May 20, 2025 • 12 mins
In this episode of Your Retirement Guide, George Jameson, CFP® and founder of Capital Wealth Group, walks you through the ideal sequence for a well-designed retirement. From income planning to tax strategies, discover how the right order can help you retire with more clarity and confidence.
Welcome to "The Retirement Guide" Podcast! I'm your host George Jameson, owner of Capital Wealth Group, a Fee Only Advisory firm. Whether you’re nearing retirement or already retired, Join me each week as we explore the world of retirement planning and equip you with the knowledge and tools you need for a successful retirement.
Thank you for tuning in to this episode of The Retirement Guide. If you enjoyed this episode, please subscribe & leave a review. If you'd like a free 30-minute retirement review, visit our website at www.capitalwealthplan.com to schedule.
This is for education only.It is not tax, legal, or investment advice. Before acting on any information consult your tax, legal, or investment advisor.
Let's Connect!
Visit our Website: Capital Wealth Group
Please Subscribe: To our Newsletter/Podcast
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Capital Wealth Group is a Flat Fee-Only Advisory Firm located in Columbia, SC , serving clients locally in South Carolina and North Carolina and virtually nationwide.
Any Questions or Topic Ideas? Send me an email at George@capitalwealthplan.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
George Jameson (00:00):
So let's get started.
Today we're talking about howto create a truly successful
retirement plan and why theorder in which you tackle each
piece really matters.
We'll cover the three bigitems, your income plan, your
investment plan, and your taxplan.
By the time we're done, you'llsee why starting in the wrong
(00:21):
place can leave you feelingboxed in and how this simple
shift sets you free to designthe retirement of your dreams.
So step one, start with yourvision, not your numbers.
You might assume.
Step one is running to yourbrokerage statements.
Add up your balances and assessyour risk tolerance.
(00:41):
And that's what most advisorswill do with new clients But
starting with investments canactually pigeonhole your
retirement.
So instead, I recommendbeginning by picturing your
ideal retirement life.
Without worrying about dollarsjust yet, here's how to do it.
(01:03):
Paint the picture.
Ask yourself, what does aperfect day look like in
retirement?
Are you gardening at dawn,playing pickleball with friends,
taking peaceful walks on thebeach, traveling?
Maybe you're volunteering yourtime.
Maybe it's all of the above.
Dream big, whatever lights youup.
(01:25):
And then next, notice theemotions.
What excites you?
Is it peace of mind?
Is it adventure, quality, timewith family?
Jot down the feelings andexperiences that matter most to
you, and then forgetconstraints, at least just for
now.
Don't worry about the moneyyet.
(01:47):
This stage is about imaginingthe life you want so you can
build your plan around it, notthe other way around.
So why does this matter?
If you start with numbers, yourisk trying to fit your life
into a budget.
But when you start with vision,you build a budget that fits
(02:07):
your life.
Step two, translate your visioninto an income blueprint.
Once your vision is crystalclear.
It is time to ask what incomewill support that lifestyle.
So first list your retirementmust haves.
These are your essentials, likehousing, food, transportation,
(02:30):
insurance, and so on.
This is your base level ofspending.
And then second list your niceto haves, such as travel,
hobbies, gifts for grandkids,club memberships, whatever, adds
enjoyment, and then estimatethe cost.
And then third, map out incomesources.
(02:51):
Think social security, maybe apension, annuities, possibly
rental income, part-time work orconsulting for a few years
after full-time retirement.
List all your income sources.
And then fourth, this is whereyou bridge the gap.
For most people, guaranteedsources won't fully cover your
(03:12):
vision.
Now you know how much incomeyou'll need to draw from
investments in year one ofretirement, and then number
five.
You can run the 4% rule as agood starting point.
For example, if you'll have $2million at retirement, calculate
2 million times 4%, whichequals 80,000.
(03:35):
Ask yourself.
Will 80,000 fill your incomegap?
If yes, great.
You're on track.
If not, that's okay.
If you've done this planningbefore your retirement year, you
have time to make adjustments.
Please keep in mind, noteveryone has 2 million.
So this is just an example.
(03:55):
This income first approachgives you two big benefits.
Number one, clarity on yourinvestment needs.
You'll know how much you needto save and what kind of returns
are required to support yourincome goals, and that's
powerful.
And then number two, confidencein your plan.
Instead of guessing, you'venailed down what your lifestyle
(04:17):
will actually cost.
So your plan is based onreality, not assumptions.
And if the numbers aren'tadding up yet, don't worry.
You still have time and thereare other smart moves you can
make.
You could work a little longer.
You could take on part-timework early in retirement.
You could increase your savingsrates now while working or you
(04:41):
could trim lower priorityexpenses in retirement.
The key is awareness, knowingwhere you stand now so you can
take action.
So let's move on to step three.
Build your investment plan tofit the income blueprint.
Now that you know how much youneed and when.
You can design an investmentplan that aligns with your cash
(05:02):
flow needs.
This is far more personalizedthan relying on a generic risk
questionnaire.
Here's the approach I oftenrecommend, and it's called the
two bucket strategy.
Forget the overly complicatedbucket plans that you may have
heard of.
This one is clear, simple, andeffective.
For the full breakdown, listento episode 23.
(05:25):
But here's the gist.
So bucket number one is yourcash lifeline.
This holds one to two years ofexpected withdrawals after
factoring in your guaranteedincome.
It should be in safe liquidinvestments, like money market
funds, or treasury bills.
You can make withdrawalsmonthly and replenish it
(05:47):
quarterly or annually.
And if you're veryconservative, you can hold three
or five years of cash if you'dlike.
It's a personal preference, andthen bucket number two, this is
your investment portfolio.
This is your long-term growthengine made up of stocks and
bonds.
Most retirees fall somewherebetween a 30 70 and a 70 30
(06:12):
stock to bond allocation.
The right mix depends on yourunique situation, your comfort
level.
Your risk tolerance, your needsand goals.
Then you would rebalance yourportfolio either quarterly,
bi-annually, or even annually.
If stocks are up, sell some torefill bucket one if they're
(06:34):
down, sell bonds instead.
Yes, 2022 was a tough year withboth stocks and bonds being
down, but not all bonds.
So if you had a welldiversified portfolio of stocks
and bonds, this strategywould've kept you from selling
at a loss.
If you want more detail orexamples, go check out episode
(06:58):
23.
Now onto step four.
Optimize taxes to keep more ofwhat you earn.
Once your income and investmentplans are in place, turn your
focus to long-term tax planning.
This is where many retireesmiss out, and the savings can be
huge.
So the first strategy you maywant to consider is called tax
(07:19):
location strategy.
This is where you place taxinefficient assets like taxable
bonds, high turnover mutualfunds, and even dividend paying
stocks in tax deferred accounts.
And then you would want to keeptax efficient investments like
passive index ETFs.
Passive index mutual funds,growth oriented individual
(07:40):
stocks, or even municipal bonds.
For those in higher taxbrackets in brokerage taxable
accounts.
And then think of your Roth IRAas the last bucket you'll
usually touch.
It's your most tax advantageaccount.
It's ideal for growth since youprobably won't touch it for
decades down the road.
So here again, you would addgrowth oriented investments, and
(08:05):
then when you finally withdrawthe money, your Roth IRA, all
the gains comes up tax free.
Okay?
Number two, you may want toconsider tax loss harvesting.
If you've realized gains in theyear, you can sell losing
investments to offset thosegains and lower your taxable
income to stay invested by asimilar but not identical ETF or
(08:28):
fund or even stock right away.
And then excess losses canoffset future gains or reduce
your taxable income by up to$3000 per year.
And then number three would bewithdrawal sequencing.
And this one's huge.
And it applies to most peoplein retirement.
What is the best withdrawalorder?
The best withdrawal orderdepends on your unique
(08:52):
situation.
So you use retirement planningsoftware to run scenarios.
The most tax efficient approachis often draw from taxable
accounts first, then move to taxdeferred accounts like
traditional IRAs and 4 0 1 ks,and then finally tap tax free
accounts like Roth IRAs.
This is not always the beststrategy for everyone, so please
(09:15):
use some type of retirementplanning software or work with a
financial planner.
So why does this matter?
The tax difference can besubstantial.
Sometimes hundreds of thousandsof dollars saved over
retirement.
That's more money in yourpocket or more money to pass on
to your heirs.
And then four Roth conversions.
(09:36):
This strategy lets you movemoney from a traditional IRA to
a Roth IRA paying taxes now toavoid bigger tax bills later.
Roth Conversions can be smartif you expect to be in a higher
bracket later, or you want toreduce future RMDs.
I've covered this in detail inpast episodes, so check those
out.
(09:56):
Just remember, it's not a onesize fits all situation.
Talk with a financial planner,and look at your whole picture
before deciding.
Now, let's put it all together,the three pillars of
retirement.
So at the highest level, yourretirement plan hangs on three
pillars.
Number one, your income plan.
You go from vision to cashflow.
(10:16):
And then number two, investmentplan.
Now you know your cashflowneeds and then you determine
your asset allocation.
Then number three, taxplanning, which we just went
over.
Roth conversions assetlocation.
Tax loss, harvesting, and themost important withdrawal
sequencing.
By approaching them in thatorder.
(10:37):
Vision, income, investments,and then taxes.
You gain clarity, flexibility,and peace of mind.
So this isn't a cookie cutter60 40 approach.
It's a tailored strategy builtaround your life.
So wrapping it up, remember,it's not about charts and
jargon.
It's about starting with yourdream, translating it into
(10:58):
numbers.
Protecting those numbers withsmart investment in tax
planning.
It's a small shift in thinking,but it can make a big impact if
the approach resonates.
I'd love to hear from you.
Drop a comment, share yourretirement vision, or let me
know which steps you're tacklingnext.
Until then, happy planning andhave a great day.
So let's get started.
Today we're talking about howto create a truly successful
retirement plan and why theorder in which you tackle each
piece really matters.
We'll cover the three bigitems, your income plan, your
investment plan, and your taxplan.
By the time we're done, you'llsee why starting in the wrong
(00:21):
place can leave you feelingboxed in and how this simple
shift sets you free to designthe retirement of your dreams.
So step one, start with yourvision, not your numbers.
You might assume.
Step one is running to yourbrokerage statements.
Add up your balances and assessyour risk tolerance.
(00:41):
And that's what most advisorswill do with new clients But
starting with investments canactually pigeonhole your
retirement.
So instead, I recommendbeginning by picturing your
ideal retirement life.
Without worrying about dollarsjust yet, here's how to do it.
(01:03):
Paint the picture.
Ask yourself, what does aperfect day look like in
retirement?
Are you gardening at dawn,playing pickleball with friends,
taking peaceful walks on thebeach, traveling?
Maybe you're volunteering yourtime.
Maybe it's all of the above.
Dream big, whatever lights youup.
(01:25):
And then next, notice theemotions.
What excites you?
Is it peace of mind?
Is it adventure, quality, timewith family?
Jot down the feelings andexperiences that matter most to
you, and then forgetconstraints, at least just for
now.
Don't worry about the moneyyet.
(01:47):
This stage is about imaginingthe life you want so you can
build your plan around it, notthe other way around.
So why does this matter?
If you start with numbers, yourisk trying to fit your life
into a budget.
But when you start with vision,you build a budget that fits
(02:07):
your life.
Step two, translate your visioninto an income blueprint.
Once your vision is crystalclear.
It is time to ask what incomewill support that lifestyle.
So first list your retirementmust haves.
These are your essentials, likehousing, food, transportation,
(02:30):
insurance, and so on.
This is your base level ofspending.
And then second list your niceto haves, such as travel,
hobbies, gifts for grandkids,club memberships, whatever, adds
enjoyment, and then estimatethe cost.
And then third, map out incomesources.
(02:51):
Think social security, maybe apension, annuities, possibly
rental income, part-time work orconsulting for a few years
after full-time retirement.
List all your income sources.
And then fourth, this is whereyou bridge the gap.
For most people, guaranteedsources won't fully cover your
(03:12):
vision.
Now you know how much incomeyou'll need to draw from
investments in year one ofretirement, and then number
five.
You can run the 4% rule as agood starting point.
For example, if you'll have $2million at retirement, calculate
2 million times 4%, whichequals 80,000.
(03:35):
Ask yourself.
Will 80,000 fill your incomegap?
If yes, great.
You're on track.
If not, that's okay.
If you've done this planningbefore your retirement year, you
have time to make adjustments.
Please keep in mind, noteveryone has 2 million.
So this is just an example.
(03:55):
This income first approachgives you two big benefits.
Number one, clarity on yourinvestment needs.
You'll know how much you needto save and what kind of returns
are required to support yourincome goals, and that's
powerful.
And then number two, confidencein your plan.
Instead of guessing, you'venailed down what your lifestyle
(04:17):
will actually cost.
So your plan is based onreality, not assumptions.
And if the numbers aren'tadding up yet, don't worry.
You still have time and thereare other smart moves you can
make.
You could work a little longer.
You could take on part-timework early in retirement.
You could increase your savingsrates now while working or you
(04:41):
could trim lower priorityexpenses in retirement.
The key is awareness, knowingwhere you stand now so you can
take action.
So let's move on to step three.
Build your investment plan tofit the income blueprint.
Now that you know how much youneed and when.
You can design an investmentplan that aligns with your cash
(05:02):
flow needs.
This is far more personalizedthan relying on a generic risk
questionnaire.
Here's the approach I oftenrecommend, and it's called the
two bucket strategy.
Forget the overly complicatedbucket plans that you may have
heard of.
This one is clear, simple, andeffective.
For the full breakdown, listento episode 23.
(05:25):
But here's the gist.
So bucket number one is yourcash lifeline.
This holds one to two years ofexpected withdrawals after
factoring in your guaranteedincome.
It should be in safe liquidinvestments, like money market
funds, or treasury bills.
You can make withdrawalsmonthly and replenish it
(05:47):
quarterly or annually.
And if you're veryconservative, you can hold three
or five years of cash if you'dlike.
It's a personal preference, andthen bucket number two, this is
your investment portfolio.
This is your long-term growthengine made up of stocks and
bonds.
Most retirees fall somewherebetween a 30 70 and a 70 30
(06:12):
stock to bond allocation.
The right mix depends on yourunique situation, your comfort
level.
Your risk tolerance, your needsand goals.
Then you would rebalance yourportfolio either quarterly,
bi-annually, or even annually.
If stocks are up, sell some torefill bucket one if they're
(06:34):
down, sell bonds instead.
Yes, 2022 was a tough year withboth stocks and bonds being
down, but not all bonds.
So if you had a welldiversified portfolio of stocks
and bonds, this strategywould've kept you from selling
at a loss.
If you want more detail orexamples, go check out episode
(06:58):
23.
Now onto step four.
Optimize taxes to keep more ofwhat you earn.
Once your income and investmentplans are in place, turn your
focus to long-term tax planning.
This is where many retireesmiss out, and the savings can be
huge.
So the first strategy you maywant to consider is called tax
(07:19):
location strategy.
This is where you place taxinefficient assets like taxable
bonds, high turnover mutualfunds, and even dividend paying
stocks in tax deferred accounts.
And then you would want to keeptax efficient investments like
passive index ETFs.
Passive index mutual funds,growth oriented individual
(07:40):
stocks, or even municipal bonds.
For those in higher taxbrackets in brokerage taxable
accounts.
And then think of your Roth IRAas the last bucket you'll
usually touch.
It's your most tax advantageaccount.
It's ideal for growth since youprobably won't touch it for
decades down the road.
So here again, you would addgrowth oriented investments, and
(08:05):
then when you finally withdrawthe money, your Roth IRA, all
the gains comes up tax free.
Okay?
Number two, you may want toconsider tax loss harvesting.
If you've realized gains in theyear, you can sell losing
investments to offset thosegains and lower your taxable
income to stay invested by asimilar but not identical ETF or
(08:28):
fund or even stock right away.
And then excess losses canoffset future gains or reduce
your taxable income by up to$3000 per year.
And then number three would bewithdrawal sequencing.
And this one's huge.
And it applies to most peoplein retirement.
What is the best withdrawalorder?
The best withdrawal orderdepends on your unique
(08:52):
situation.
So you use retirement planningsoftware to run scenarios.
The most tax efficient approachis often draw from taxable
accounts first, then move to taxdeferred accounts like
traditional IRAs and 4 0 1 ks,and then finally tap tax free
accounts like Roth IRAs.
This is not always the beststrategy for everyone, so please
(09:15):
use some type of retirementplanning software or work with a
financial planner.
So why does this matter?
The tax difference can besubstantial.
Sometimes hundreds of thousandsof dollars saved over
retirement.
That's more money in yourpocket or more money to pass on
to your heirs.
And then four Roth conversions.
(09:36):
This strategy lets you movemoney from a traditional IRA to
a Roth IRA paying taxes now toavoid bigger tax bills later.
Roth Conversions can be smartif you expect to be in a higher
bracket later, or you want toreduce future RMDs.
I've covered this in detail inpast episodes, so check those
out.
(09:56):
Just remember, it's not a onesize fits all situation.
Talk with a financial planner,and look at your whole picture
before deciding.
Now, let's put it all together,the three pillars of
retirement.
So at the highest level, yourretirement plan hangs on three
pillars.
Number one, your income plan.
You go from vision to cashflow.
(10:16):
And then number two, investmentplan.
Now you know your cashflowneeds and then you determine
your asset allocation.
Then number three, taxplanning, which we just went
over.
Roth conversions assetlocation.
Tax loss, harvesting, and themost important withdrawal
sequencing.
By approaching them in thatorder.
(10:37):
Vision, income, investments,and then taxes.
You gain clarity, flexibility,and peace of mind.
So this isn't a cookie cutter60 40 approach.
It's a tailored strategy builtaround your life.
So wrapping it up, remember,it's not about charts and
jargon.
It's about starting with yourdream, translating it into
(10:58):
numbers.
Protecting those numbers withsmart investment in tax
planning.
It's a small shift in thinking,but it can make a big impact if
the approach resonates.
I'd love to hear from you.
Drop a comment, share yourretirement vision, or let me
know which steps you're tacklingnext.
Until then, happy planning andhave a great day.
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