Would an Extra 1.1% Help Your Retirement Income Planning?

We Focus On Squeezing Every Last Dime From Your Retirement Income

A study by Vanguard showed that the best retirement income strategy can add up to 1.1% to your overall investment returns. Our passion is helping you maximize your retirement income using multiple planning strategies, including (but not limited to) the Vanguard tactics.

In fact, retirement income planning is a huge focus here at Redrock Wealth Management. Whether you want to leave a legacy for your heirs—or bounce the check for your casket—we can create a retirement income plan you’ll love! A plan that allows you to spend what makes retirement both memorable and purposeful!

Retirement Income Distribution Strategy

Your retirement income will typically come from a mix of Social Security, pensions, and distributions from your investment accounts. How you structure those income streams can make or break your retirement.

For example, did you know that only 4% of all Social security recipients actually maximize their benefits? That basically means 96% of people donate their hard-earned Social Security payments to the US government. Once again, the government wins and you lose. But it doesn’t have to be that way.

We model your Social Security benefits in with your overall retirement plan to get the most from your Social Security. We also analyze multiple spending strategies in conjunction with maximizing your benefits.

Tactical Retirement Income Planning

We focus heavily on minimizing your lifetime income tax obligations. Part of this is structuring your income sources so you pay far less over time (even if it’s slightly more now.)

Different accounts have different tax implications. For this reason we strongly believe in designing the best income structure unique to your situation.

  • Pre-tax accounts like IRAs and 401(k)s (not including after-tax IRA contributions or Roth components) force income taxes on all distributions
  • Roth accounts and Roth 401(k)s are tax-free forever
  • Taxable accounts force a 1099 each year on the interest income, dividends, or capital gain distributions

Ordering your withdrawals in the following manner should create a highly tax-efficient retirement withdrawal strategy:

  1. Required Minimum Distributions from IRA’s
  2. Cash flows (dividend and interest distributions) from taxable accounts
  3. Taxable accounts (selling and distributing assets that may have losses or smaller gains first)
  4. Tax-preferenced accounts
    1. If you expect a higher tax bracket in the future, draw from pre-tax IRA’s first then tax-free Roth accounts
    2. If you expect a lower tax bracket in the future, draw from tax-free Roth accounts first then pre-tax IRA’s

But That’s Just The Beginning!

If you really want to make the most of your retirement income planning, we can help design the most productive plan possible for you. That plan will include the drawdown and management of various investment assets—as well as strategies—to slash your taxes and increase your income over time!

If making the most of your retirement income is important to you, let’s talk about your retirement income planning!

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