A distribution strategy is key at this stage in order to manage spending and taxes. A coordinated effort with other professionals such as CPAs, tax and estate attorneys will help alleviate the complexities of an evolving financial plan. At this stage, we will review your income sources and discuss social security, Medicare, and long-term care insurance.
QUESTIONS AND ANSWERS
Retirement Planning Questions and Answers
How much do I need to retire?
There is no universal retirement number. The amount depends on spending, taxes, inflation, health care, longevity, income sources, and how much flexibility you have if markets or expenses change. In practice, the better question is usually: “Can my savings support my lifestyle over time?” rather than “What single balance do I need?”
When should I claim Social Security?
You can start retirement benefits as early as 62, you get full benefits at 67 (full retirement age), and your monthly benefit generally increases for each month you delay after full retirement age up to age 70. For many married couples, the higher earner’s timing matters twice: once for the worker’s own check and again for the survivor benefit. The best claiming age depends on cash-flow needs, health, work plans, taxes, and household benefit coordination.
How do I turn savings into retirement income?
Retirement income usually comes from several sources working together, such as Social Security, pensions, cash reserves, taxable accounts, and retirement accounts. The goal is not simply “take 4%,” but to coordinate withdrawals so spending needs are met while taxes, required minimum distributions (“RMDs”), and longevity risk stay manageable. There is no single best withdrawal sequence for every retiree; tax bracket, unrealized gains, RMD timing, and legacy goals can change the preferred order.
What are RMDs and when do they begin?
Required minimum distributions (“RMDs”) are the minimum amounts the IRS requires you to withdraw from certain retirement accounts each year. In 2026, the general starting age is 73. If you were born in 1960 or later, your RMD starts when you turn 75 years old. For traditional IRAs, SEP IRAs, and SIMPLE IRAs, the rule generally applies even if you are still working. Some workplace plans may let you delay until retirement if the plan allows it and you are not a 5% owner. The first RMD can be delayed to April 1 of the following year, but that often creates two taxable withdrawals in one year.
What happens if I missed taking my RMDs?
Missing an RMD can trigger a 25% excise tax, reduced to 10% if corrected within two years, and a waiver may be available for reasonable error.
Which account should I withdraw from first in retirement?
A common rule of thumb is to spend taxable accounts first, then traditional tax-deferred accounts, and leave Roth assets for later. But that is only a starting point, not a law. Research shows there are important exceptions, especially in low-income years before RMDs begin, when partial IRA withdrawals or Roth conversions may use lower tax brackets efficiently. Several factors can influence this decision, including required minimum distributions, capital gains, taxes on Social Security benefits, charitable giving goals, Medicare premiums, and potential Income-Related Monthly Adjustment Amount (“IRMAA”) surcharges. We use a tax-aware withdrawal plan, not a one-size-fits-all order.
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At Mazuelos & Company Wealth Management, we understand that every client is unique, and so is their financial journey. Whether you’re planning for retirement, growing your wealth, or securing your legacy, we’re here to guide you every step of the way.
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Disclosures
The information presented in these questions and answers is provided for general educational and informational purposes only and does not constitute personalized investment, legal, accounting, or tax advice. The figures cited reflect federal rules and limits for tax year 2026, are subject to change, and may not apply to your situation; state rules vary. Nothing on this page should be interpreted as a recommendation to buy or sell any security or to adopt any particular strategy. All investing involves risk, including the possible loss of principal, and past performance does not guarantee future results. Diversification and asset allocation do not ensure a profit or protect against loss. Mazuelos & Company Wealth Management is a registered investment adviser; registration does not imply a certain level of skill or training. Before acting on any information presented here, you should consult a qualified financial, tax, or legal professional regarding your specific circumstances. Additional information about the firm, including its Form ADV is available at adviserinfo.sec.gov.