Create Tax-Efficient Retirement Income
Susan and Karl wanted the freedom to make big lifestyle purchases (like a second home) without incurring high tax bills. They’d made big sacrifices throughout their careers to save for retirement and wanted to relax and finally enjoy the wealth they’d built.
Goals
- Have the freedom to make large lifestyle purchases while avoiding big tax bills
- Optimize their withdrawal strategies to be as tax-efficient as possible
- Build a long-term relationship with an advisor who could guide them
Challenges
Susan and Karl had previously worked with advisors who didn’t offer personalized, in-depth tax planning or coordinate with a CPA. They needed a tax-efficient way to create retirement income and support their well-deserved lifestyle purchases without getting huge tax bills.
Approach
We sat down with Karl and Susan to explore their goals and build a timeline for their lifestyle dreams. We used a simple “bucket” strategy for managing taxable, tax-deferred, and tax-free accounts to help them create tax-efficient income. We created a strategy for Roth Conversions and other advanced moves to create more tax-free income. We closely coordinated every move with their CPA so they were getting comprehensive advice and didn’t have to make decisions with only half the information.
Results
With a tax-efficient withdrawal strategy in place, Karl and Susan were able to buy and outfit a second home, saving significant money on their taxes. They appreciated the simplicity of the 3-bucket income illustration and now have a clear, understandable strategy for managing their retirement income.
They also feel confident and supported in their decisions, knowing that they have a strong relationship with a trusted advisor who understands their priorities and dreams for life.
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