By Jason List, CFP®, CFA
You’ve spent years building a retirement portfolio you can be proud of. However, when it comes to retirement planning, saving is just half the battle. The next step is taking those savings and using them to create a steady income. When you have a well-designed strategy, it allows you to spend more time enjoying retirement.
Step 1: Understanding How Much Will Be Needed Each Year
The first step is getting a general idea of your retirement expenses and your desired lifestyle. Estimate how much you’ll need to spend on these common expenses (and any others you can think of):
- Healthcare
- Housing and home maintenance
- Travel
- Hobbies
- Taxes
- Transportation
In our experience with helping retirees develop a distribution strategy, we find that there are three stages to retirement. In the first stage, people often spend more than they expect to accomplish their bucket-list items. In the second stage of retirement, people tend to spend less. Lastly, in the third stage of retirement, people tend to spend more because of healthcare needs.
While you don’t need to have exact numbers, having a general sense of what you want your expenses to be and how you want to enjoy your retirement builds the foundation for a sustainable withdrawal strategy.
Step 2: Working Out a Sustainable Strategy for Withdrawals
When you create a retirement withdrawal strategy, you’re planning how much money to take from your savings each year. You want to make your savings last, but if you’re overly cautious, you might not be able to enjoy the lifestyle you’d hoped to have in retirement.
Some people choose to follow established rules when creating a withdrawal strategy. The best known of these rules is the 4% rule, which advises withdrawing 4% of your retirement savings in the first year and adjusting each year thereafter for inflation.
However, “rules” like this are more like starting points. We stress the importance of developing a customized withdrawal strategy for each client to account for their longevity, personal goals, and market fluctuations. We help clients build flexible withdrawal strategies that suit their needs.
People often find that they spend more in their 80s and 90s because of healthcare needs. As you are developing your distribution strategy, consider having enough funds to receive the level of care you anticipate.
Step 3: Align Investments for Steady Income
Each person’s portfolio and goals are different. However, we have found that constructing a diversified portfolio provides our clients with income they need while still investing for long-term growth.
We aim to balance stability and growth based on your timeline and risk tolerance. You don’t have to navigate market volatility alone. At Aventus, we continually monitor and adjust your portfolio to keep you on track.
Step 4: Plan for Taxes and Inflation
In retirement, you want to spend your time in meaningful ways, supported by a plan that gives you clarity and confidence about your financial future. It’s smart to make adjustments to your distribution strategy over time, especially when you account for taxes and inflation. We help our clients develop a distribution strategy that seeks to minimize taxes and maximize their after-tax returns.
Move Toward Retirement With Clarity and Confidence
Whether you already have a detailed retirement plan or you’re just getting started, Aventus Investment Advisors is here to help you align your finances with your future vision.
Planning for sustainable income in retirement can be daunting, but we’re here to offer you custom-tailored advice designed to help you achieve your goals.
To schedule a meeting, call (704) 237-4207 or email jason.list@aventusadvisors.com.
About Jason
Jason List, CFP®, CFA, is a Senior Client Advisor with Aventus Investment Advisors in Cornelius, North Carolina. With nearly two decades of industry experience, he helps clients organize, grow, and preserve their wealth through comprehensive planning, investment management, and tax-focused strategies. Clients value his approachable style and the confidence that comes from having a fiduciary partner to navigate life’s milestones, whether retiring, traveling, or buying a new home.
Jason earned his undergraduate degree in mathematics from the University of North Carolina at Charlotte, a master’s in finance from Shanghai University of Finance and Economics, the CERTIFIED FINANCIAL PLANNER® designation in 2012, and the Chartered Financial Analyst® designation in 2024. He joined Aventus in 2021 after working at large financial institutions, drawn to the firm’s focus on personalized, transparent advice.
A Charlotte-area resident for more than 30 years, Jason lives with his wife, Ashley, and their beagle, Mindy. He enjoys traveling, hiking, bowling, and watching sports, and also serves as treasurer for a nonprofit that supports disenfranchised children in Kenya. To learn more about Jason, connect with him on LinkedIn.