How to Plan for Retirement

Advanced Tax Planning for Retirement

Retirement tax planning isn’t about finding a single “tax-efficient” move; it’s about managing a series of decisions where each choice affects the next. Withdrawals, conversions, Social Security timing, charitable strategies, and estate planning are all interconnected, and when they’re handled in isolation, the long-term cost can be higher than expected.

At EP Wealth, we approach retirement tax planning the way a CFP^® practitioner does: by focusing on sequencing, timing, and trade-offs over decades, not just minimizing this year’s tax bill. We work closely with your CPA and, when appropriate, our in-house tax team to model scenarios, pressure-test assumptions, and evaluate how today’s decisions shape future flexibility and long-term tax outcomes.

Here are a few planning areas we commonly address with clients:

• Coordinated withdrawals – Evaluating how and when to draw from Roth, traditional, and taxable accounts to help manage taxable income throughout retirement.

• Required minimum distributions (RMDs) – Planning ahead for RMDs at age 73 and beyond to support liquidity needs and reduce the potential for unexpected tax burdens.
• Roth conversion strategies – Assessing when conversions may align with your income profile, charitable giving goals, or long-term wealth transfer plans.
  
  • Roth conversions may offer meaningful long-term tax advantages, but only when evaluated in the context of your full financial picture.
  • For example, aggressive conversions may require pulling additional funds from investment accounts to pay the tax, which can increase sequencing risk early in retirement. When retirement income is expected to remain relatively low, conversions may be unnecessary if future withdrawals already fall into lower tax brackets.
  • At EP Wealth, we present multiple scenarios and quantify the tax and cash flow impact of each to help clients make informed decisions about whether a conversion fits their plan.

• Charitable planning and gifting strategies – Including qualified charitable distributions (QCDs), donor-advised funds (DAFs), or annual gifting as part of a tax-aware retirement and estate plan.
  • For many families, charitable giving is about more than tax deductions; it’s about impact, values, and legacy. The reality is that how and when you give can matter just as much as how much. Tools like QCDs and DAFs can be powerful, but their true value comes from aligning them with income planning, retirement cash flow, and long-term goals, especially as tax laws continue to evolve.
  • We walk clients through multiple scenarios—comparing annual giving versus DAF bunching, using QCDs alongside required minimum distributions, and timing deductions around high-income years—so giving decisions are intentional, tax-aware, and aligned with broader financial goals.

The right tax approach depends on the details of each client's financial picture. Our team works with you to evaluate how these strategies may fit within your broader retirement and financial goals. For definitions of common retirement planning terms, visit our retirement planning glossary. 

FINANCIAL INDEPENDENCE AND RETIRING EARLY (FIRE)

For some clients, retirement isn't tied to a traditional age milestone. The Financial Independence, Retire Early (FIRE) movement reflects a goal of accumulating enough assets to step away from full-time work well before age 65—sometimes decades earlier. Whether the goal is to retire in your 40s, 50s, or simply to reach a point where work becomes optional, pursuing FIRE involves a different set of planning considerations than a conventional retirement timeline.

Common areas we help clients think through when pursuing FIRE include:

• Bridging the gap to retirement accounts – Building taxable investments and other accessible assets that can fund living expenses before age 59½, when penalty-free withdrawals from most retirement accounts begin.
• Healthcare coverage before Medicare – Evaluating options like ACA marketplace plans, COBRA, or a spouse's employer coverage to bridge the years until Medicare eligibility at age 65.
• Sustainable withdrawal rates over a longer horizon – Adjusting income strategies to account for a retirement that may last 40, 50, or even 60 years rather than a more conventional retirement period of 25 to 30 years.
• Sequence-of-returns risk – Stress-testing your plan against the possibility of a market downturn in the early years of retirement, which can have an outsized impact when withdrawals are pulled from a portfolio that has had less time to recover and compound.
• Adjusting if circumstances change – Building flexibility into the plan in case you decide to return to work, take on consulting opportunities, or shift goals along the way.

FIRE is a personal decision, and the right approach depends on your assets, your income, your spending priorities, and your comfort with the trade-offs involved. Our team can help you evaluate whether early retirement is realistic for your situation and develop a plan designed to support your goals while maintaining long-term financial flexibility.

Relocation and State-Specific Retirement Planning

Relocating in retirement can offer new opportunities—but it can also introduce new financial considerations. At EP Wealth, we help clients assess how a change in residency may affect their income strategy, tax exposure, estate planning, and overall retirement outlook.

Whether you're moving for lifestyle reasons, to be closer to family, or to take advantage of a state tax situation, we incorporate relocation planning as part of our broader financial planning services.

Our team supports clients in evaluating:

• State income tax impact – Some states have no income tax, while others treat retirement income differently. We help assess how your income sources—from Social Security to investment withdrawals—may be taxed in different states.
• Dual-state residency dynamics – If you plan to split time between locations, we help clarify the financial and legal implications of establishing and maintaining residency.
• Real estate and ownership structure – Owning property in multiple states can introduce estate planning and probate complexities. We work with clients to coordinate these decisions with their long-term goals.
• Estate and inheritance tax exposure – State-level estate and inheritance tax laws vary widely. Relocation can play a role in how your assets may be treated now and in the future.

At EP Wealth, our goal is to help you align your new location with your retirement priorities—before, during, and after the transition.

Healthcare Planning in Retirement

Healthcare costs can become one of the most significant—and often underestimated—expenses in retirement. From Medicare decisions to long-term care planning, healthcare costs can significantly shape your financial outlook. At EP Wealth, we take a proactive approach by integrating health-related expenses into your broader financial strategy—helping you prepare for both anticipated and unexpected needs as your plan evolves.

Through our retirement planning services, we help clients evaluate:

• Medicare timing and coverage options – We guide clients through enrollment windows, coverage choices, and potential out-of-pocket expenses to support more informed Medicare decisions.
• Long-term care planning – We help assess funding strategies for long-term care, including self-funding, long-term care insurance, or hybrid solutions, as part of your retirement income plan.
• Health Savings Account (HSA) integration – For clients with HSA balances, we evaluate how these accounts may support qualified medical expenses in retirement and how they fit into broader tax and withdrawal strategies.
• Medical cost forecasting – We account for projected healthcare spending—including premiums, supplemental coverage, and personal health considerations—as part of long-term cash flow and expense planning.
• Coverage transitions – For those moving from employer-sponsored coverage to Medicare or private insurance, we help coordinate the financial aspects of that transition.

Our team helps ensure that healthcare costs aren’t an afterthought, but an integrated part of how we deliver retirement planning and wealth management services that reflect your full financial picture.

Legacy Planning and Multi-Generational Retirement Strategies

Retirement planning isn’t just about one generation—it’s about setting a course that reflects your goals today while also supporting those who may benefit from your planning tomorrow.

For clients with $1M+ in assets, long-term retirement strategies often include provisions for heirs, charitable organizations, or trusts that reflect specific wishes.

Our retirement and legacy planning services may include:

• Aligning your plan with legacy goals – Incorporating philanthropy, inheritance planning, or support for loved ones into your retirement income strategy.
• Coordinating gifting strategies – Evaluating how annual gifts or trust funding may align with lifetime income needs.
• Preparing heirs – Introducing family members to your advisory team and encouraging financial education for future stewards of your wealth.
• Structuring distributions – Using trusts or structured withdrawal plans to support tax-aware transfers to beneficiaries.

Legacy planning is a personal process. We work closely with clients to help structure retirement strategies that support both near-term needs and long-term impact.

Milestones That May Signal It’s Time to Revisit Your Plan

Even the most well-built retirement plan needs occasional review. Life changes, economic conditions, and new regulations can shift the context around your goals and income needs. If any of the following apply to you, it may be time to take another look.

Common reasons to reassess your retirement plan:

• Approaching age-based planning windows – Such as 59½ (penalty-free withdrawals), 65 (Medicare eligibility), or 73 (RMDs).
• Career changes or retirement – A shift in income or employment status often requires updating income, savings, and distribution strategies.
• Life transitions – Marriage, divorce, downsizing, or relocating can all affect spending, healthcare, and tax planning needs.
• Moving from accumulation to distribution – The transition from saving for retirement to using those savings is a major milestone that may require adjustments in strategy.

Whether your goals have changed—or your circumstances have—it’s helpful to work with a team that can support coordinated updates across your full financial life.

OUR HOLISTIC APPROACH TO WEALTH PLANNING

How EP Wealth Helps You Build the Future You Envision

With EP Wealth Advisors, you get much more than investment management. You get a personalized financial plan that clarifies your goals and guides your financial decisions as you work toward the retirement you envision.

Your customized financial roadmap includes a financial health assessment to understand where you are today and identify opportunities, risks, and strategies that may help you reach your goals. That assessment includes an investment portfolio analysis and tax planning services as part of a holistic, coordinated approach. We can coordinate with your CPA on tax planning and help evaluate whether your insurance coverage aligns with your current needs, family circumstances, and long-term objectives.

Life changes, and your retirement plan needs to stay flexible. We meet with you regularly to review your progress, revisit assumptions, and make adjustments as your goals, circumstances, and the financial landscape evolve.

* The free financial health assessment referenced here is limited to, and can only be provided to, individuals with $500,000 or more in investable assets. The health assessment is limited to an initial call or meeting with an Investment Adviser Representative (IAR) of EP Wealth to discuss and assess your current financial situation and a subsequent follow-up meeting or call to share our thoughts. No additional services will be provided. EP Wealth Advisors’ obligation is limited to extending an offer to provide these services. It is the responsibility of the individual requesting the free health assessment to accept the service offered. No guarantee or warranty can be made that any of the information discussed or relayed in these meetings will be suitable or relevant. The free financial health assessment is limited in nature and is not intended to be regarded as an attempt to provide comprehensive financial advice.

FINANCIAL ADVISORS FOR RETIREMENT PLANNING

Your retirement deserves more than a generic strategy. Talk to an EP Wealth Advisor today about a personalized plan built around your goals.