Prepare Clients for Spending Changes in Retirement

Many of you have helped your clients, generally, prepare for retirement, but have they given thought to how their spending will change once this happens?

and annual bonus. When they filed their taxes you let them know if they were getting a refund or needed to send in an additional payment. Self-employed clients made estimated tax payments on a quarterly basis.

This may change in retirement. If they are taking distributions from their retirement plans, their financial services firm should ask what percentage they want withheld. Although the focus of this article is on personal expenses and overhead, as their accountant you will discuss taxes they will be paying in retirement and how they will be paid.