ServicesRetirement Income Planning
Retirement Income Planning in Palo Alto
We help you turn what you have already saved into a steady monthly income, then check on it every year so it keeps working. Social Security timing, pensions, annuities and existing life policies all get looked at together, in plain words, before anything new is suggested.
Making your savings pay you, month after month
Saving for retirement and living on it are two different jobs. Most people spent decades on the first one. The second asks new questions. How much can you draw each month? Which account do you pull from first? What happens if you live to 95?
Our work starts with what you already own. Your 401(k) or IRA, a pension, Social Security, any whole life or universal life policy with cash value. We look at how each one pays out and when. Often the plan you need is mostly built already. It just needs lining up so the pieces don't trip over each other.
Then we keep it up. A retirement income plan is not a one-time document. Interest rates move, withdrawal rules change, and so do your health and spending. We sit down with you once a year to adjust before small drifts turn into shortfalls.
What the planning covers
- Every income source on one page
- We list each account, pension, annuity and policy you have, with what it pays, when it starts and what it costs to touch early. Most clients have never seen it all in one place.
- Social Security timing
- The age you claim sets the size of your benefit for the rest of your life. Starting early, waiting for full retirement age or holding out until 70 each brings a different amount. We put the figures next to each other and show where a spouse's benefit comes in.
- A withdrawal order
- Which account you draw from first affects what you owe in taxes. We map out a sensible order and flag the year required minimum distributions begin. We work alongside your tax preparer on the fine points.
- Guaranteed income options
- If your fixed income won't cover the basic bills, we explain how an annuity could fill the gap, what it costs and what you give up for it. Sometimes the honest answer is that you don't need one.
- Your current life coverage
- If you bought whole life or universal life years back, it may have built up cash you can draw on. Its premiums may also have stopped fitting your budget. We go through the actual policy before anyone talks about changing it.
- Yearly upkeep
- Each year we update the numbers, confirm beneficiaries and adjust the withdrawal plan.
Signs it's time to plan your retirement income
You're within five years of retiring
This is the window when choices about Social Security, pensions and account rollovers are still open. Waiting can lock some of them in.
You know your balance, not your monthly number
If you can name what's in the accounts but not what you'll live on each month, the plan isn't finished yet.
Your savings are scattered
Old 401(k)s from past jobs, an IRA, a policy bought years ago. Scattered accounts are easy to forget and hard to draw from in a sensible order.
You worry about outliving your money
Bay Area bills don't shrink just because the paycheck stops. If running out late in life is on your mind, it's worth putting real numbers to that worry.
Your pension wants a payout choice
Single-life or joint-and-survivor, lump sum or monthly. Those choices are usually permanent, so they deserve a careful look before you sign.
What affects the cost
Cost depends on how much there is to sort out and whether you buy a product along the way. We tell you up front how we are paid on anything we recommend, including commissions on annuities or policies. You'll know before you decide, not after.
How many accounts and policies
One IRA plus Social Security is quicker to plan than three old 401(k)s, a pension and two life policies.
Whether you add an annuity
Annuities carry their own fees, surrender periods and rider charges. We show those line by line so you can compare them with doing without.
Riders you choose
Inflation adjustments, joint lifetime payouts and long-term care riders all add cost. Some are worth it for you. Some aren't, and we'll say so.
Your age and health at the start
Starting earlier leaves more options on timing and pricing, especially for any life coverage you keep or add.
How we work through it with you
- 1
Start with a conversation
We hear how your savings look today and what concerns you most about retirement. Then we list the paperwork we'd like to see. You don't sign anything at this stage.
- 2
Gathering what you have
You pull together recent statements, your Social Security estimate, pension paperwork and any life insurance policies. We meet at your office or another place that suits you and go through it together.
- 3
A written income plan
We lay out your expected monthly income year by year, where each dollar comes from and where the gaps are. If a product could help, we explain it in writing with its costs and limits.
- 4
Putting it in place
You decide what to do and when. We help with the forms for any changes you choose and confirm the beneficiary on every account and policy.
- 5
Yearly review
Once a year we compare the plan with what actually happened and adjust. Big changes like a health issue or a move don't have to wait for the review.
Questions people ask about retirement income
Do I have to buy something to get a plan?
No. Plenty of plans end with no new product at all, just a better order for drawing on what you have. If we think a product helps, we'll explain why and what it costs. The choice stays yours.
When should I start?
Five to ten years before you stop working is a good time. That leaves room to adjust savings and settle Social Security and pension choices without a deadline pressing. If you're already retired, a plan still helps, and so does a review of the one you're living on.
Can my life insurance policy be part of my retirement income?
Sometimes. Cash value inside a whole life or universal life policy can be tapped with a loan or a partial withdrawal. Taking money out shrinks what your beneficiary gets, and a loan that isn't watched can make the policy lapse. We work through the figures with you before any money moves.
Will you work with my tax preparer or financial advisor?
Yes. We'd rather fit into the team you already have. With your permission we share the plan with them so everyone works from the same numbers.
What if my situation changes after we set things up?
That's what the yearly review is for. A new diagnosis, a move closer to family or a market drop all get worked into the next update. You can also reach us by phone between reviews.
Can we meet if I'm in Mountain View or Menlo Park?
Of course. Plenty of the people we plan with are in Mountain View, Menlo Park, Los Altos and other towns around Palo Alto. Pick a spot that's convenient, like your office or somewhere close by, and we'll come to you.
Start with the accounts you have now
Gather your latest statements and any policy paperwork, and jot down what's on your mind. We'll work out what that money can pay you each month, then help keep that income on track as the years go by.