Hi, I’m Elisabeth Dawson. After more than 26 years of helping people design their retirement reality, I can tell you that your retirement income plan matters just as much as the money you’ve saved.
The truth is, most people walk into retirement with good intentions—but little direction. They rely on guesswork, make emotional decisions, and overlook the impact of taxes. The result? They end up with less income, more stress, and a retirement that doesn’t look anything like what they dreamed of.
But it doesn’t have to be that way.
Let’s take a look at the three most common retirement income mistakes I see—and how to avoid them so you can enjoy the retirement you deserve.
Mistake #1: Guessing Instead of Planning
The Problem with “I’ll Figure It Out Later”
Many people assume they’ll simply pull from their retirement accounts as needed. No big deal, right?
The problem is: guessing leads to overspending, or even underspending out of fear. Without a plan, you may withdraw too much early on or become paralyzed by the fear of running out of money.
And that fear? It’s the number one reason people don’t enjoy their retirement.
The Fix: Create a Monthly Retirement Paycheck
When we work together, I help you build a personalized Retirement Income for Life Blueprint. This includes:
- Predictable monthly income
- Clear withdrawal strategies
- An order of operations for which accounts to draw from first
- Adjustments for inflation and longevity
This approach replaces guesswork with confidence—so you can spend without stress.
Mistake #2: Letting Emotions Drive Your Decisions
Fear and Greed Don’t Make Good Advisors
It’s human nature to get emotional about money—especially when it’s your life savings. But emotional decisions can sabotage your retirement faster than any market downturn.
You may pull out of the market during a dip… lock in losses… or chase high-risk investments late in life trying to “catch up.”
The Fix: Stick to a Personalized Strategy
Instead of reacting to headlines or market dips, we focus on coordinated, data-backed planning. We take emotion out of the equation by designing:
- A consistent income stream
- Protection from volatility
- Buckets of money for short-, mid-, and long-term needs
When you know your essentials are covered, market headlines won’t rattle you.
Mistake #3: Ignoring Taxes Until It’s Too Late
You Don’t Just Lose Money in the Market—You Lose it to the IRS
A $1 million IRA isn’t really $1 million in your pocket. Depending on your tax bracket, you might only get $600,000 of that. Yet, most people don’t consider the tax impact when planning their withdrawals.
If you don’t have a tax-efficient retirement plan, you’re giving away tens of thousands—if not more—over the course of your retirement.
✅ The Fix: Proactive Tax Planning
We partner with trusted tax professionals to help you create a strategy that minimizes taxes and maximizes your after-tax income by:
- Leveraging Roth conversions
- Timing Social Security correctly
- Coordinating account withdrawals
- Using life insurance and annuities strategically
- Managing Required Minimum Distributions (RMDs)
Taxes aren’t just a nuisance—they’re a major threat to your retirement income. With strategic planning, you can keep more of what you’ve earned.
Why This Matters Now—Not Later
These mistakes aren’t just “good to know”—they’re the difference between retiring with confidence and retiring with regret.
You deserve a retirement that feels abundant, not uncertain. And that starts with a clear, strategic income plan tailored to you.
FAQs
1. What’s the biggest mistake people make with retirement income?
The biggest mistake is not having a real plan. Guessing how much to withdraw without a structured strategy can lead to running out of money—or not spending enough to enjoy retirement.
2. Why is tax planning important in retirement?
Taxes can significantly reduce your income in retirement. A smart tax strategy can help you keep more of your money and reduce surprises from Required Minimum Distributions or Social Security taxation.
3. How do emotions hurt retirement income planning?
Making decisions based on fear or headlines can lead to poor timing—selling low, buying high, or making unnecessary changes. A steady income plan keeps you grounded.
4. When should I create my retirement income plan?
Ideally, before you retire. But it’s never too late to start. The earlier you plan, the more flexibility and options you have.
5. What’s included in a Retirement Income for Life Blueprint?
This customized plan outlines your income streams, withdrawal order, tax strategy, protection tools, and how to sustain income through inflation, longevity, and market risks.
Let’s Avoid These Pitfalls Together
👉 Avoid the most common income missteps—schedule your Complimentary Income Strategy Session today.
We’ll help you go from reactive to proactive, from confusion to clarity, and from uncertainty to peace of mind.
Retirement isn’t just about having money—it’s about using it wisely. Guessing, reacting emotionally, and ignoring taxes are the most common—and most costly—retirement income mistakes I see every day.
But with the right strategy in place, you can sidestep all three and enjoy the life you’ve worked so hard to build.
Let’s start that journey together. Schedule your free consultation today by calling (619) 640-2622 or by clicking here.