March 20, 2024

Revisiting EWA’s Tips to Transition Smoothly Into Retirement

Visualizing your life in retirement is about more than just financial security—it’s about creating a life by design. With retirement, the transition from having 8 hours of free time to potentially 15 hours daily is significant. It’s essential to contemplate how this increase in leisure time will impact your daily routine. We suggest taking a detailed inventory of a 24-hour day and comparing and contrasting your current daily activities with those you envision for your retirement. This inventory should include categories such as work, sleep, family time, personal hobbies, and rest. This exercise is not just about recognizing the quantity of free time you’ll have but also about qualitatively enhancing your life during these years. Remember, while retirement may turn every day into Saturday, planning ensures these days are enriching and far from monotonous. Our team has created a short list of tips to consider which will help you envision life and finances when you reach financial independence.


  1. Distribution Strategies- Controlling Tax Exposure Through Smart Distributions

The phase of distributing retirement savings is as critical as the accumulation phase, with its own set of strategies and considerations. Traditional retirement accounts offer tax advantages during your working years but become less beneficial when distributions begin, due to their taxation as ordinary income. A nuanced approach involves withdrawing from a combination of taxable, tax-deferred, and tax-free accounts. This strategy can optimize your tax situation by leveraging lower tax brackets and managing RMDs more effectively. For those without significant tax-free savings, converting part of your traditional IRA to a Roth IRA can be a savvy move to diversify your tax exposure and prepare for more financially efficient retirement years.


  1. Decisions around Social Security: Balancing Financial Benefits with Peace of Mind

Deciding when to claim Social Security benefits is a complex decision that goes beyond mere numbers. It involves considerations like life expectancy, the desire to leave a legacy, and, importantly, your peace of mind. Though delaying benefits until age 70 may seem financially wise, the immediate benefit of having a steady income stream can significantly impact your well-being and reduce the need to deplete personal savings. This decision is highly personal and varies based on individual circumstances and values. We encourage focusing on what brings you peace and security in retirement rather than solely on the potential financial gains, as the overall impact on your net worth may be minimal in the broader context of your financial life.



  1. Planning for Medicare Premiums: A Crucial Factor in Retirement Planning

Medicare premiums can be a notable expense in retirement, with costs based on your income. By strategically managing your income sources, you can influence your Medicare Part B premiums and potentially save a considerable amount over time. Careful withdrawal planning from your various accounts can help avoid jumping into higher premium brackets, thus keeping healthcare costs in check. It’s important to remember that your income from two years ago affects your current premiums, underscoring the need for proactive planning in this area.


  1. Consider Lifetime Gifting: Sharing Wealth and Values

Lifetime gifting is not just about reducing your taxable estate—it’s a meaningful way to transfer wealth and impart financial wisdom to the next generation. With the current estate tax exemptions, there’s a significant opportunity to gift assets during your lifetime. This process allows for valuable conversations about financial responsibility and legacy planning. Whether it’s through direct cash gifts, funding retirement accounts, contributing to educational savings plans, or establishing trusts, lifetime gifting can have a profound impact on how the next generation views and manages wealth.


Retirement planning requires more than simply planning for the financial aspect—it’s about crafting a fulfilling post-work life, making informed decisions about Social Security, managing healthcare costs effectively, and thoughtfully passing on your legacy. With intentional planning and consultation with your financial professionals, your retirement can be a period of joy, purpose, and financial peace.



The information provided herein is for educational purposes and is based on sources believed to be reliable. It is not intended as financial, tax, or legal advice. Consult with professional advisors for advice tailored to your situation. EWA, a registered investment adviser, does not guarantee the accuracy or completeness of this information and is not responsible for any errors or omissions. Investing involves risk, including the potential loss of principal.

Share This Article:

Get In Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.


Add me to the weekly newsletter to say informed of current events that could impact my investment portfolio.

Important Disclosures:

Securities and advisory services offered through EWA LLC dba Equilibrium Wealth Advisors (a SEC Registered Investment Advisor).
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* The risk of loss in trading commodities and futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage is often obtainable in commodity trading and can work against you as well as for you.  The use of leverage can lead to large losses as well as gains.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.

Request An Appointment

In 15 minutes we can get to know you – your situation, goals and needs – then connect you with an advisor committed to helping you pursue true wealth.