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. Will you be in a higher tax bracket when you retire?

• Employment income—whether it’s from full-time, part-time, or consulting work.
• Income from Social Security, pensions, disability, insurance payments, or rental income.
• Investment income from the assets listed under Question 1.
• Annuities that include a guaranteed income benefit rider.

3. What changes are coming?

Next, determine how much income you currently generate each year. It helps to categorize your income into these buckets:

• 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 72 (73 if you reach age 72 after Dec. 31, 2022), 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 or 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 align your investment portfolio with your retirement income needs and withdrawal strategy, helping you feel confident in living out the retirement lifestyle you envision.