Professionals
Wealth Management for Retirees
Wealth management for retirees focuses on seeking to turn accumulated assets into reliable, long-term income while preserving capital and minimizing risk.
As retirees shift from earning a salary to drawing income from savings, Individual Retirement Plans (IRAs), 401(k) Plans, ROTH IRAs, SEP IRAs, as well as other employer pensions and personal investments; Bespoke, comprehensive financial planning should play a central role in sustaining their lifestyle.
A clear understanding of all income sources is essential to building a solid financial plan.
Budgeting and Spending
Effective budgeting and spending are at the heart of retirement planning. Retirees must align their expenses with available income, distinguishing between essential needs and discretionary spending. Developing a sustainable withdrawal strategy—typically around 3 to 4 percent annually—helps ensure funds last throughout retirement. Regular reviews are important to adjust for inflation, unexpected healthcare costs, or lifestyle changes.
Investment Management
Investment management during retirement emphasizes preservation of capital, reduced volatility, and income generation. While many shift to more conservative portfolios, maintaining some growth investments can help keep pace with inflation. A diversified approach using dividend-paying stocks, fixed-income securities, and tax-efficient vehicles can provide a steady stream of income while managing risk.
Tax and Estate Planning
Tax planning and estate considerations also play a crucial role in wealth management for retirees. Strategic withdrawals from retirement accounts, life insurance strategies and more can reduce tax burdens. Meanwhile, keeping wills, powers of attorney, and beneficiary designations up to date ensures a smooth transfer of wealth and honors personal wishes. Working with Legacy Private Client Services can help retirees make informed decisions and stay confident in their financial future.