5 Retirement Planning Strategies Every Arizonan Should Know
At Cool Wealth Management in Phoenix, Arizona, we help professionals and business owners create retirement plans that align with their goals, lifestyle, and legacy. Retirement planning isn't just about saving, it's about strategic saving, tax-smart investing, and using the right tools at the right time. Whether you're years away from retiring or it's just around the corner, these five retirement strategies can help you grow and protect your wealth while reducing unnecessary taxes and stress.
1. Max Out Tax-Advantaged Accounts
Tax-deferred accounts like 401(k)s, IRAs, and SEP IRAs offer major tax benefits. For business owners and high earners, Solo 401(k)s or Defined Benefit Plans can unlock even greater contributions. These vehicles allow you to lower your taxable income today while growing investments tax-deferred until retirement.
2. Use Roth Conversions Strategically
A Roth conversion can turn a traditional IRA into a tax-free growth vehicle, but timing is key. Doing this in lower-income years or early retirement can reduce your future tax burden. In Arizona, with relatively low income taxes and no tax on Social Security benefits, a Roth strategy can be especially effective.
3. Coordinate With Social Security Timing
Many people claim Social Security too early, leaving money on the table. Delaying benefits past full retirement age (up to age 70) increases your monthly payment significantly. Combine this with a withdrawal strategy from your accounts, and you can fill income gaps tax-efficiently.
4. Don't Overlook Healthcare and Long-Term Care
Retirement planning should include Medicare planning, supplemental insurance, and possibly long-term care coverage. Without it, a major health event could derail years of careful planning. We often help clients assess whether self-insuring or using hybrid insurance products makes sense for their situation.
5. Plan Your Withdrawals Intelligently
The order you withdraw money from your accounts matters. Drawing from taxable, tax-deferred, and tax-free accounts in the wrong sequence can lead to higher taxes and Medicare premiums. We help clients create tax-efficient withdrawal plans that extend the life of their portfolios and protect against sequence-of-return risk.
Final Thoughts
Great retirement planning is about more than picking the right investments—it's about making smart, coordinated decisions across your entire financial life. At Cool Wealth Management, we specialize in helping professionals and business owners in Phoenix retire with clarity and confidence. If you’re ready to build a personalized strategy, we’d love to hear your story.
