Retirement Investment: 4 Smart Ways to Create Reliable Income in Retirement

Planning for retirement investment is crucial for anyone approaching or already in retirement. This guide is designed for pre-retirees, retirees, and business owners who want to create reliable income streams, minimize taxes, and ensure their savings last 20–30 years or more. You'll learn about the unique challenges of investing after age 60 and discover four proven strategies to build a secure retirement income plan.

Retirement investment is about creating reliable income streams and managing risk so your savings last throughout your retirement years. This article explores four smart ways to approach retirement investment for lasting financial security.

Key Takeaways

• Most retirees need multiple income sources beyond social security to fund 20–30+ years in retirement, as social security typically replaces only 30–40% of pre retirement income.

• Four core retirement income strategies include social security combined with part-time work, systematic withdrawals from a diversified portfolio, guaranteed income annuities, and bond or dividend-focused investments.

• Tax efficiency is central to retirement income planning—choosing when and how to draw from taxable accounts, tax-deferred accounts like a 401 k or traditional IRA, and tax-free Roth accounts can significantly extend your retirement savings.

• Revolutionary Wealth specializes in building customized, tax-smart retirement income plans for pre-retirees and retirees in their 60s, including business owners with complex planning needs.

Why Retirement Investing Is Different After 60

Retirement investing is fundamentally different from the wealth-building strategies you used during your working years. The goal shifts from “grow as fast as possible” to “generate sustainable, predictable income while minimizing taxes over the next 20–30 years.”

This transition matters more than most people realize. A client retiring at 62 may need to plan for income through age 90–95—a retirement lasting longer than many careers. That extended timeline demands a completely different approach to managing risk, generating cash flow, and preserving plan assets. Diversifying across asset classes such as stocks, bonds, and real estate is essential to manage risk in retirement portfolios and help optimize long-term returns. Diversification means spreading investments across different asset classes such as stocks, bonds, and real estate to manage risk in retirement portfolios.

During the accumulation phase, you could ride out market volatility because you had decades to recover. In the distribution phase, everything changes. Sequence-of-returns risk becomes a genuine threat: poor market returns in your first few years of retirement can permanently damage your investment portfolio because you’re simultaneously withdrawing funds and experiencing losses. While riskier investments like stocks may offer higher growth potential, they require careful balancing with safer options as retirement approaches to align with your goals and risk tolerance. Add to this the reality that Required Minimum Distributions begin at age 73 under current law, healthcare costs continue rising, and tax brackets can shift dramatically based on your withdrawal strategy.

Revolutionary Wealth focuses specifically on pre-retirees (roughly ages 59–67), single or divorced or widowed women seeking clarity, and high-income business owners needing coordinated business and personal retirement strategies. Ourpersonalized financial planning approachrecognizes that this life stage requires specialized expertise—not generic advice designed for someone three decades away from retirement.

The rest of this article walks through four specific retirement income strategies, each with distinct advantages, limitations, and tax considerations. Understanding how these work together is essential for building a retirement plan that actually lasts, and firms likeRevolutionary Wealth dedicated to transforming how individuals build, protect, and transfer wealthcan help you coordinate these pieces.

Types of Retirement Plans

Retirement plans are essential building blocks for securing reliable retirement income and growing your retirement savings over time. Choosing the right mix of plans can make a significant difference in how much you accumulate, how efficiently you pay taxes, and how confidently you can spend in your retirement years. Here’s a closer look at the most common types of retirement plans and how they can fit into your overall retirement strategy.

1. Social Security and Post-Retirement Work

Social security forms the foundation of most Americans’ retirement income, but it typically covers only about 30–40% of pre retirement income. This means the average retiree must coordinate social security with other income streams to maintain their lifestyle.

Understanding Your Claiming Options

Your claiming age has a substantial impact on lifetime benefits. As of 2026, full retirement age ranges from 66 to 67 depending on your birth year. Here’s what the timing decision looks like:

The Part-Time Work Bridge Strategy

Part-time work between ages 62–70 offers two powerful benefits. First, it provides immediate cash flow to cover expenses. Second, it allows you to delay withdrawals from your retirement account, giving those assets more time for tax deferred growth.

A few consulting days per month or 10–20 hours weekly can meaningfully reduce the pressure on your investment portfolio. This strategy is particularly valuable during the window before you start drawing social security at its maximum benefit.

Tax Considerations

Social security benefits can be up to 85% taxable depending on your “provisional income”—a calculation that includes adjusted gross income, tax-exempt interest, and half of your social security benefits. This creates a planning opportunity: by managing other income sources strategically, you can reduce how much of your social security becomes taxable income.

Additionally, if you claim benefits before full retirement age while still earning wages, your benefits may be reduced. Once you reach full retirement age, this earnings test disappears.

Coordinating these moving parts requires working with a financial professional who understands how social security taxation interacts with your overall income strategy. This is exactly the kind of planning Revolutionary Wealth provides.

2. Retirement Income from Your Investment Portfolio (Total-Return Strategy)

A total-return approach combines interest, dividends, and a planned percentage of capital gains to fund withdrawals from a diversified portfolio containing stocks, bonds, and cash equivalents. A total return investment approach focuses on generating income through interest, dividends, and capital gains, allowing retirees to withdraw a portion of the average annual returns over a longer period rather than relying solely on specific annual returns. Rather than trying to live solely on dividend payments or bond interest, this investment strategy allows you to spend a portion of capital appreciation while maintaining growth potential.

Compounding refers to the process where earnings generate their own earnings, significantly enhancing retirement savings over time.

Employer-sponsored retirement plans, such as 401(k) and 403(b) plans, often include employer matching contributions, which can significantly enhance retirement savings, and typically have higher contribution limits compared to IRAs.

Bonds are typically lower-risk investments that provide steady income and stability in a portfolio.

Core equity investments include stocks, which provide high long-term growth potential but are subject to higher volatility.

A diversified bond portfolio can provide periodic payments based on the bond's yield, and investors can choose to hold bonds to maturity or sell them on the open market before maturity, although bond values can fluctuate.

Tax-advantaged accounts, such as IRAs and 401(k)s, allow investments to grow tax-deferred, meaning taxes are only paid upon withdrawal, which can enhance overall retirement savings.

Setting a Sustainable Withdrawal Rate

The traditional guideline suggests withdrawing 3%–4.5% of your initial retirement portfolio value annually, adjusted for inflation. However, this should never be applied blindly as a rule of thumb. The appropriate rate depends on:

• Your age and expected retirement length

• Other guaranteed income streams (social security, pension plan, annuities)

• Your risk tolerance and emotional comfort with market fluctuations

• Current market valuations and interest rates

Here’s a simple illustration: a $1,000,000 investment portfolio at a 4% initial withdrawal rate generates $40,000 in year one before taxes. If markets return 8% the following year while inflation runs at 3%, the portfolio grows to approximately $1,080,000 before withdrawals, and your year-two withdrawal would be roughly $41,200 (the original amount adjusted for inflation).

Tax Coordination Is Critical

Which accounts you tap first dramatically affects your lifetime tax bill. Most retirees have three types of accounts:

• Taxable accounts: Investment gains taxed as capital gains, dividends taxed at qualified rates

• Tax-deferred accounts(traditional IRA, 401k): Contributions are made on a pre tax basis, reducing taxable income for the year. Investment growth is tax-deferred, but withdrawals are taxed at ordinary income rates in retirement.

• Tax-free accounts(Roth IRA): Funded on an after tax basis, allowing for tax-free withdrawals in retirement.

Traditional IRAs allow contributions to be made with pre-tax dollars, which reduces taxable income for the year, and investment growth is tax-deferred until funds are withdrawn in retirement, while Roth IRAs are funded with after-tax dollars and allow for tax-free withdrawals in retirement.

Understanding the difference between pre tax and after tax basis is crucial for optimizing tax efficiency in retirement withdrawals.

Thoughtful sequencing can reduce lifetime income tax, minimize Medicare IRMAA surcharges, and lower the taxation of social security benefits. For example, strategic withdrawals from taxable accounts in early retirement—while filling up lower tax brackets with Roth conversions—can create substantial savings over a 30-year retirement.

Understanding the Risks

The total-return strategy carries real risks that require professional management:

• Sequence-of-returns risk: Poor market returns in your first 5–10 years of retirement can permanently impair your portfolio’s longevity

• Emotional stress: Watching your retirement savings decline during market downturns while simultaneously withdrawing can trigger poor investment decisions

• Ongoing management needs: Regular rebalancing, tax-loss harvesting, and withdrawal coordination require attention

These complexities are precisely where working with an investment professional adds value. Revolutionary Wealth manages over $100 million directly and advises on more than $500 million annually, bringing institutional-level expertise to individual retirement portfolios through aspecialized retirement planning team.

3. Using Annuities to Create Guaranteed Income

Guaranteed income annuities convert a portion of your retirement savings into a guaranteed income stream of payments, often for life. Income annuities are contracts with insurance companies that provide regular income payments in exchange for a lump sum or monthly payments, offering a guaranteed income stream for a specified period or for life. Selecting the best retirement plan is crucial for maximizing your retirement income and ensuring long-term financial security. Think of it as creating your own pension plan to complement social security—a promised benefit that arrives every month regardless of what markets do.

When considering annuities as part of your retirement investment strategy, it's important to note that your plan provider can influence the investment choices and features available within the plan, such as offering annuities or mutual funds. Additionally, funds withdrawn from annuities or retirement accounts before reaching certain ages may be subject to taxes and penalties, so understanding withdrawal rules is essential.

Employer-sponsored retirement plans, such as 401(k) and 403(b) plans, often include employer matching contributions, which can significantly enhance your retirement savings, and typically have higher contribution limits compared to IRAs. A broaderresource center on retirement and wealth managementcan help you compare these plan types and stay informed about changing rules.

Types of Income Annuities

Several annuity structures are relevant for retirement income planning:

Immediate Income Annuities: Payments begin within 12 months of purchase. You exchange a lump sum for guaranteed monthly income, typically for life. A 65-year-old purchasing a $300,000 immediate annuity might receive approximately $1,500–$1,800 monthly for life, depending on interest rates and contract features. Some immediate annuities offer a fixed interest rate, providing stability and predictability for retirees seeking consistent income.

Deferred Income Annuities (Longevity Insurance): Payments begin at a future age, often 75–85. This provides protection against outliving your assets in advanced age while keeping remaining savings invested for growth during earlier retirement years.

Fixed Indexed Annuities with Income Riders: These combine market-indexed returns (with caps and floors) with optional riders guaranteeing minimum withdrawal percentages. They offer downside protection while maintaining some growth potential. Certain fixed indexed annuities also provide a fixed interest rate option, which can help retirees achieve predictable income and capital preservation.

Advantages of Annuity Income

• Lifetime income: You cannot outlive the payment stream, eliminating longevity risk

• Market insulation: The guaranteed portion of your income is protected from market downturns

• Predictable cash flow: Monthly payments can cover core expenses like housing, utilities, groceries, and Medicare premiums

• Simplified planning: A guaranteed base income reduces the complexity of withdrawal decisions

Limitations to Consider

• Loss of liquidity: Once you annuitize funds, you typically cannot access the principal

• Surrender charges: Early withdrawal penalties can be substantial, especially in the first 5–10 years

• Complexity: Riders, fees, and contract features require careful analysis

• Lower growth potential: Annuities generally cannot match long-term equity returns

• Interest rate sensitivity: Annuity payouts are more attractive when interest rates are higher

Tax Treatment of Annuities

Understanding annuity taxation is essential for proper planning:

Non-qualified annuities(purchased with after tax dollars): Growth accumulates on a tax deferred basis. When you receive payments, only the earnings portion is taxable as ordinary income. The IRS uses an “exclusion ratio” to determine what percentage of each payment is tax-free return of principal versus taxable gain. This can create meaningful tax benefits compared to fully-taxable IRA withdrawals. Certain annuities and retirement accounts, such as traditional IRAs, offer tax deductions and tax breaks that can reduce your taxable income and enhance your retirement savings.

Qualified annuities(inside IRAs or 401 k plans): All withdrawals are taxable as ordinary income and count toward RMDs once they begin at age 73. SEP IRAs (Simplified Employee Pension Individual Retirement Accounts) are designed for self-employed individuals and small business owners, allowing for tax-deductible contributions and higher contribution limits than traditional IRAs. SIMPLE IRAs (Savings Incentive Match Plan for Employees) are designed for small businesses with fewer than 100 employees, allowing employees to contribute on a pre-tax basis with required employer matching contributions.

Both types of annuity income flow into the provisional income calculation for social security taxation and can affect Medicare IRMAA thresholds.

A Practical Scenario

Consider a 65-year-old couple allocating $300,000 of their $1.2 million retirement savings to a joint lifetime income annuity. This might generate $1,400–$1,700 monthly in guaranteed income that continues as long as either spouse lives.

Combined with their social security benefits of approximately $4,000 monthly, they now have $5,400–$5,700 in guaranteed monthly income. This covers their essential expenses and reduces the pressure on their remaining $900,000 investment portfolio, which can focus on growth and flexibility for discretionary spending.

The Revolutionary Wealth Approach

Revolutionary Wealth is independent—we’re not tied to a single insurance company or obligated to push proprietary products. We use fixed indexed annuities and income annuities selectively as part of an overall income plan, not as stand-alone products sold to meet quotas. Every annuity recommendation is evaluated against alternatives and stress-tested within your complete financial picture.

4. Bonds and Dividend-Focused Investments for Steady Cash Flow

High-quality bonds and dividend-paying equities can provide recurring interest and dividend payments to support retirement spending. Bonds are typically lower-risk investments that provide steady income and stability in a retirement portfolio. A diversified bond portfolio can provide periodic payments based on the bond's yield, and investors can choose to hold bonds to maturity or sell them before maturity, though bond values can fluctuate. Municipal bonds can provide tax advantages, as the interest earned is often exempt from federal and sometimes state income taxes, making them an attractive option for tax-efficient investing. Income-producing equities, such as dividend-paying stocks, can provide a steady stream of income and potential capital appreciation, but dividends can vary and are not guaranteed. Many retirees find psychological comfort in “living on income” without touching principal, though each approach carries distinct risks and tax implications.

Annual contribution limits and higher contribution limits in certain retirement accounts, such as 401(k)s and SEP IRAs, can affect how much you can allocate to bonds and dividend-focused investments. When considering cash flow strategies, some life insurance policies accumulate cash value, which can be accessed for retirement income or converted into an annuity. In the context of bond funds or cash balance plans, investment credits are a promised return added to a hypothetical account balance, playing a key role in predicting future benefits.

Bond Income Strategies

A diversified bond portfolio might include:

Dividend Income Strategies

Dividend-paying stocks provide recurring income with potential for dividend growth, creating a natural inflation hedge. Income-producing equities, such as dividend-paying stocks, can provide a steady stream of income and potential capital appreciation, but dividends can vary and are not guaranteed. A utility stock paying a 4% dividend yield with 3% annual dividend growth delivers increasing income over time.

Key sectors for dividend income include:

• Utilities

• Real estate investment trusts (REITs)

• Consumer staples

• Energy infrastructure

• High-quality dividend ETFs

However, dividend strategies carry equity market risk—your portfolio can decline 20–30% in bear markets. Additionally, companies can cut dividends during economic downturns, reducing your income precisely when markets are weak.

Tax Considerations for Income Investments

Interest from taxable bonds is taxed as ordinary income at your marginal rate—potentially as high as 37% federally. Qualified dividends (held for more than 60 days around the ex-dividend date) are taxed at preferential long-term capital gains rates of 15–20% for most retirees.

Municipal bond interest may be tax-free but still affects calculations for social security taxation and Medicare surcharges. This interplay underscores why income investments must be coordinated within your broader tax strategy.

Blending Income Sources

Revolutionary Wealth typically blends bonds, dividend stocks, and other fixed-income vehicles to complement annuity income and a total-return strategy. The right mix depends on your:

• Risk tolerance and comfort with market fluctuations

• Current and projected income limits and tax brackets

• Need for liquidity versus predictability

• Other guaranteed income sources

A $500,000 allocation might include $250,000 in diversified bonds generating $10,000–$12,500 annually, $150,000 in dividend stocks yielding approximately $6,000, and $100,000 in cash and growth positions. This creates roughly $16,000–$18,500 in annual income while maintaining growth potential and flexibility.

Designing a Tax-Efficient Retirement Income Plan

Tax efficiency can significantly extend how long your nest egg lasts. For high-net-worth retirees and business owners with substantial pre-tax dollars in retirement accounts, the difference between a thoughtful tax strategy and a haphazard approach can amount to six figures over a 30-year retirement.

When designing your retirement investment plan, it's important to understand the differences between Individual Retirement Accounts (IRAs)—which are tax-efficient retirement savings accounts managed by individuals—and employer-sponsored plans like 401(k)s and 403(b)s, which are managed by employers and have different contribution limits and tax advantages. Many retirement plans, including 401(k)s, 403(b)s, and non-qualified deferred compensation plans, rely on employee contributions, which directly impact tax benefits and overall retirement savings.

Catch-up contributions allow individuals aged 50 and older to contribute additional funds above standard annual limits to their retirement accounts, providing an opportunity to boost savings as retirement approaches, and usingfinancial calculators and tax resourcescan clarify how much additional saving is feasible for your situation. Catch-Up Contributions allow individuals aged 50 and older to contribute additional funds above standard annual limits to retirement accounts.

403(b) plans are often offered by tax exempt organizations such as public schools, hospitals, and religious entities, and are also available to federal employees through thrift savings plans, which share similarities with private-sector 401(k) plans.

Additionally, Health Savings Accounts (HSAs) can play a valuable role in retirement planning, offering a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Health Savings Accounts (HSA) offer a triple tax advantage—tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.

SEP IRAs (Simplified Employee Pension Individual Retirement Accounts) are designed for self-employed individuals and small business owners, allowing them to make tax-deductible contributions for themselves or their employees, with higher contribution limits than traditional IRAs. SIMPLE IRAs (Savings Incentive Match Plan for Employees) are designed for small businesses with fewer than 100 employees, allowing employees to contribute a portion of their salary on a pre-tax basis, with employers required to make matching contributions.

Key Tax Planning Levers

• Social security timing: Delaying benefits reduces income in early retirement years, creating room for tax-advantaged moves like Roth conversions.

• Account sequencing: Deciding which accounts to tap—taxable, tax-deferred (traditional IRA, 401k), or tax-free (Roth)—in what order and amounts based on tax bracket management.

• Roth conversions: Converting traditional IRA funds to Roth in low-income years between retirement and age 73 can reduce future RMDs, lower taxes on heirs, and create more tax-free income in later years.

• RMD planning: Understanding how Required Minimum Distributions starting at 73 will affect your tax situation and planning accordingly.

A Roth Conversion Example

Consider a retiree leaving work at 62 with minimal income until social security begins at 67. These five years represent a “tax valley”—an opportunity to convert traditional IRA funds to a Roth account while filling up the lower tax brackets.

Converting $50,000 annually at a 22% effective rate costs $11,000 in taxes per year but creates $250,000 in funds that will grow tax-free and never be subject to RMDs. When this retiree reaches 73, their required distributions are substantially lower, reducing annual income tax and potentially keeping more of their social security tax-free.

Business Owner Considerations

For business owners approaching retirement, defined benefit plans and cash balance plans offer opportunities to maximize pre tax contributions in final working years. A business owner aged 60–67 with stable income can potentially contribute $200,000+ annually to a defined benefit plan, creating immediate tax deductions while building retirement assets.

When coordinated with business exit planning, these strategies can dramatically improve after-tax retirement wealth. Timing a business sale for the year following retirement—when income is lower—can reduce taxes on proceeds substantially.

Estate and Legacy Planning

How you structure withdrawals affects what heirs receive after taxes. Considerations include:

• Spending down taxable accounts first to leave tax-advantaged accounts to heirs

• Roth conversions that shift tax burden from heirs to you at potentially lower rates

• Beneficiary designations that align with estate planning goals

• Charitable strategies using donor-advised funds or qualified charitable distributions

Revolutionary Wealth integrates estate and legacy planning into every retirement income plan, ensuring your wealth management strategy considers the next generation.

Why Work with Revolutionary Wealth on Retirement Investment?

Revolutionary Wealth is a premier, independent retirement income planning firm focusing on pre-retirees, retirees, and business owners with complex tax and planning needs. Our approach integrates the four income strategies discussed in this article into cohesive plans tailored to each client’s unique situation.

What Sets Revolutionary Wealth Apart

Scale and expertise: We manage over $100 million of assets directly and advise on more than $500 million annually. As part of the Lion Street network, we access specialized tools and strategies typically reserved for institutional investors.

Independence: We have no obligation to push proprietary products from competitors like Edelman Financial Engines, Ameriprise, or large broker-dealers. Our investment choices and annuity recommendations are selected based solely on client needs—not sales quotas.

Specialized capabilities: Our financial planners and investment advisors bring deep expertise in:

• Tax strategy and bracket management

• Social security optimization

• Fixed indexed annuities analysis

• RMD planning and Roth conversion strategies

• Business exit planning

• Support for single, divorced, or widowed women seeking clarity and confidence

Comprehensive wealth management: We coordinate retirement income planning with estate planning, insurance needs, and business strategies. Your retirement plan doesn’t exist in isolation—it connects to everything else in your financial life.

Take the Next Step

If you’re approaching retirement (especially ages 59–67) and want a personalized, tax-efficient retirement income plan that integrates all four income strategies, we invite you to schedule a conversation with Revolutionary Wealth.

Your retirement years deserve a plan built specifically for your situation—not a generic template. Contact us to begin building the retirement income strategy that lets you live confidently for the next 20–30 years.

FAQ

How much of my retirement portfolio should be in guaranteed income like annuities?

The ideal percentage varies significantly based on your individual circumstances. A useful starting framework is covering your essential expenses—housing, utilities, basic food, insurance premiums, and property taxes—with guaranteed sources like social security, pension income, and annuities. This “floor” approach ensures basic needs are met regardless of market conditions.

For some clients, this might mean allocating 20–30% of total savings to annuities. For others with lower social security benefits or no employer sponsored retirement plans providing pensions, it could be 40–60%. Revolutionary Wealth models multiple scenarios using different annuity allocations before recommending any specific approach, ensuring you understand the tradeoffs between guaranteed income and growth potential.

When should I start Social Security if I have substantial savings?

Higher-asset households often have flexibility to delay benefits until age 67–70 to maximize lifetime, inflation-adjusted income. Delaying from 62 to 70 can increase your benefit by 76% or more—a guaranteed return that’s difficult to match elsewhere.

However, the “best” claiming age depends on several factors: your health and family longevity, marital status (spousal and survivor benefits add complexity), and how claiming timing affects your overall tax strategy. For couples, the higher earner often benefits most from delaying while the lower earner might claim earlier.

Revolutionary Wealth uses specialized software to compare claiming at 62, full retirement age, and 70 under different market and longevity assumptions, and our library ofeducational videos on retirement and claiming strategiescan further illuminate the tradeoffs. This analysis often reveals that the optimal strategy isn’t obvious without running the numbers.

How do taxes on annuities compare to taxes on my IRA withdrawals?

Traditional IRA and 401 k withdrawals are fully taxable as ordinary income—every dollar withdrawn increases your taxable income. Non-qualified annuities purchased with after tax money are taxed only on the gain portion of each payment using the exclusion ratio.

For example, if you purchase a $300,000 non-qualified immediate annuity with a 20-year life expectancy, roughly 80% of each payment might be tax-free return of principal while only 20% is taxable gain. This creates meaningful tax efficiency compared to drawing equivalent income from pre-tax accounts.

Both types of income affect your tax brackets, social security taxation thresholds, and Medicare IRMAA surcharges. This underscores why annuities shouldn’t be purchased in isolation—they need to fit within a coordinated tax plan that considers all income sources.

Can I still create a strong retirement income plan if I’m already 65 and feel “behind” on savings?

Absolutely. Even starting at 65, you can improve outcomes through several levers:

• Optimizing social security timing (potentially delaying to 70 if other income sources can bridge the gap)

• Adjusting spending to align with sustainable withdrawal rates

• Reconsidering investment risk and asset allocation

• Using income annuities to stabilize cash flow and reduce sequence-of-returns risk

• Maximizing remaining contribution limits in employer sponsored retirement plans or individual retirement accounts

Revolutionary Wealth provides detailed assessments for clients who feel behind, including honest projections and specific action steps. Sometimes the situation is better than feared; other times, realistic adjustments to retirement goals or timeline are needed. Either way, you deserve a clear picture and a plan forward.

How often should my retirement income plan be reviewed?

At minimum, an annual review ensures your plan stays aligned with current circumstances and tax law. However, additional check-ins are warranted after major life events:

• Death of a spouse

• Business sale or major asset disposition

• Large inheritance

• Significant market swings affecting portfolio value

• Tax law changes affecting contribution limits, RMD rules, or brackets

• Changes in health or long-term care needs

Revolutionary Wealth conducts structured annual reviews with every client, updating assumptions, fine-tuning withdrawal strategies, and adjusting tax approaches as clients move through their 60s, 70s, and beyond. Your retirement is dynamic—your plan should be too.

Disclosures:

This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Revolutionary Wealth LLC does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.Past performance is no guarantee of future results.

Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.

A REIT is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate. There are risks associated with these types of investments and include but are not limited to the following: Typically no secondary market exists for the security listed above. Potential difficulty discerning between routine interest payments and principal repayment. Redemption price of a REIT may be worth more or less than the original price paid. Value of the shares in the trust will fluctuate with the portfolio of underlying real estate. Involves risks such as refinancing in the real estate industry, interest rates, availability of mortgage funds, operating expenses, cost of insurance, lease terminations, potential economic and regulatory changes. This is neither an offer to sell nor a solicitation or an offer to buy the securities described herein. The offering is made only by the Prospectus. 

Not associated with or endorsed by the Social Security Administration, Medicare or any other government agency.

Maximizing your Social Security Benefits assumes foreknowledge of your date of death. If as an example you wait to claim a higher monthly benefit amount but predecease your average life expectancy, it would have been better to claim your benefits at an earlier age with reduced benefits.

Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.

Fixed Annuities are long term insurance contracts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty.

Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.

QLACs cannot be purchased with Roth or Inherited IRA dollars; value of such IRAs cannot be included in determining 25% premium limit. If Funding Source is Traditional IRA, 25% limit is calculated by combining the total value of all Traditional IRAs as of December 31st of the previous year. If Funding source is Employer sponsored qualified plan (401k, 403b and governmental 457b), 25% limit is calculated on an individual plan basis based on the plan’s account value on the previous day’s market close. If you previously purchased a QLAC, the calculation of your 25% limit is more complicated. Please contact an attorney or tax professional for additional details. Any guarantees of the annuity are backed by the financial strength of the underlying insurance company.

The projections or other information generated by Monte Carlo analysis tools regarding the likelihood of various investment outcomes are hypothetical in nature, are based on assumptions that you provide which could prove to be inaccurate over time, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.