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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

January/February 2021

Retirement Income

Retirement Income

Planning for retirement involves estimating monthly income needs and determining which retirement funds to tap first. There are several general retirement income strategies to consider, but the key is to customize withdrawals to best fit your situation. Here are a few:


The 4% Rule
Many people use the 4% rule and withdraw 4% of their portfolio each year. Although this approach provides a predictable annual income, it’s not without its drawbacks. If the bulk of your retirement savings are subject to market volatility, your monthly income could drop, too.


This is a “set it and forget it” method. It does not take into account other sources of income, such as part-time employment, or changing needs. This may be a good way to get a general idea about how much income your investments will likely generate, but when you are close to retirement, it’s important to build in some flexibility.


Fixed Amount
Another option is the fixed dollar amount approach. In this case, you’d withdraw a fixed amount each year based upon your budgeting needs. For simplicity you could withdraw the same amount each year and reassess your situation annually. And if changes are needed, make them at that time.


Interest Only
This approach has you withdraw only interest payments you receive from your investments. For this method to be beneficial, most, if not all, of your retirement savings will need to be invested in fixed income securities, like corporate or government bonds. The benefit of only drawing on your interest payments for your retirement needs means that your principal remains intact ready to use when an emergency arises.


RMDs
When developing the strategy that’s right for you, you’ll want to plan for taking required minimum distributions (RMDs) from your tax-deferred plans (e.g. traditional IRAs, 401k or other employer sponsored plans). The required distribution amount depends on your age and the balance of your accounts.


Work with your tax and financial professionals to create a a custom and personalized retirement distribution strategy that works best for you.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.