As you move closer to retirement, it's important to define exactly what "retirement" means to you. Regardless of the life you envision, planning for retirement in your later leadership years can have an enormous impact on the quality of your life after work.

Your wealth management plan should incorporate two strategies: one for your transition and one for your retirement. You need to ensure that you take advantage of every possible opportunity as you move from work to after-work. Here are some steps that can help:


Adjust Your Goals to Reflect Late-Stage Realities

Confirm your long-term objectives and make whatever adjustments are necessary to reflect new expenses, increased spending and changes in cash flow expectations. You should also update your family and legacy goals.


Continue to Execute Your Wealth Management Plan

A total portfolio asset allocation strategy remains as important as ever. Your plans should consider both sides of the balance sheet, and your investments should be coordinated.


Solidify Your Wealth Protection and Transfer Strategies

Create a family governance plan to make sure your heirs are ready to manage assets when the time comes and continue to use philanthropy to build a lasting legacy.


Create a Retirement Distribution Plan

Ask yourself: At what point should I cash in my 401(k)? What's the best time to exercise my stock options? Will state-specific tax issues influence my distribution decisions?

“The ultimate intent? To ensure that the market realities don't undo everything you've worked to create.”
Pay attention to the details as you transition into retirement
Consider the tax consequences of where you live

If you own houses in multiple states or are intending to move, your estate plan may need to be revised to take state tax laws into account.

Diversify your portfolio while being mindful of taxes

Moving away from a risky, concentrated position can be achieved by selling the position, gifting it to a trust or leveraging it to diversify through borrowing or derivatives.

Be aware of retirement account restrictions and allowances

It's important to structure the timing of when you tap into pensions, deferred compensation, 401(k)s and other accounts to ensure that you can maintain a consistent flow of income in retirement.

  • This material is provided for illustrative/educational purposes only. This material is not intended to constitute legal, tax, investment or financial advice. Effort has been made to ensure that the material presented herein is accurate at the time of publication. However, this material is not intended to be a full and exhaustive explanation of the law in any area or of all of the tax, investment or financial options available. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation. BNY Mellon Wealth Management conducts business through various operating subsidiaries of The Bank of New York Mellon Corporation. ©2016 The Bank of New York Mellon Corporation. All rights reserved.