How to Confidently Position Your $1.5M for Retirement
Planning for retirement can feel overwhelming—even if you’ve saved well. Let’s say you’ve done a great job accumulating $1.5 million. That’s an incredible milestone. But even with that level of savings, many retirees still wrestle with a crucial question: How do I structure my money to confidently cover my needs for the next 20, 30, or even 40 years?
At Momentum Wealth, we believe that you’ve worked too hard not to enjoy every minute of your retirement. Our Retire Forward Process™ helps individuals and families create a retirement strategy that delivers the confidence you deserve and the freedom you’ve earned.
We focus on five essential areas of retirement: Income, Investments, Taxes, Health Care, and Legacy. But before we get to the full picture, it’s critical to build the foundation—starting with income and investments. Here’s how we break it down.
Step 1: Identify Your Income Gap
Imagine you’re receiving $50,000 per year from Social Security and pension benefits. You’ve calculated that your desired retirement lifestyle will cost around $100,000 annually. That leaves you with an income gap of $50,000 per year—a gap that must be addressed with intention and strategy.
At Momentum Wealth, we help you organize your assets into three essential buckets: Safety, Income, and Growth. These buckets allow you to see how your money is working—now and in the future.
The Safety Bucket
This is your financial safety net. It includes highly liquid assets like cash, savings accounts, checking accounts, and money market funds. While these accounts aren’t designed to grow significantly, they serve a vital purpose: accessibility.
We typically recommend setting aside around $100,000 in your Safety Bucket so you can handle unexpected expenses or emergencies without disrupting your long-term strategy. This step supports peace of mind—an important part of your confidence in retirement.
The Income Bucket
Once you’ve covered the basics, it’s time to address your income gap. This is where we allocate funds to reliably generate the $50,000 per year you need to support your lifestyle. Your Income Bucket may include:
- Certificates of deposit (CDs)
- Bonds
- Annuities
- Real estate income streams
In this scenario, we might allocate $700,000 of your $1.5 million portfolio to the Income Bucket, with the express purpose of delivering steady, dependable income for the rest of your life.
This part of the plan is all about creating comfort and freedom—helping you move from worrying about income to fully living in retirement.
The Growth Bucket
With your safety net in place and your income needs met, we can turn our attention to growing your wealth. The remaining $700,000 can be invested in vehicles like:
- Stocks
- ETFs
- Mutual funds
- Other long-term growth assets
This portion of your portfolio is designed to pursue higher returns and keep your plan moving forward. And because your essentials are already covered, you’re in a position to take calculated, strategic risks that could help extend and expand your financial future.
Build Your Retirement Around Confidence, Not Guesswork
At Momentum Wealth, we guide you through our Retire Forward Process™ so you can make decisions with purpose and clarity:
- Belief: Dream big and define the retirement you’ve earned.
- Confidence: See how your plan supports your lifestyle and protects what matters most.
- Freedom: Step into retirement knowing you’re ready—financially, emotionally, and practically.
By organizing your assets around Safety, Income, and Growth, and by aligning your strategy with our five key retirement pillars, you can move forward with confidence.
If you’re ready to take the next step in your retirement journey, we’re here to walk with you—every step of the way.
Let’s build a plan that gives you the confidence you deserve and the freedom you’ve earned. Always moving forward.
