A retirement income map is a simple way to organize a complex decision. Instead of looking at each account separately, the map shows where income will come from, when it will begin, how it may be taxed, and what role each source plays. Social Security may be the base. A 401(k) or IRA may provide flexible withdrawals. Roth accounts may offer tax flexibility. Savings may cover emergencies or short-term needs.
The map does not have to be complicated. Start by listing essential expenses, desired lifestyle expenses, dependable income, flexible account withdrawals, tax considerations, and major future events such as RMDs. Then ask whether the pieces work together or compete with each other.
Many retirees have the ingredients for a strong retirement income plan. Still, they have not yet arranged those ingredients into a strategy. A map helps reveal gaps, timing issues, tax concerns, and opportunities to make income more predictable.
If you want to build the bigger picture and make more confident retirement income decisions, read the full article, “Coordinating Retirement Income: 401(k)s, IRAs, and Social Security.”