John very good to see you, today we're starting with a question: what is a retirement drawdown strategy, six steps to make sure your money lasts? We spent decades building our nest egg and then when we retire we need to plan to start saving, stop saving, and then start spending right. But not so much that we run out of money. So we have six tips to make your money last. First, of course, I know this one is really important to you, you need a plan to minimize taxes.

Yeah, let's start off with my favorite subject: taxes– your largest expense in your lifetime. And taxes, you know we've talked about this on several videos, several times. The Social Security, Medicare, and the required minimum distribution tax traps that retirees face. So to have a successful retirement income strategy you need to minimize taxes because therefore you have to use less of your funds. So you want a tax-efficient strategy. And you need to look if you have, you know if you're fortunate to have those three tax locations of taxable, tax-deferred, and tax-free. You need to look each year at how to optimize that tax distribution strategy. One thing we do with our clients is we proactively tell them how much money they can take out every year pre-tax and then what their net tax or gross of taxes and what their net tax income will be.

Incredibly helpful. All right. Number two, you have to make the right decision about your Social Security claiming.

Yeah, and you know, we've been beating this into the ground in the past too Erin. 81% of people claim Social Security to their detriment. We do not want that. There's Social Security is a powerful income tool. And you need to coordinate it with your other assets and your taxes. They all work together. And you know, let's not forget, even with some of the issues Social Security has for boomers, you know, every expert in the industry says is going to be around, you need to maximize the benefit. And there are tax efficiencies to maximizing that benefit. All these tips that we’re talking about, they are all intertwined.

You’re right, they’re all related. Number three: if you’re lucky enough to have a pension, you have to choose the right pension payout.

Yeah, so this may not apply to too many people, but I have helped a number of friends and clients decide which pension option they're gonna choose. You have to understand your pension option is going to most likely be irrevocable when you make the decision, so you have to take a lot of time and consideration in choosing whether you're going to do a lump sum, 100% survivor benefit, 50% survivor benefit, or no survivor benefit or a variation of any of those strategies.

Number four is this delicate balance between guaranteed income and long-term growth.

Yeah, and this is really the heart of our shield strategy. We use a shield bucketing strategy where we give our money jobs. Alright, you worked all your life for that money, now it's time to give your money the job. And we have our shield that is just strictly dedicated to income. So you know you're gonna have a predictable and sustainable income stream to last your lifetime. Then, aside from that income shield, we have our growth buckets where we allow our money to grow. You know, people, it's from a psychological standpoint, people want the paycheck that they're used to. So what we try to do is to replicate your working years that you're so comfortable with that paycheck, and then that growth money is similar to your 401k where you just know that money's there for you in the future.

And then five we are living longer so we need a plan for longevity.

Yeah, you know, medical technology is improving every year. You know people are choosing healthier lifestyles so you have to plan for longevity because the worst thing is not dying too soon with money, it's living without money and the stress that comes with that. So we always stress our plans to age 95, unless there are some extenuating circumstances because we want to make sure that you live the retirement you choose. And then you have some money to pass on to your beneficiaries or charities.

So important and of course, you need a plan that accounts for inflation.

Yes, inflation is the most insidious factor in demand. Another topic we’ve talked about in-depth, you need to plan for inflation. Inflation also increases your tax rates. So you know, in our office, we really stress inflation as a 3.5% average. That’s on the higher side for stress tests, but let's stress the plan. So in the event that inflation does have a 3.5% percent average, you're not stressed you’ve already got a plan for it.

Well said, John, if somebody has any questions about these tips, or they'd like to make sure that they are, that their plan accounts for all these variables. What's the best way to reach you?

Yeah, well always visit our website www.gosecurus.com. We have a wealth of information, past videos, and podcasts on our website. And once our website you can visit the Contact Us Tab. And from there you can schedule a 15-minute phone call or a hour-long complimentary vision and clarity consultation. Or if you like doing it the old-fashioned way, give us a call at the office at 858-935-6210, ask for Emily and she'll get you on our calendar.

John thank you so much.

Thank you Erin