Frequently Asked Questions

What is the most common financial mistake retirees make?

The most pervasive mistake is underestimating longevity. Many retirees plan their finances assuming they will live to age 80 or 85. With advancements in modern medicine, a healthy 65-year-old today has a very strong chance of living well into their 90s. Failing to plan for a 30-year retirement often leads to aggressive spending early on, resulting in severe financial anxiety later in life.

How often should I review my retirement budget?

You should conduct a comprehensive review of your retirement budget at least once a year. This annual audit allows you to adjust your withdrawal rate based on current inflation, evaluate your portfolio’s performance, and prepare for upcoming tax obligations. Additionally, major life events—such as a medical diagnosis or a change in housing—warrant an immediate financial review.

Will I have to pay taxes on my Social Security benefits?

It is highly likely. Depending on your “combined income” (your Adjusted Gross Income plus nontaxable interest plus half of your Social Security benefits), up to 85 percent of your Social Security income can be subject to federal income tax. Proper withdrawal sequencing from your various retirement accounts can help mitigate this tax burden.