In this episode of Retire with Style, Alex Murguia and Wade Pfau explore key retirement planning strategies, including how couples can optimize Social Security benefits, what to do with surplus funds from bond ladders, and the potential benefits of purchasing single premium immediate annuities (SPIAs) from Roth IRAs. They highlight the importance of maintaining flexibility and tailoring strategies to each retiree’s unique circumstances.

Takeaways

• Delaying social security can benefit the higher earner in a couple.
• The low earner has flexibility in claiming social security earlier.
• Using software can help determine optimal social security claiming strategies.
• Survivorship benefits are crucial in social security planning.
• Bond ladders are used for retirement income, not just reinvestment.
• Surplus funds from bond ladders can be invested in growth portfolios.
• Roth IRAs can be beneficial for purchasing SPIAs.
• SPIAs can provide tax-free income streams in retirement.
• Tax diversification is important in retirement planning.
• Real-life financial planning requires flexibility beyond strict rules.

Chapters

00:00 Introduction and Overview 01:16 Social Security Strategies for Couples 06:41 Managing Bond Ladder Surplus Funds 16:29 Exploring SPIAs in Retirement

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

In this episode of Retire with Style, Alex Murguia and Wade Pfau answer listener questions on retirement planning for high earners. They explore tax strategies like Roth conversions and qualified charitable distributions, and discuss how tools like life insurance and annuities can help hedge longevity risk and support a stable retirement income.

Takeaways

• The importance of community engagement in retirement planning.
• High earners face unique tax challenges and strategies.
• Qualified charitable distributions can help manage tax implications.
• Roth conversions can be beneficial for reducing future RMDs.
• Understanding the widow's penalty in retirement planning is crucial.
• Annuities can provide income stability in later years.
• Life insurance can hedge against the risk of not living long enough.
• The interplay between income sources and tax brackets is complex.
• Gifting strategies can help manage estate taxes effectively.
• Combining life insurance and annuities can optimize retirement income.

Chapters

00:00 Introduction and Community Engagement 03:12 Exploring Tax Strategies for High Earners 06:09 Navigating Retirement Risks for Couples 11:49 Hedging Against Longevity Risks in Retirement 28:59 Conclusion and Future Q&A Sessions

Links

If you want to better understand how to protect your retirement from bad market timing, don’t miss Retirement Researcher’s free webinar: “Four Ways to Manage Sequence of Returns Risk,” hosted by Wade Pfau happening July 15th, 2025 from 1:00 - 2:00 PM ET. You’ll learn practical strategies to reduce volatility’s impact on your retirement income. Register now at retirewithstyle.com/podcast.

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this live Q&A session, Alex Murguia and Wade Pfau answer questions on key aspects of retirement income planning, including withdrawal strategies, the 4% rule, tax considerations, and the role of financial advisors. They discuss how age and financial circumstances can influence withdrawal rates and highlight the importance of using guardrails to manage risk. The conversation also touches on Medicare, ACA subsidies, gifting strategies, and investment approaches to help protect against inflation. Altogether, it offers practical insights for retirees planning their financial future.

Takeaways

• The 4% rule is a guideline for a 30-year withdrawal strategy.
• Withdrawal rates can vary based on age and time horizon.
• Guardrails can help manage sequence of returns risk in retirement.
• Tax strategies are crucial for overfunded retirees to minimize liabilities.
• Medicare and ACA subsidies can impact retirement income planning.
• Gifting strategies can help manage estate taxes and provide for heirs.
• Investment strategies should consider inflation protection, especially for those without Social Security.
• Financial advisors can provide valuable guidance in retirement planning.
• Risk management is essential to ensure sustainable income in retirement.
• Planning for retirement involves both financial and non-financial considerations.

Chapters

00:00 Introduction to Retirement Income Strategies 06:07 Understanding the 4% Rule and Its Variations 11:55 Exploring Withdrawal Rates for Different Ages 21:01 Strategies for Overfunded Retirement Scenarios 30:14 Balancing Total Return and Income Protection Strategies 32:40 Spending Strategies for Retirement Accounts 35:50 Charitable Giving and Roth Accounts 39:31 Mortgage vs. Roth IRA Contributions 43:57 Withdrawal Strategies in Retirement 49:41 Key Steps Before Retirement 53:08 Roth Conversions and IRMA 56:28 Inflation Protection for Educators 01:01:15 Understanding Risk-Wrapper Strategies

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips