You’ve worked hard your entire life, and if retirement is on the horizon, it’s easy to feel overwhelmed by all the options and decisions. Most people nearing retirement have important questions, but don’t always know where to start.

Also, things aren’t always so straightforward, so how do you make sure you’re headed in the right direction? This is where having a trusted partner can make a difference.

At 1st Choice Financial Services, Inc., we’re a team of retirement planning specialists in Central Pennsylvania with a long-standing history of guiding individuals and families through this life transition. With a local office in Camp Hill, we proudly serve clients throughout Harrisburg, Hershey, Halifax, Enola, Lancaster, Lebanon, Mechanicsburg, and surrounding communities.

This blog covers five questions to ask your retirement advisor. Getting the right answers may be key to helping you move toward a more secure retirement.

Question 1: How Will My Retirement Income Be Generated?

Understanding where your income will come from in retirement is one of the most important steps you can take. It’s not just about what you’ve saved; it’s about how that savings will be used to support your lifestyle.

Social Security

How will Social Security benefits fit into your overall plan? Your advisor can help you evaluate the right time to claim, factoring in your age, income needs, and marital status.

Savings and Investments

If you have a 401(k), IRA, or other investment accounts, how will those be used to generate a reliable income stream? Your advisor may be able to help you develop a drawdown strategy that balances withdrawals with market performance and inflation.

Other Income Sources

You may also have income from pensions, annuities, or rental properties. Where available, these can play a vital role in covering fixed expenses and reducing pressure on your portfolio.

1st Choice Financial Services’ advisors can review all your income sources and create a plan to help turn your savings into a consistent and predictable monthly income. This often includes evaluating tax impact, timing, and the best sequence for withdrawals.

Question 2: What Are the Key Risks to My Retirement Plan?

Sound retirement planning in Pennsylvania doesn’t just focus on building income—it also considers the risks that could threaten it. These are the variables that, if not planned for, could disrupt your retirement goals.

Inflation

Even modest inflation can erode your purchasing power over time. Your advisor may recommend investments or income strategies designed to help offset rising costs.

Market Volatility

What happens if the market takes a downturn right after you retire? If your plan is too reliant on stocks, this could significantly affect your withdrawals. Your advisor may be able to help you diversify across different asset classes and build buffers, like cash reserves or fixed income, to help weather market swings.

Longevity Risk

Outliving your savings is one of the biggest concerns for many retirees. By stress-testing your plan for various life expectancy scenarios, your advisor can help you see how long your money may last and adjust accordingly.

Healthcare Costs

Healthcare and long-term care expenses can be substantial. Your advisor might discuss long-term care insurance or other tools to help you prepare for this possibility.

An independent retirement advisor for Harrisburg, PA residents, like those with 1st Choice, can help you evaluate all of these risks and develop a more resilient plan to address them.

Question 3: What Is a Reasonable Withdrawal Strategy for My Savings?

A well-crafted withdrawal strategy can help your savings last throughout retirement while giving you the flexibility to enjoy life.

Fixed Withdrawal Rates

Your advisor may introduce the concept of a fixed withdrawal rate, but it will depend on your specific situation, lifestyle, and asset mix. This number isn’t one-size-fits-all, so it’s important to revisit it regularly.

Dynamic Withdrawals

The market will fluctuate, and so will your expenses. That’s why a flexible plan—one that allows you to adjust as needed—is often more sustainable. You may need to reduce withdrawals in a down year or increase them in years with higher expenses.

The Bucket Strategy

Some retirees use a “bucket strategy” to segment savings into short-, mid-, and long-term timeframes. This approach can help you manage risk and maintain liquidity while letting other assets grow.

An experienced advisor offering wealth management in Harrisburg can help you explore withdrawal strategies that fit your lifestyle, expected longevity, and risk tolerance.

Question 4: How Will My Plan Handle Taxes in Retirement?

Many are surprised to learn how much taxes can impact their retirement income, especially when Required Minimum Distributions (RMDs) and Social Security benefits come into play.

Experienced retirement advisors in Central Pennsylvania can help you evaluate:

• Tax-advantaged accounts: How will your withdrawals from Roth IRAs, traditional IRAs, and 401(k)s affect your tax bill?
• Social Security taxation: Will your benefits be partially taxed based on your combined income?
• RMDs: Once you reach a certain age, you’ll likely be required to begin withdrawing from specific retirement accounts, even if you don’t need the funds.

A thoughtful tax strategy can help you withdraw income in a way that may reduce your tax liability and preserve more of your savings. Your advisor may also coordinate with a tax professional to explore strategies like Roth conversions or charitable giving techniques where appropriate.

Question 5: What Is Your Experience Working With Clients Like Me?

You want to work with someone who understands your situation, your values, and your goals. Ask your advisor about their experience with people in similar circumstances.

It’s okay to ask:

• Do you work primarily with retirees or those nearing retirement?
• What’s your communication style, and how often will we meet?
• Are you a fiduciary?
• What does your retirement planning process look like?
• How do you personalize strategies for clients with different goals and risk tolerances?

Local knowledge can also go a long way. A firm like 1st Choice Financial Services understands the tax laws, retirement concerns, and lifestyle goals unique to Central Pennsylvania residents.

Taking the Next Step

Asking the right questions is key to feeling confident about your retirement plan.

If you’re ready to discuss these questions and more, the team at 1st Choice Financial Services is here to help you take the next step.

Schedule a free consultation with a retirement advisor Central Pennsylvania residents can count on. 

Investment advisory services offered through Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser. The views, statements and opinions expressed herein are those of the 1st Choice Financial, and not necessarily of Foundations or their affiliates. The content provided is for educational purposes only and the views reflected are subject to change at any time without notice.  No investment, legal or tax advice is provided. Always consult with a professional. Foundations deems reliable any statistical data or information obtained from third party sources that is included in this article,  but in no way guarantees its accuracy or completeness.

A Roth conversion may not be suitable for your situation. The primary goal in converting retirement assets into a Roth IRA is to reduce the future tax liability on the distributions you take in retirement, or on the distributions of your beneficiaries. The information provided is to help you determine whether or not a Roth IRA conversion may be appropriate for your particular circumstances. Please review your retirement savings, tax, and legacy planning strategies with your legal/tax advisor to be sure a Roth IRA conversion fits into your planning strategies. 

A Qualified Charitable Distribution (“QCD”) is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying your required minimum distributions (“RMDs”) for the year, as long as certain rules are met. Some charities may not qualify for QCDs.  First consult your tax advisor or the charity for its applicability.