• Developing your retirement income strategy is part of the planning process.
• We can help you analyze possible expenses and sources of income.
• Checking on your strategy annually can help you maintain course.

It starts with a plan

Creating a plan can help you stay focused, plan for challenges ahead, and make choices that work for you. 

Our investment planning process is the foundation we use to develop your retirement income plan. It can help you make choices and tackle the following topics:

• When and how can I retire with confidence?
• How can I help make my money last as long as I’m retired?
• Where will my income come from?
• How do I prepare for and respond to events throughout retirement?
• When and how should I address my legacy goals? 

7 common retirement planning moves

Will the money in your investment accounts last through retirement? Here are some steps that go beyond the basics of using tax-advantaged funds and making regular contributions.
 

1. Review your portfolio - Conduct regular investment checkups on your own and with us.
2. Maintain emergency savings - Wells Fargo Advisors recommends keeping an emergency fund with enough money to cover living expenses for three to six months. Keep emergency funds in a liquid account you can easily access if needed.
3. Set an appropriate asset allocation - Investments are fluid. Some are more volatile, but all can be affected by market fluctuations. Adjust your assets to align with your current goals and tolerance for risk.
4. Itemize your income plan - Understand where your retirement funds will come from. List out all sources, such as Social Security and pensions. For each item, list how it might generate income for your portfolio.
5. Clean up your accounts - Consider consolidating accounts. You’ll not only have less paperwork, you can help keep an eye on your asset allocation and overall investment strategy.  We can talk about your choices and what might make the most sense for you. Before taking any action, speak with your current retirement plan administrator and tax professional.
6. Sell assets strategically - Selling assets can have tax implications. Proceeds could nudge you into a higher tax bracket. Balance the concern of minimizing taxes when you’re selling assets with your portfolio’s allocation strategy. Talk with us about the choices you have in this situation.
7. Talk with family - Partners and spouses should be on the same page regarding your financial portfolio. Cover some key financial details: 

• Current total assets
• How much you have saved right now
• How much is in each account
• Where the funds are located
• Your budget

Common risks to address

While we develop your retirement plan, you’ll want to look at risks such as inflation, market events, health needs, withdrawal strategy, and how long you’re likely to live. Understanding the impact these challenges may have on your savings and planning for them can help you stay the course. 

Have an ongoing process

Planning for retirement is not a “one and done” kind of activity. A good plan should be checked regularly and adjusted, as necessary. Keep an eye on your portfolio, talk about your expectations, and prepare for the unexpected.
 
Schedule an annual checkup with us to review your plans, your current circumstances, and your portfolio. We’ll work together to discuss your choices and what works for you.

Next steps 

• Think about what you hope your retirement will be.
• Write down all your possible sources of income and expenses in retirement.
• Take a look at your portfolio and call us if you have any questions about changing your asset allocation.
• Call us to start on your personalized retirement income plan.

 

Wells Fargo Advisors does not provide tax or legal advice. 

Investing involves risk including the possible loss of principal. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations. Dividends are not guaranteed and are subject to change or elimination.

• Everyone could use an estate plan – not just the wealthy.
• 5 documents are essential for many estate plans.
• An estate planning attorney and your accountant will work with your Financial Advisor.

Estate planning: a matter of control 

You might associate estate planning with famous people you see in the news. In fact, estate planning could be appropriate for everyone. 

Consider your assets: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, house, cars, jewelry, and heirlooms. This is your estate and your estate plan can define what you would like to happen to these assets when you die. 

An estate plan can also take care of you as you get older or if you become ill or incapacitated. Being wealthy has little to do with it. 

If you don’t make your own plan, your family may be left scrambling at an already difficult time. Bottom line: If you don’t decide, someone will decide for you.  

Five essential documents 

These five documents are often essential to an estate plan: 

• Will - Instructions for distributing your assets when you die. You will name a personal representative (executor) to pay final expenses and taxes and distribute remaining assets. Name a guardian to raise your minor children if both parents die. 
• Durable power of attorney – You give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive. 
• Health care power of attorney - You choose someone to make medical decisions on your behalf if something were to happen and you can’t make them yourself. 
• Living will – Shares your intentions about life-sustaining medical measures if you are terminally ill. No one is given authority to speak for you. 
• Revocable living trust - You can provide for continued management of your financial matters while you are alive, after your death, and even for generations after. 

Why beneficiary designations are important

Beneficiary designations can be an easy way to transfer an account or insurance policy when you die. But if you didn’t complete beneficiary designations, or haven’t updated them, they can cause issues with your estate plan. 

Designations on forms are often filled out without much thought – but they’re important and deserve your attention. Beneficiary designations on forms like your insurance policy and 401(k) take priority over other estate planning documents, like your will or trust. 

Let’s say you specify in your will you want everything to go to your spouse after your death. But you never changed the beneficiary designation on your life insurance policy and it names your ex-spouse. Your ex may end up getting the proceeds. 

Turn to a team of professionals 

Making the decisions involved with estate planning may seem overwhelming. It doesn’t have to be. You can start by organizing your important documents. 

Turn to a team of trusted professionals, including your financial advisor, an estate planning attorney, and your accountant. They know the questions to ask and can help you avoid potential pitfalls. 

If you currently don’t have relationships with an attorney and an accountant, we can make some recommendations. We can also discuss our role in the planning process and how you can get started. 

Next steps 

• Make an appointment with us to talk about your estate planning goals.
• Start gathering your financial documents.
• Check the beneficiary designations on your financial and investment accounts.

Trust services available through banking and trust affiliates in addition to non-affiliated companies of Wells Fargo Advisors. 

Wells Fargo Advisors and its affiliate do not provide tax or legal advice. Please consult with your tax and/or legal advisors before taking any action that may have tax and/or legal consequences.  Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.