Retirement Planning

A Tax-Smart Approach to Retirement

Most retirement advice focuses on saving more. That matters, but how you save and where you hold your money can be just as important. I help clients:

• Determine the right mix of traditional, Roth, and taxable accounts

• Model different retirement dates and spending scenarios

• Create tax-efficient withdrawal strategies

• Evaluate Social Security timing and claiming options

• Plan for healthcare costs before Medicare eligibility

Retirement Planning for Federal Employees

If you work for the federal government or a related agency, you have access to valuable benefits that private-sector workers don't, but also some complex decisions that can significantly affect your retirement income. The Federal Employees Retirement System (FERS) combines a pension, Social Security, and the Thrift Savings Plan, but understanding how they work together and when to claim each requires careful analysis.

TSP allocation and withdrawal strategies deserve particular attention. Many federal employees default to the G Fund or L Funds without considering whether that allocation matches their risk tolerance and timeline. In retirement, you'll need to decide between TSP annuity options, systematic withdrawals, or rolling to an IRA, each with different tax implications and flexibility. FERS pension timing also matters: retiring before your minimum retirement age may reduce your benefit, while delaying can increase it. Survivor benefit elections require you to weigh providing security for a spouse against accepting a reduced pension for yourself.

FEHB continuation into retirement is one of the most valuable federal benefits, but it requires meeting specific eligibility requirements. I help clients ensure they qualify and understand how FEHB coordinates with Medicare at age 65. Finally, coordinating Social Security with your FERS pension involves understanding windfall elimination provisions and optimizing the timing of both income sources to minimize taxes and maximize lifetime benefits.

Retirement Planning for Business Owners

Business owners face unique retirement challenges that W-2 employees don't encounter. Your business likely represents a significant portion of your net worth, but it's illiquid and complex to convert into retirement income. I help business owners think through both the financial and operational aspects of transitioning from working in the business to living off its value.

Retirement plan selection matters more for business owners than employees because you have far more flexibility. SEP-IRAs are simple but offer lower contribution limits. Solo 401(k)s allow higher deferrals and Roth contributions if your business has no employees other than your spouse. Cash balance plans can allow six-figure annual contributions for high-earning owners nearing retirement, but require actuarial calculations and ongoing administration. Choosing the right structure depends on your income, timeline, and whether you have employees.

Exit planning and business valuation often get postponed until it's too late. Whether you're planning to sell to a third party, transition to a family member, or wind down operations, understanding your business's realistic value and structuring the sale tax-efficiently requires years of advance planning, not months. I work with business owners to model different exit scenarios and coordinate with attorneys and CPAs to create actionable plans. Converting business equity into retirement income might involve installment sales, earnouts, seller financing, or reinvesting proceeds into diversified portfolios. Each approach has different tax and risk implications that need to be evaluated within your broader financial plan.

Common Retirement Planning Mistakes

Even careful planners make preventable mistakes that cost them thousands in retirement. Claiming Social Security too early is one of the most common: while you can claim at 62, waiting until 70 increases your benefit by roughly 8% per year. For many people, delaying is the best longevity insurance available. Ignoring healthcare costs before Medicare eligibility is another frequent oversight.

Underestimating taxes in retirement surprises many retirees who assume their tax burden will drop significantly. Between RMDs, pensions, Social Security taxation, and investment income, some retirees find themselves in similar or even higher tax brackets than when they were working. Finally, failing to plan for sequence-of-returns risk (the danger of market downturns early in retirement) can derail even well-funded plans. How you structure withdrawals in the first few years of retirement can significantly affect how long your portfolio lasts.

How Retirement Planning Integrates with Your Financial Plan

Retirement planning doesn't exist in isolation from your other financial decisions. It's deeply connected to tax planning, investment management, and estate planning. Tax planning determines when you should do Roth conversions, how to minimize RMDs, and in what order you should draw from different account types. Investment management needs to shift from accumulation to distribution, balancing growth with stability and managing sequence-of-returns risk. Estate planning affects beneficiary designations, trust structures, and wealth transfer strategies.

This integrated approach is what distinguishes comprehensive retirement planning from simple accumulation projections or generic withdrawal rules. You can learn more about related services through Financial Planning, Tax Planning, and Investment Management.

Next Steps

Ready to build a retirement plan tailored to your situation? Schedule a free introductory call to discuss your goals and see if we're a good fit. You can also review fees and service options or visit the FAQ for answers to common questions about the planning process.