Getting close to retiring

After years of saving and investing, you are finally getting ready to enjoy the benefit of your planning and hard work. But there are still decisions that need to be made, including the following:

  • Update the retirement income needs estimate you may have projected long ago. Is it still accurate?
  • Identify all of your potential income sources, including Social Security, pensions, and personal investments. How many do you have?
  • Review your asset allocation – how you divide your portfolio among stocks, bonds, and cash. Is it still suitable?

Once you've assessed your needs and income sources, it's time to make a plan to withdraw the assets you’ve built up.

  • First, determine a prudent withdrawal rate. A common approach is to liquidate 5% of your principal each year of retirement; however, your income needs may differ.
  • Next, you'll need to decide when to tap into tax-deferred and taxable investments. The advantage of holding on to tax-deferred investments (employer-sponsored retirement plan assets, IRAs, and annuities) is that they compound on a before-tax basis and therefore have greater earning potential than their taxable counterparts.

Be sure to consult a qualified financial professional, a tax advisor, and an estate-planning attorney to make sure that you're prepared for this new – and exciting – stage of your life.

This informational discussion does not constitute investment advice, nor does it make a direct or indirect recommendation of any particular product or of the appropriateness of any particular investment-related option. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Please be advised that this document is not intended as legal or tax advice.  Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.  The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor.

Equitable Financial Life Insurance Company (New York, NY) issues life insurance and annuity products. Securities offered through Equitable  Advisors, LLC, (member FINRASIPC).  Equitable Financial Life Insurance Company and Equitable Advisors are affiliated and do not provide tax or legal advice.

GE-4327543.1 (03/2022) (Exp. 03/2024)