about your wealth and finances.


Think about how you've prepared emotionally

Some folks look forward to rest and relaxation; others are ready to cross off their bucket list travel dreams. But what happens after retirement bliss wears off? Consider what might offer purpose, engagement, meaning, and joy. Reflecting on hobbies, volunteering, family time, or part-time work may inspire ideas that bring structure and purpose to your day.

Question to Ponder: What are some of the things, hopes, or dreams you had to put on the back burner when you were younger?

Think about retirement in terms of POSSIBILITIES!

Flipping the switch from savings to spending is an adjustment. Do you really know what you could spend in any given year? Can you live off more than your current lifestyle? When do you need to scale back?

We encourage you to think about your retirement income and portfolio as spending bumpers—if you live on $10k/month today, how much more could your wealth support? Knowing that spending range is helpful in those years that you may want to spend or give more.

Review your medicare supplement policies every year

Healthcare is a highly personal decision. Are you considering your options if retiring before age 65 is on the table?

And what about Medicare? It can be a daunting maze to navigate and learn on your own. Your #1 priority should be to ensure your health coverage lines up with your health care usage. Working with a qualified Medicare professional to help review your supplement, and prescription drug policies could save you thousands per year!


Don't forget about your taxes!

When saving for retirement, we may not consider what that means for our taxes during our retirement years. Pre-tax 401k or IRA? Social Security? Pension? Most frequently, these sources get taxed as income. When to begin taking these income sources are critical decisions that often come in times of stress, fear, or anxiety. Work with a financial advisor to minimize your total lifetime taxes.

We recommend thinking about ways you could reduce your overall tax liability over the long term. Some strategies that we’ve found beneficial include proper retirement income structuring, Roth conversions, and capital gain or loss harvesting.

Don’t let your age solely determine your stock allocation

We’ve all heard the age-old wisdom, “The percentage you should hold in stock should equal 100 minus your age…” But is this good advice? Is it right for you? And what context does this provide to your retirement?

History tells us that having anywhere from 5-10 years of your portfolio spending allocated towards bonds or cash can help you endure the market’s ups and downs.

Jacobson & Schmitt Advisors, LLC (“JSA”) is a registered investment advisor.  Advisory services are only offered to clients or prospective clients where JSA and its representatives are properly licensed and or exempt from licensure.  The information provided is for educational and informational purposes only and does not constitute investment advice, and it should be be relied upon as such.  It should not be considered a solicitation to buy or an offer to sell a security.