Retirement Income Strategy
A clear, tax‑smart roadmap for replacing your paycheck with dependable income across seasons, markets, and life changes.
What is a Retirement Income Strategy?
- Buckets & guardrails that define how paychecks are created and when they change.
- Tax smart sequencing across taxable, pre tax, and Roth accounts.
- Social Security & pension timing integrated with portfolio longevity and survivor benefits.
- RMDs & IRMAA planning so surprises don’t wreck the plan.
- Business owner realities: seasonal cash needs, salary vs. distributions, and exit runway planning.
*Plain-English version*
- How to turn savings into a steady monthly paycheck.
- Which account to tap first (taxable, pre-tax, or Roth) so taxes stay lower over time.
- When to start Social Security—and why that timing matters.
- How much cash to keep on hand and when to refill it.
- What to do if markets drop or spending changes (simple guardrails).
- How RMDs and Medicare brackets can affect your plan—and how to avoid surprises.
- For business owners: how salary vs. draws and a future sale fit into your income.
Outcomes You Can Expect
- A written Retirement Income Map aligned to lifestyle spending, seasonality, and taxes.
- Guardrails for how much you can safely spend—and when to adjust.
- A one page Withdrawal Policy Statement (WPS)—the rulebook for paychecks, refills, and adjustments.
- Coordinated timing for Social Security, pensions, RMDs, and Roth conversions.
- Asset location that lowers lifetime taxes (taxable vs. pre tax vs. Roth).
- Simple checklists for any actions that involve your CPA or attorney.
How it Works
Buckets & Guardrails
- Liquidity Bucket (1–3 years): Cash/short‑term reserves for spending, tax payments, and business seasonality.
- Stability Bucket (3–7 years): Income‑oriented, lower‑volatility assets to refill Liquidity.
- Growth Bucket (7+ years): Long‑term investments for inflation and legacy.
- Guardrails: Pre‑set thresholds (e.g., 20% portfolio movement or spending variance) that trigger an upshift/downshift in withdrawals—documented in your WPS.
Tax Smart Sequencing
- Coordinate order of withdrawals (taxable → pre‑tax → Roth, or the reverse when conversions make sense).
- Use filling low brackets and IRMAA thresholds to time Roth conversions pre‑RMD.
- Align Social Security start age with portfolio longevity, survivor benefits, and risk capacity.
Owner Specific Levers (Pre /Post Exit)
- Reasonable compensation vs. distributions to optimize current taxes and future SS credits.
- Solo 401(k) / Safe Harbor 401(k) + Profit Share / Cash Balance for large, structured deductions.
- Accountable plan, Augusta rule, hiring kids, HSA/QSEHRA/ICHRA (with documentation) to increase savings efficiency.
- Liquidity planning: operating cash runway + LOC/HELOC to avoid raiding long‑term assets.
- Exit runway: pre‑sale Roth conversions, DAF funding in a spike‑income year, QSBS/§1202 and basis management where applicable (coordinate with CPA/attorney).
What You Get (Deliverables)
- Retirement Income Map (12‑month cash flow + 10‑year projection).
- Withdrawal Policy Statement (WPS) – see example below.
- Tax Location & Sequencing Plan (account‑by‑account).
- Social Security & RMD Timeline (with IRMAA guardrails).
- Action Checklist for coordination with CPA/attorney.
Mini Case Studies
Faqs
What withdrawal rate is “safe”?
It depends on your mix, taxes, and flexibility. We set a custom rate with guardrails instead of a fixed rule.
Should I claim Social Security early?
Only if cash‑flow, health, or survivor math points that way—otherwise delays can enhance lifetime income.
Do I need annuities?
Sometimes as a “floor” for non‑negotiable expenses. We evaluate costs, riders, and fit within your plan.
How often do we adjust the plan?
Quarterly reviews plus an annual reset—or sooner if a guardrail trips.
Can you work with my CPA/attorney?
Yes. We coordinate strategy and paperwork.