Hypothetical: a near retiree with concentrated tax deferred savings
A hypothetical illustration. Not an actual client and not a representation of any result.
The situation
A couple is several years from retirement. Nearly all of their long term savings sits in employer retirement plans accumulated across multiple jobs. They have a modest taxable account and no Roth balance. Their advisor has built a reasonable portfolio. Nobody has discussed what happens when withdrawals begin.
What a coordinated review would examine
- Essential versus discretionary spending in retirement.
- Projected taxable income once required distributions begin.
- Whether low income years exist between retirement and required distributions.
- Social Security timing and its interaction with other income.
- How the plan behaves if the first years of withdrawals coincide with a market decline.
- What happens to the survivor when filing status changes.
The point of the illustration
- A good portfolio is not a distribution plan.
- Tax character concentration removes choices later.
- The years between retirement and required distributions are often the most consequential planning window.
Important disclosure
This is a hypothetical illustration created for educational purposes. It does not describe an actual client, does not represent any actual outcome, and is not a guarantee or prediction of results. No specific figures, returns or tax savings are stated or implied. Individual circumstances differ substantially.
Last reviewed 2026-08-09 by Tim Parnell.
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