Turning Your Savings Into a Paycheck That Lasts
Retirement income planning for Vermont retirees who want clarity, not guesswork.
You Saved. Now Comes the Harder Part.
How We Help You Plan Your Retirement Withdrawals
Accumulating savings is one challenge. Converting those savings into a reliable monthly income — one that holds up through market swings, rising healthcare costs, and a retirement that could span 25 years or more — is a different challenge entirely. At Bennett Wealth Management, we help retirees in St. Albans, Franklin County, and across Vermont develop retirement income strategies based on their individual needs, goals, and circumstances.
Retirement income planning is about more than deciding which account to pull from first. It's about considering how and when to take withdrawals from different accounts and understanding the potential tax and portfolio implications of those decisions.
We help clients work through the full picture:
- Withdrawal sequencing — determining whether to draw from taxable accounts, tax-deferred accounts like traditional IRAs, or tax-free accounts like Roth IRAs first, based on your income needs and tax bracket
- Required minimum distributions (RMDs) — mapping out when RMDs begin, how much you'll be required to withdraw, and how those distributions interact with your other income sources
- Social Security timing — coordinating your Social Security benefit with your withdrawal strategy while considering potential tax implications and your overall retirement income needs
- Fixed-income planning — building a distribution approach that accounts for Vermont's cost of living, including property taxes, heating costs, and healthcare premiums that can put real pressure on a fixed income
Every plan is built around your specific numbers — not a generic retirement formula.
Medicare, Medicaid, and the Tax Questions Nobody Warned You About
One of the most common concerns we hear from retirees is confusion around Medicare, Medicaid, and how healthcare costs fit into the income picture. These programs have different eligibility rules, different cost structures, and real implications for how much you can afford to withdraw each year.
We help clients understand how their withdrawal decisions affect Medicare premium calculations — including IRMAA surcharges that can increase your Part B and Part D costs if your income crosses certain thresholds. We also help families think through Medicaid planning considerations when long-term care becomes part of the conversation.
The tax side of retirement income is equally important. Distributions from traditional IRAs and 401(k)s are taxable as ordinary income. Poorly timed withdrawals can push you into a higher bracket, trigger additional Medicare costs, or increase the portion of your Social Security benefit subject to federal tax. At Bennett Wealth Management, we help clients evaluate how different income and withdrawal strategies may affect their overall tax situation during retirement.
Related Services
At Bennett Wealth Management, we view retirement income planning as an ongoing process that can be revisited as your circumstances and market conditions change. At the core of every plan, we address:
- Income sources — identifying sources such as Social Security, pensions, and annuities and evaluating how they may contribute toward essential monthly expenses
- Distribution order — evaluating which accounts to draw from and considering the potential tax implications of different withdrawal strategies
- RMD planning — planning for required minimum distributions and considering how they may affect your overall tax picture
- Healthcare cost integration — factoring in Medicare premiums, out-of-pocket costs, and potential long-term care expenses as part of your annual income projection
- Inflation adjustment — building in assumptions for rising costs so your income plan doesn't lose purchasing power over time
- Contingency reserves — maintaining accessible funds for unexpected expenses without disrupting the core distribution strategy
For retirees in Franklin County and the surrounding region, we bring a local understanding of the real costs Vermont retirement involves — and we build plans that reflect that reality.
Retirement Income Questions We Hear Most Often
What is retirement income planning and why does it matter?
Retirement income planning is the process of determining how to convert your accumulated savings into a reliable stream of income that supports your lifestyle throughout retirement. Without a structured approach, retirees risk withdrawing too much too soon, paying unnecessary taxes, or running short of funds later in life. A well-built income plan addresses withdrawal sequencing, tax efficiency, RMDs, and healthcare costs together — not as separate problems.What order should I withdraw from my retirement accounts?
The general framework is to draw from taxable accounts first, tax-deferred accounts like traditional IRAs second, and tax-free accounts like Roth IRAs last — though the right sequence depends on your specific tax situation, income needs, and timeline. Drawing from accounts in the wrong order can push you into a higher tax bracket or trigger additional Medicare costs. We work through your individual numbers to determine the order that makes the most sense for you.When do required minimum distributions start, and how do they affect my income plan?
Under current IRS rules, RMDs from traditional IRAs and most employer-sponsored retirement accounts begin at age 73. The amount you're required to withdraw each year is calculated based on your account balance and IRS life expectancy tables. RMDs are taxable as ordinary income and can affect your Medicare premiums and Social Security taxation. Planning for RMDs in advance — rather than reacting to them — gives you more options for managing their impact.How does Medicare factor into my retirement income plan?
Medicare premiums are income-based, which means higher withdrawals in a given year can trigger IRMAA surcharges that increase your Part B and Part D costs for the following year. We help clients understand how their withdrawal decisions interact with Medicare premium calculations and build income strategies that aim to manage those thresholds where possible. For clients who may need Medicaid coverage for long-term care in the future, we also discuss how income and asset levels factor into eligibility.Do you work with retirees outside of St. Albans and Franklin County?
Yes. While the majority of our clients are in the St. Albans area and Franklin County, we also work with retirees in Chittenden County and the broader Vermont region, as well as clients across the New York border in the Plattsburgh area. If you're looking for a retirement income advisor near St. Albans, VT or anywhere in northwestern Vermont, we welcome the conversation.