Most pre-retirees we meet have already done the math. They've run the numbers through a retirement calculator, watched a 401(k) grow for thirty years, and landed on a round number that's supposed to mean "you're set." What they haven't done is ask the harder question: what does that number actually turn into, month after month, for the next thirty years of life?
Are You Actually on Track?
A balance isn't a plan. Two households with an identical $2 million portfolio can be in very different positions depending on when they claim Social Security, how their assets are taxed as they're drawn down, and whether their income can genuinely replace a paycheck without forcing them to sell the wrong asset at the wrong moment. We help pre-retirees answer the real question: not "how much do I have," but "how much can I actually count on, every year, regardless of what the market does."
The Decisions That Move the Needle
Small decisions made years before retirement often matter more than any single investment choice. When to claim Social Security can shift lifetime income by six figures. A Roth conversion executed in the right window, before required distributions and Social Security push you into a higher bracket, can meaningfully reduce a lifetime tax bill. And for the portion of a portfolio that needs to behave like a paycheck, a deliberate annuity strategy, used as one tool rather than a blanket solution, can provide a floor of guaranteed income that frees the rest of the portfolio to be invested for growth. None of these decisions happen in isolation, each one changes the others.
Retiring in Connecticut
Connecticut adds its own layer of complexity: how the state taxes Social Security and pension income, the cost of maintaining a home and health care in one of the highest cost-of-living states in the country, and the reality that many pre-retirees here split time between Connecticut and a second home or family elsewhere. A retirement income plan built for a national average doesn't account for any of that. One built specifically around Connecticut's tax rules and cost of living does.
Turning Savings Into Income
We build retirement income plans, not just investment portfolios: stress-tested against the decisions actually in front of you: when to claim, when to convert, when to annuitize, and how to turn what you've saved into income you can't outlive.
The question worth asking isn't whether you've saved enough. It's whether you actually know what your retirement income looks like, and whether it's ready for the life you want to live.
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All annuity guarantees are subject to the claims-paying ability of the issuing insurance company. Annuities are long-term investments designed for retirement purposes.
Any opinions are those of the author, are subject to change without notice and are not necessarily those of Raymond James. This material is being provided for information purposes only, it does not purport to be a complete description of the securities, markets, or developments referred to in this material and does not constitute a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Be sure to contact a qualified professional regarding your situation before making any investment or withdrawal decision. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion.
Investors should consider the investment objectives, risks, and charges and expenses of annuities carefully before investing. Investments and account types mentioned may not be suitable for all investors.