Retirement Plan Considerations: Preparing to Retire

Retirement Plan Considerations

With just a few short years until you celebrate the major step into retirement, it’s time to begin thinking about when and how you will begin drawing down your retirement plan assets. You might also want to adjust your investment allocations with an eye toward asset protection (although it’s still important to pursue a bit of growth to keep up with the rising cost of living).1 A financial professional can become a very important ally in helping to address the various decisions you will face at this important juncture. You may want to discuss:

  • Health care needs and costs, as well as retiree health insurance
  • Income-producing investment vehicles
  • Tax rates and living expenses in your desired retirement location
  • Part-time work or other sources of additional income
  • Estate planning

You’ll also want to familiarize yourself with required minimum distributions (RMDs). The IRS requires that you begin drawing down your retirement plan assets by April 1 of the year following the year you reach age 70. If you continue to work for your employer past age 70½, you may delay RMDs from that plan until the year following your actual retirement.2

To learn more about our CFS* Wealth Management Services at Elevations Credit Union, click here.

1Asset allocation is a method used to help manage investment risk; it does not guarantee a profit or protect against a loss.

2 Withdrawals from your employer-sponsored retirement savings plan prior to age 59½ (or age 55 in the event you separate from service) may be subject to regular income taxes as well as a 10% penalty tax.

Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members. For specific tax advice please consult a qualified tax professional.

Author John Marx

John has been in the financial services industry since 1986 and is currently Elevations VP of Wealth Management, in addition to being a registered Financial Advisor through CUSO Financial Services, L.P. He shares helpful tips on investments, insurance and money management.

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