Navigating Retirement: Strategic Planning with CAISSA and Copeland Buhl 

In this Caissa Colleague segment, Kelly Pedersen, owner of Caissa Wealth Strategies, sits down with Katie Monger, CPA and partner at Copeland Buhl, to discuss how their firms collaborate to help clients navigate the complexities of retirement planning. Their discussion covers key areas such as pre-retirement projections, maximizing tax efficiency during the transition to retirement, and sustainable income strategies for life after work. Together, they emphasize the importance of a well-rounded approach, combining wealth management and tax planning to ensure a smooth and confident transition into retirement. 

Pre-Retirement Planning: Getting the Numbers Right 

Kelly Pedersen:  Today, we’re excited to dive into three important areas of retirement planning: pre-retirement projections, navigating the transition phase, and strategies for tax efficiency once in retirement. I know clients are always curious about whether their plans will work long-term, and that’s where collaboration with experts like yourself is key. How do we ensure they can retire comfortably and sustain their lifestyle? 

Katie Monger:  Absolutely, working through those projections and cash flow scenarios is key. We look at the income they’ll need, where that money will come from, and how that mix of income will impact their tax situation. It’s important to run those numbers early so we can make adjustments where needed and ensure they can retire with confidence.

The Transition Phase: Making the Most of Tax Brackets 

Kelly Pedersen:  Next, let’s talk about the transition phase when clients stop earning income and begin drawing from their assets. This is a crucial time to focus on tax efficiency—how do we use tax brackets now that their earned income is gone? What do you recommend to clients during this time? 

Katie Monger:  We run tax projections to help clients decide whether to withdraw from pre-tax retirement accounts or after-tax brokerage accounts. The goal is to smooth out tax brackets year after year, avoiding large tax spikes. We also work with clients to time their distributions efficiently, especially if they’re required to take distributions from certain accounts, like IRAs. 

Kelly Pedersen:  That’s great advice. We also focus on income sources, like whether clients should be pulling from Roth accounts, ordinary income, or capital gains. Managing where income comes from in these years can really affect long-term tax efficiency. 

Retirement: Sustaining Tax Efficiency 

Kelly Pedersen:  Finally, once clients are in retirement, it’s about maintaining that efficiency—both with taxes and income withdrawal. We look at asset location, liquidity, and tranches of income to ensure their lifestyle is sustainable. How do you help clients manage things like Required Minimum Distributions (RMDs) and charitable giving strategies?

Katie Monger:  Qualified Charitable Distributions (QCDs) are a great tool here. Clients can give directly from their IRA to an approved charity, which lowers their taxable income while maximizing the benefit of their donation. This works particularly well if the client is not taking itemized deductions on their tax return. It’s a win-win for both tax efficiency and supporting causes that matter to them. 

Kelly Pedersen:  Yes, and that can also help them avoid spikes in Medicare premiums. There’s a lot we can do by working closely together, especially when we plan ahead and have all the information aligned. 

In Conclusion: 

When planning for retirement and ensuring your money endures, multiple factors must be taken into account. Effective planning can yield numerous long-term benefits and help prevent unpredictable income fluctuations or unexpected tax liabilities. Collaborating with your investment advisor and tax preparer can offer the most favorable long-term results.