Jon Owens, CFP

Jon Owens, CFP Third-generation financial planner and CERTIFIED FINANCIAL PLANNER™ Professional passionate about helping families & business owners build generational wealth.

For full disclosure please see our website at www.bpgnetwork.com

06/04/2026

https://www.jonowenscfp.com/ // Tax efficient withdrawal strategies aim to reduce lifetime taxes and make savings last by choosing the right order and timing for tapping different account types. A common approach is to spend from taxable accounts first while realizing capital gains within favorable brackets, then draw from pretax accounts to fill lower tax brackets, and preserve Roth assets for later years when their tax free growth is most valuable. Coordinating withdrawals with the start of Social Security and the schedule of required minimum distributions helps smooth income and avoid spikes in tax rates. Practical tactics include using partial Roth conversions in lower income years, harvesting gains or losses in taxable accounts to manage brackets, and structuring withdrawals to stay below thresholds that raise Medicare premiums or trigger net investment income tax. Building a yearly withdrawal plan that integrates pension income, dividends, and interest while monitoring bracket creep and credits can improve after tax outcomes. Revisit the plan each year as markets, spending needs, and tax laws change, and consider consulting a fiduciary advisor or tax professional for personalized guidance.

06/04/2026

https://www.jonowenscfp.com/ // Retirement taxes change because wages usually fall while income from Social Security pensions investments and account withdrawals becomes more important. Social Security benefits may be taxable from zero to as high as 85 percent depending on provisional income which includes half of your benefits plus other income including tax exempt interest. Required minimum distributions from traditional IRAs and workplace plans generally start at age 73 and can push you into a higher bracket. Capital gains and qualified dividends may be taxed at zero fifteen or twenty percent depending on taxable income while Roth IRA withdrawals that meet the rules are tax free and Roth IRAs have no required minimum distributions for the owner. Retirees may qualify for a larger standard deduction after age 65 and can use strategies to control taxable income such as delaying Social Security starting withdrawals from taxable and tax deferred accounts in a tax efficient order converting to Roth in low income years and making qualified charitable distributions from an IRA starting at age 70 and a half. Be mindful of Medicare premium surcharges which are based on modified adjusted gross income state tax differences withholding and estimated tax payments and the safe harbor rules to avoid penalties. A written plan that coordinates withdrawals spending and taxes can help you keep more of your retirement income.

06/03/2026

https://www.jonowenscfp.com/ // Paragraph one A sustainable withdrawal rate is the share of a retirement portfolio you can take out each year adjusted for inflation while keeping a high likelihood that your savings endure for your intended time horizon. Many reference the four percent rule from historical research as a starting point but the right rate depends on your asset allocation market conditions expected returns inflation assumptions and the risk of poor early returns known as sequence risk. Paragraph two To choose and maintain a sustainable rate consider longevity expectations taxes fees and how flexible your spending can be. You can improve durability by diversifying keeping a sensible mix of stocks and bonds rebalancing periodically reducing withdrawals after weak markets coordinating pension or Social Security income and reviewing the plan regularly so withdrawal levels stay aligned with progress and goals.

06/03/2026

https://www.jonowenscfp.com/ // Sequence of returns risk is the risk that the order of investment gains and losses changes your ending wealth even when the long run average return is the same. It matters most when you are making withdrawals such as in retirement because early losses reduce the portfolio and leave fewer dollars invested for later recoveries. You can manage this risk by keeping a prudent withdrawal rate using dynamic rules that cut spending after bad years holding a cash or short term bond buffer to fund near term needs maintaining diversification and rebalancing and gradually reducing equity exposure as goals approach. Other tools include delaying retirement or claiming benefits working part time buying lifetime income through annuities and coordinating taxes to improve after tax stability.

06/02/2026

https://www.jonowenscfp.com/ // Your savings should be designed to last at least 30 years and ideally to age 95 or beyond, since longevity risk is rising. The right horizon depends on your retirement age, health and family history, spending needs, investment returns, inflation, and reliable income sources such as Social Security and pensions. A common starting point is the four percent rule withdrawing about four percent of the initial portfolio in the first year and adjusting thereafter for inflation, but this is only a guide and works best with flexible spending and a diversified portfolio of stocks bonds and cash. Holding one to three years of expenses in cash can help you ride out market downturns without selling investments at a loss. Rebalance periodically and keep costs low to improve sustainability. Strengthen durability by coordinating withdrawals with Social Security and pensions, trimming spending after weak markets and allowing modest increases after strong years. Consider partial annuitization to cover essential expenses so markets only need to fund discretionary goals. Manage taxes by drawing from different account types in a tax aware order, convert strategically when appropriate, and plan for healthcare and long term care costs. Review assumptions annually, use conservative estimates for returns inflation and longevity, and adjust the plan as life changes so your savings can adapt and last throughout retirement.

06/02/2026

https://www.jonowenscfp.com/ // Retiring before your finances are ready exposes you to longevity risk, a savings shortfall that must cover more years of spending, and the danger of withdrawing during market downturns which can permanently reduce your portfolio. Inflation has more time to erode purchasing power, and claiming Social Security early locks in lower benefits and forgoes delayed credits. You may face a gap in health insurance before Medicare and higher premiums and out of pocket costs, lose employer benefits and matching contributions, and incur taxes or penalties if you access certain retirement accounts too soon. Poor tax sequencing can also push you into higher brackets and reduce the lifespan of your nest egg. Nonfinancial risks matter too. Leaving work abruptly can reduce purpose structure and social connection, leading to boredom or declines in mental and physical health if you do not build a satisfying routine. Skills can atrophy and age bias can make reentering the workforce difficult and lower paying if you need to return. To reduce these risks consider part time or consulting work to create a health care and income bridge, delay Social Security when possible, keep a larger cash buffer to fund several years of expenses during bear markets, manage withdrawals flexibly rather than using a fixed rate, and regularly review spending and plan assumptions to stay on track.

06/01/2026

https://www.jonowenscfp.com/ // Retiring earlier than planned compresses your savings window reduces the power of compounding and often forces you to claim benefits sooner which can permanently lower Social Security or pension income. It also creates a longer retirement to fund while shifting you from saving to spending sooner increasing sequence of returns risk and the chance of depleting assets if markets fall early. Health insurance can be costly before Medicare so premiums deductibles and out of pocket costs may rise just as paychecks stop. Mitigate the impact by building a realistic lean budget prioritizing essential expenses and pausing big discretionary goals. Bridge gaps with cash reserves part time income or a phased retirement consider delaying Social Security if possible tighten withdrawal rates and review tax strategy including Roth conversions and penalty free access to retirement accounts. Rebalance toward a diversified mix that maintains near term liquidity and long term growth and revisit your plan regularly to adapt to market conditions inflation and health needs.

06/01/2026

https://www.jonowenscfp.com/ // Required Minimum Distributions apply to traditional rollover SEP and SIMPLE IRAs and most employer plans such as 401k and 403b. Roth IRAs have no lifetime RMDs for the owner and Roth 401k RMDs were removed starting in 2024. You generally start at age 73 and must take the first withdrawal by April 1 of the following year with every later year by December 31. If you delay the first one you may owe two in the same calendar year. Some workers who are not five percent owners can delay employer plan RMDs until retirement. The amount is calculated each year by dividing the prior year end balance by an IRS life expectancy factor using the Uniform Lifetime Table or the joint table if your spouse is more than ten years younger and is the sole beneficiary. RMDs are taxed as ordinary income and can affect tax brackets and Medicare premiums so consider withholding or quarterly payments. IRA RMDs can be aggregated and taken from any of your IRAs but employer plan RMDs are generally taken separately with an exception that multiple 403b accounts can be combined. Inherited accounts follow different rules including a ten year rule for many beneficiaries and lifetime payouts for eligible designated beneficiaries. The penalty for a shortfall is an excise tax equal to twenty five percent which can be reduced to ten percent if corrected in a timely manner by filing the required form. A qualified charitable distribution from an IRA starting at age 70 and a half can satisfy all or part of that years RMD without increasing adjusted gross income.

05/31/2026

https://www.jonowenscfp.com/ // Core retirement income often includes Social Security benefits and any employer pension you may have earned. You can supplement these with scheduled withdrawals from 401k 403b and IRA accounts along with dividends interest and capital gains from a diversified taxable portfolio. Additional sources include annuity payments rental property income part time or consulting work and cash reserves in high yield savings accounts and CDs. Home equity can also provide support through downsizing or a carefully considered reverse mortgage. Build a plan that coordinates these streams with an appropriate asset mix a sustainable withdrawal rate and attention to taxes. Use tax efficient withdrawal sequencing and meet RMD requirements to avoid penalties. Maintain an emergency fund manage healthcare costs with Medicare and supplemental coverage and consider long term care needs. Review and rebalance regularly to manage sequence risk and inflation so your income remains resilient over time.

Address

6519 N Maple Street, Suite A
Spokane, WA
99208

Telephone

+15098442903

Website

Alerts

Be the first to know and let us send you an email when Jon Owens, CFP posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Jon Owens, CFP:

Shortcuts

Share

Category