Where Should Your Retirement Income Come From?

In this episode of Empty Nest Full Pockets, Matt Meline and Will Schroeder tackle one of the most important questions you'll face once the paychecks stop coming: Where should your retirement income actually come from? Your retirement savings may be spread across 401(k)s, IRAs, Roth accounts, taxable investments, cash, real estate, and other assets. But deciding which account to draw from first isn't simply a matter of picking the largest balance. Taxes, Medicare premiums, required minimum distributions, capital gains, and your future goals all play a role. Matt explains how a tax-aware “waterfall” approach can help determine where retirement income should come from and why the right strategy will look different for every household. He and Will discuss Roth withdrawals and conversions, taxable investments, required minimum distributions, charitable giving, estate planning, and how your income today can even affect future Medicare costs. They also answer an important question for anyone approaching retirement: How much safe money should you have set aside if the stock market misbehaves? With retirement potentially lasting decades, having a financial runway for the first few years can help prevent a market downturn from forcing major changes to your retirement plans. Matt and Will discuss the role of cash, short-term investments, and retirement guardrails in creating that flexibility. The goal isn't simply to avoid investment risk. It's to build a retirement income strategy that accounts for taxes, markets, and the unexpected—so you can spend your retirement years with more confidence and less stress. Episode Topics Covered Where Retirement Income Should Come From Creating a Tax-Aware Retirement Withdrawal Strategy Why Taxes Should Be Considered Before Choosing Which Account to Draw From Building a Retirement “Tax Waterfall” Using Taxable Investments, Retirement Accounts, and Roth Assets Roth Conversions and Retirement Income Planning Required Minimum Distributions How Retirement Income Can Affect Medicare Premiums Capital Gains and When to Sell Investments Charitable Giving and Retirement Taxes Estate Planning and Tax Considerations Why Every Retirement Income Strategy Is Different How Much Safe Money You May Need Before Retirement Preparing for a Market Downturn Early in Retirement Creating a Three-to-Five-Year Financial Runway The Role of Cash and Short-Term Investments Building Retirement Guardrails Protecting the Early Years of Retirement Why Retirement Planning Goes Beyond Investments — I sincerely appreciate your support. Thank you for being a part of our podcast journey. If you haven't already, please subscribe to stay updated with the latest episodes. Your subscription means the world to me! Want to dive deeper into the 59½ Rebellion? Check out our 59½ Rebellion playlist on YouTube for more conversations, insights, and practical guidance on making the most of the years leading up to retirement. I’d love to hear from you; here are some ways to connect: Web: https://www.prairiefirewealth.com/ Email: [email protected] Get a copy of my book: Empty Nest, Full Pockets: How to Emotionally and Financially Prepare for Your Family’s Future at https://amzn.to/3PovUWM