Retirement Income Planning & Annuities in Denver, CO
Approaching retirement brings a new challenge: turning the savings you’ve accumulated into a reliable, lifelong income.
Our retirement income planning services in Denver help you create a smart strategy so that your money lasts as long as you do. We know one of the biggest fears for retirees is outliving their savings, and we address that head-on by developing a sustainable withdrawal plan and exploring solutions like annuities for guaranteed income. We also help you make critical decisions about when to claim Social Security and how to optimize any pension or employer retirement benefits you may have. The result is a comprehensive income blueprint that aims to cover your essential expenses (and many of your wants) no matter what the markets do. With our guidance, you can enter retirement confident that you’ll have a “paycheck” every month and a plan to preserve your financial security throughout your golden years.
Creating Your Retirement Paycheck
During your working life, you’re used to a paycheck coming in regularly. In retirement, you’ll essentially create your own paycheck by drawing from various sources. We assist you in mapping out all potential income streams: Social Security benefits, pension payments, withdrawals from 401(k)/IRA accounts, dividends or interest from investments, rental property income, and so on. Together, we’ll determine how much income you need each month to cover your cost of living in the Denver area (and any other lifestyle goals like travel). Then, we design a withdrawal strategy that provides that income in the most efficient way. This often means deciding which accounts to tap first – for example, you might use taxable investment account funds in the early years to allow tax-deferred accounts to keep growing, or vice versa depending on tax implications. We calculate a prudent withdrawal rate (such as 3-4% of your portfolio per year, adjusted for inflation) tailored to your situation, so that you won’t run out of money over a 20-30 year retirement. Crucially, our plan is not static: we’ll revisit and adjust it regularly, especially if market returns differ from expectations or if your spending needs change. Flexibility is built in, ensuring you remain on solid footing.
Leveraging Annuities for Guaranteed Income
One tool we may consider for your retirement income plan is an annuity. Annuities are insurance products that can provide a guaranteed income stream for life, which can be extremely valuable for covering basic expenses no matter how long you live. We are very deliberate and careful in recommending annuities – they are not right for everyone, and there are many types (immediate annuities, fixed indexed annuities, variable annuities, etc.) to evaluate. If it fits your needs, we’ll help you choose a well-structured annuity from a reputable provider that offers a solid payout and low fees. For example, some Denver clients choose to annuitize a portion of their 401(k) rollover to cover essential costs like housing, healthcare, and groceries for life – essentially creating a personal pension. By pairing that guaranteed income with Social Security, you create a floor of income that doesn’t depend on market performance. This can bring great peace of mind. We will transparently explain the pros and cons: annuities can provide longevity insurance (you can’t outlive the payments), but they also may limit access to the lump sum once annuitized. Our role is to ensure you fully understand any product and to only use annuities when they genuinely enhance your plan. We do not push products; as fiduciaries, our only goal is your financial well-being.
Integrating Social Security & Tax Considerations
Deciding when and how to take Social Security is a big piece of the retirement income puzzle. We will analyze your situation to determine an optimal claiming strategy. For some, especially those in good health, delaying Social Security to age 70 can significantly boost monthly benefits (they increase each year you delay past full retirement age). For others who retire early or have health issues, claiming earlier might make sense. If you’re married, we look at spousal benefits and survivor benefits to ensure the higher earner’s benefit is maximized (since it will continue for the surviving spouse). We also guide you through the tax implications of your retirement income. In Colorado, for instance, a portion of your retirement income (including Social Security and pension benefits) is exempt from state taxes after age 55smartasset.com, which can alleviate some tax burden. We craft withdrawal sequences that minimize how much tax you pay – this could involve doing Roth conversions in early retirement years (to take advantage of lower tax brackets) or coordinating withdrawals to avoid pushing yourself into a higher bracket. Required Minimum Distributions (RMDs) from traditional IRAs/401ks will start at age 73 (for most retirees under current law), and we’ll incorporate those into your plan so they don’t catch you off guard. Ultimately, our comprehensive approach ensures that every dollar you’ve saved works hard for you in retirement, and that you keep as much as possible after taxes.
FAQ
What is an annuity, and do I need one?
An annuity is a contract with an insurance company where you pay a sum of money (either all at once or over time) in exchange for guaranteed payments in the future. Some annuities start paying income immediately (immediate annuities), while others let your money grow and then pay you later (deferred annuities). There are fixed annuities (with set interest rates), variable annuities (tied to market performance), and indexed annuities (tied to an index with some guarantees). Whether you need an annuity depends on your situation. If you have concerns about outliving your money or want a portion of your income to be guaranteed for life (beyond Social Security), an annuity might be helpful. On the other hand, if you have substantial assets and a good handle on investments, you may not need one. We evaluate this carefully – our advice on annuities is always personalized. If an annuity isn’t in your best interest, we simply won’t recommend it.
How will you make sure I don’t run out of money in retirement?
We use prudent planning and ongoing management to greatly reduce the risk of depleting your savings. First, we calculate a conservative withdrawal rate based on your assets and expected lifespan – this ensures you’re not taking out too much too soon. We also create a diversified investment strategy that balances growth (to keep up with inflation) and stability (to provide income even during market downturns). Additionally, we maintain a cash reserve or short-term bucket for 1-2 years of withdrawals – this means if the market drops, you can draw from cash instead of selling investments at a bad time. Incorporating some guaranteed income (like annuities or pensions) further protects you by covering basic expenses regardless of market conditions. And importantly, we meet with you regularly in retirement. If there are changes – say, unexpected expenses or portfolio performance – we’ll adjust the plan (maybe trimming discretionary spending for a period, for example) to keep it sustainable. This active monitoring and flexibility ensure that if anything starts to go off course, we catch it early and make corrections. With our ongoing guidance, you can feel confident that your retirement income plan remains safe and on-track.
You’ve worked a lifetime to build your savings – now let’s make that money work for you in retirement.
Contact us for a retirement income planning session. Our Denver-based advisors will analyze your current retirement picture and show you strategies to create a steady, reliable income stream that lasts. The first consultation is free and comes with no obligation. We simply want to help you explore your options for turning your hard-earned savings into a comfortable retirement lifestyle. Don’t leave your future income to chance – reach out today and take control of your retirement security.
