Retirement Planning Blog | Expert Insights & Tips

Have It Your Way: 5 Steps to Planning Your Retirement Income

Written by The Chamberlin Group | Apr 20, 2026 4:04:12 PM

Have you ever walked into a fast-food joint, asked for no pickles, and been told, "Sorry, they’re all pre-made"?

It’s frustrating. Now, imagine that same "one-size-fits-all" approach being applied to your life savings.

For many retirees, the transition from accumulation (saving money) to decumulation (spending it) is a massive culture shock. During your working years, spending didn't threaten to bump your tax bracket or hike your Medicare premiums. In retirement, every withdrawal has a ripple effect.

 

In Chapter 2 of The Wells of Wealth, we explore why your retirement should be more like a custom-ordered burger and less like a pre-packaged value meal.

Missed the introduction and chapter 1? Not to worry! Check them out now:

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Case Study: The "Hidden" Costs of a Beautiful Wedding

We often share the story of George and Mary Eigel. They wanted to give their daughter a generous check for her wedding, so they cashed out some stocks. It seemed simple, until the tax bill arrived.

 

Because they didn’t have a coordinated decumulation strategy, that one gift triggered massive capital gains taxes and impacted their reporting to the IRS, Medicare, and Social Security. Their tax bracket changed, and their net income plummeted.

The lesson? Spending wealth shouldn't cause anxiety. You’ve accumulated it; now you deserve to enjoy it.

The 5 Essential Steps to Your Income Plan

According to a 2025 Allianz study, 64% of Americans fear running out of money more than death. A holistic income plan is the antidote to that fear. Here is how we build it:

  1. Define Your Desired Lifestyle: Don't start with the numbers; start with your time. Do you want to build gnome homes for your grandkids or sip your way through Missouri wine country like the Eigels?
  2. Calculate Current Expenses: Use your own numbers, not a "guru's" estimate. Remember to include the "big eight": Housing, Healthcare, Transportation, Insurance, Food, Taxes, Miscellaneous, and Lifestyle .
  3. Figure Out Social Security: This is the foundation. Did you know that waiting to file can sometimes add hundreds of thousands of dollars in lifetime income? Plus, your Social Security statement doesn't even show the future Cost of Living Adjustments (COLA) that could double your check over 20 years.
  4. Factor in Inflation and Taxes: Inflation averages 3.28% long-term, meaning prices can double every 20 years. Meanwhile, taxes in retirement aren't "automatic" anymore—they come directly out of your pocket.
  5. Identify Your Income Gap: This is the difference between your guaranteed income (Social Security/Pensions) and your actual living expenses.

The Math of the Gap: If you need $9,000 a month but Social Security only provides $4,000, you have a $5,000 monthly income gap. How you fill that gap determines if your money lasts as long as you do.

Take Control of Your "TAX"

In retirement, "Tax" isn't just a three-letter word that means you owe money; it’s a framework for control. As Chamberlin lead holistic planner Tom Ponce explains, you can’t control what the government does with tax rates, but you can control three specific decisions that determine how much of your hard-earned money stays in your pocket.

We break it down using the T-A-X acronym:

  • T is for Timing: Most retirees have the bulk of their savings in tax-deferred accounts like IRAs or 401(k)s. If you take money out at the wrong time — like George and Mary did — you could accidentally trigger higher Medicare premiums or tax your Social Security benefits at your highest marginal rate. Timing your withdrawals is about choosing the "path of least resistance" for every dollar you spend.
  • A is for Allocation: This is about where you pull from. Are you taking from your "Tax-Now" accounts (checking/savings), "Tax-Later" accounts (Traditional IRA/401k), or "Tax-Never" accounts (Roth IRA)?. A holistic plan coordinates these buckets so you aren't cannibalizing your principal just to pay the IRS.
  • X is for Exit Strategy: You spent decades on an "entry strategy" (accumulation). Now you need a plan to get that money out. Without a proactive exit strategy, you’re essentially leaving the IRS a blank check. By planning your exit, you can transition assets into more tax-efficient "wells" before the government’s required minimum distributions (RMDs) force your hand.

Why Your Current Advisor Might Be Missing This

It’s important to remember that most Wall Street brokers and stock traders are legally restricted from giving tax advice. They specialize in the accumulation phase — growing the pile.

But in retirement, you are in the decumulation phase. You don't just need a "great guy" with good intentions; you need a specialist trained to coordinate all seven pillars of a holistic plan, especially the intersection of tax strategy and income planning.


Ready to Have the "Wells of Wealth" Your Way?

Schedule a no-fee, 20-minute strategy session with a certified Retirement Educator. They aren’t there to sell you products; they are here to help you understand your risks. When you call, we will mail you a free copy of The Wells of Wealth System and discuss your eligibility for a complimentary "mini-plan," which includes:

  • A Tax and Portfolio Audit to see if you’re exposed to the "Math of Loss".
  • A Sequence of Returns Stress Test to see how your income holds up in "bad weather".
  • A Personalized Wells of Wealth Strategy Snapshot.

 

 

You’re Not Alone: What Can You Expect On the Call?


Not sure what to ask your Retirement Educator? Here are a few questions that can help you get oriented at the start of your planning journey:

1. "How much of my current portfolio is actually set up to generate a 'paycheck' vs. just 'sitting in the pot'?”

Most people focus on the total balance of their 401(k). As you approach retirement, though, your focus should shift to cash flow. How much of your wealth is liquid and reliable (your future “Liquid” and "Conservative” wells), versus how much is subject to market swings that could disrupt your monthly income?

2. "If the market dropped 20% next month, exactly how would my retirement income be affected?"

This is a "stress test" question. Your retirement educator can explain the "Sequence of Returns" risk — the danger of the market dropping right as you start taking withdrawals, leaving you behind for your entire retirement and in danger of outliving your money. They’ll explain the importance of a "buffer" to protect your lifestyle during a downturn.

3. "How can I mitigate 'Tax Volatility' over the next 10 to 15 years?"

Tax rates are not static. If the majority of your money is in a traditional 401(k) or IRA, you have a "lien" on your account held by the IRS. Ask the educator how you can balance your "Growth Well" with tax-advantaged accounts (like a Roth) to ensure you aren't losing 25–30% of your future spending power to taxes.

4. "How do we coordinate my Social Security filing strategy with my other income sources?"

Social Security shouldn't be viewed in a vacuum; you have to look at your retirement holistically. The goal is to find the "sweet spot" where you maximize your lifetime benefits while using your private savings to fill the gaps efficiently. When you file can have other effects on your long-term plan as well, with the formula for survivor and spousal benefits taking the timing into account.

Pro Tip: Whenever you talk to a potential financial planning partner, listen for whether they give you a "one-size-fits-all" answer or if they ask follow-up questions about your specific goals. The best strategy is always the one most tailored to you and your needs, goals and dreams.

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• • • • •

More From Our Book (and What's Up Next!)

In the meantime...

 

Sources

https://www.allianzlife.com/about/newsroom/2025-Press-Releases/Americans-Are-More-Worried-About-Running-Out-of-Money-Than-Death

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As of the writing of this book and blog post, the author is an investment adviser representative and supervised person of Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser. The opinions and assertions expressed in this book are solely those of the author and do not necessarily reflect the views of Foundations. Foundations’ involvement with this book has been limited to performing a high-level compliance review. No compensation related to this book will be directly or indirectly shared with or remitted to Foundations.

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