After years of advising families through the transition into retirement, I’ve noticed that one question comes up more than any other, and it rarely has anything to do with how much money someone has saved.It’s a short question with a complicated answer. “Will I be okay?” People want to know if they can retire, how they would draw income if they did and what risks might derail a plan they’ve spent decades building. The size of the number in an account doesn’t make that question go away nearly as often as people expect it to.Why the question doesn’t disappear as wealth growsIt’s easy to assume this worry is mostly about how much someone has saved. In my experience, it isn’t, not entirely.Until someone feels secure about their ability to retire, that concern tends to crowd out almost everything else. Tax efficiency, legacy planning, giving — none of it feels urgent until the core question is answered. Once that sense of security is in place, a different worry often takes its spot: “Am I doing the right thing?” More accounts, more complexity, more moving parts can start to feel harder to manage, not easier.About Adviser IntelThe author of this article is a participant in Kiplinger’s Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.The question evolves rather than getting answered once and staying answered. Having clarity of how much you need in order to retire is different from knowing your balance. One is a number on a statement. The other is a plan for turning that number into cash flow you can count on, year after year, market up or down. Until that plan exists, the worry doesn’t go away, no matter how large the balance is.The adviser who helped you build wealth may not be the one who helps you spend itOne pattern shows up constantly among people exploring a new adviser relationship: The person they’ve worked with did a genuinely good job growing their money. That was never really in question. What’s in question is what comes next.Growing a portfolio and spending it down are two different problems with two different risk profiles. While someone is accumulating, market swings are mostly noise — contributions keep going in regardless of what the market did last quarter. Once withdrawals begin, the math changes. Pulling money out during a down market can do lasting damage to a portfolio in a way that contributing during a downturn never would. That’s a real, well-documented risk, sometimes called sequence of returns risk, and it’s one that a lot of accumulation-focused advisers simply aren’t built to manage — not because they lack skill, but because it’s a genuinely different discipline.As I put it to a colleague recently: “Clients don’t just want strategy. They don’t just want solutions and answers or benefits. They want execution. The moment we stop doing that, we’re out of business.”That’s worth sitting with, because it applies just as much to the retiree managing their own plan as it does to any adviser. A strategy that sounds right on paper doesn’t mean much if there’s no mechanism to carry it out, rebalance around it and adjust it as circumstances change.A framework for answering the question yourselfFeeling OK isn’t something you talk yourself into. It’s the result of having real answers to a specific set of questions. Anyone approaching retirement, whether working with an adviser or not, should be able to answer each of these with some confidence:1. The number. How much do you need to retire, based on your own spending, not a generic rule of thumb like “25 times your expenses”?2. The income plan. How will savings convert into a reliable paycheck? Which accounts get tapped in what order and why?3. Social Security timing. When should you claim, and how does that decision interact with taxes, spousal benefits and the rest of the plan?4. Tax sequencing. What are the tax implications of how and when you withdraw from taxable, tax-deferred and tax-free accounts?5. Medicare and health care. How does the timeline for Medicare enrollment intersect with the income plan, particularly around IRMAA thresholds?6. Estate alignment. Does your estate plan still reflect what you want, or is it a document that was drafted once and never revisited as circumstances changed?Individually, each of these is manageable. Stacked together, they’re exactly the kind of complexity that keeps people lying awake doing math in their head instead of enjoying the retirement they worked for.Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.Why the plan matters more than the portfolioMost financial firms are built to manage investments. Far fewer are built to walk someone through this specific set of questions and turn the answers into a coordinated plan, one that comes before the investment strategy is finalized, not after, so the portfolio is built to support a real income plan rather than the other way around.That distinction matters because a good plan that sits in a drawer doesn’t make anyone feel OK. A plan holds up only if someone is checking in on it: Adjusting the withdrawal rate after a down year, revisiting the tax strategy when the rules change, updating beneficiary designations after a life event. The plan is not a one-time deliverable — it’s an ongoing process.What resolution looks likePeople who work through this successfully rarely describe the outcome in technical terms. They describe it in plain language: The picture got simpler. The jargon went away. They stopped guessing and started deciding.That’s really the goal of good retirement income planning. Not to make the topic sound more sophisticated, but to take a pile of accounts, tax questions and what-ifs and turn them into something a person can hold in their head clearly: A number, a plan for drawing income and a sense of what happens if the market has a bad year right when retirement begins.If you’ve built real wealth but still find yourself uncertain about what retirement looks like day to day, that uncertainty is common, and it’s solvable. It usually isn’t a sign that something has gone wrong. It’s a sign that no one has walked you through the whole picture at once, and that conversation is worth having before retirement begins, not after.Please see important disclosure information at opalwealthadvisors.com/disclosure.Related Content5 Years Until Retirement? Start Refining Your Income Plan NowI’m an Investment Adviser: This Is the Retirement Phase Nobody Talks AboutA 10-Year Retirement Planning ChecklistRetirement Income Strategies for the Long HaulRetiring Next Year? Now Is the Time to Start Designing What Your Retirement Will Look LikeThis article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
Why a Big Savings Account Won’t Guarantee Retirement Peace
