Money Matters: Advice for New Retirees


COLUMBIA, SC (WIS) – What advice could you give to a new retiree that would help them feel comfortable withdrawing investments for their paychecks?

Josh Bradley of Capital City Financial said a lot of people think that when you retire, your bills will automatically go away. Unfortunately it doesn’t work that way.

If you work it’s pretty easy, you know how much you’re going to earn. It’s more complicated in retirement; Turning things into paychecks is one of the most complicated things you have to do.

Many people draw on their Social Security check because they understand this benefit, or they draw from their after-tax account because it’s tax-free or not taxed as heavily as other accounts. However, simplicity is not always the best option.

Which investment should a retiree tap into first?

Unfortunately, there is no standard protocol for account withdrawals, but it depends on many factors such as: B. when you retire, how much you need or whether you have a pension or not. For most people, it’s best to spread these payouts across multiple accounts to keep their tax levels stable.

Is there one investment retirees should NOT tap into first?

In general, deferring Social Security for as long as possible is best for most people, but it can be difficult. Roth accounts, or accounts that continue to grow tax-free, you want to allow them to grow as large as possible so you can tackle big ticket positions later in life.

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