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Retirement Planning

Retirement Planning

We can provide financial planning to help you maintain the lifestyle you desire during retirement.

Help bring clarity and confidence to your retirement planning

We help our clients navigate the complexities of retirement. Our financial professionals will work with you every step of the way to help develop and implement your retirement savings strategy. And once you reach retirement, we can help you understand and plan for your ongoing income needs.

Work with an advisor

If you have more complex financial needs, we offer comprehensive wealth management advice and services. Get personal one-on-one guidance from an advisor. Find an advisor by selecting an option on our Wealth Management page.

Retirement education

If you are looking for practical, easy-to-understand information about how to prepare for retirement, check out our RealSteps>Retirement® website. Learn how to establish goals and put a plan in place. Then help solidify your plan by working with an advisor.

The RealSteps>Retirement approach is built upon four cornerstones: reliable income, asset growth, asset protection, and legacy. We believe that all four cornerstones are important in every stage of your life, whether you are starting out, getting organized for retirement, or in retirement.

  • Cornerstones of Retirement

    Reliable Income

    Goal: Help create a reliable income stream.

    • Estimate current monthly expenses as a starting point for your retirement needs. Try this Expense Worksheet.
    • Make a list of your various income sources for retirement, such as Social Security and pension distributions.
    • Create a plan for withdrawing money from your retirement savings that seeks to optimize taxable income.

    Asset Growth

    Goal: Take the long view and keep investing, so you're ready for life's major transitions. Maintain an appropriate balance of risk and return.

    • Consider redirecting bonuses and pay increases to help boost retirement savings.
    • Consider making catch-up contributions to your qualified savings plans after age 50.
    • Analyze your asset allocation based on your risk tolerance and time horizon through retirement.

    Asset Protection

    Goal: Plan for unexpected events that may threaten your retirement plan. You may protect yourself with thoughtful planning and insurance.

    • Review all of your insurance coverage. You may have too much of one type and not enough of another.
    • Plan for the potential impact of rising health care expenses and possible long-term care needs.
    • Establish an emergency fund to help cover three to six months of expenses to help avoid dipping into retirement savings.

    Legacy

    Goal: Establish a legacy plan that may help ensure your intentions are fulfilled.

    • Review beneficiary designations on all accounts. Consider working with a legal professional to create a legal will or update your current will.
    • Develop a health care directive to let your family and doctors know your medical wishes.
    • Designate one or more persons as a power of attorney to act on your behalf in financial and legal matters if you are unable to make decisions.
    • Consider a revocable trust for more complex personal or financial situations.

    Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth.

Estimate what it may take to save for your retirement with our Retirement Calculator

If you are close to entering retirement or have already started, Retirement Income Planning is important. It is beneficial to have a plan that can help you make the most of your finances during retirement.

Making sure your assets last throughout your retirement may be your most important financial goal. Professional guidance may make a difference and give you peace-of-mind. Our knowledgeable financial professionals at U.S. Bank and U.S. Bancorp Investments, Inc. can help you develop a retirement income plan that is appropriate for your circumstances.

  • This is one of the most critical questions you face. Your first priority should be to determine a "sustainable" rate of withdrawal from your personal savings. Too many retirees make the mistake of drawing down their savings too quickly in the early years of retirement. That can result in a significant downgrade in living standards later in retirement or, in the worst case, actually running out of money while they are still alive. Keep in mind that given life expectancies for most retirees, you may want to prepare to stretch your savings over two-to-three decades or more.

  • Contributions to employer plans can only occur if you continue to be employed by the organization and qualify to participate in the plan. If you have separated from service with the employer, you can no longer make contributions to the plan.

    IRA contributions are only allowed to the extent that you have earned income. If you are earning wages while you are retired, you will qualify to make contributions to an IRA. If you have no earned income (investment income such as interest and dividends do not count as earned income), you do not qualify to make IRA contributions.

  • This depends on your circumstances. There may be advantages to rolling money from your former employer's plan to your own IRA, but that is not always the case and it's not your only option. Before deciding whether to keep assets in your former employer's plan, take a cash distribution or roll assets into an IRA, be sure to consider potential benefits and limitations of all options. You should consider total fees and expenses, range of investment options available, penalty-free withdrawals, availability of services, protection from creditors, RMD planning and taxation of employer stock. Discuss rollover options with your tax advisor for tax considerations.

  • This is a decision that must be made on an individual basis. Some people seek to retire early and take Social Security as soon as possible. You can first claim retirement benefits at age 62. Some prefer to wait, and take advantage of the fact that the longer they delay first taking Social Security payments, the larger their monthly benefit will be. If you are in good health and anticipate living a long retirement, it may be advantageous to delay Social Security payments as long as possible so you can enjoy larger monthly benefit checks over time. In addition, there are other Social Security strategies that may be advantageous to your unique situation. Your financial professional can help you understand your options.

  • Not necessarily. In fact, people who earned modest incomes throughout their working lives and managed to save and accumulate a significant retirement nest egg may find that their income rises in retirement, pushing them into a higher income tax bracket. Taxes can be one of the most significant expenses you face in retirement. Among the tax concerns you need to be aware of in retirement are:

    • Some portion of your Social Security benefits may be subject to tax.
    • Most or all withdrawals from a workplace retirement plan will be taxed at ordinary income tax rates.
    • Withdrawals from a Traditional IRA that do not represent the portion attributable to your investment may be subject to tax at ordinary income tax rates. The same may be true of annuity payouts.
    • Earnings in taxable accounts will continue to be subject to current taxes.
    • You will not pay FICA (Social Security and Medicare) taxes on any investment income.

    The other concern is that tax laws are subject to change, and you can’t be certain what tax rates will apply in the future. Be sure to consult with your tax advisor for more information.

  • Distributions from workplace plans are required to begin by the year in which you turn age 70-1/2. With IRAs, the rules vary depending on the type of IRA you have. In a traditional IRA (earnings grow tax deferred but are taxed upon withdrawal), distributions are required to begin in the year you reach age 70-1/2, although the first required minimum distribution can be delayed until the April following the year that the person reaches the age of 70-1/2. Minimum distributions are required every year thereafter based on a distribution formula established by the Internal Revenue Service. If you have dollars in a Roth IRA, they can continue to be held indefinitely with no required withdrawals.

  • Every American becomes eligible to participate in the Medicare program on their 65th birthday. Medicare provides a certain degree of protection, but does not cover all medical costs in retirement. Most people purchase some form of Medicare Supplement insurance (or Medigap policies), for an additional premium, to cover other out-of-pocket expenses. Others may have access to a retiree medical plan through their former employer to help cover additional medical expenses.

    One issue to keep in mind is that if you retire prior to age 65, and want health care coverage, you may need to purchase an individual policy if a retiree plan is not available from your employer. Health care coverage may be expensive for older individuals.

Find What's Right For You

IRAs & Retirement

Insurance

More Investment Products

The right investment tools may play a critical role in working toward your retirement goals. Compare the potential tax advantages of Individual Retirement Accounts.

U.S. Bancorp Investments can help you determine the types of insurance that may be appropriate for you.

We offer investment products and services to help you work toward your goals and simplify your financial life.

RealSteps>Retirement(R) is a registered trademark of U.S. Bancorp.

Investment and insurance products and services are:

Not a Deposit Not FDIC Insured May Lose Value Not Bank Guaranteed Not insured by any Federal Government Agency

U.S. Bank, U.S. Bancorp Investments, Inc., and their representatives do not provide tax or legal advice. Each individual's tax and financial situation is unique. Individuals should consult their tax and/or legal advisor for advice and information concerning their particular situation. Non-qualified withdrawals are subject to all applicable federal and state income taxes, and may be subject to a 10% federal penalty. Please consult your tax advisor or legal counsel for advice and information concerning your particular situation.

This material is based on data obtained from sources we consider to be reliable. It is not guaranteed as to accuracy and does not purport to be complete. This information is not intended to be used as the primary basis of investment decisions. Because of individual client requirements, it should not be construed as advice designed to meet the particular investment needs of any investor. It is not a representation by us or an offer or the solicitation of an offer to sell or buy any security.

For U.S. Bank:

Equal Housing LenderCredit products are offered by U.S. Bank National Association and subject to normal credit approval. Deposit products are offered by U.S. Bank National Association, Member FDIC.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments.

For U.S. Bancorp Investments, Inc.:

Investment products and services are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.

Insurance products are available through various affiliated non-bank insurance agencies, which are U.S. Bancorp subsidiaries. Products may not be available in all states. CA Insurance License # OE24641.

The Financial Industry Regulatory Authority (FINRA) Rule 2267 provides for BrokerCheck to allow investors to learn about the professional background, business practices, and conduct of FINRA member firms or their brokers. To request such information, contact FINRA toll-free at 1.800.289.9999 or via www.finra.org. An investor brochure describing BrokerCheck is also available through FINRA.

Get Started

Invest with an Advisor

Work with a dedicated advisor. For people with $100,000 or more to invest.

Call to Invest

Talk to a Financial Consultant at U.S. Bancorp Investments. For people with $1,000 - $100,000 to invest.

Invest on Your Own

Set up a self-directed online brokerage account or IRA account with U.S. Bancorp Investments.

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