DW Financial Group
Dora Wysocki | Retirement Income Planning
Most retirement plans are built around a single number: the account balance. A balance says very little about how long that money can fund a life. These six risks are the ones most often left unexamined, and they tend to surface years after the plan was written.
Risk one
Money held in a traditional IRA or 401(k) has not yet been taxed. Required Minimum Distributions, IRMAA surcharges on Medicare premiums, and the change in filing status after a spouse dies can each raise the tax bill in retirement, often within a few years of one another.
Risk two
During working years a decline is something to wait out. Once withdrawals begin, shares sold during a downturn are no longer there to participate in the recovery. The market may come back before the portfolio does.
Risk three
Two people can retire with the same balance, take the same withdrawals, and earn the same average return over time, yet end in very different places. The order in which the good and bad years arrive can matter more than the average itself.
Risk four
At roughly three percent a year, purchasing power is meaningfully reduced across a twenty to thirty year retirement. Income that felt comfortable at sixty-seven may not stretch the same way at eighty-five. Healthcare costs have historically risen faster than general inflation.
Risk five
Certificates of deposit, treasuries, and money market accounts protect principal, but they renew at whatever rate prevails on the day they mature. Principal can remain fully intact while the income it produces falls substantially.
Risk six
Longevity is the risk that compounds the other five. A longer retirement means more market cycles, more inflation, more rate resets, and more years of taxes. A plan built to last twenty years may still be needed in year twenty-seven.
None of these are cause for alarm. They are questions worth asking before circumstances ask them for you. The full booklet covers each one with a case study and the questions to bring to any advisor.
Fill in the form below and I will email you The Hidden Risks in Your Retirement Planning, the complete booklet. There is no cost and nothing to buy. It usually arrives within a few minutes; if it does not appear, check your spam or promotions folder.
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A Retirement Risk Review looks at your income sources, your tax picture, and how your plan may respond under different scenarios. There is no cost and no obligation, and you are welcome to bring your spouse. Meetings are held by video or phone.
See available times on my calendarOr text and call directly: 908-738-9836
Dora Wysocki
Safe Money and Retirement Income Specialist
DW Financial Group
I work with pre-retirees and retirees on retirement income planning, tax-aware distribution strategies, and protected income options. My focus is education first: helping people understand how a plan may behave under different market, tax, and longevity conditions, so that any decision they make is an informed one.
Whether or not we ever work together, I would rather you leave a conversation with more clarity than you came in with.