Hi, I’m Elisabeth Dawson—and after working with clients for over 27 years, I can confidently say the biggest concern I hear is this:
“Will I run out of money in retirement?”
That fear is extremely valid. Most people don’t realize that accumulating a nest egg is only half the equation. What matters most is how that money turns into income you can count on. Let’s walk through what that might really look like—and how to create a plan you can rely on.
Why Retirement Income Planning Is Critical
Most people think if they have $1–2 million saved up, they’re fine. But here’s the catch: that money doesn’t spend like $1–2 million anymore.
Between taxes, inflation, healthcare, and longer life spans, that nest egg can shrink faster than you expect—unless you have a strategy in place.
Mapping Out Your Income Streams
Pensions (If You’re Lucky to Have One)
Fewer people have pensions today than in years past. If you do, you’ll likely need to make a few decisions regarding how you’ll receive it. That could be as a lump sum or as monthly income. You may also have the option to elect a survivorship benefit. These types of decisions impact the rest of your plan.
Social Security
Depending on your claiming strategy, this could be a big or small part of your income. And if you’re married, the survivor rules will matter.
Annuities
Properly structured fixed-indexed annuities can create guaranteed lifetime income while protecting against excessive risk. However, there are many different types of annuities, and not all are equal, so be sure to work with an experienced professional who understands the differences and can help you choose the best option for your situation.
Investment Income
Stocks, bonds, and mutual funds can generate income—but market risk means it’s not guaranteed.
Real Estate/Rentals
Rental properties can produce great income—but they can also come with expenses and headaches.
Business Exit Strategies
If you’re a business owner, your retirement plan may include selling or transitioning your business. Without thoughtful planning, you can lose a significant amount to taxes. The money you do make will also need strategic income planning in order to support a lasting retirement.
How Much Will You Really Need?
Have you run the numbers?
Retirement isn’t about spending less—it’s about having the freedom to spend without stress.
Key Expenses to Include:
- Healthcare premiums and out-of-pocket costs—These are some of the most underestimated costs in retirement.
- Travel and leisure—You finally have the time, so you’re likely to spend more on enjoyable experiences.
- Taxes—Yes, even in retirement, you’ll need to pay taxes on most sources of income.
- Housing maintenance, downsizing, or relocating—These costs can vary greatly depending upon your location and your plans.
And don’t forget: inflation eats away at your purchasing power every single year.
The Power of Longevity Planning
We help clients plan to live to 100. Why? Because people are living longer, especially women. That’s a long time to rely on income streams.
A plan built for 20 years might leave you broke at 85. Planning for 30+ years ensures peace of mind.
What Happens if a Spouse Passes Away?
It’s a tough conversation but a necessary one. It’s far better to be prepared and understand how to structure your joint income in advance rather than face financial hardship due to a lack of planning.
- You lose one Social Security check.
- You may owe more taxes as a single filer.
- Expenses may decrease—but not by much.
We always run scenarios to prepare you for this possibility.
How to Stress-Test Your Income Plan
I often say, “Hope is not a plan.” Here’s how we test your retirement income:
- What if there’s another 2008-style crash?
- What if inflation spikes to 8%?
- What if you or your spouse needs long-term care?
- What if your adult children need financial help?
Planning for these “what ifs” is essential to designing a robust retirement income plan that can handle the challenges life throws your way. This proactive approach is a huge part of planning for success and ensuring you never run out of money in retirement.
The Role of Tax Strategies in Retirement
Taxes don’t stop when you retire. In fact, they can become even more important.
Smart Moves:
- Mix Roth and Traditional accounts to control tax brackets.
- Use properly structured life insurance for tax-free income.
- Manage Required Minimum Distributions (RMDs) wisely.
Most people pay more in taxes than they need to—because they don’t know any better and no one has ever helped them plan.
The Hidden Threat of Inflation
Let’s say you need $75,000/year to live comfortably.
In 20 years, you’ll need over $130,000/year to maintain the same lifestyle (at just 3% inflation). Without proper planning, your retirement income simply won’t keep up.
We solve this problem by including increasing income streams in our planning strategies.
Creating Guaranteed Income Streams
I’m a big believer in predictable income. Why? Because income solves the problem!
When you have guaranteed monthly income that you can rely on—regardless of what the market is doing—your stress disappears.
We use investment tools such as:
- Fixed indexed annuities
- Cash value whole life insurance
- Profit sharing/defined benefit pension plans
Now, these options aren’t one-size-fits-all. What works best for you depends on your wish list, timeline, risk tolerance, and other details of your situation. That’s why we custom-design each plan to help create your best possible outcome.
The Wealth Recovery Account™ Strategy
This is one of my favorite strategies—and it’s simple.
We find money you’re losing to:
- Taxes
- Interest
- Bank fees
- Unused subscriptions
- Lost opportunity costs
Then, we recover it into a Wealth Recovery Account™—a system that builds wealth automatically and funds your future income plan.
Avoiding the Traditional Financial Planning Trap
Wall Street loves volatility because they make money off of it.
Comprehensive Planning: Not Just About Investments
Here are some additional elements we discuss and incorporate into your comprehensive retirement plan:
- Estate planning
- Charitable giving strategies
- Trusts to protect your legacy
- Long-term care planning
- Successor and beneficiary strategy
I’ve worked with thousands of people—each with a unique story. The common thread? They wanted guidance, education, and accountability.
That’s exactly what my team and I provide.
We’re not here to sell you something—we’re here to serve you.
Every Year Counts: Secure Your Retirement Income Now
Your retirement income will only look as good as your plan allows.
If you’re serious about creating income for life, reducing taxes, and protecting your loved ones—start today. Not next week. Not next year.
Every year you wait is lost wealth.
You deserve to retire with confidence. Let’s design that reality together.
Schedule your free consultation today by calling (619) 640-2622 or by clicking here.
