The transition from saving to spending is one of the biggest adjustments retirees face. After decades of building your nest egg, it can feel unsettling to begin drawing from it. Instead of receiving a paycheck every two weeks, you're now responsible for creating one from your retirement savings. Developing a thoughtful withdrawal strategy can help provide a reliable income stream while giving you confidence that your savings are working to support you throughout retirement.

You Are Not Alone

Retirement is one of life's biggest transitions. For decades, you've likely followed a familiar routine. Going to work, handling responsibilities, and earning a regular paycheck. For many people, a career provides more than just income; it also offers structure, purpose, and social connections.

In our experience, people feel nervous and, honestly, a little weird at the beginning of retirement. This is normal and expected. Most people expect to feel excitement and happiness, but are often met with uncertainty instead. It takes time to adjust, and you are not alone.

Have a Plan That Makes You Feel Confident

There isn’t a one-size-fits-all method of retirement planning. That is why we tailor the planning process to each client. We use everything from specialty retirement income software to Excel spreadsheets to help clients understand their plan and feel confident that they will not run out of money in retirement. We can show you what your retirement would have felt like had you retired around major historical events- such as the Great Depression. We can run Monte Carlo simulations, dig into the cash flow and pore over pages of reports- whatever suits you and the way you think.

Tips to boost confidence in your retirement plan:

• Prioritize what matters most. Identify the experiences and goals that are most important to you in retirement—whether that's travel, hobbies, charitable giving, or helping family members. Building your plan around these priorities helps ensure your savings are aligned with the life you want to live.

• Plan for healthcare and unexpected expenses. One of the biggest concerns for retirees is the potential cost of long-term care or major medical expenses. Addressing these possibilities as part of your retirement plan can reduce uncertainty and make it easier to enjoy retirement without constantly worrying about "what if."

• Ask questions until the plan makes sense. A retirement plan should give you confidence, not confusion. If you don't fully understand the strategy or still have concerns about running out of money, ask us to explain it differently. Whether it's using another planning tool, reviewing additional scenarios, or walking through the numbers in more detail, there are many ways to build a deeper understanding and greater confidence in your plan.

Establishing Monthly Income

Retirement means that your paycheck will cease, and you will have to create a new income stream. In our experience, clients are more successful when they transfer the same amount of money from their investment account to their bank account each month. This works because it mimics the paycheck they are used to receiving, making it easier to monitor spending. Clients who withdraw cash on an as-needed basis often find it easier to overspend or underspend.

One of the most frequently asked questions we receive from pre-retirees is, "Which account should I pull money from first?" There is no universal answer because it depends on the types of accounts, the amount of invested assets, your age, and other sources of income.

For example, we generally try to allow retirement accounts to continue growing. However, if an IRA is much larger than a taxable brokerage account, it may make sense to begin withdrawing from the IRA even if the withdrawals increase ordinary income. On the other hand, if we are planning a Roth conversion strategy at the beginning of retirement, we would want to avoid increasing ordinary income and not withdraw from the IRA.

When to Take Social Security

This is another big question that depends on the situation. We consider factors such as other income sources, the size of investment portfolios, likely life expectancy, and spousal benefits, to name a few, when determining when a client should begin receiving Social Security benefits. This is also an area where the client's feelings toward Social Security come into play.

We make recommendations at the beginning of retirement and continue to revisit them until benefits are claimed because the right answer can change as circumstances change.

Retirement isn't just a financial transition; it's a life transition. Having a thoughtful income strategy and confidence in your plan can make it easier to enjoy the retirement you've worked so hard to achieve.