DENVER, CO /2022 / Retirement distribution strategies help retirees make their money last, whether they plan to use it in retirement or pass it along to loved ones. Barry Bulakites is the President and CEO of Table Bay Financial Network. He is an expert in retirement taxation, consulting, and distribution strategies. He recently discussed the top approaches to ensure a more financially secure future.
“Properly planning for retirement is essential to enjoying the golden years,” Bullakites said. “For many, strategic planning is the difference between enjoyment and constant financial stress.”
The Importance of Retirement Distribution Strategies
Barry Bulakites explained retirement distribution strategies are essential, but the best options vary from one individual to another. There is no way to tell how long a person will live and what financial struggles they’ll face in retirement. Bulakites explained this is why individuals and couples planning for retirement should review their accounts and strategies yearly with an expert.
Create a Plan for Withdrawals
A retirement strategy cannot be effective without a plan for how much the individual will withdraw from their retirement accounts each year. Withdrawing too much can deplete the account too early and result in a financial crisis for an individual, their family, and future generations.
Bulakites recommended withdrawing a fixed percentage from each year. Many financial experts suggest withdrawing 4 percent the first year, then adjusting the percentage yearly based on inflation. A retiree with $1 million in retirement savings would withdraw $40,000 during the first year, then adjust that number to reflect the current inflation rate for the following year.
Bulakites expressed the importance of choosing a withdrawal percentage with a financial expert and not straying from the less necessary.
Make Systematic Withdrawals
Financial experts know how easy it is to over-withdraw when simply taking money out of an account whenever needed. Barry Bulakites recommends making systematic withdrawals every month or quarter to ensure the withdrawals are on track with the recommended annual amount.
Use a Flooring Strategy
Bulakites mentioned another effective strategy for retirees with guaranteed income, such as social security, annuities, and pensions. The flooring strategy involves creating enough guaranteed income to pay for basic needs, such as by purchasing an annuity with an inflation-adjusted income rider.
Bulakites explained there are numerous lifetime income items on the market now. Some are affordable if purchased at a young age but don’t pay out until later in life. Another way to create a financial floor is to delay the beginning of Social Security benefits. Individuals receive an 8 percent increase in monthly payments for every year they delay.
Bulakites stated that creating a financial floor provides the peace of mind needed to enjoy retirement fully.
Bulakites and Retirement Strategies
Barry Bulakites is an expert in helping individuals develop the best retirement strategies for their needs. He explained that countless retirement strategies are available, and individuals and families must meet with an expert to choose the best for their circumstances.