Blindsided by the Dominoes

by | Apr 6, 2021 | Discovery, Tax-Free

Most financial plans fail during the “decumulation” phase, primarily because retirees are blindsided by the domino impact of taxes.

Over the past 25, 30, 35, 40 years you have likely been working with a money manager, financial advisor, or some type of financial professional who has productively and successfully helped you manage and grow your wealth.

During your career you are also earning an income. If the market crashes you are in it for the long haul and the market recovers. It does not interrupt your lifestyle.

When you transition to your wealth decumulation years and stop earning an income, you become dependent on withdrawals from your investments for your lifestyle.

Before that transition, you will likely want answers to questions such as:

  • How much money will I have to spend?
  • What if the markets crash?
  • How much of my income will be taxed?
  • How much of my Social Security benefits will be taxed?
  • How high will my Medicare premiums be?
  • What happens when Required Minimum Distributions (RMDs) kick in?
  • What happens to my money when I pass away?

How much experience do your financial professionals have with the complexities of wealth decumulation? What assumptions and variables are they using to project the spend down of your savings to life expectancy and beyond? Are you comfortable with those assumptions and variables? Do you understand them?

Planning the exit strategy for your wealth decumulation years is the most important component of your lifetime wealth strategy.

If you would like a second opinion from a CPA and decumulation/tax-code strategist, I am happy to take a look. Complimentary.

Judy Carlson, CPA
CEO & Founder, Coram Deo Financial

 “If what you thought to be true about your money turned out not to be true, when would you want to know?”

Contact Us

9233 Park Meadows Drive | Suite 125
Lone Tree, CO 80124

*By appointment only

Advisory services are offered through Royal Fund Management, LLC, which is registered as an investment adviser with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.         

All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals, and economic conditions may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's investment portfolio. There are no assurances that a client’s portfolio will match or outperform any particular benchmark. 

Insurance product guarantees are subject to the claims-paying ability of the issuing company. The adviser is paid commissions on the sale of insurance products.