How Two Married Professionals with Corporate Jobs Added $4,000/Month in Retirement

May 28

Meet the Couple

Two married corporate professionals, both 60 years old, had diligently saved $3 million for retirement. They planned to continue working for another five years, with a projected retirement income of $310,000 annually from Social Security and pension distributions. However, all their savings were tied up in tax-deferred accounts like 401(k)s and IRAs, meaning every dollar they withdrew in retirement would be taxed.

The Problem

Having all their assets in tax-deferred accounts exposed them to hefty taxes in retirement. A higher taxable income could also lead to increased Medicare premiums and reduced Social Security benefits. They needed a smarter plan to make the most of their savings.

The Game Plan

Here’s what we did to help:

Started Moving Money to Roth IRAs: We began shifting some of their IRA funds into Roth IRAs, taking advantage of IRS rules that allow penalty-free conversions after age 59.5.
Took It One Step at a Time: Instead of trying to do everything at once (and getting hit with a big tax bill), we broke it down into manageable steps over five years. This kept things simple, less overwhelming, and helped keep their taxes lower each year.
Handled Taxes the Smart Way: Taxes on the conversions were paid using a tax-advantaged plan, minimizing the immediate financial impact.

What Changed

More Money Each Month: After restructuring, their net monthly income jumped from $18,000 to $22,000 - an extra $4,000 per month, or close to $50,000 annually. Over 20 years, this adds up to almost $1 million extra.
Lower Taxes: Moving money to Roth IRAs cut their lifetime tax bill and saved them $50,000 each year in retirement. They also avoided higher Medicare premiums and paid less in Social Security taxes.
Peace of Mind: With tax-free income from their Roth IRAs, they’re not as worried about future tax hikes. Their income is steady and predictable, no matter what happens with tax laws.

The Bottom Line

Thanks to this strategy, this couple now enjoys:

$48,000 more each year to spend, save or invest however they choose.
$50,000 saved on taxes annually (that’s like giving themselves a yearly raise without working extra hours)
Nearly $1 million more over 20 years

If you’ve ever wondered how to keep more of what you’ve worked so hard to save, this success story shows it's possible. With the right moves, you can stretch your retirement dollars further.

Schedule a short call with us to see if we can do the same for you.

Crystal Myers