How much is enough for retirement?
How should you think about taxes, withdrawals, or even where you live?
These are some of the questions explored on the latest episode of the Quarter Over Quarter Podcast, featuring hosts CEO Tom Moran and President Don Drury.
The lively discussion covered everything from Florida residency to retirement distribution strategies and highlighted why thoughtful planning makes all the difference.
Florida as a Retirement Domicile
Naples, Florida, has transformed over the past 40 years from a seasonal fishing village into a hub for retirees and entrepreneurs alike. As Tom observed, many of the firm’s clients who previously spent just a few months each year in Naples have now made it their permanent home. One of the biggest reasons? Taxes.
Florida has no state income tax, which can be especially attractive for those relocating from high-tax states. The difference can be substantial enough to retire several years earlier while maintaining the same lifestyle. That tax savings also makes strategies like Roth conversions more appealing, since fewer dollars are lost to state taxes.
How Much Is Enough?
One of the most common questions retirees ask is: “Have I saved enough?”
The answer, of course, depends on lifestyle, goals, and risk tolerance. Some clients plan conservatively and worry about running out of money. Others, even with similar net worths, are comfortable being more aggressive because they know they have more than enough.
“Some people live well within their means,” Tom said. “Some people are looking to be a philanthropic or donate to family members or travel, and their idea of a good retirement would require a larger net worth than others. So not an easy answer. It’s a very personal question.”
As he went on to point out, the key is finding the right balance of risk and return. If you’re losing sleep at night over market volatility, you may be taking too much risk.
Distribution Strategies and the 4% Rule
When it comes to withdrawing from retirement accounts, many people turn to the “4% Rule.” This guideline suggests withdrawing 4% of your assets annually, adjusted for inflation, to make savings last.
But sometimes a more dynamic approach can be smart. Markets go up and down, so your retirement paycheck might need to adjust accordingly. This flexible method can help retirees navigate downturns without depleting savings too quickly.
“We don’t know when those bad years are going to occur,” Tom said. “Since we don’t know what scenario is going to play out, you have to show it on the more conservative side.”
Early retirement often means higher spending on travel and lifestyle. Later years typically involve lower expenses, though health care costs may rise. Planning with these stages in mind creates a more realistic withdrawal strategy.
Overlooked Areas in Retirement Planning
A few areas frequently catch retirees off guard:
- Tax diversification. Many investors focus heavily on pre-tax accounts like 401(k)s. Having funds in taxable or Roth accounts can provide more flexibility, particularly when managing required minimum distributions (RMDs).
- Budget awareness. Heading into retirement without a clear budget can undermine even the best portfolio strategy. Knowing what’s going out and what’s coming in is essential.
- Sequence of returns risk. A market downturn early in retirement can have outsized consequences. Diversification, holding cash reserves, and careful asset allocation are critical safeguards.
Final Thoughts
Retirement planning should involve flexible, tax-smart strategies that support your lifestyle and goals, rather than merely targeting an ambitious savings figure.
As the hosts emphasized, the best financial plan in the world can fail if taxes, fees, or allocation decisions eat away at returns. That’s why having a personalized plan, and a trusted advisor, can make all the difference.
To hear the full discussion, check out the latest episode of the Quarter Over Quarter Podcast on our YouTube channel.
For more helpful resources, visit our Educational Videos library.
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