Frequently Asked Questions

It depends on health, marriage status, and other income. Claiming at 62 permanently reduces benefits about 30% versus full retirement age; waiting until 70 increases them 8% per year past full retirement age. For married couples, coordinating both spouses’ claims often adds tens of thousands in lifetime benefits.

Common approaches include systematic withdrawals (like the 4% guideline), bucket strategies that separate near-term and long term money, and annuitizing a portion for guaranteed income. The right mix depends on your expenses, other income sources, and tolerance for market risk.

It’s the danger of taking withdrawals during a market downturn early in retirement. Losses plus withdrawals compound, and the portfolio may never recover even if markets do. Income planning reduces this risk by covering essentials with guaranteed income so you’re never forced to sell in a down market.

The traditional guideline is 4% of your portfolio in year one, adjusted for inflation — but the safe number varies with market conditions, your age, and guaranteed income sources. A personalized income plan replaces the rule of thumb with a withdrawal strategy built for your situation.

RMDs are mandatory annual withdrawals from traditional IRAs and 401(k)s starting at age 73 (75 for those born in 1960 or later). The amount is based on your account balance and life expectancy. Missing an RMD triggers a penalty, and large RMDs can push you into higher brackets.

Texas has no state income tax, so Social Security isn’t taxed at the state level. Federally, up to 85% of your benefit can be taxable depending on your combined income — which is why withdrawal sequencing and Roth strategy matter even in a no-income-tax state.

The main levers: Roth conversions in low-income years, tax-efficient withdrawal ordering across taxable, tax-deferred, and Roth accounts, qualified charitable distributions after 70½, and managing income to reduce Social Security taxation and Medicare surcharges (IRMAA).

IRMAA is a Medicare premium surcharge for higher income retirees, based on your tax return from two years prior. A single large withdrawal or Roth conversion can trigger it. Planning income across years — rather than in spikes — helps keep premiums at the standard rate.

Ideally 5–10 years before your target retirement date. That window is when the biggest decisions get made: Social Security timing, Roth conversions, pension elections, and shifting from growth to income. If you’re within 10 years of retiring, now is the time.

A planner coordinates the pieces most people handle separately: when to claim Social Security, how to withdraw from accounts tax-efficiently, how to protect against market drops early in retirement, and how to plan for healthcare and legacy. Mistakes in sequencing can cost six figures over a retirement.

Investment advisory services are offered through Brookstone Wealth Advisors, LLC, a registered investment advisor, which is held to a fiduciary standard when providing investment advice. Insurance products are offered separately through licensed agents.

No. The initial retirement review is free and carries no obligation. You’ll leave knowing whether you’re on track, what risks exist in your current plan, and what to fix — whether or not you work with us.

Fixed annuities pay a guaranteed rate. Fixed indexed annuities credit interest based on a market index with downside protection but capped upside. Variable annuities invest directly in markets with full upside and downside. Fees, guarantees, and complexity differ significantly across the three.

Surrender charges if you withdraw early, limited liquidity, caps or participation rates that limit growth, fees on some contract types, and complexity. Any advisor who won’t walk you through the downsides before the benefits isn’t giving you the full picture.

Your principal is protected from market losses by the issuing insurance company — a 0% floor in down years. You can still lose ground to inflation, to surrender charges on early withdrawals, or through rider fees. Guarantees depend on the claims-paying ability of the insurer.

A common approach: only enough to fill the gap between essential expenses and your guaranteed income (Social Security plus pension). Most planners avoid putting a majority of liquid assets into annuities so you keep flexibility and growth potential elsewhere.

Permanent policies build cash value that grows tax-deferred and can be accessed through loans or withdrawals, potentially tax-free. Some retirees use it as a tax-diversified income source or as long-term care funding through riders. Costs and policy design determine whether it’s worthwhile.

Yes — many modern policies include long-term care or chronic illness riders that let you accelerate the death benefit to pay care costs while living. This can be an alternative for people who dislike traditional “use it or lose it” long-term care insurance.

Options include long-term care insurance, life insurance with care riders, and legal strategies like certain trusts (which require an elder law attorney and advance planning due to Medicaid’s five-year look-back). The right approach depends on assets, health, and timeline.

Texas offers strong protections — IRAs and employer plans are generally exempt from creditors under state law, and homesteads have broad protection. Specifics vary by situation, so coordinate with a qualified attorney for legal advice.

A bucket strategy divides your portfolio by when you’ll need the money: a cash bucket for the next 1–2 years, a conservative bucket for years 3–10, and a growth bucket for beyond. It lets you ride out downturns without selling stocks at a loss.

Almost never. Going to cash locks in losses and risks missing the recovery — the market’s best days often come right after its worst. A properly built retirement portfolio already assumes volatility will happen and is structured so you never have to sell in a panic.

It depends on your rate, liquidity, and taxes. Entering retirement mortgage-free lowers your required income floor and stress. But draining tax-deferred accounts to pay off a low-rate mortgage can trigger a large tax bill. Run the numbers both ways before deciding.

Common order: HSA (triple tax advantage), backdoor Roth IRA if income-eligible, then a taxable brokerage account for flexibility. Taxable accounts get favorable capital gains treatment and no early-withdrawal penalties — valuable if you plan to retire before 59½.