Who Needs a Drawdown Strategy?
A drawdown strategy is not just for the ultra-wealthy or overly complex situations. It’s for anyone who wants to retire with clarity, reduce taxes, and make sure their money lasts. If you’re planning to live off savings, Social Security, or investment income in retirement, a drawdown strategy can help.
🧳 You Need a Drawdown Strategy If You:
1. Have Multiple Account Types
Do you have a mix of tax-deferred (IRA/401(k)), taxable brokerage, and Roth accounts? The order in which you withdraw from these can significantly impact your tax bill.
2. Are Retiring Before Age 65
You may face years of low income before Social Security and Medicare begin. This “retirement gap” is a perfect window for Roth conversions and tax-bracket management.
3. Want to Minimize RMD Taxes
Without planning, Required Minimum Distributions at age 73 can force you into higher tax brackets. A drawdown strategy helps reduce or prepare for them in advance.
4. Are Concerned About Outliving Your Savings
Coordinating your withdrawals across accounts can help your portfolio last longer and provide steady, tax-efficient income.
5. Expect to Leave an Inheritance or Give to Charity
Strategic withdrawals can reduce taxes for both you and your heirs—and support causes you care about through tools like Qualified Charitable Distributions (QCDs).
6. Are Facing Medicare Premium Surcharges (IRMAA)
Drawdown timing affects your adjusted gross income, which directly impacts your Medicare premiums. Planning can save you thousands.
7. Have Significant Savings
If your combined account balance is $1M+, the tax stakes are higher. A smart drawdown plan can preserve more wealth for you and your family.
❓Doesn’t My Financial Advisor Do This Already?
Many financial advisors focus on investment management, portfolio growth, and high-level planning. While they may offer retirement income guidance, drawdown strategies often require deeper tax analysis, proactive timing, and multi-year planning that isn’t always part of a standard advisory service. Our work complements your advisor’s efforts by focusing specifically on how and when to access your savings in the most tax-efficient way. We collaborate—not compete—with your existing professionals to make sure all pieces of your financial life work together.
✅ What a Drawdown Strategy Delivers:
Lower taxes over your retirement years
A clear plan for when and where to pull income
Better coordination with Social Security and Medicare
More control over your financial future
Confidence that you're making informed decisions
If you want your retirement income plan to work smarter—not just harder—a drawdown strategy is for you.
This information is for educational purposes only and not tax or financial advice. Please consult a qualified professional before making financial decisions.
