BOOM RETIREMENT SOLUTIONS

Strategies for Boosting Retirement Income

Top Retirement Cash Flow Risks

Why you need this Retirement Toolkit

  • Will outlive your retirement savings?

  • Will taxes and inflation erode your Retirement Nest Egg?

  • Will you head into retirement using an Accumulation Strategy or a Decumulation Strategy?

  • Will you maintain your lifestyle in a market downturn?

  • Are you prepared for RMD's and IRMAA?

BOOM RETIREMENT PLANNING

Strategies for Boosting Retirement Income

If You Ask 50 Financial Advisors,

"What is the best way to retire?".

You will get 50 different answers!

That is because despite all their training and certifications,

financial advisors each bring their own perspectives, experiences, and

biases to the table, leading to varied approaches and strategies tailored to their

unique understanding of the market, client needs, and risk tolerance.

Economic Science and Math proves...

There is Only One Optimal Way to Retire

Over 6 Decades of Research Created the 7 Steps Below.

  • Develop a Plan: Assess your financial situation, retirement goals, income sources and monthly budget for expenses.

  • Secure Lifetime Income: Consider products like private pensions for guaranteed income.

  • Maximize Social Security: Optimize benefits by understanding your options; delaying to 67 or 70 can help.

  • Diversify Investments: Build a balanced portfolio—30% cash value life insurance, 30% lifetime income, 40% growth assets.

  • Prepare for Health Care Costs: Budget for health expenses, including long-term care, which most seniors will need.

  • Use Tax-Efficient Strategies: Consider Roth conversions to reduce retirement taxes.

  • Stay Active and Engaged: Pursue activities for mental, physical, and emotional well-being in retirement.

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Taxation can play a substantial role in determining

the overall value of your retirement portfolio


How are your current retirement income sources taxed?

Social Security

Qualified Accounts

Non-Qualified Accounts

Social Security is a federal government program in the United States that provides financial benefits to eligible individuals, primarily retirees, disabled individuals, and their families. It is funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act (SECA).


Key components of Social Security include:

  • Retirement Benefits: These benefits are available to workers who have paid into the Social Security system through payroll taxes during their working years. Individuals can start receiving reduced retirement benefits as early as age 62, but full benefits are available at the full retirement age, which varies depending on the year of birth. Delaying benefits beyond full retirement age can increase the monthly benefit amount.

  • Disability Benefits: Social Security Disability Insurance (SSDI) provides benefits to individuals who are unable to work due to a qualifying disability. To be eligible, individuals must have a sufficient work history and meet specific medical criteria.

  • Survivor Benefits: These benefits are paid to the surviving spouses, children, or dependents of deceased workers who paid into the Social Security system. The amount of the benefit depends on the deceased worker's earnings record.

  • Supplemental Security Income (SSI): Although administered by the Social Security Administration, SSI is a separate program funded by general tax revenues (not Social Security taxes). It provides financial assistance to elderly, blind, or disabled individuals with limited income and resources.

Social Security is a critical component of retirement planning for many Americans, providing a safety net to ensure a basic level of income in retirement, during periods of disability, or after the death of a family member.


Social Security benefits may be taxed based on your combined income, which includes adjusted gross income, nontaxable interest, and half of your Social Security benefits. Depending on your income level, up to 85% of your benefits could be subject to federal income tax.

A qualified account is a type of retirement savings account that offers tax advantages, typically regulated by the IRS under specific sections of the tax code. Contributions to qualified accounts are often tax-deferred, meaning that contributions are made with pre-tax dollars, reducing the individual's taxable income in the year of the contribution. Taxes on contributions and investment earnings are deferred until withdrawals are made, usually in retirement.

  • 401(k) plans

  • 403(b) plans

  • 457 plans

  • Traditional IRAs

  • SEP IRAs

  • SIMPLE IRAs

  • Self Directed IRAs

  • Pensions

  • Annuities

Withdrawals from these accounts are generally subject to income tax, and there may be penalties for early withdrawals before a certain age (usually 59½). Additionally, qualified accounts are subject to Required Minimum Distributions (RMDs) once the account holder reaches age 73 (if born before 1960).


Required Minimum Distributions (RMDs) are the minimum amounts that retirees must withdraw annually from their tax-deferred retirement accounts, such as traditional IRAs and 401(k)s, starting at age 73 (as of 2023). The amount of the RMD is calculated based on the account balance and the account holder's life expectancy. Failing to take RMDs can result in significant tax penalties, including a hefty excise tax on the amount that should have been withdrawn.

A non-qualified account is a type of investment account that does not have the same tax advantages or restrictions as qualified retirement accounts. Unlike qualified accounts, contributions to non-qualified accounts are made with after-tax dollars, meaning there's no tax deduction for contributions.


Examples of non-qualified accounts include:

  • Brokerage accounts

  • Mutual fund accounts

  • Certificates of deposit

  • Savings accounts

  • Roth IRA

  • Cash Value Life Insurance

  • Annuities

These accounts are often used for general savings and investments outside of retirement, offering more flexibility in terms of contributions and withdrawals, but without the tax advantages of qualified accounts.

The exception is the Roth IRA in which the principal, interest, earnings and dividends are all tax-free. Roth IRAs are also not subject to RMD's.

A Roth conversion is the process of transferring funds from a Qualified retirement accounts into a Roth IRA (Non-Qualified Account). The converted amount is subject to income tax in the year of the conversion, but future withdrawals from the Roth IRA are tax-free, provided certain conditions are met. This strategy is often used to reduce taxable income in retirement and to avoid required minimum distributions (RMDs).

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©Copyright 2024| Boom Insurance Agency. All Right Reserved