Scheduling Your Withdrawals
 
 
 
Polaris Advisors, the website, the worksheets and the seminars are not endorsed, reviewed or approved by either Gillette or Procter and Gamble.  Polaris Advisors is an independent Financial Planning Firm, and prospective clients must make their own assessments of the accuracy and validity of the material presented.
 
 
When you retire, you move from collecting a paycheck to living off your savings.  There’s a Pension Check that comes monthly, and perhaps two social security checks after you and your spouse reach the age of 62. 
 
Now, if you are taking Early Retirement, there could be a transition period between getting a paycheck and being fully retired.  It’s possible that your spouse continues to work, or that you get some kind of a part time job.  There could be substantial Severance Pay according to the provisions of the Gillette Company Severance Plan for Exempt Employees.  This income could cause an offset against your Social Security.
 
And, then there are the penalties for early withdrawal from IRAs and the Gillette Savings Plan for ages 59 ½ and 55, respectively, and the loophole procedures to avoid these penalties.
 
So, how do you plan your withdrawals to keep out of trouble with the IRS, pay all your bills, not disqualify you from your Social Security income, and make the most of all the other resources you’ve earned?
 
At Polaris, it all starts with a good Financial Plan.  (See Steps One through Four)  If you have developed your “Retirement Income Plan” then you will know what you need, as compared to what you have coming in.  But, still, there are some cardinal rules of managing your taxable withdrawals that should be followed.  We’ve put down a number of these on the attached worksheet called: “Scheduling Your Withdrawals.”
 
Using these guidelines, and your “Retirement Income Plan,” you can schedule your withdrawals, plan for those special expenditures, and pay the least tax.  So, download your worksheet and take a look.  If it starts to seem confusing, feel free to give us a call, or attend one of our seminars.  We are always glad to hear from you, and happy to help.
 
 
 
 
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