Today, retirees face complex and important choices to manage their resources in retirement. Investment-risk management should be adapted to the retirement timeframe. Tax-management is also an important factor because many resources have different tax implications. Common issues are:
- in any given year, should withdrawals be taken from a IRAs, Roth IRA, or taxable-account?
- if a pension is available, is it preferable to take a lump-sum option or the stream of payments? What survivor benefit makes the most sense?
- should required minimum distributions be taken at 70 ½ or sooner? Can they be delayed past 70 ½?
- different types of bonds—such as munis, t-bills, corporate bonds—are taxed differently. What bonds best fit your tax situation?
- when to claim Social Security?
A spend-down plan seeks to make the wisest use of resources available in retirement.