Turning Wealth Into Income: What to Know Before Retirement

1. Retirement Is a Transition, Not a Destination

You’ve likely spent decades focused on saving and growing your assets. But your priorities flip once you stop working. You must now begin drawing down your assets to replace the stable income you were earning from your career.

These concerns hang overhead as you move to retirement:

• How do you replace a paycheck without selling too much of your portfolio?
• How do you protect your lifestyle from inflation and market drops?
• How do you avoid taxes that quietly chip away at your nest egg?

This phase demands a new kind of plan. Rather than just having “enough,” it’s crucial to make sure your wealth lasts and supports the life you want. An experienced financial advisor can help you set a solid foundation for a confident retirement.

2. Wealth Disappears Quickly Without a Withdrawal Strategy

Even multimillion-dollar portfolios can fail without structure. Withdrawing too much, too soon, or from the wrong account can risk triggering higher taxes, incurring penalties, or depleting your savings faster than expected.

Personalization is a core aspect of a strong withdrawal plan. It should align with how you hold your assets (Roth IRA, 401(k), brokerage account), how markets behave, and how your spending might change over time based on lifestyle needs.

Even with substantial savings, the way you withdraw money from your accounts can dramatically affect how long your portfolio lasts. Drawing from the wrong account at the incorrect time can lead to unnecessary taxes, disrupt your investment strategy, and shrink your savings faster than expected, especially during market downturns.

A thoughtful withdrawal plan considers which accounts to tap first, how much to take, and when to adjust based on the markets and your spending needs. When done right, it helps preserve your wealth through all stages of retirement, not just the early years.

3. Taxes Can Cut Into Your Wealth

Retirees often assume taxes will decrease once they stop earning a paycheck. But in reality, taxes can remain one of your biggest ongoing expenses.

Required minimum distributions (RMDs), capital gains, dividends, and even Social Security can push you into a higher tax bracket in retirement than you expect. And once you’re 73, RMDs become mandatory, whether you need the income or not.

Tax planning, both before and during retirement, is crucial. Tools like Roth conversions, asset location strategies, or qualified charitable distributions can reduce your tax bill and help your wealth last longer.

4. Living Longer Means More to Plan For

The average life expectancy continues to rise and, if you’re healthy and financially secure, there’s a good chance you’ll outlive it. However, this can stretch the runway for your savings to last.

Your income plan needs to account for:

• Rising healthcare costs in your 70s and 80s.
• Market volatility across a 25 to 30-year retirement.
• The possibility of long-term care needs for you or your spouse.

If you don’t plan for longevity, you risk outliving your money or being forced to reduce your lifestyle later on. Many high-net-worth retirees leverage income “guardrails,” longevity insurance, or even layering guaranteed income products with investment accounts to create a more resilient plan.

5. Wealth Needs Expertise, Not Just a Strategy

Whether you’re navigating the sale of a business, passing wealth to children, or preparing to spend more time on travel, family, or philanthropy, retirement is full of decisions that benefit from clear, expert guidance.

The best financial advisors don’t just manage investments, they help you:

• Make smarter, more tax-efficient decisions.
• Stay disciplined in the face of market uncertainty.
• Adjust your strategy as life evolves.

And they help you answer the one question that matters most: “Will I be okay?”

Do You Need a Financial Advisor to Turn Wealth Into Income?

If you’re preparing for retirement—or already retired—with significant assets, working with the right advisor can make the difference between a good plan and a great one.

The stakes are high. You’ve worked hard to build wealth. Now it’s about protecting it, using it wisely, and enjoying what it makes possible.

But not all advisors are equal. Look for someone who:

• Acts as a fiduciary (always in your best interest).
• Holds advanced credentials like Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC).
• Understands tax planning, estate strategy, and retirement income planning.
• Works with clients like you.

How to Find a High-Value Financial Advisor

Choosing the right advisor is just as important as deciding to hire one. Look for a fiduciary, someone legally obligated to put your interests first. The best advisors are transparent, credentialed, and offer guidance tailored to your unique needs—not just generic advice.

To make it easier, our free matching tool helps you find a vetted fiduciary financial advisor who aligns with your needs. Just select your state below and complete the form to get matched with a professional in minutes: