RETIREMENT TAX STRATEGY

At Peak American Investment Advisors, we specialize in creating personalized, tax-smart retirement plans that help you avoid costly mistakes and keep more of your hard-earned money where it belongs—with you. Retirement taxes can quietly reduce your retirement income—but with the right tax strategy, you can protect your wealth and maximize benefits. 

How We Help

• Social Security Timing – Claim at the right time to maximize benefits and minimize taxes.
• Medicare & IRMAA Planning – Avoid Income-Related Premium Surcharges.
• Retirement Account Withdrawals – Coordinate 401(k), IRA, and RMDs efficiently.
• Deductions & Tax-Efficient Strategies – Utilize traditional and Roth accounts strategically to minimize tax liability.
• Professional Retirement Planning Advisors with years of experience.

At Peak American Investment Advisors, we understand that your vision for retirement extends far beyond basic comfort. As a high-net-worth individual, your aspirations likely include preserving your lifestyle, ensuring the long-term financial security of your loved ones, and crafting a meaningful legacy for generations to follow.

Throughout your working years, your retirement portfolio likely emphasized growth through equities and aggressive investments. As retirement approaches, a shift toward stability and income becomes paramount. Your Peak American advisor can guide you in adjusting your asset allocation, ensuring it aligns perfectly with your evolving goals.

For instance, you might transition from a growth-focused portfolio—perhaps 70% equities and 30% fixed income—to a more balanced approach, such as 50% equities and 50% fixed income. The exact balance will reflect your comfort with risk, time horizon, and desired income stability, positioning your wealth to serve you throughout your retirement years.

Robust Income Generation: Bonds and Dividend Stocks

Generating a reliable income is critical in retirement. At Peak American, we emphasize the strategic use of bonds and dividend-paying equities:

• Bonds: A carefully constructed bond portfolio provides steady income and reduced volatility. Tax-efficient bonds, such as municipal bonds, offer significant benefits, particularly if you're in a higher tax bracket.

• Dividend Stocks: High-quality dividend-paying stocks from established blue-chip companies combine growth potential with consistent income streams, perfectly aligning with long-term retirement needs

Inflation Protection and Healthcare Planning

Effective retirement planning involves preparing for inflation and healthcare costs. Inflation gradually reduces purchasing power, making it essential to incorporate assets that historically outperform inflation, such as Treasury Inflation-Protected Securities (TIPS), real estate, and select global equities.

Healthcare expenses represent another critical consideration. A couple retiring at age 65 might expect significant healthcare-related costs throughout retirement. Planning proactively through vehicles like Health Savings Accounts (HSAs), which offer substantial tax advantages, can mitigate these expenses.

Maximizing Tax Efficiency with Roth IRAs

Tax efficiency is a cornerstone of high-net-worth retirement planning. Traditional retirement accounts defer taxes but ultimately result in taxable distributions. Alternatively, Roth IRAs offer tax-free growth and withdrawals, significantly reducing your long-term tax liabilities. Your Peak financial advisor can assist you in leveraging Roth IRA contributions or executing strategic Roth conversions. This ensures that you maintain optimal tax flexibility, securing more control over your retirement income streams.

Intelligent Drawdown and Distribution Planning

Determining the optimal sequence for drawing on retirement assets is crucial for wealth preservation and minimizing taxes. A thoughtfully planned distribution strategy can extend the longevity of your portfolio, manage taxes efficiently, and preserve your wealth.  Our financial advisors meticulously plan your required minimum distributions (RMDs) and strategic withdrawals, ensuring your wealth supports your lifestyle and legacy goals, year after year.

Why It Matters

A well-designed tax strategy can mean the difference between just getting by and truly thriving in retirement. By minimizing taxes on your retirement income, you can save thousands of dollars over the course of your retirement.  Our retirement planning services are designed for individuals with $500,000+ in total assets, our retirement tax planning is delivered from our conveniently located Plano office, serving the greater DFW area with discretion and precision.
 

Start Your Tax-Smart Retirement Plan Today

Taxes don’t have to catch you off guard. Our team of experienced retirement planning advisors integrates comprehensive tax planning into your overall wealth strategy—so you can focus on enjoying retirement, not worrying about unexpected bills from the IRS.   

We are conveniently located in the heart of Plano, Texas, just off the Dallas North Tollway, and offer both in-person and virtual appointments.  Book a time with a financial advisor to learn more!