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Author: Raman Singh, CFP®

  • The Silent Wealth Killer: How Inflation and Taxes Team Up Against Your Retirement Income

    The Silent Wealth Killer: How Inflation and Taxes Team Up Against Your Retirement Income


    So you’ve spent the last few decades working hard, saving diligently, and now find yourself with a few million dollars tucked away for retirement, first off, congratulations. You’ve done something that most people never achieve. But let’s be honest: the hard part isn’t building the nest egg. It’s protecting it from the quiet forces that slowly erode it over time.

    And the two biggest culprits? Inflation and taxes. You can’t see them, you can’t stop them, and together, they’re quietly working against your financial freedom every single year.

    A couple I recently worked with, Jim and Lisa, both 63, retired as an engineer, with no brokerage account. Between their 401(k)s, Roth IRAs, and savings, they had just over $2.3 million. On paper, they were in great shape.

    But as we started mapping out their income strategy, it became clear that their real concern wasn’t whether they had enough money; it was how much they’d actually get to keep after taxes and inflation.

    Even modest inflation of 3% cuts purchasing power in half over 24 years. That means a $100,000 lifestyle today would cost about $200,000 by the time they’re in their late 80s. Combine that with rising Medicare premiums, potential IRMAA surcharges, and how Social Security benefits get taxed once income crosses certain thresholds, and that $2.3 million starts to look a lot smaller.

    And here’s the kicker: the IRS doesn’t adjust your tax brackets fast enough to keep up with inflation.

    And Here’s The Double Whammy Most Retirees Don’t See Coming

    Every year, your groceries, travel, property taxes, and healthcare costs creep up, and if your withdrawals also increase to keep pace, you risk pushing yourself into higher tax brackets. That’s the double whammy: rising costs and rising taxes on the very withdrawals you need to survive.

    For retirees here in Arizona, this is even more pronounced. While the state doesn’t tax Social Security income, it does tax most other retirement income, including IRA withdrawals and capital gains. Add in federal taxes, and you could easily find yourself paying 20–30% of your annual retirement income back to Uncle Sam.

    According to the 2024 J.P. Morgan Retirement Guide, the average 65-year-old couple will need about $315,000 just for healthcare expenses during retirement. Add inflation and taxes on top, and the total lifetime cost of retirement can easily jump by half a million dollars or more.

    So What Can You Do About It?

    The most powerful defense isn’t chasing higher investment returns—it’s creating tax diversification and controlling the timing of your income.

    Most retirees I meet have the majority of their wealth tied up in pre-tax accounts like IRAs and 401(k)s. Those accounts come with a silent partner: the IRS. Every time you take a withdrawal, you’re triggering taxable income. And once you hit age 73, Required Minimum Distributions (RMDs) force you to take money out whether you need it or not.

    That’s where smart tax planning BEFORE RMDs begin…makes all the difference.

    In Jim and Lisa’s case, we are going to front load Roth conversions between ages 63 and 73, strategically filling up lower tax brackets before RMDs kick in. We forward tested and ran the numbers for this approach. This strategy is going to preserve 22% more real after-tax income over their retirement and keep them below key Medicare and Social Security tax thresholds.

    That’s not investment magic. That’s tax strategy.

    The Real Reason Why Timing Matters More Than Returns Is Because

    You can’t control the markets, but you can control your tax exposure.

    Timing withdrawals and conversions can often add more value than an extra 1% in annual returns. Think about it…if you earn 8% on your portfolio but pay 30% in taxes, your net growth is 5.6%. But if you earn 7% and pay just 15% in taxes, you’re ahead.

    Most retirees spend decades accumulating without a clear distribution plan. But distribution planning is when to take income, from which account, and in what order which is the true engine of a sustainable retirement.

    And this is where working with a flat-fee fiduciary advisor really matters. When your advisor isn’t charging 1% of your portfolio every year, they can focus entirely on optimizing your lifetime after-tax income rather than trying to “grow AUM.” It’s about protecting your wealth, not just managing it.

    At the end of the day, you don’t retire to watch spreadsheets. You retire to live, to travel, spend time with grandkids, or enjoy a glass of wine on your beautiful Arizona patio at sunset.

    But if inflation continues to run at even 3%, the same $10,000 monthly lifestyle today could cost $18,000 in 20 years. Without proactive planning, that shortfall has to come from somewhere, and it usually comes from your future self.

    That’s why every retiree needs to think in terms of after-tax, inflation-adjusted income, not just returns on paper.

    Because if your plan doesn’t account for inflation and taxes working together, it’s like rowing against the current. You’re still moving forward, but much slower than you think.

    As I wrote in my articles Finding Your Safe Withdrawal Rate in Retirement and Retirement Planning Without Taxes: Why It Costs So Much (and How to Fix It), the goal of retirement planning isn’t to avoid taxes—it’s to control them. The retirees who win this game are the ones who plan proactively, not reactively.

    You’ve already done the hard part by saving and investing wisely. Protecting your wealth now means being intentional about how and when you take income.

    If you’re retired or approaching retirement here in Phoenix, Scottsdale, Paradise Valley, or Tucson, and wondering whether your plan is as tax-efficient as it could be, I’d be happy to help you find out.

    After all, your money should be working as hard for you in retirement as you did earning it.

    Schedule your complimentary retirement tax review and let’s make sure inflation and taxes aren’t quietly eating away at the wealth you’ve worked a lifetime to build.

    Raman Singh, CFP®

    Your Personalized CFO

    Important Disclosures

    The information provided herein was obtained from sources believed to be reliable and is believed to be accurate as of the time presented, but it is provided “as is” without any express or implied warranties of any kind.

    This material is intended for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. You should consult with your own qualified investment, tax, or legal advisor before making any decisions based on this material.

    Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Withdrawal strategies and tax outcomes will vary depending on individual circumstances, account types, tax brackets, and market conditions. No strategy can guarantee success or prevent losses.

    Investment advisory services are offered through Singh PWM, LLC, a registered investment adviser offering advisory services in the State of Arizona and other jurisdictions where registered or exempted.

    Singh PWM, LLC is a registered investment advisor offering advisory services in the State(s) of Arizona and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute.

    Title tag:
     The Silent Wealth Killer: How Inflation and Taxes Team Up Against Your Retirement Income | Singh PWM – Flat-Fee Fiduciary in Arizona

    Meta description:
     Learn how inflation and taxes can silently erode your retirement income—and what you can do to protect your purchasing power. Discover Roth conversion, withdrawal timing, and tax-efficient strategies from Arizona’s flat-fee fiduciary advisor.

    Focus keywords:
     retirement income inflation, tax-efficient retirement income, flat-fee fiduciary Arizona, inflation-adjusted withdrawals, retirement tax planner Phoenix, Scottsdale, Tucson

  • Arizona Retirement Math: What a $2 Million Nest Egg Actually Gets You in Chandler, Paradise Valley, and Beyond

    Arizona Retirement Math: What a $2 Million Nest Egg Actually Gets You in Chandler, Paradise Valley, and Beyond

    If you’ve ever asked, “How much do I really need to retire comfortably here in Arizona?”

    If you’ve ever asked, “How much do I really need to retire comfortably here in Arizona?”, the honest answer is: it depends where you live, how you spend, and how much money you’re quietly handing over in fees and taxes. A $2 million nest egg goes a lot further in Chandler or Surprise/Happy Valley than it does in Paradise Valley…and cooling bills in July can surprise anyone in Phoenix and the surrounding suburbs.

    One more thing most retirees miss: if you’re paying a 1% advisor fee, that’s another $20,000 per year on a $2 million portfolio ($400,000 over 20 years). That’s real money that could fund family trips, healthcare, or college for grandkids.

    So let’s unpack what $2 million really buys you in Arizona when you factor in local costs, taxes, and fees.

    What It Really Costs to Live in Arizona (for Retirees)

    The Bureau of Labor Statistics pegs average retiree spending around $61,000 per year, but many Arizona retirees land closer to $70,000–$80,000 thanks to higher cooling costs, HOAs, and home maintenance common across Phoenix, Scottsdale, and nearby suburbs.

    Local snapshot (before taxes and fees):

    City / AreaHome ValueAnnual Property Tax (~0.5%)Utilities / Maintenance / HOAEstimated Annual Cost of Living
    Paradise Valley$1,000,000~$5,000~$20,000–$25,000~$75,000
    Chandler$500,000~$2,500~$12,000–$15,000~$60,000
    Surprise / Happy Valley$400,000~$2,000~$10,000–$12,000~$55,000

    Zillow (2025 medians), APS energy data, TaxFoundation property-tax rate context.

    If you add a 1% investment fee on $2 million, you’ve given up $20,000 more each year meaning an $80,000 plan just became $60,000 in practical spending before taxes. For more on how those advisor and fund costs add up, see my related article: Am I Paying Too Much in Advisor and Investment Fees?

    Housing and Utility Realities in Phoenix Metro

    Cooling: A typical Phoenix-area home might see ~$231/month in electricity, but larger homes in Paradise Valley can run $400–$500/month during peak heat or monsoon season.
    Property taxes: Arizona’s effective rate is roughly 0.45%–0.55%—low versus many states—but insurance, HOA, pest/termite prevention, landscaping, and roof/HVAC upkeep make up the difference. Plan $8,000–$15,000 per year.
    Monsoon maintenance: Budget 1–2% of home value per year for ongoing maintenance across Phoenix, Chandler, Surprise, and Happy Valley.

    That’s why retirees in Chandler or Surprise often feel more “financial breathing room” than those in high-end areas like Paradise Valley or Arcadia because the lifestyle costs stack up quickly.

    So How Far Does $2 Million Really Goes (By City)

    Using a 4% withdrawal rate, your $2 million portfolio targets $80,000 per year before taxes and fees.

    • Paradise Valley: ~$75,000 in living costs leaves ~$5,000 before taxes or travel.
    • Chandler: ~$60,000 in costs leaves ~$20,000 discretionary.
    • Surprise / Happy Valley: ~$55,000 in costs leaves ~$25,000 discretionary.

    Now subtract fees and taxes. Pay $20,000 in advisor fees and ~$10,000 in taxes and your spendable income can slip toward $50,000–$55,000. That’s why zip code, fees, and withdrawal strategy matter so much. To learn how much of your income is really yours to keep after fees and taxes, check out my post Retirement Planning Without Taxes: Why It Costs So Much (and How to Fix It).

    Some Arizona Tax Rules You Should Know

    Here’s the good news: Arizona is one of the most tax-friendly states for retirees.

    What Arizona doesn’t tax

    • Social Security benefits
    • Up to $2,500 of certain pension/annuity income (65+)
    • No Arizona estate or inheritance tax

    What Arizona does tax

    • IRA/401(k) withdrawals, most pensions, and ordinary income at a flat 2.5%
    • Dividends and capital gains flow into AZ taxable income (with federal rules still applying)

    The flat 2.5% state income tax and low property tax make Arizona a great place to retire—but only if you coordinate when and how you withdraw income.

    So what you need to know is the Timing and Withdrawal Strategy – Your “Tax Planning Window” 

    If you’re in your early 60s and not yet taking RMDs, you’re in the sweet spot—what I call the Tax Planning Window.

    This is when you can do partial Roth conversions, moving funds from your pre-tax IRA to your Roth IRA while staying in a lower bracket (usually 22–24%).

    Why it matters:

    • You pay taxes now at controlled rates instead of higher ones later.
    • Future Roth withdrawals are tax-free, don’t affect your Social Security taxation, and won’t push up your Medicare premiums (IRMAA).

    Pair that with Arizona’s low flat tax, and you’ve got a powerful opportunity to create a lifetime tax-efficient income stream.

    For a deeper look at the math behind smart withdrawal planning, see Finding Your Safe Withdrawal Rate in Retirement.

    Stack that with Arizona’s flat 2.5% and you can save tens to hundreds of thousands over a 25–30 year retirement, especially for households in Phoenix, Chandler, Oro Valley, Tucson, Surprise, and Paradise Valley.

    The Real Arizona Retirement Equation (Quick View)

    FactorParadise ValleyChandlerSurprise / Happy Valley
    Annual Cost of Living~$75,000~$60,000~$55,000
    State Income Tax (2.5%)*~$2,000~$1,500~$1,200
    Investment Management Fees (1%)$20,000$20,000$20,000
    Net Spendable Income (from $80K withdrawal)~$53,000~$58,000~$60,000

    *State tax varies with your actual taxable income and mix of Social Security, Roth, and pre-tax withdrawals.

    You can absolutely retire comfortably on $2 million in Arizona. Whether you feel comfortable or stretched comes down to location costs, tax timing, and your advisor’s fee model.

    Final Thoughts

    Arizona’s sunshine, low taxes, and relatively affordable property values make it a dream destination for retirees from states like California and Illinois.

    But even the perfect weather can’t fix poor math.

    If you’re paying 1% advisor fees, ignoring tax timing, or not optimizing your spending for your city, you could be losing hundreds of thousands over retirement.

    As a flat fee fiduciary who works remotely, I work with retirees across Paradise Valley, Phoenix/Scottsdale, Chandler, Surprise/Happy Valley, Oro Valley, and Tucson. I help you integrate your entire financial picture—financial planning, tax planning, estate planning, retirement planning, and cash flow planning—all under one transparent flat annual fee. No percentages, no commissions, no surprises.

    Want to see your personal “Arizona retirement math” by city?
     Schedule a Retirement Fee & Tax Clarity Call and I’ll run the numbers for your exact zip code, home, and portfolio mix.

    Raman Singh, CFP®

    Your Personalized CFO

    Important Disclosures

    The information provided herein was obtained from sources believed to be reliable and is believed to be accurate as of the time presented, but it is provided “as is” without any express or implied warranties of any kind.

    This material is intended for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. You should consult with your own qualified investment, tax, or legal advisor before making any decisions based on this material.

    Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Withdrawal strategies and tax outcomes will vary depending on individual circumstances, account types, tax brackets, and market conditions. No strategy can guarantee success or prevent losses.

    Investment advisory services are offered through Singh PWM, LLC, a registered investment adviser offering advisory services in the State of Arizona and other jurisdictions where registered or exempted.
    Singh PWM, LLC is a registered investment advisor offering advisory services in the State(s) of Arizona and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute.

  • Am I Paying Too Much in Advisor and Investment Fees?

    Am I Paying Too Much in Advisor and Investment Fees?

    One of the most common responses I get from retirees is when I ask them if they know how much they’re paying in fees. Their response is almost always the same:
    “Raman, we have no clue and we don’t even know where to look for it.”

    And that’s exactly how the financial industry likes it.

    Most retirees have no idea what they’re really paying. Fees are scattered across statements, tucked inside management fees, sub-advisor fees, fund expense ratios, and sometimes buried as upfront commissions, and over time they quietly eat away at your returns. The impact is massive.

    According to Morningstar’s 2024 Mind the Gap report, the average investor loses roughly 0.7% per year to hidden costs and behavioral drag, and over a 20-year retirement, that adds up to hundreds of thousands of dollars.

    Let’s start with the most visible cost: your advisor fee. The 1% Problem

    The traditional model charges about 1% of your assets every year. It sounds small until you do the math. A client I recently met here in Scottsdale had $3 million invested, paying around $30,000 every year to his advisor. On top of that, his portfolio was invested aggressively at nearly 90% equities, and he was getting ready to retire and live off of his investments.

    He wasn’t paying for active tax management, retirement modeling, or estate coordination—just investment management. Over 20 years, those fees would have added up to about $600,000, not including lost compounding.

    When we rebuilt his plan under a flat-fee fiduciary structure, the annual cost dropped to $10,000 with a fund expense ratio of just 0.10%. That one shift freed up $20,000 a year that could instead fund travel, healthcare, or charitable giving.

    Another client in Tucson came to me after purchasing a $2 million annuity from a very reputable firm. The promise was “tax deferral” and “guaranteed income for life.” But after reviewing the contract, their contract value had doubled in 10 years, which on the surface looked great, but what I discovered was – 

    Not only their internal fees were close to 3% annually, roughly $120,000 a year in hidden costs, if they had invested that same money in a taxable brokerage account, they wouldn’t be paying 30% in taxes on withdrawals as they are right now. Their account value would likely have been close to $6 million, and they would be paying long-term capital gains tax of just 15% instead of 30%.

    For that advisor, it was a quick large annuity transaction. But for this client, it changed their lives forever.

    As I explain in my article Retirement Planning Without Taxes: Why It Costs So Much (and How to Fix It), the key to keeping more of your money is aligning your investment, tax, and income strategy together before locking yourself into products that sound safe but aren’t efficient.

    Beyond advisor fees, there are some fees that you just can’t get away from BUT you can certainly reduce those fees. Mutual funds, ETFs, and separately managed accounts (SMAs) all have built-in expense ratios that range from 0.05% to over 1.25%. While 1% might not seem like much, on a $2 million portfolio, that’s $20,000 every single year. What’s shocking is that, even 401(k) plans nowadays are charging as high as 1% in fund fees inside your 401(k), the account most people rely on for retirement. So if you haven’t reviewed your 401(k) allocation recently, do it now!

    Vanguard completed this study in 2024 and found out that investors who use low-cost ETFs versus high-fee active funds can gain up to 30% more in total wealth over a 25-year period. And that’s exactly why benchmarking fund costs is critical for anyone nearing or in retirement.

    So How Do You Benchmark Your Fees?

    If you’re over 55 and retired in Phoenix, Scottsdale, or Tucson, here’s a quick way to evaluate what you’re paying:

    1. Advisor Fees: Add up the percentage you pay (typically 1%) and multiply it by your portfolio. Then compare that to a flat-fee fiduciary model which is usually between $8,000 and $15,000 per year, regardless of asset size.
    2. Investment Costs: Look up your fund expense ratios. Anything over 0.50% deserves scrutiny.
    3. Commissions: Check for annuities or A-share mutual funds that pay upfront commissions or C-shares with annual trail commissions. One sale and commission for life with no extra work.
    4. All-In Cost: Add everything together. A fair, comprehensive cost for planning, investment management, and tax strategy shouldn’t exceed 0.50% per year on a $2 million portfolio.

    And If you’re paying more, you’re not getting more….you’re just paying more.

    And here’s what a $400,000 Difference Looks Like. Imagine two retirees in Scottsdale, both with $2 million.

    • Retiree #1 pays a traditional 1% advisor fee ($20,000/year).
    • Retiree #2 works with a flat-fee fiduciary at $10,000/year.

    Over 20 years, Retiree #1 pays $600,000, and Retiree #2 pays $200,000. That’s a $400,000 difference, money that could fund 10 years of healthcare, family travel, or an inheritance for the next generation.

    As I wrote in Finding Your Safe Withdrawal Rate in Retirement, “The safest withdrawal strategy isn’t about pulling less, it’s about keeping more.”

    And here’s the truth, most retirees never notice these fees because they are either unaware of those fees and these statements are designed to hide them. That 1% looks harmless until you compound it for 20 years.

    But you can change that narrative. Request a written breakdown of every fee from your advisor, custodian, and fund providers. Ask whether your advisor receives any commissions or revenue sharing. And if they hesitate to disclose, that’s your sign. 

    Transparency is the foundation of fiduciary advice.

    At Singh PWM, I charge a transparent, flat annual fee that covers your investment management, retirement planning, tax strategy, and estate coordination.

    No percentages. No commissions. No hidden incentives.

    By benchmarking every fee – funds, custodians, and advisory costs, you always know what’s fair. And because the fee doesn’t grow as your portfolio does, more of your money stays invested and compounding for you, not for your advisor.

    You might be paying too much in fees and not even realize it. Benchmarking what you pay for advice and investments is one of the fastest, easiest ways to improve your retirement outcomes without changing your lifestyle or taking on more risk. If you want to know exactly how much you’re paying and how much you could save, schedule a complimentary Fee Audit and Retirement Benchmark Call.

    Raman Singh, CFP®

    Your Personalized CFO

    Important Disclosures

    The information provided herein was obtained from sources believed to be reliable and is believed to be accurate as of the time presented, but it is provided “as is” without any express or implied warranties of any kind.

    This material is intended for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. You should consult with your own qualified investment, tax, or legal advisor before making any decisions based on this material.

    Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Withdrawal strategies and tax outcomes will vary depending on individual circumstances, account types, tax brackets, and market conditions. No strategy can guarantee success or prevent losses.

    Investment advisory services are offered through Singh PWM, LLC, a registered investment adviser offering advisory services in the State of Arizona and other jurisdictions where registered or exempted.

    Singh PWM, LLC is a registered investment advisor offering advisory services in the State(s) of Arizona and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute.

    Title:
     Am I Paying Too Much in Advisor and Investment Fees? | Flat-Fee Fiduciary Advisor in Phoenix, Scottsdale & Tucson, AZ | Singh PWM

    Description:
     Are you overpaying your advisor? Learn how retirees in Phoenix, Scottsdale, and Tucson can reduce investment and advisory costs, uncover hidden fees, and keep more of their retirement income with a flat-fee fiduciary approach.Keywords:
     flat-fee fiduciary advisor Arizona, retirement advisor Phoenix, retirement advisor Scottsdale, retirement advisor Tucson, investment fees in retirement, retirement tax planning Arizona

  • Can ChatGPT Be Your Retirement Planner?

    Can ChatGPT Be Your Retirement Planner?

    AI can explain Roth conversions and RMDs, but it can’t replace a fiduciary. Learn where ChatGPT helps and why a human advisor is essential.

    Someone asked me the other day, “Raman, couldn’t I just use ChatGPT instead of hiring you to help me with retirement planning?” And honestly, it’s a fair question. AI is everywhere right now, and ChatGPT is shockingly good at explaining things like Roth conversions, RMDs, or even the 4% rule in plain English. But here’s the thing: it’s not a retirement planner. It’s a teacher. It can help you understand concepts, but it’s not sitting in your corner looking out for you when real decisions come up.

    What ChatGPT Does Well

    Think of it like this: you can ask ChatGPT, “When do I need to take my RMD?” or “What’s this IRMAA surcharge I keep hearing about?” and it’ll spit out an explanation that makes sense. I’ve had clients walk into meetings with me after doing exactly that, and they’re more prepared, which is fantastic. Sometimes they’ll even hand me a ChatGPT summary and say, “Can you double-check this for me?” and it makes our time together more productive.

    Even Fiduciaries Use AI, Just Differently

    And I’ll be the first to admit I use it too. Not for the advice part, but for efficiency. For example, I might ask it to put together a quick checklist of Medicare deadlines or tax rules just so I don’t have to start with a blank page. But here’s the difference: I don’t stop there. I fact-check everything against the tax code, Morningstar, Schwab resources, and my own experience before it ever gets anywhere near a client plan. So in my world, it’s like a digital assistant, not a decision-maker.

    When AI Gets It Wrong: The Hidden Costs of Context

    Now here’s where it gets tricky. One client once asked ChatGPT to create a Roth conversion plan, and the suggestion looked fine on the surface, convert $150,000 this year. But when I ran the numbers across their entire financial picture, that move pushed their income high enough to trigger two years of higher Medicare premiums. That mistake alone would have cost them thousands more every single year. And keep in mind, Medicare surcharges (IRMAA) affect about 7% of retirees, and once you cross the income thresholds, it’s not just a one-time bump, and it can snowball into years of higher costs.

    If you’d like to understand how taxes quietly impact retirement withdrawals, check out my related article Retirement Planning Without Taxes: Why It Costs So Much (and How to Fix It). It breaks down how a single decision, like when to convert or withdraw can dramatically change how long your money lasts.

    Another time, I got a call from a client in a panic after reading scary headlines about the stock market. He told me, “I think I should pull everything out and just sit in cash.” Then he admitted, “If I didn’t have you, I probably would have sold it all yesterday.” That’s the kind of emotional decision that can derail a retirement plan in a single afternoon. And it’s not unusual. Vanguard has shown that having an advisor who provides behavioral coaching can add up to 1.5% in annual returns just by keeping people from making emotional mistakes.

    Why Human Fiduciaries Still Matter

    That’s where the human side comes in. A fiduciary advisor isn’t just about running numbers. It’s about connecting those numbers to your life, your goals, your family, and making sure the pieces actually fit together. It’s about keeping you steady when emotions could cost you everything you’ve worked for. It’s about updating your strategy when the tax code changes or when life throws you a curveball you weren’t expecting.

    So, where does that leave us? My view is simple. Use ChatGPT to learn, to explore, to ask “what is this?” before we meet so you feel confident in the basics. But when it comes to making the actual calls, like whether you should do a Roth conversion now or spread it over three years, or how to sequence withdrawals between taxable, Roth, and IRA accounts year by year, that’s where human judgment really matters.

    For me, the sweet spot is combining the best of both worlds. I lean on technology to save time and cut through noise, but the strategy, the accountability, and the judgment, that’s the part you can’t automate. And I do it all for one flat, transparent fee. No product pushing, no commissions, no hidden percentages.

    So yes, ChatGPT can be an amazing tool to learn from. But it’s not your retirement planner. It’s not going to stop you from panicking in a down market, it’s not going to customize a plan to your life, and it’s not going to take responsibility if something goes wrong. That’s where having a fiduciary really makes all the difference.

    At the end of the day, the smartest move is this: use ChatGPT to get informed. Use a fiduciary to actually plan. And if you’re curious what that looks like in real life, well, that’s exactly why I offer a free Retirement Strategy Call.

    Important Disclosures

    The information provided herein was obtained from sources believed to be reliable and is believed to be accurate as of the time presented, but it is provided “as is” without any express or implied warranties of any kind.

    This material is intended for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. You should consult with your own qualified investment, tax, or legal advisor before making any decisions based on this material.

    Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Withdrawal strategies and tax outcomes will vary depending on individual circumstances, account types, tax brackets, and market conditions. No strategy can guarantee success or prevent losses.

  • Should I Consider an Annuity to Guarantee Retirement Income?

    Should I Consider an Annuity to Guarantee Retirement Income?

    Annuities can provide lifetime income but come with costs and tradeoffs. Learn the pros, cons, and alternatives from a flat-fee fiduciary advisor.

    Why So Many Retirees Ask About Annuities

    One of the most common questions I hear from people approaching retirement is “Should I buy an annuity to guarantee income?” And honestly, it’s a good question. Annuities are advertised everywhere, usually with phrases like “pension-like income” or “peace of mind for life.” On the surface, it sounds like the perfect solution, right? A steady paycheck for as long as you live. But like most things in financial planning, the reality is more complicated.

    Here’s the thing, annuities can actually do two things really well, though there’s always a cost. First, they can guarantee you lifetime income, which means you don’t have to worry about outliving your money no matter how long you live. Second, depending on the type of annuity, they can protect your principal, sometimes all of it, sometimes a portion of it, if the stock market takes a dive. So for someone who wants certainty, an annuity can feel like a safety net.

    The Hidden Costs and Trade-Offs

    But the catch is what you give up in exchange for that safety. Fees can run high, often 2% to 4% annually, and those costs quietly eat away at your wealth over time. Flexibility is limited too. Once you hand your money to the insurance company, it’s locked up, and getting it back isn’t easy.

    I’ve seen the dangers firsthand when annuities are mis-recommended. I once worked with a client who had 90% of her wealth tied up in a growth-oriented variable annuity. The problem was that it was in a non-retirement account. On paper, it looked good because the annuity doubled in value, but here’s the painful part. Every time she makes a withdrawal, she’s paying 100% ordinary income tax. That’s pushing her into a higher tax bracket, which means more of her money is going to the IRS than necessary. If instead she had simply invested in a regular taxable brokerage account, her growth could have been more cost-efficient, and withdrawals would likely have been taxed at long-term capital gains rates, which are much lower. That’s the kind of long-term tax trap that happens when an annuity is sold as a one-size-fits-all solution rather than planned in the context of someone’s entire financial picture. For a deeper dive into how to reduce these tax burdens in retirement, read my article Retirement Planning Without Taxes: Why It Costs So Much (and How to Fix It). It explains how poor withdrawal sequencing and lack of tax planning can quietly cost retirees six figures over time and how to fix it.

    When Annuities Might Make Sense

    So when do annuities make sense? If you want a guaranteed income floor beyond Social Security, they can provide it. If you’re extremely risk-averse and the thought of market volatility keeps you up at night, putting part of your nest egg into an annuity might give you peace of mind. And if you have more than enough assets, carving out a portion for guaranteed income probably won’t hurt your long-term growth.

    But they’re far from ideal in every case. If your Social Security and pension already cover your essential expenses, adding another annuity just ties up money you could use more flexibly. If you want liquidity, control, or the ability to pass money down efficiently, locking it away inside an annuity could create bigger problems down the road. And if someone is pitching it to you as an investment rather than what it actually is, an insurance product, be cautious.

    Alternatives to Buying an Annuity

    The good news is there are alternatives. You can build predictable retirement income without locking everything into an annuity. A bucket strategy can divide your money into short, mid, and long-term pools so you always know what’s safe to spend and what’s still growing. A bond ladder can stagger maturities to generate reliable cash flow year after year. Guardrail withdrawal strategies let you adjust spending based on how markets perform, which stretches your portfolio further. And careful, tax-smart withdrawals like sequencing money between taxable accounts, Roth IRAs, and traditional IRAs can help you keep more of your income after taxes. And if you’re wondering how much you can safely withdraw each year without running out of money, check out my related article Finding Your Safe Withdrawal Rate in Retirement. It explores how portfolio size, taxes, and market conditions all interact to determine a sustainable income plan and why the old “4% rule” doesn’t always fit today’s environment.

    The real problem isn’t annuities themselves. It’s how they’re sold. Too often they’re pushed because of commissions, not because they’re the right solution. That’s not fiduciary advice. As a flat-fee fiduciary, I don’t sell annuities and I don’t earn commissions if you buy one. My role is to evaluate them objectively, side by side with other income strategies, and ask whether they really solve your problem or if there’s a smarter, more tax-efficient way. Sometimes the answer is yes, they fit. But far more often, I find that lower-cost, more flexible approaches do the job better.

    At the end of the day, annuities can play a role in retirement income planning, but they are not a one-size-fits-all solution. The decision should always be made in the bigger context of taxes, estate planning, healthcare, and market risk.

    So should you consider an annuity? Maybe. But the more important question is whether an annuity solves your specific income challenge or whether it’s going to create a new problem later, like higher taxes or less flexibility. That clarity doesn’t come from a brochure or a sales pitch. It comes from a plan tailored to your life. And that’s exactly why I offer a Retirement Income Clarity Call so you can see whether an annuity really belongs in your plan or if there’s a smarter path forward.

    Schedule your free Retirement Tax Strategy Call today.

    Raman Singh, CFP®

    Your Personalized CFO

     

    Important Disclosures

    The information provided herein was obtained from sources believed to be reliable and is believed to be accurate as of the time presented, but it is provided “as is” without any express or implied warranties of any kind. This material is intended for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. You should consult with your own qualified investment, tax, or legal advisor before making any decisions based on this material. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Withdrawal strategies and tax outcomes will vary depending on individual circumstances, account types, tax brackets, and market conditions. No strategy can guarantee success or prevent losses. Investment advisory services are offered through Singh PWM, LLC, a registered investment adviser offering advisory services in the State of Arizona and other jurisdictions where registered or exempted. Singh PWM, LLC is a registered investment advisor offering advisory services in the State(s) of Arizona and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute.

  • Retirement Planning Without Taxes: Why It Costs So Much (and How to Fix It)

    Retirement Planning Without Taxes: Why It Costs So Much (and How to Fix It)

    Why Most Retirement Plans Miss the Mark

    Retirement planning is one of the biggest financial steps you’ll ever take. But here’s what I see far too often when I review new clients’ plans: the investments are there, but the tax strategy is missing. And that gap can be costly, sometimes in the high six figures over the course of a retirement.

    The truth is, retirees overpay in both fees and taxes, not because they picked the wrong investments, but because their advisor never built taxes into the plan. That’s like building a house without considering plumbing. It might look fine at first, but sooner or later, you’ll be dealing with a very expensive problem.

    Understanding the Different Types of Advisors

    Now, let’s clear up one thing that causes a lot of confusion. The financial industry loves titles like financial advisor, wealth manager, or retirement consultant. What really matters is how that person gets paid.

    Commission-based advisors make money selling products like annuities or insurance. Variable annuities, for example, often carry stacked ongoing fees that can easily amount to 2%–3% per year (M&E charges alone often around 1.25%) plus potential surrender charges, costs that directly reduce returns.

    If you’re considering an annuity or wondering whether it makes sense to guarantee part of your retirement income, I’ve broken down the pros, cons, and fiduciary perspective in my related article: Should I Consider an Annuity to Guarantee Retirement Income?. It explains when annuities can provide genuine peace of mind — and when the hidden costs can outweigh the benefits.

    Then you have percentage-based advisors who charge around 1% of assets under management, still the dominant model in the industry according to MarketWatch and Barron’s. On a $2 million portfolio, that’s $20,000 every year, regardless of market performance. Over twenty years, that adds up to more than half a million dollars, money that could have been compounding for you instead of covering someone else’s business model.

    Oh, you also have the Fee-Based advisors who are not only charging you % of assets under management but also selling you commissioned based products.

    But here’s the thing, Flat-fee fiduciary advisors work differently. They charge one transparent fee, with no commissions, no sliding percentages, and no hidden incentives. Their advice is tied to your best interests, not to sales contests or the size of your portfolio.

    At Singh PWM, my approach is simple: one flat annual fee that includes everything like investment management, tax planning, withdrawal strategies, and estate coordination. That alignment ensures every decision serves you, not your advisor’s compensation model.

    Why Tax Planning Matters More Than Ever

    So why does tax planning matter so much? Because taxes are often your single biggest controllable expense in retirement. And unfortunately, most plans don’t integrate them properly, and that’s where tons of money is left on the table.

    You see, smart tax planning isn’t just about filing returns or doing Roth conversions. It’s about structuring your income, withdrawals, and investments in a way that maximizes what you keep. And If you’re wondering how much you can safely withdraw each year without running out of money, check out my related article: Finding Your Safe Withdrawal Rate in Retirement. It explains how portfolio size, taxes, and market conditions interact to determine a sustainable income strategy—and why the old “4% rule” may no longer apply.

     

    Vanguard’s research on “Advisor’s Alpha” shows that the value of skilled financial advice, including tax-efficient withdrawal sequencing, can add roughly 3% in net returns over time. Even Morningstar and other research groups have echoed this finding, showing that a coordinated withdrawal plan across taxable, tax-deferred, and Roth accounts can meaningfully extend portfolio longevity and reduce lifetime taxes.

    Hidden Tax Traps in Retirement

    Take Social Security, for example. Many people don’t realize that up to 85% of Social Security benefits can become taxable depending on total income. Combine that with distributions from IRAs or capital gains, and suddenly your “safe” retirement income can trigger higher taxes and even push you into an unexpected Medicare bracket.

    Speaking of Medicare, those brackets, known as IRMAA or income-related monthly adjustment amounts, can be brutal if you’re not proactive. For 2025, the standard Part B premium is $185 per month, but higher-income retirees can face surcharges that add hundreds of dollars per month per person. I’ve seen cases where one poorly timed IRA withdrawal or Roth conversion triggered an IRMAA surcharge lasting an entire year.

    The SECURE 2.0 Act brought new opportunities and new traps. It raised the required minimum distribution (RMD) age to 73, giving some retirees extra time to perform Roth conversions in lower tax brackets before mandatory withdrawals begin. But it also reinforced the 10-year rule for inherited IRAs, which forces non-spouse beneficiaries to deplete their inherited retirement accounts within a decade. And without proper planning, that can create a steep, “bigly” tax bill on your family.

    And then there’s the 2026 tax cliff. A lot of the provisions of the 2017 Tax Cuts and Jobs Act are set to expire after December 31, 2025. That means higher marginal rates for many households and less room to maneuver on conversions and income strategies. Acting now can help lock in today’s lower brackets before they disappear.

    Real-Life Consequences of Delayed Tax Planning

    I’ve seen what happens when people wait too long to think about taxes. One couple had $3 million and waited until RMD age to consider Roth conversions and their window to convert in lower brackets got smaller and smaller. The result was paying hundreds of thousands more in taxes than they needed to pay over their lifetime. Another client drew from IRAs first instead of taxable accounts. That decision pushed their income just high enough to trigger a Medicare premium jump that cost them an extra $2,100 year. Mistakes like this don’t look dramatic at first, but over a decade or two, the costs compound. And once you’ve missed the opportunity, you can’t go back and undo it.

    This is why flat-fee fiduciary planning works so well. The model aligns retirement and tax strategy without conflicts of interest. At Singh PWMSingh PWM, my approach is simple: one flat annual fee, integrated planning that connects investments, taxes, estate, and cash flow. Every plan includes proactive tax strategies such as Roth conversions, withdrawal sequencing, RMD planning, and tax-loss harvesting, all built on a fiduciary standard that puts your interests first.

    The payoff is big. On a $2 million portfolio, the gap between a 1% AUM advisor and a flat-fee model can be roughly $440,000 over 20 years. Add in tax-smart moves like bracket management, avoiding IRMAA cliffs, and estate structuring, and you can easily save another six figures over your lifetime. Meanwhile, fund costs themselves have fallen dramatically. The asset-weighted average fund fee across U.S. mutual funds and ETFs is now about 0.34%, according to Morningstar, which means the biggest savings opportunities today often come from outside the portfolio through better fee and tax management.

    And timing really matters. If you’re in your 50s or 60s, every year you delay closing tax gaps, your window narrows. Once RMDs start, once you’ve filed for Social Security, or once your estate documents are finalized, your flexibility is gone. Acting now means you can convert at today’s tax rates before they sunset in 2026, manage Medicare surcharges proactively, and set up your legacy to pass down more efficiently under the SECURE Act rules.

    At the end of the day, retirement planning isn’t just about investments. It’s about after-tax income and the legacy you leave behind. Working with a flat-fee fiduciary who builds taxes into every step means you keep more of your money and reduce uncertainty about your future.

    Important Disclosures

    The information provided herein was obtained from sources believed to be reliable and is believed to be accurate as of the time presented, but it is provided “as is” without any express or implied warranties of any kind. This material is intended for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. You should consult with your own qualified investment, tax, or legal advisor before making any decisions based on this material. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Withdrawal strategies and tax outcomes will vary depending on individual circumstances, account types, tax brackets, and market conditions. No strategy can guarantee success or prevent losses. Investment advisory services are offered through Singh PWM, LLC, a registered investment adviser offering advisory services in the State of Arizona and other jurisdictions where registered or exempted. Singh PWM, LLC is a registered investment advisor offering advisory services in the State(s) of Arizona and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute.

  • Finding Your Safe Withdrawal Rate in Retirement

    Finding Your Safe Withdrawal Rate in Retirement

    Don’t risk running out of money. A flat-fee fiduciary explains how to set a safe withdrawal rate based on your portfolio, taxes, and retirement lifestyle.

    What Is an Appropriate Safe Withdrawal Rate for My Retirement?

    One of the biggest fears retirees face is running out of money. That’s why financial planners often talk about a “safe withdrawal rate.” This is the percentage of your portfolio you can withdraw each year in retirement without running out of funds too soon. But here’s the catch: there is no one-size-fits-all number. The right safe withdrawal rate depends on your portfolio size, lifespan, tax strategy, and spending needs. Let’s break it down.

    The Traditional 4% Rule

    You’ve probably heard of the 4% rule. This old guideline suggests you can withdraw 4% of your portfolio each year, adjusted for inflation, and your money should last 30 years. For example: A $2,000,000 portfolio, when applying a 4% rate, generates $80,000 per year. While this is a good starting point, it has limitations:

    • It assumes a fixed 30-year retirement, but what if you live longer?
    • It doesn’t factor in taxes or Medicare surcharges.
    • It assumes market returns that may not reflect today’s reality.

    Why Your Safe Withdrawal Rate Might Be Lower or Higher

    That number may sound straightforward, but the reality is much more nuanced. Several factors determine whether that $80,000 will truly sustain your lifestyle for decades:

    • Your lifespan and health – If longevity runs in your family, you may need to stretch your portfolio across 30 to 35+ years of retirement. That means your withdrawal rate has to account for the possibility of living longer than average.
    • Market conditions – Retiring at the start of a bear market can significantly stress-test your portfolio. Taking $80,000 during down years locks in losses, which can shorten the life of your nest egg unless your plan is flexible.
    • Tax efficiency – Not all $80,000 is created equal. If it comes primarily from pre-tax accounts, you could owe tens of thousands in taxes. Poor sequencing of withdrawals from taxable, tax-deferred, and Roth accounts can cost six figures over the course of retirement.
    • Flexibility in spending – Retirees who can adjust spending in response to market performance by cutting back in bad years and spending more in good years can often afford a higher overall withdrawal rate than someone with rigid expenses.
    • Guaranteed income sources – Pensions, annuities, and Social Security reduce the amount you actually need from your portfolio. For example, if those sources cover $40,000 of annual expenses, then only $40,000 would need to come from your investments, effectively lowering your withdrawal pressure.

    Why Tax Planning Changes the Math

    When most people talk about safe withdrawal rates, they tend to leave out one critical factor: taxes. That’s a costly oversight. Your gross withdrawal amount is not the same as the money that actually lands in your pocket after the IRS takes its share. Even more importantly, the order in which you draw from different account types – taxable, tax-deferred, and Roth can dramatically affect how long your money lasts.

    If you’d like a deeper look at how tax-efficient retirement planning strategies can help you keep more of your income, read my article: Retirement Planning Without Taxes: Why It Costs So Much (and How to Fix It). It explains how poor tax coordination can quietly drain six figures from your nest egg—and what proactive steps you can take to prevent that.

    Based on research, the way you structure withdrawals in retirement can significantly change the amount of after-tax income your portfolio produces.

    • Without tax planning: A $2 million portfolio might support withdrawals of about 3.5% per year ($70,000 gross). But after federal and state taxes, your net spendable income could be far lower.
    • With a tax-optimized strategy: Studies have shown that coordinating withdrawals across taxable, tax-deferred, and Roth accounts, along with strategies such as Roth conversions and tax-loss harvesting, can materially improve outcomes. In fact, the Journal of Financial Planning published research showing that tax-efficient distribution strategies can increase sustainable withdrawal rates by 0.5% to 1.0% or more, depending on account mix and tax brackets. On a $2 million portfolio, that translates to supporting closer to 4.5% withdrawals, or about $90,000 of income.

    That is potentially an extra $20,000 per year in available income achieved not by chasing higher investment returns but simply by using smarter, tax-efficient withdrawal sequencing.

    Sources:

    • “Tax-Efficient Retirement Withdrawal Planning Using a Comprehensive Tax Model,” Journal of Financial Planning (2012), Financial Planning Association.
    • TIAA Institute, “Withdrawal Strategies: A Tax-Smart Perspective” (2017).
    • Schwab Center for Financial Research, “Why Withdrawal Order Matters” (2020).

    A Smarter Way to Think About Withdrawals

    The traditional “safe withdrawal rate” often gets oversimplified into a single, fixed percentage like 4%. But retirement isn’t static. Your income needs, tax situation, and lifestyle evolve over time. Instead of clinging to one “magic” number, a smarter approach is to view withdrawals as a dynamic strategy that adapts with each stage of life:

    • Early Retirement (60s): This is when most retirees are healthiest, most active, and likely to spend more on travel, hobbies, or family experiences. Withdrawals may be higher during this period. It’s also a prime window for Roth conversions, which can raise taxable income temporarily but lower future taxes.
    • Mid Retirement (70s): Once Required Minimum Distributions (RMDs) begin, taxable income often increases, sometimes significantly. Coordinating withdrawals across taxable, tax-deferred, and Roth accounts becomes essential to avoid pushing yourself into higher tax brackets.
    • Late Retirement (80s+): Spending often slows down as lifestyles simplify, though healthcare and long-term care costs may rise. Withdrawal needs may be smaller overall, but the focus shifts to protecting against longevity risk and funding medical expenses.

    By adjusting your withdrawal rate as life unfolds, you not only create flexibility but also reduce the risk of outliving your savings. For example, Imagine a couple retiring at age 65 with a $2.5 million portfolio:

    • Years 65–70: They spend 5% annually to enjoy their most active years, while also converting part of their IRA to a Roth, accepting higher taxes now to lower future tax burden.
    • Years 70–80: They scale back to 3.5% withdrawals, supplementing with Roth assets when needed to smooth out taxes and maintain flexibility.
    • Years 80+: Their spending naturally declines, so withdrawals drop to 3%. The reduced withdrawals, combined with earlier tax planning, help preserve the portfolio through their 90s and beyond.

    The end result? They end up maximizing enjoyment in early retirement, reduce taxes in mid-retirement, and extend the longevity of their nest egg without being locked into one rigid number.

    The Flat-Fee Fiduciary Advantage

    Most traditional advisors charge around 1% of assets under management (AUM). That fee structure often comes with a narrow focus: managing investments. What gets overlooked? Withdrawal strategy and tax efficiency! These two factors that can be just as important as your portfolio’s returns in determining whether your money lasts.

    As a flat-fee fiduciary, Singh PWM takes a different approach. Instead of charging more as your portfolio grows, I provide one transparent annual fee that covers the full scope of planning:

    • Strategic investment management
    • Retirement withdrawal planning
    • Tax-efficient income strategies

    When clients partner with Singh PWM, the result is a coordinated plan designed around your lifespan, lifestyle, and spending goals, not big firm incentives.

    With the right withdrawal sequencing and tax planning, you keep more of what you’ve worked hard to build, while enjoying the confidence that your retirement income strategy is aligned with your future.

    The Bottom Line

    There isn’t a single “safe withdrawal rate” that works for everyone. The right number depends on your portfolio size, tax strategy, health and longevity, and lifestyle goals. The old 4% rule may serve as a starting point, but the smartest retirees know it’s not a rule, it’s a guideline. The real advantage comes from adjusting withdrawals dynamically and weaving in tax optimization.

    When done right, this approach doesn’t just stretch your portfolio further and it can add years of financial security to your retirement and keep six figures or more from being unnecessarily lost to the IRS.

    If you are ready to see how a tax-optimized withdrawal strategy could work for you? Schedule your free Retirement Tax Strategy Call today.

    Raman Singh, CFP®

    Your Personalized CFO

     

    Important Disclosures

    The information provided herein was obtained from sources believed to be reliable and is believed to be accurate as of the time presented, but it is provided “as is” without any express or implied warranties of any kind. This material is intended for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. You should consult with your own qualified investment, tax, or legal advisor before making any decisions based on this material. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Withdrawal strategies and tax outcomes will vary depending on individual circumstances, account types, tax brackets, and market conditions. No strategy can guarantee success or prevent losses. Investment advisory services are offered through Singh PWM, LLC, a registered investment adviser offering advisory services in the State of Arizona and other jurisdictions where registered or exempted. Singh PWM, LLC is a registered investment advisor offering advisory services in the State(s) of Arizona and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute.