Retirement Planning: Maximize Income First, Then Minimize Taxes

(don’t forget to checkout the video too)

The first and most important objective in retirement planning is to create a guaranteed income stream that you can never outlive.

This is the best way to create security & predictability in retirement.

It also gives you the most flexibility because once you have guaranteed income, you now have the permission to invest more aggressively and to spend all your other assets HOWEVER you would like (wine tours 🍷,traveling ✈️, golf memberships ⛳️ , etc.)

I often advocate for a 60% income strategy in retirement and what this means is that you are designating 60% of your assets to income and leaving the remainder as flexible and discretionary for all of the fun stuff in retirement.

This the best way to provide income and flexibility.

The best way to maximize your retirement income is to start repositioning money into an income vehicle either at retirement or up to 10 years prior.

This can also be part of a tax-free retirement strategy as well.

But the income aspect should come first‼️

Once you’ve created the income strategy then you can focus on mitigating taxes as much as possible.

This is done by simply repositioning money into buckets that are tax-free in retirement (by choosing to pay the taxes now, in a tax bracket of your choice).

A lot of high income earners can’t do this right away because the repositioning of money would be in too high of tax bracket.

For them, they can still implement the income strategy, but they’ll likely have to wait until the first few years of retirement to start mitigating their tax liability.

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