NAVIGATING THE RETIREMENT TRANSITION
One Year Before + One Year After
Reaching retirement is an achievement. Yet the period immediately surrounding retirement is often the most financially consequential phase of all. This is when long-term plans meet real-world decisions: income, taxes, investment risk, and lifestyle preservation all converge at once.
We guide clients on both sides of this transition to move forward with clarity, confidence, and a coordinated strategy designed for the years ahead.
WHY THE RETIREMENT TRANSITION IS DIFFERENT
Before retirement, most financial decisions are reversible. After retirement, many of the most significant decisions are not.
Shifting from accumulation to distribution, you rely more directly on portfolio income, make irrevocable elections and timing decisions, and must manage market risk without employment income as a buffer.
Even well-prepared investors often find that the nature of financial decision-making changes once retirement becomes an imminent reality.
APPROACHING RETIREMENT
If retirement is near, you may already have a strong foundation in place. At this stage, the focus typically shifts from saving more to structuring what you've built.
You know that it's now critical to:
- align investment risk with near-term income needs
- evaluate social security and pension timing
- review retirement account structures and rollovers
- prepare for changes in tax brackets and cash flow
- make decisions with awareness of the tax implications of your elections
This is the time to fine-tune decisions that will shape your first decade of retirement.
RECENTLY RETIRED
Many seek guidance shortly after retirement, once decisions are no longer theoretical. Big questions dominate your thoughts.
Am I drawing income from the right places?
Is my portfolio positioned appropriately for this phase?
How do I manage market volatility now that I'm no longer working?
What adjustments should I make now that retirement is real?
This period is often a turning point when investors recognize the value of ongoing, proactive portfolio oversight rather than one-time planning. The right partner to guide you through retirement brings peace of mind and confidence for the future.
SPECIAL PLANNING CONSIDERATIONS
INCOME PLANNING & CASH FLOW COORDINATION
Retirement income rarely comes from a single source. Coordinating withdrawals from taxable accounts, IRAs, Roth accounts, pensions, and Social Security requires careful sequencing.
The goal is not just income. The goal is sustainable, tax-efficient income that supports both current lifestyle and long-term security.
INVESTMENT RISK & PORTFOLIO STRUCTURE
As retirement begins, portfolio risk takes on new meaning. Market declines early in retirement can have an outsized impact if not managed thoughtfully.
This does not mean avoiding growth. It means managing risk intentionally, beyond basic diversification, with an emphasis on balance, discipline, and adaptability.
REQUIRED MINIMUM DISTRIBUTIONS (RMDs)
For many retirees, RMDs become relevant shortly after retirement. The right partner will help you understand when they apply, coordinate distributions with your other income sources, and manage the tax impact over time rather than just year-to-year. Even investors who are several years away from RMD age often benefit from planning ahead during the retirement transition.
TAX PLANNING OPPORTUNITIES
The years immediately surrounding retirement often present unique tax planning windows, particularly as your earned income declines. This might include things like strategic Roth conversions, thoughtful capital gains realization, or charitable planning strategies. In each case, timing is critical, and opportunities are often lost if decisions are delayed.
COMMON PITFALLS
Even capable investors can encounter challenges during this period.
Some of the biggest mistakes include:
- taking income from the wrong accounts first
- maintaining an investment strategy designed for accumulation
- getting stuck in an investment strategy where you're not really protecting or earning in an ideal way
- reacting emotionally to market volatility instead of having a strategy in place that is designed to perform across market conditions
- underestimating the long-term impact of taxes and withdrawals, which can force lifestyle downgrades later
These pitfalls stem from the complexity of managing multiple intricately intertwined decisions at once, and they are just some of the regrets a trusted partner can help you avoid.
HOW WE SET YOU UP FOR SUCCESS
Bringing Structure & Perspective to a Complex Period
Customize your strategy so it fits your current reality with flexibility for the future
Provide advanced strategies to manage portfolio risk without sacrificing growth opportunities
Adjust plans and provide ongoing guidance as circumstances evolve
Coordinate investments and income with special attention to tax considerations
Prepare and fortify your portfolio for a variety of market conditions
Give you confidence to pursue your life, family, and philanthropic goals
If you're in the retirement transition, our partnership can become a stabilizing force, allowing you to focus on life after retirement, knowing your holistic financial plan is being optimally managed for your greatest benefit.
RETIREMENT AS A NEW CHAPTER, NOT AN ENDPOINT
Retirement is the beginning of a new phase of life. With the right structure in place, you have freedom and greater control over how your wealth is used. More intentional investment decisions give you the confidence to pursue the many other goals you put off during your working years.
While you focus on the golden moments that bring true enjoyment to retirement, we'll be here thoughtfully making your wealth work more efficiently and purposely for the years ahead.
Should I work with a retirement planning investment advisor?
A retirement planning investment advisor helps you move from accumulation to distribution with strategy, not guesswork. As markets, taxes, and withdrawal sequencing become more impactful, having a fiduciary partner who integrates risk-aware investment management with long-term retirement decisions can reduce costly missteps and preserve your confidence and lifestyle.
How does retirement planning support investment management?
A retirement planning investment advisor helps you move from accumulation to distribution with strategy, not guesswork. As markets, taxes, and withdrawal sequencing become more impactful, having a fiduciary partner like Convergent Financial Group who integrates risk-aware investment management with long-term retirement decisions can reduce costly missteps and preserve your confidence and lifestyle.
What does a retirement investment advisor do?
A retirement investment advisor not only manages your portfolio but also coordinates it with income strategy, tax efficiency, risk protection, and life goals. At Convergent, this means layering advanced risk-managed strategies over your core holdings and protecting against drawdowns while still capturing meaningful growth opportunities.
When is the best time to start working with an advisor around retirement?
The best time is when decisions start to become irrevocable, often in the year before and one year after retirement. That’s when risk alignment, account structuring, tax planning, and withdrawal sequencing are most impactful. Even within a year of retirement or shortly after transitioning, an advisor can provide clarity and help tailor your strategy for income sustainability and peace of mind.
How do Required Minimum Distributions (RMDs) fit into retirement planning?
RMDs are a structural reality that can significantly affect your tax situation and cash flow as you age. A coordinated retirement strategy helps you plan ahead for their onset, align distributions with other income sources, and manage taxes across years rather than responding reactively to annual requirements.
Who is this type of planning best suited for?
This approach is best for investors with meaningful assets and complexity — professionals, executives, business owners, and retirees who value disciplined, fiduciary advice. If your financial decisions span multiple accounts, tax brackets, and life priorities, a tailored retirement planning investment advisor like Convergent Financial Group can help you confidently navigate transitions and prioritize long-term goals.
THE RIGHT TIME FOR PROFESSIONAL GUIDANCE
If you are approximately within a year on either side of retirement and would like to explore how we can partner together, we invite you to schedule a confidential in-person meeting or video call.
Our firm works with individuals and families who value advanced investment and wealth protection strategies, and have $250,000 or more in investable assets.
