Unless a human adviser is relying on simple rules of thumb, he may well devise your drawdown strategy with the aid of automated tools similar to those that online advisers offer directly to consumers. No matter which route you choose, you’re likely to end up with a blend of human and digital advice. If you want professional help, you can go the traditional route and work face-to-face with a human adviser, or sign up with one of the online advice providers. Route 1: Let a Pro Design a Retirement Drawdown Strategy for Me Below, we look at two paths to a retirement paycheck: One for retirees who want professional advice and one for do-it-yourselfers. When you understand these tools’ strengths and weaknesses, however, you may find they can simplify at least a piece of your drawdown strategy. Rather than sizing up annuity options that could trim your risk of outliving your money, for example, their main business is helping you make the most of what you already have. Largely, the digital advice is “self help,” says Tom Baker, a University of Pennsylvania law professor who has studied robo-advisers’ drawdown tools. Financial firms in recent years have launched a slew of new decumulation tools, ranging from “managed payout funds” meant to deliver steady retirement paychecks to sophisticated online software and advisory services that include customized drawdown plans. If you don’t want to go it alone, the financial-services industry would love to sell you a solution. Get it wrong, and you could be forced to make painful spending cuts later in retirement. Get the math right, and you could extend your portfolio’s life by many years. And you must weave those portfolio “paychecks” together with your other retirement income sources such as Social Security, pensions and annuities. ![]() With each withdrawal, you’ll also need to decide which accounts to tap-taxable, tax-deferred or Roth-to minimize your tax bill. Deciding how much to pull from your portfolio each year is just one part of the equation.
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