How to design your retirement income strategy in 3 steps.
Patrick Thompson
Retirement income isn’t just about saving. It’s about where you save! 💡🏦
Most people know about 401(k)s or IRAs, but they miss out on a diversified strategy that can help lower taxes and increase retirement income flexibility. Here’s how using three different types of accounts could make your future financially secure:
- Pre-Tax Accounts: 401(k)s or Traditional IRAs let you save with a tax break now. But all withdrawals are taxed as ordinary income in retirement.
- Roth Accounts: Grow your money tax-free! Withdrawals in retirement are tax-free, giving you an important source of income that isn’t hit by future tax hikes.
- Taxable Accounts: Regular investment accounts are often overlooked, but they give you flexibility, take money out at any time, handle big expenditures, and tap into long-term capital gains tax rates. No need to worry about required minimum distributions or penalties for early withdrawals.
When you strategically use all three account types, you can:
✔️ Lower your total retirement lifetime tax bill
✔️ Access money when needed for surprises or opportunities
✔️ Choose which bucket to pull from based on market conditions or income needs
Don’t let taxes or income surprises catch you off guard.
Ready to See What a Clear Plan Could Look Like for You?
If you’ve got 20 minutes and want an honest conversation about your retirement income and tax picture, let’s find out if we’re the right fit.