How To Turn Retirement Assets Into Income

Is a portfolio worth $500,000 a lot of money for retirement? How about $1 million? What if you’ve saved $5 million? I get asked this a lot, and I find it helps to reframe the question: Is $2,000 a month a lot of money? What about $5,000 a month? Or $10,000?

When you look at it this way, you probably already know your answer. That’s because we generally conceive of wealth in terms of current income and not assets. Think about it: We pay income taxes and see our tax withholding on every pay stub, and we routinely deal with monthly bills and expenses that must be paid with current income.

Moving to a Negative Interest Rate

With the Federal Reserve recently raising interest rates for the first time in many years, the U.S. economy may be at the beginning of a transition away from the ultra-accommodative monetary policy environment that has existed since the global financial crisis. However, central banks in other major developed economies are not following suit—in fact, they are still trying to counteract the current low growth, low inflation economic environment.

How the New Financial Law Affects Pinnacle Clients

As the laws governing how financial professionals guide client retirement assets are set to change, financial advisors are being required to place the interests of their clients first. With this change, all advisors must not only recommend investments that are suitable for their clients, but more importantly, they must act as a fiduciary and place their clients’ interests ahead of their own.

So how will this affect the investments of Pinnacle clients? It won’t.