Retirement income
Build a paycheck that lasts your entire retirement
The shift from saving to spending is the most complex transition in personal finance. A coordinated income plan makes it manageable.
Retirement income is not automatic — it must be engineered
During your working years, income was simple: you worked, you got paid. In retirement, you must build your own paycheck from multiple sources — each with different tax treatment, timing rules, and longevity risk. Without a coordinated plan, you risk running out of money, paying too much in taxes, or leaving significant income on the table.
Your retirement income sources
Each source has different tax treatment, timing rules, and longevity characteristics. Coordinating them is the key to an efficient income plan.
Social Security
The foundation of most retirement income plans. Timing, spousal coordination, and tax planning all affect how much you actually keep.
Up to 85% taxablePension / Defined Benefit
If you have a pension, you will typically choose between a lump sum and monthly payments. The right choice depends on your health, other income, and survivor needs.
Fully taxableTraditional IRA / 401(k)
Tax-deferred accounts that become taxable income when withdrawn. Subject to Required Minimum Distributions starting at age 73.
Fully taxableRoth IRA / Roth 401(k)
Tax-free income in retirement. No RMDs during the owner's lifetime. A powerful tool for managing taxable income and IRMAA thresholds.
Tax-freeTaxable Investment Accounts
Brokerage accounts with favorable long-term capital gains rates. Useful for bridging income gaps and managing tax brackets.
Capital gains ratesAnnuities
Insurance products that can provide guaranteed lifetime income. Useful for covering essential expenses, but must be evaluated carefully for fees and terms.
Partially taxableIncome distribution strategies
The bucket strategy
Divide your assets into short-term (1-3 years of expenses in cash), medium-term (bonds and stable assets), and long-term (growth investments) buckets. This provides stability while allowing growth.
Withdrawal sequencing
Drawing from accounts in the right order — typically taxable first, then tax-deferred, then tax-free — can extend portfolio longevity and reduce lifetime taxes.
Covering essential vs. discretionary expenses
Match guaranteed income sources (Social Security, pension, annuity) to essential expenses. Use investment accounts for discretionary spending. This reduces sequence-of-returns risk.
Dynamic withdrawal rates
Rather than a fixed 4% withdrawal rate, adjust spending based on portfolio performance and market conditions. This approach can significantly extend portfolio longevity.
Common questions
Build your retirement income plan
We will map out all your income sources, model different scenarios, and help you build a coordinated plan that covers your expenses and minimizes taxes.
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