FAQ

Q: How do I make sure I have enough to retire?

It comes down to two things: what you need, and how your income is structured. We build your Retirement Income Plan around your lifestyle, your assets, and your goals — then help you create steady income that supports it.

Q: How do I make sure I don’t run out of money later in retirement?

Design your income plan to cover today and make sure it’s set up to keep paying you from now on, no matter what. That includes guaranteed income for stability and a long-term strategy for growth. We help you avoid the common missteps that drain retirement accounts too soon.

Q: What’s the best way to retire and not have to give up my lifestyle or be afraid of my budget?

It starts with knowing how much your desired lifestyle costs and ends with creating more than enough income to maintain it. We help you define your spending levels, identify guaranteed income sources, and map out a tax-smart withdrawal strategy that lets you live the life you’ve worked for — not tiptoe around it.

Q: When is the right time to retire?

There’s no perfect age or market condition — and waiting for the “right moment” often leads to missed opportunities. The right time to retire is when you have a plan that works no matter what the economy is doing — one that protects your income, reduces your tax exposure, and supports your lifestyle. We help you build that plan — so you can experience true financial confidence in retirement.

Q: How do I avoid being forced to go back to work or worse?

By creating a plan that takes care of your income first and then makes sure you’re set up for continued growth. When you have more than enough income, life becomes easier. It’s like having a paycheck from work, only you don’t have to work. With the right income plan you don’t have to wake up and rush to check your statements — you just know that you’re covered from now on, no matter what.

Q: My current financial advisor still has me in risky investments. It feels wrong to me now that I’m older — but am I just worrying too much?

You’re not. That’s a valid concern. The truth is that what worked when you were working no longer works when you retire. When you retire, you stop paying into your savings and you transition to your savings needing to pay you. The advisors that helped you get to retirement are not always well equipped to get you through retirement. Their focus is on growing money, not protecting it. Our focus is on retirement. That’s all we do. Because of this, we don’t limit our client’s income options the way that some more traditional advisors do.

Q: I plan to retire in the next 10 years. Is it too early to begin planning?

Not at all. It’s better to start as early as possible. Planning early gives you more options, more flexibility, and better long-term outcomes. We help you make smarter decisions today that pay off later.

Q: I’m a lot closer to retirement than 10 years… Am I too late to plan?

If retirement is around the corner, it’s not too late. You can still make wise choices to protect your future. It’s worth a conversation to see how your current income plan will hold up to the test of time. Of course, the sooner you start planning, the better, so if you’re within a few years of retirement, it’s best to check in as soon as you can.

Q: I’m already retired… Can you still help me?

Certainly. Many of our clients we didn’t meet until after retirement — when they realized their portfolio and plan wasn’t as solid as they had hoped. No matter the timing, no matter the situation, we take an honest look and do what we can to help you secure your retirement future.

Q: How should my investment strategy change when I retire?

This is an excellent question. It means you’re thinking the right way. The number one thing you have to do first is replace your income from work. Your strategy must do this or retirement will be a bumpier road. Social Security only covers a little bit of this. Everyone is left with an income gap and that’s where your retirement plan comes in. It has to be set up to pay you the rest of your life no matter what the markets do. There’s no need to risk your retirement lifestyle by investing like a 30 year old.

Q: How do I protect myself from future market downturns or crashes?

The key is not being forced to sell investments during a downturn. Instead, create a plan that separates income from growth assets — so your lifestyle isn’t dictated by what the market did this month. Also, make sure your primary income sources are guaranteed for life so you can let the rest of your money grow without pressure.

Q: How do I make sure my spouse is taken care of if I pass first?

You must make sure your income plan and tax plan are set up to continue and protect the surviving spouse. You don’t want their income to stop early and you don’t want them to get hit with a tax bomb. Make prudent choices early so big financial decisions don’t have to be made at 80 or 90 years old.

Q: When should I claim Social Security?

I wish it were that simple, but unfortunately there is no perfect time that works for everyone. The “right” age — whether it’s 62, 67, 70, or somewhere in between — depends entirely on YOUR unique situation. Most people don’t realize that a married couple has over 500 possible filing combinations. The right strategy for you will most likely be different than your neighbors. Our advisors take your entire financial picture into consideration as we review your needs and help you time Social Security.

Q: What happens if I claim Social Security early?

If you claim at 62, you can reduce your benefits by up to 30% compared to waiting until full retirement age. But that doesn’t automatically mean waiting is right for you. Sometimes claiming early makes sense, especially if you need the income or can invest it strategically. It comes down to strategy.

Q: Should I wait until age 70 to maximize my benefit?

Delaying past full retirement age increases your benefits by 8% per year until age 70. But waiting isn’t always the best choice. Your Social Security decision should coordinate with your investments, taxes, and overall income plan — not follow a one-size-fits-all rule.

Q: How much money could I lose by claiming at the wrong time?

The average retiree loses $111,000 by claiming Social Security at the wrong time. For married couples, choosing the wrong filing combination could cost over $100,000 in lost lifetime benefits. Only 4% of retirees claim at the optimal time.

Q: What else does my Social Security timing affect?

Your claiming decision impacts:

• How much you’ll withdraw from investments each year
• Whether you’ll trigger unnecessary taxes
• Your Medicare premiums (through IRMAA surcharges)
• What your spouse receives if something happens to you
• How much additional income you need to create

Q: Can I change my mind after I file for Social Security?

Social Security is one of the few retirement decisions you can’t undo. You have a one-time 12-month window to withdraw your application and pay back benefits (but you need the cash to do this) After that, you’re locked in. That’s why getting it right the first time is critical.

Q: How do you determine the best claiming strategy for me?

Don’t treat Social Security as a standalone decision. Integrate it into your complete retirement income plan — balancing it with your investments, planning for taxes, protecting your spouse, and ensuring you have the income you need from day one.

Q: How do I figure out what my income gap after social security will be?

The formula is pretty simple. Most people need to replace 70 to 90% of their income from work in order to maintain their lifestyle. So you take your total income from work and subtract what you expect to get from social security. Whatever is left is your income gap.

See the “Income” section on this FAQ page for more specific information.

Q: Why do I need more guaranteed income than just Social Security?

Social Security won’t cover everything — and it’s not built to. If you want freedom and flexibility in retirement, additional income sources (especially guaranteed ones) help you maintain your lifestyle without leaning too hard on market-risk assets.

Q: How much of my Social Security will be taxed?

Typically up to 85% of your Social Security benefits can be taxed, and it doesn’t take much income to trigger this — just $44,000 for a married couple. We help you structure your income to minimize this tax burden.

Q: If I make $100,000 from work, what will my income gap be after Social Security?

Social security will only replace at most 38% of what you’re used to living on. Most people need to replace 70 to 90% of their income from work in order to maintain their lifestyle.

After social security, here’s what your savings will need to create:

• To reach 70% you’ll need $32,000/year from savings/investments
• To reach 80% you’ll need $42,000/year from savings/investments
• To reach 90% you’ll need $52,000/year from savings/investments

Q: If I make $150,000 from work, what will my income gap be after Social Security?

Social security will only replace at most 28% of what you’re used to living on. Most people need to replace 70 to 90% of their income from work in order to maintain their lifestyle.

After social security, here’s what your savings will need to create:

• To reach 70% you’ll need $63,000/year from savings/investments
• To reach 80% you’ll need $78,000/year from savings/investments
• To reach 90% you’ll need $93,000/year from savings/investments

Q: If I make $200,000 from work, what will my income gap be after Social Security?

Social security will only replace at most 16% of what you’re used to living on. Most people need to replace 70 to 90% of their income from work in order to maintain their lifestyle.

After social security, here’s what your savings will need to create:

• To reach 70% you’ll need $108,000/year from savings/investments
• To reach 80% you’ll need $128,000/year from savings/investments
• To reach 90% you’ll need $148,000/year from savings/investments

Q: If I make $300,000 from work, what will my income gap be after Social Security?

Social security will only replace at most 11% of what you’re used to living on. Most people need to replace 70 to 90% of their income from work in order to maintain their lifestyle.

After social security, here’s what your savings will need to create:

• To reach 70% you’ll need $177,000/year from savings/investments
• To reach 80% you’ll need $207,000/year from savings/investments
• To reach 90% you’ll need $237,000/year from savings/investments

Q: How do I create reliable monthly income in retirement?

Separate your income and growth into “buckets”. Use guaranteed income sources to cover essential expenses, while growth assets are free to grow without pressure. This way, market drops don’t affect your ability to pay bills and don’t force you to restrict your lifestyle.

Q: What is the Income Floor Strategy?

We establish a “floor” of guaranteed income that covers your living and lifestyle expenses. This foundation means you’re never forced to sell investments at a loss just to pay bills. Above this floor, we position growth assets to grow without withdrawal pressure.

Q: What are Required Minimum Distributions (RMDs)?

At 73, the IRS forces you to start withdrawing from your retirement accounts — known as Required Minimum Distributions or RMDs — whether you need the money or not. These withdrawals are fully taxable and increase every year. Strategic planning before age 73 can significantly reduce these forced withdrawals.

Q: Should I do Roth conversions?

Done right, Roth conversions are powerful — you pay taxes now on traditional IRA money to get tax-free growth forever. But timing matters. Convert too much in one year and you’ll push yourself into a higher tax bracket, trigger higher Medicare premiums, and cause more of your Social Security to be taxed. There’s a balance to be found that’s unique to you.

Q: What is the Widow’s Tax?

When one spouse passes, the survivor’s standard deduction gets cut in half — from around $33,000 to around $16,000 — while income often stays nearly the same. This can push the surviving spouse into a much higher tax bracket at the worst possible time. We plan for this in advance.

Q: How can I reduce taxes in retirement?

Through coordinated tax planning that includes strategic withdrawal sequencing, Roth conversions during low-income years, managing income to stay below Medicare surcharge thresholds, and timing charitable giving with RMDs. Every decision is planned to work together.

Q: How can annuities fit into my income plan?

Some annuities are designed to create high, guaranteed income — which can be a great fit when there’s an income gap. We only use them when they add clear value, and only the types that offer flexibility, control, and competitive payouts. We help you understand when they’re appropriate — and when they’re not.

Q: What is a Fixed Index Annuity (FIA)?

It’s a retirement vehicle that protects your principal from market volatility, sees gains based on the performance of a market index (like the S&P 500), and offers contractually guaranteed income for life — even if you live long enough to run out of principal. You share in a portion of the benefit from the ups, but never lose on the downs.

Q: How does the income guarantee work?

FIAs with a Guaranteed Lifetime Withdrawal Benefit (GLWB) offer a fixed, contractually guaranteed income stream — based on your age, deferral period, and the amount you invest. It keeps paying even if your account balance runs out. These income rates are competitive, often 2-3x that of quality bonds, CDs, or more traditional fixed annuities.

Q: Do I lose access to my money once income starts?

No. Unlike traditional annuities that require annuitization, FIAs with a GLWB let you keep control. You can still access the principal (within the contract terms), and any remaining value goes to your heirs.

Q: What are surrender charges, and how do they work?

Most annuities have a surrender period (usually 7–10 years) where withdrawals above the allowed amount (often 10% per year) may trigger a fee. We help you understand these clearly and only recommend contracts where the benefits far outweigh any limitations. While not 100% liquid, the good news is that ample liquidity does still exist without penalty in modern annuities.

Q: How do these compare to bonds or CDs?

FIAs often offer 2–3x the income of bonds, CDs, or traditional fixed annuities, along with tax deferral and principal protection. Unlike bonds, you won’t lose money in a down market and you will continue to receive contractually guaranteed income for life. Once you lock it in, your income won’t go down.

Q: Can I add long-term care or legacy protection?

Yes. Many top FIAs allow you to add optional benefits, like enhanced death benefits or long-term care access. These may cost extra but can be worth considering depending on your needs.

Q: How does Medicare Planning fit into retirement?

Your income levels directly affect your Medicare premiums through IRMAA surcharges. Strategic income planning can save you $6,000+ per year on Part B and Part D premiums. We coordinate Medicare Planning with your overall income and tax strategy.

Q: When should I enroll in Medicare?

Most people should enroll during their Initial Enrollment Period, which begins three months before your 65th birthday. But the timing can be complex if you’re still working or have employer coverage. We help you navigate these decisions.

Q: What are IRMAA surcharges?

Income-Related Monthly Adjustment Amounts (IRMAA) are additional charges for Medicare Part B and Part D based on your income from two years prior. We help you manage your income to stay below these thresholds when possible.

Q: How do I protect my assets for my heirs?

Through proper estate planning that includes trusts, beneficiary designations, and tax-efficient wealth transfer strategies. We coordinate with estate planning attorneys to ensure your wishes are carried out while minimizing taxes and avoiding probate.

Q: What is the step-up in basis, and why does it matter?

When you pass away, your heirs receive a “step-up” in the cost basis of inherited assets to their current market value, potentially eliminating capital gains taxes. We help structure ownership of appreciated assets (especially Arizona real estate) to maximize this benefit.

Q: How can I leave a legacy while minimizing taxes?

Through strategies like charitable giving during your lifetime, qualified charitable distributions from IRAs, donor-advised funds, and proper trust structures. We help you balance your desire to leave a legacy with tax efficiency.

Q: Should I have a trust?

Trusts can provide privacy, avoid probate, protect assets from creditors, and offer tax benefits. Whether you need one depends on your specific situation, asset levels, and goals. We work with estate planning attorneys to determine the right structure for you.