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Retirement Income Planning

Build a tax-efficient, resilient retirement paycheck.

Successfully managing your future means coordinating tax-efficient income generation with disciplined risk management. This 5-step framework is the same one we walk through with families during their Retirement Income Score review.

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  1. 01

    Calculate your target income baseline

    • Total non-discretionary expenses like housing, food, and utilities.
    • Subtract guaranteed income sources such as Social Security and pensions.
    • The remaining balance is your annual withdrawal target from investments.
  2. 02

    Establish a cash buffer strategy

    • Set aside 1–2 years of living expenses in high-yield cash accounts.
    • Use the reserve during market downturns to protect long-term assets.
    • Avoid liquidating investments when prices are low.
  3. 03

    Implement a dynamic withdrawal rate

    • Adjust spending downward in periods of severe underperformance.
    • Target a flexible 3%–4% initial withdrawal rate.
    • Rebalance annually to maintain your target allocation.
  4. 04

    Optimize asset location across accounts

    • Place high-growth equities inside tax-free Roth IRAs.
    • Hold fixed-income assets in tax-deferred traditional IRAs or 401(k)s.
    • Keep tax-efficient index funds inside taxable brokerage accounts.
  5. 05

    Schedule strategic Roth conversions

    • Convert traditional IRA funds to Roth during low-income years.
    • Pay taxes early to reduce future Required Minimum Distributions (RMDs).
    • Lower lifetime tax burden and protect beneficiaries.

Key Trade-Offs

Every retirement choice has a cost. Know both sides.

StrategyPrimary BenefitCore DownsideBest Suited For
Delaying Social SecurityMaximizes monthly guaranteed payout.Requires drawing from personal savings early.Healthier individuals with other liquid assets.
Purchasing an annuityCreates a predictable lifetime income stream.Reduces overall liquidity and growth potential.Risk-averse retirees wanting fixed income.
Medicare AdvantageLower monthly premiums with extra perks.Restricts care to local provider networks.Budget-conscious individuals with local doctors.
Original Medicare + MedigapComplete freedom to choose any doctor.Higher fixed monthly premium costs.Individuals managing multiple chronic conditions.
Next: Healthcare & Medicare The case for annuities