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Start Planning Now

When it comes to retirement planning after the age of 60, one of the most critical but overlooked aspects of portfolio management is the management of your income streams to maximize your required cash flow needs and minimize your taxes.  

Decisions related to Social Security, Roth conversions, and Required Minimum Distributions (RMDs) from IRAs can significantly impact your financial well-being in your golden years.  

Manage Social Security Taxes
To start, understanding how your Social Security benefits are taxed is crucial. Depending on your overall income, a portion of your Social Security benefits may be subject to federal income tax. Properly managing other sources of income, like withdrawals from retirement accounts, can help minimize the tax bite on your Social Security checks.

Make Regular Roth Conversions
Roth conversions, where you convert traditional retirement account funds into Roth IRAs, are another key consideration. Strategically converting these funds can potentially lower your future tax liability, especially if you anticipate higher RMDs in the future.  

Plan for Future RMD Income
Speaking of RMDs, these mandatory withdrawals from traditional retirement accounts like 401(k) plans and IRAs kick in at age 72 (or age 73 if an individual turns 72 after January 1, 2023). By projecting future RMD income into your tax planning strategy now, it offers the potential for significant tax savings through tax bracket management.

How's Your Plan?
Managing your income streams throughout retirement requires a well-planned approach. If you have $1 million or more of investible assets, let's build a strategy that addresses your investment plan and rebalancing approach, withdrawal strategy, and your estate and legacy plan.