Why Your Investment Mix Matters

One of the first steps in my retirement planning process is looking at the investment portfolio as a whole—not just individual accounts. A well-diversified portfolio doesn’t just protect you from market volatility; it also gives you options. By spreading investments across different asset classes, I can choose where to pull money from depending on market conditions, potentially avoiding the need to sell stocks during a downturn.

But diversification is more than just holding a mix of stocks and bonds—it’s about balancing risk with the ability to generate income, and making sure each account type (taxable, tax-deferred, and tax-free) plays a role in the long-term plan.

Taxes Don’t Stop in Retirement—Plan for Them

Many people are shocked when they realize that taxes can still be one of their largest retirement expenses. If you don’t plan ahead, Required Minimum Distributions (RMDs) from retirement accounts can push you into a higher tax bracket.

This is why I consider tax efficiency just as important as investment returns. Sometimes that means taking strategic withdrawals early in retirement to reduce the size of future RMDs. Other times, it’s about balancing withdrawals from traditional IRAs, Roth IRAs, and taxable accounts to keep your income in a favorable tax range.

Timing Your Social Security Benefits

The decision of when to claim Social Security is one of the most impactful choices a retiree will make. Claiming too early can permanently reduce your benefits, while delaying can boost them significantly—especially if you have longevity on your side.

I encourage people to consider Social Security in the context of the entire retirement plan, not just as a standalone benefit. Sometimes, drawing from other accounts early allows you to delay claiming, which can increase lifetime benefits and provide a bigger safety net later in life.

Balancing Income Sources for Stability

In retirement, stability is key. That’s why I help clients create multiple streams of income—Social Security, investment withdrawals, pensions, and sometimes part-time work. The goal is to ensure that essential expenses are covered by reliable income, so discretionary spending can come from more flexible sources.

When your “needs” are secured, you can weather market downturns without stress, because your core expenses aren’t dependent on selling investments at a loss.

The Bottom Line

Retirement planning is about more than just having a nest egg—it’s about managing it wisely. By coordinating your investments, taxes, and income sources, you create a retirement that’s not only financially sound but also stress-free.

If there’s one thing I’ve learned over the years, it’s that a well-structured plan gives you more than financial security—it gives you freedom. Freedom to travel, spend time with family, and enjoy the retirement you’ve worked so hard to achieve.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

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