Frequently Asked Questions

  • For people new to the concept or unsure when to start.

  • A drawdown strategy is a plan for how to withdraw money from your retirement accounts in the most tax-efficient way. Without a plan, you could end up paying more in taxes or depleting your savings too quickly. It’s about using the right accounts at the right time to stretch your retirement dollars.

  • Ideally, start in your early 50s and especially if you’re within 5 years of retirement. Early planning helps you take advantage of tax windows and optimize Social Security and Medicare timing.

    But even if you’re already retired, it’s not too late to benefit.

  • Most retirement plans focus on saving and investing. A drawdown strategy focuses on how to spend what you’ve saved—in the smartest, most tax-efficient way possible. It complements financial planning by protecting your income and reducing taxes in retirement.

  • Absolutely. Even in retirement, there are many opportunities to reduce taxes, rebalance income sources, and protect your long-term cash flow. The earlier you plan, the better—but it’s never too late to optimize.

  • Not necessarily, but the more you’ve saved, the more important tax efficiency becomes. Generally, if you have multiple account types or expect to draw income from more than one source, a drawdown strategy can provide real value.

    Most clients we work with have a combined 401k/IRA balance of $750k+

  • For clients focused on minimizing taxes and managing income sources.

  • Yes. By carefully timing withdrawals from different account types, using Roth conversions, and managing income thresholds, you can reduce taxes not just this year, but over your full retirement.

    This keeps more of your money working for you.

  • There’s no one-size-fits-all answer. The main-stream rule is: taxable first, then tax-deferred, then Roth—but this can vary based on your income, goals, and healthcare needs.

    A drawdown strategy personalizes the order to minimize taxes over time.

  • RMDs start at age 73 (or 72 depending on birth year) and can cause unexpected tax spikes. A drawdown strategy helps you prepare by reducing future RMDs or planning around them to avoid jumping tax brackets or triggering Medicare surcharges (IRMAA).

  • Yes!

    Roth conversions can be a powerful tool. Converting small amounts during low-income years can reduce future RMDs and create tax-free income later. The key is doing it gradually and strategically.

  • Once you're 70½, you can donate directly from your IRA using a QCD. It counts toward your RMD and doesn’t get taxed. It’s one of the most efficient ways to give if you’re charitably inclined.

  • Strategies can be adapted as laws change. That’s why annual reviews are so important—to pivot and keep your plan aligned with new rules, tax brackets, or RMD changes.

  • We combine sustainable withdrawal rates with tax planning to make your money last. By coordinating timing, taxes, and risk, the strategy aims to protect your nest egg for the long haul.

  • A smart drawdown plan includes flexibility. We can adjust which accounts to draw from depending on how the market is doing, helping protect your investments during down years and optimize taxes in strong ones.

  • For those navigating benefits and healthcare costs.

  • Social Security decisions impact how much income you need from other sources—and how much tax you’ll pay. Delaying benefits increases your monthly check, but may require withdrawals to fill the gap.

    A drawdown strategy helps coordinate both.

  • IRMAA is an income-based surcharge on your Medicare premiums. Large withdrawals can push your income over IRMAA thresholds—raising your costs.

    A drawdown strategy smooths your income to help avoid those penalties.

  • For clients who want to know how the service is built and updated.

  • This service provides education and strategic guidance for tax-efficient withdrawals. It’s not personalized tax or investment advice unless explicitly stated and provided by a licensed professional.

    We always recommend working with both your tax advisor and financial advisor.

  • You can implement a plan yourself with the right education and tools, but many people prefer ongoing help to stay up-to-date with tax law changes and manage complexity.

    We offer both one-time guidance and ongoing support options.

  • Pricing depends on the level of service—one-time review, annual planning, or ongoing strategy management. You’ll get a clear, customized plan outlining your optimal withdrawal path, along with education and tools to help you stay on track.

  • At least once a year, or anytime there’s a big life change—like retirement, a move, tax law updates, or changes in spending. Consistent reviews help you adjust for market performance, tax bracket shifts, or RMD timing.

  • Yes.

    By carefully timing withdrawals from different account types, using Roth conversions, and managing income thresholds, you can reduce taxes not just this year, but over your full retirement.

    This keeps more of your money working for you.

  • There’s no one-size-fits-all answer. The main-stream rule is: taxable first, then tax-deferred, then Roth—but this can vary based on your income, goals, and healthcare needs.

    A drawdown strategy personalizes the order to minimize taxes over time.

  • A smart drawdown plan includes flexibility. We can adjust which accounts to draw from depending on how the market is doing, helping protect your investments during down years and optimize taxes in strong ones.

  • For those thinking beyond their own lifetime.

  • Once you have reached the age of 70½, you can donate directly from your IRA using a QCD. It counts toward your RMD and doesn’t get taxed. It’s one of the most efficient ways to give if you’re charitably inclined.

  • Yes.

    Proper withdrawals can reduce taxes now and later for your heirs, especially with new inheritance rules like the 10-year rule on inherited IRAs.

    A good strategy protects your legacy as well as your lifestyle.

 

Glossary of Terms

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