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Income and Distribution Planning

Blackstone Valley Wealth Management can help determine how to effectively distribute your wealth in retirement.

Throughout your working life you collected a paycheck on a regular basis. You adhered to a disciplined schedule for saving, most likely contributing to at least one type of account; a 401k, 403b, IRA, SEP IRA, Roth IRA and/or a non-retirement accounts. Retirement has arrived and you question how to transition from the comfort of earning a paycheck to the reality of creating a paycheck.

At Blackstone, we take the time to provide education on how to effectively distribute your wealth and on the various income vehicles, strategies, and solutions that are widely used today. We evaluate your income requirements (essential and non-essential expenses), sources of income (pension, social security, rent), investments, savings, and tax bracket to begin the process of developing both an income and investment strategy designed to last throughout your lifetime. Distributions are structured to minimize taxable income and often involve taking distributions from both pre-tax and after-tax accounts. Your investment allocation is designed to seek both preservation and growth, with a focus on balancing your investments with your desired level of risk. Annual planning can help keep your income consistent year over year (inflation adjusted) and your asset mix properly aligned with your desired return. Also important to the success of your retirement income plan is the understanding of the many risks you will encounter throughout your retirement years. There are several risks that require attention and they are:

  1. Longevity- How long will retirement last?
  2. Inflation- A rise in the general prices of goods and services over time.
  3. Asset Allocation- Investment strategy of equities, fixed income, and cash that aligns with one’s time frame, risk tolerance and investment objective.
  4. Health Care Costs- Cost associated with all types of premiums, co-pays, prescriptions, hospital care and long term care (in home and nursing home).
  5. Withdrawal Rate- The amount of money needed from investable assets each year and the percentage that amount represents.
  6. Tax Considerations- The tax impact of withdrawals from pre- tax and after tax accounts, as well as timing and coordination of these withdrawals.
  7. Monitor- Process of reviewing your income and investment plan on a consistent schedule.

Each individual retirement income plan is designed to address and manage the many risks that can potentially effect the success of your retirement. 

Whether you plan to retire next week or next decade, it's never too early to start the conversation. Contact us today.