Planning services
Five areas of planning, coordinated as one
A tax decision moves the income plan. An income decision moves the estate. That is why these five get planned together rather than one at a time.
The five areas
Start with whichever is closest to your question
Plenty of questions touch more than one, which is exactly why they are planned together.
Why together
One decision, five consequences
A hypothetical illustration of how a single decision touches every planning area.
A hypothetical decision
A retiree withdraws an additional $60,000 from an IRA in a single year to fund a home renovation.
- IncomeThose funds are no longer available for later years, which affects how long the remaining assets need to last.
- TaxesThe withdrawal is taxed as ordinary income and may move part of the year’s income into a higher bracket.
- HealthcareHigher income in one year can increase Medicare premiums two years later.
- InvestmentsHoldings must be sold to raise the cash, and the choice of which to sell has tax and allocation consequences.
- EstateDrawing from a pre-tax account rather than another account changes what heirs eventually receive and the tax they may owe.
This is a hypothetical illustration, not advice. It is here to show why one decision is worth making with the others in view.
Questions by area
The questions each area addresses
- Which accounts should I draw from first?
- When should I claim Social Security, and what changes if I wait?
- How much can I spend each year without putting later years at risk?
- Should more of my income be guaranteed for life, and at what cost?
- Which accounts should I draw from to manage this year’s tax bill?
- Does a Roth conversion make sense for me, and when?
- How will required minimum distributions affect my taxes?
- How does my income this year affect Medicare premiums later?
- Why do I own the investments I own?
- How much risk is in this portfolio?
- What does this portfolio cost in total?
- What is the plan when markets decline?
- How would an extended period of long-term care affect this plan?
- If one of us died, would the other be financially secure?
- Is life insurance bought years ago still appropriate?
- Which Medicare coverage should we choose, and what does it leave us to pay?
- Who receives each account, and does the paperwork reflect that?
- Will my estate go through probate?
- What will my heirs owe on an inherited retirement account?
- Who makes decisions for me if I can’t?