Cody Lachner, CFP, EA - Next Adventure Financial

10/30/2026

Many retirees like the idea of living off dividends.

It’s understandable. Selling investments can feel like spending down your savings, whereas dividends can feel like regular income.

Dividends can certainly help fund retirement. But they are only one part of what an investment earns.

Growth matters too, and selling a portion of an investment that has increased in value is a useful way of building a retirement paycheck.

That said, dividends can still be useful in your portfolio. The concern is when the desire to live only on dividends begins to dictate what you own.

Focusing too heavily on dividends can push a portfolio toward certain companies or sectors, reduce diversification, or create taxable income you may not need. A higher yield also doesn’t necessarily make something a better investment.

A thoughtful income plan can use dividends as they arrive and sell investments when extra cash is needed. What matters most is how those choices work together to support your spending while managing taxes, risk, and the long-term health of the portfolio.

10/15/2026

Once you’re retired and taking money from your portfolio, every withdrawal creates another decision:

Which investments should you sell?

The answer is usually connected to something your portfolio already needs.

Suppose your target allocation is 60% stocks and 40% bonds. After a strong period for stocks, the portfolio has drifted to 65% stocks and 35% bonds.

At the same time, you need to refill the cash reserve supporting your monthly retirement income.

Instead of automatically selling a little of everything, you might trim the stock side that has grown above its target.

That sale can accomplish two things:

• Raise cash for upcoming spending
• Bring the portfolio closer to its intended investment mix

Stocks won’t always be the right investment to sell. Sometimes bonds or another part of the portfolio will be above target instead.

Taxes also matter. Selling an appreciated investment in a taxable account could create a capital gain, and the investment you want to reduce may not be held in the account you want to withdraw from.

That’s why it can help to look at the portfolio across the entire household.

Before selling something simply because you need cash, ask:

Is there already part of the portfolio that should be reduced anyway?

Sometimes the best investment to sell is simply the one you already have too much of.

10/02/2026

Your retirement paycheck should feel pretty boring.

A predictable amount shows up in your checking account each month, and you know where the money is coming from.

But creating that paycheck takes some planning behind the scenes.

Suppose you expect to spend $8,000 per month in retirement. If Social Security and a pension provide $4,500, the remaining $3,500 will need to come from your portfolio.

From there, several decisions need to be made:

• How much should be kept in cash for upcoming withdrawals?
• Which accounts should provide the income?
• How should taxes be withheld?
• Which investments should eventually be sold to refill the cash reserve?

These decisions can change from year to year.

One year, it may make sense to draw more heavily from taxable investments. In another, an IRA withdrawal may help use a lower tax bracket before RMDs begin. Roth money can also be useful when you want to avoid additional income and taxes.

So, over time you may see the same monthly deposit, while the investment and tax decisions continue to happen behind the scenes.

Ideally, this process is mapped out before the final paycheck arrives.

09/16/2026

What happens if you reach October or November and realize you haven’t paid enough in taxes?

You could make an estimated tax payment. But for some retirees, withholding from an IRA distribution may be another option.

For example, you might take a $10,000 IRA distribution and have $9,900 withheld for federal taxes. Only $100 would reach your bank account, while the remainder would go toward your tax bill.

Here’s what makes this strategy useful:

Federal income tax withholding is generally treated as though it was paid evenly throughout the year when calculating federal underpayment penalties, even if the withholding occurred late in the year.

That can be different from making one large quarterly estimated payment in November or December.

This doesn’t automatically eliminate a penalty in every situation, and the IRA distribution itself may create additional taxable income. But when a year-end tax projection shows that you’re behind, IRA withholding can be a useful tool for addressing the shortfall.

The key is reviewing the numbers while there’s still time to do something about them.

I explain more in this week's newsletter:

I'm the writer of the Retirement Essentials newsletter & founder of Next Adventure Financial - a retirement planning firm focused on helping folks retire with confidence and lower their tax bills.

09/10/2026

Staying within the same federal tax bracket doesn’t necessarily mean additional income has no other costs.

Suppose you’re considering a larger IRA withdrawal or Roth conversion. You may look at your tax bracket and decide there’s room to recognize more income without moving into the next bracket.

That’s useful information, but it may not tell the whole story.

Depending on your situation, that additional income could also affect:

• Medicare premiums two years later
• How much of your Social Security is taxable
• Your tax rate on long-term capital gains
• ACA health insurance subsidies before age 65

Not all of these will apply to everyone. And triggering an additional cost doesn’t automatically make the withdrawal or conversion a bad decision.

Sometimes paying more today may still improve your long-term picture. The important thing is understanding the full tradeoff before moving forward.

Before intentionally increasing your taxable income, it can be helpful to ask one more question:

"What else could this income affect?"

09/02/2026

Cash can feel comfortable as retirement approaches.

It doesn’t fluctuate like stocks. It’s available when you need it. And it can help keep you from selling investments during a market downturn.

Holding cash isn’t necessarily a problem. But, it can become one when money intended to provide short-term safety ends up sitting there indefinitely.

If too much of your portfolio stays in cash for too long, your risks are simply changing.

You may experience less short-term volatility, but take on more risk from inflation which can become a real issue over a 20- or 30-year retirement.

A good cash strategy should answer three questions:

• What will you need from your portfolio over the next 1–2 years?
• Are there any bigger purchases or expenses coming up?
• When do you expect to need the rest of the portfolio?

There are plenty of understandable reasons to hold more cash in retirement. The important thing is making sure the amount still fits what you need that money to do, and how it works with the rest of your retirement plan.

08/26/2026

Once your paycheck stops, your investments become part of your new paycheck.

But where that money comes from matters.

Suppose you need an additional $30,000 for spending this year:

• A traditional IRA withdrawal is generally taxable as ordinary income.
• A qualified Roth IRA withdrawal is generally tax-free.
• In a taxable investment account, only the gain on what you sell may be taxable.

Same $30,000 of spending. Very different potential impact on your tax return.

This is why I’m hesitant about fixed rules like “always spend taxable accounts first” or “never touch the Roth.”

Sometimes the answer might be to use more than one account. Depending on specific circumstances, someone may choose to combining cash or taxable investments with an intentional IRA withdrawal to fill a lower tax bracket. In another year, using Roth money might help avoid crossing an important Medicare or tax threshold.

The goal isn’t simply to pay the least tax this year. It’s to coordinate your income, taxes, future RMDs, Medicare premiums, and investments across retirement.

08/10/2026

Inheriting an IRA from a parent can create a surprisingly complicated tax decision.

For many adult children, the account typically must be fully withdrawn within 10 years. But that doesn’t necessarily mean taking 1/10th out each year, or waiting until year 10.

The timing of those withdrawals can affect:

• Your federal and state taxes
• Medicare premiums
• How much of your Social Security is taxable
• ACA health insurance subsidies before age 65
• Your ability to complete Roth conversions at favorable tax rates

And depending on when your parent passed away, annual Required Minimum Distributions may also apply during that 10-year window.

As an advisor, the bigger question I want to answer is:

**When should the income from the inherited IRA show up on your tax return?**

I put together a new article covering the inherited IRA rules, common mistakes, and several ways to think about withdrawals over the 10-year period:

https://nextadventurefinancial.com/blog/inheriting-an-ira-from-a-parent/

07/27/2026

Social Security is one of the most important income sources in retirement.

The recent Social Security trustees report projected that the retirement trust fund could be depleted in late 2032 (a few months sooner than expected).

That doesn’t mean Social Security benefits will stop, but it could mean benefits are reduced from current levels if Congress doesn't make changes before then. There are numerous things they could adjust to increase the viability of the fund.

For retirees and those getting close to retirement, this is not a reason to panic or make a rushed claiming decision. Social Security is still expected to provide income. But it is a good reminder that retirement plans should not rely on one source of income alone.

A few things worth considering as you plan:

• How much of your retirement spending will Social Security cover?
• Would your plan still work if future benefits were lower than expected?
• When should you claim Social Security based on your income needs, health, taxes, and spouse’s benefits?
• What other income sources can help support your lifestyle, such as investments, pensions, or part-time work?

Social Security claiming is not just about choosing an age. It should fit into your broader retirement income, tax, and investment plan.

03/04/2026

Health care is one of the most talked-about expenses in retirement.

Fidelity Investments released their annual health care cost estimate last summer and projects that the average 65 year old retiree will have ~$173,000 in health care expenses during their retirement.

Of course, these expenses don't need to be paid for with a lump-sum at retirement. Rather, they quickly add up over time from things like Medicare premiums, prescription drugs, and other out-of-pocket medical care.

If you're nearing retirement, you'll want to include these expenses within your annual retirement spending plan to make sure your income sources and investments can comfortably support them year after year.

Keep in mind, there are other factors that can increase your medical costs over time:

• Retiring before Medicare at age 65
• Higher income that triggers Medicare IRMAA surcharges
• Chronic health conditions or higher prescription costs
• The potential need for long-term care later in life

Long-term care is a big unknown for most. Medicare generally doesn’t cover extended care needs, and services like in-home care, assisted living, or nursing facilities can be very expensive.

That’s why it’s super important to think about how these things fit into your overall retirement plan, not just your medical premiums. These are all things that can be planned for both before & during retirement.