Income Planning
Secure, predictable income is the foundation of a worry-free retirement. At our firm, we prioritize certainty over speculation in income planning, designing strategies that deliver reliable cash flow regardless of market volatility.
By overestimating inflation and underestimating growth projections, we stress-test your plan against worst-case scenarios. If it holds up under these conservative assumptions, you can retire with confidence, knowing your lifestyle is protected.
Key Financial Considerations
Retirement income isn't just about generating cash—it's about smart management to avoid pitfalls that could erode your nest egg. We emphasize:
- Required Minimum Distributions (RMDs): Starting at age 73 (or 75 for those born in 1960 or later), RMDs force withdrawals from tax-deferred accounts. Poor planning can lead to unnecessary taxes; we strategize conversions (e.g., Roth) to control your tax bracket.
- Tax Efficiency: By sequencing withdrawals from taxable, tax-deferred, and tax-free accounts, we minimize your overall tax burden, preserving more for spending or legacy.
- Sequence of Returns Risk: Early retirement market losses can devastate portfolios if you're withdrawing heavily. We mitigate this by prioritizing non-volatile income sources upfront.
- IRMAA Penalties with Medicare: Higher income can trigger surcharges on Medicare Parts B and D premiums. We align income streams to stay below IRMAA thresholds where possible, integrating this with your broader Medicare planning.
- Social Security Timing: Delaying claims until age 70 can increase benefits by up to 8% annually, but we weigh this against your health, spousal benefits, and overall cash flow needs for optimal certainty.
Inflation is a silent threat, so we build in buffers—assuming higher rates ( to ensure your purchasing power endures. Growth projections are kept conservative to avoid over-optimism.
How We Help
Our advisors craft a tailored income plan within the ITEMS framework, ensuring it complements your tax, estate, Medicare, and Social Security strategies. Services include:
- Worst-Case Scenario Analysis: Using conservative assumptions to validate your plan's resilience—no probabilities, just practical stress-testing.
- Income Layering: Building a "floor" of guaranteed income for essentials, with flexible layers for discretionary spending.
- Ongoing Adjustments: Monitoring life changes, tax laws, and economic shifts to refine your strategy, such as QCDs (Qualified Charitable Distributions) to offset RMDs.
- Holistic Integration: Coordinating with other ITEMS elements, like timing Social Security or using tax-efficient withdrawals to fund estate goals.
With our certainty-focused approach, you'll enjoy retirement without financial anxiety. Contact us for a no-obligation review to build your robust income plan today.