Personal Finance

Friday, May 20, 2016

How to Start Planning for Retirement Withdrawals

Planning a retirement withdrawal strategy is a fundamental step toward replacing a traditional paycheck with a long-term retirement “paycheck.” Here are three questions you can ask yourself that will lay the groundwork for planning your long-term strategy.






1. What do you own, in what types of accounts?
Start by separating your assets into qualified (tax-deferred) and non-qualified (taxable) accounts.
  • Tax-qualified assets typically include 401(k)s or individual retirement accounts (IRAs).
  • Non-qualified assets include assets like bank savings, individual equities, mutual funds, municipal bonds, and fixed income investments.
  • Rental real estate, land, and business property should be cataloged separately because they may provide income and may be repurposed in the future.
  • Also identify any insurance policies that have large cash values.

2. What are my sources of income today?
Next, determine how much income you currently generate each year. It helps to categorize your income into these buckets:
  • Employment income—whether it’s from full-time, part-time, or consulting work.
  • Income from Social Security, pensions, or disability, or rental income.
  • Investment income from the assets listed in Section 1.
  • Annuities that include a guaranteed income benefit rider.

3. What changes are coming?
  • If you are 61 or younger, determine whether you will start Social Security at the earliest age possible, or defer Social Security to get a permanently increased base.
  • Know whether your pension gets a cost-of-living adjustment (COLA), or if it has a survivor benefit for your spouse.
  • Determine approximately how much you will have to take at age 70 ½, when required minimum distributions (RMDs) begin.
  • Try to project if your expenses will materially change in the coming years for reasons such as: a mortgage ending, college expenses being paid off, medical premiums going up or down due to Medicare, or medical premiums going up due to increased needs.

Once you know what you own, how much you generate in income, and how changes may affect you, you’re on your way to developing a solid withdrawal strategy. We can help you develop withdrawal strategies that synchronize your needs with your investment portfolio.

Contact your Janney Financial Advisor today for a retirement income evaluation.


Martin Schamis, CFP
Head of Wealth Planning
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Martin Schamis is Head of Wealth Planning in the firm’s Wealth Management division. In this role, Martin is responsible for the strategic direction of the Planning Solutions Group that supports more than 740 Financial Advisors who advise Janney’s retail client base.

Martin joined Janney from The Vanguard Group, where he spent the majority of his 11-year tenure as Senior Manager of Financial Planning and Advice Services. During his time there, he helped launch several successful financial planning initiatives, including redesigning Vanguard’s comprehensive financial planning offering as well as developing a solution connecting clients with Vanguard’s CFP® professionals for situational advice. Prior to Vanguard, Martin worked as a financial advisor for Morgan Stanley. He is a Certified Financial Planner® professional and holds FINRA Series 7, 66, and 24 licenses. Martin graduated with a Bachelor’s degree in Physics and Art from the University of Delaware and received an MBA in Finance from St. Joseph’s University.


Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting, or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

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