GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
Unfortunately, workers go into retirement without many of the facts.
They dont know how long theyll live or what kind of health-related expenses theyll incur later in life.
No one knows how financial markets will perform or how fast inflation will devalue saved dollars.
So how can retirees plan their investments and finances with so many unknowns?
And you may need to adjust that plan and your asset allocation as you go further into retirement.
Do you know how much you will need to live off of in retirement to maintain your desired lifestyle?
So, its important to review your assets and determine what the tax hit will be.
Income distribution from retirement accounts can have a serious impact on lifetime taxes paid.
Schiffman recommended moving as much money as possible to Roth retirement accounts.
They grow and compound tax-free, and you pay no taxes on withdrawals in retirement.
Actual financial planning should begin years before retirement.
Consider converting some of your tax-deferred retirement accounts to tax-free accounts through a taxable Roth conversion, he said.
When stocks eventually recover, theyve already sold off too many stocks for their portfolio to recover fully.
Thats why its important to adjust your assets based on risk tolerance in retirement.
Shift to More Income-Oriented Stocks
Not all stocksare created equal.
Some companies especially smaller, less established ones aim for fast growth to drive their stocks returns.
But with that growth comes volatility and risk.
Often, more mature, established companies have little room for growth, but they earn stable revenue.
And they pass that revenue along to shareholders in the form of dividends.
Retirees who want guaranteed ongoing income can get it by buying annuities.
Guaranteed sources can include Social Security, pensions or annuity income.
The remaining one-third can come from portfolio withdrawals, he said.
Most retirees will face market risk, inflation risk, cognitive risk and longevity risk.
More From GOBankingRates
Share This Article:
