Building a Balanced Retirement Income Plan

June 5, 2025

Most people have a retirement date in mind.

You’ve had a long career filled with challenges and rewards. And now, the dream of having more time to do whatever is about to come true. Before you send your last email or attend that last meeting, it’s wise to have a solid plan in place to pay the bills when your paycheck stops. What you want to build is a complete retirement income plan. This plan will show you where you’ll be spending your money in retirement. You’ll also learn about available financial resources to help build your new retirement paycheck.Most people have a retirement date in mind.


The 4 Parts of a Retirement Income Plan

Crafting a tailored retirement income plan is key to a successful retirement journey. Taking the time to consider expenses, savings and income before stepping into retirement will help ensure there's an ample balance for a comfortable life.

  1. PERSONAL ACCOUNTS
  2. RELIABLE INCOME
  3. FLEXIBLE EXPENSES
  4. ESSENTIAL EXPENSES


Identify all your non-negotiable, essential expenses

These are the bills and expenses you must continue to pay long after you’ve stopped working. These expenses can’t be deferred or delayed regardless of the ups and downs of the market. You know the obvious must-have expenses such as food, shelter, health care, utilities and income taxes. But many essential expenses are missed: technology, property taxes, and homeowners or renter’s insurance. In addition, some expenses for enjoying retirement living will be essential expenses.

— For some, it will be a club membership.

— Others consider travel to see the grandchildren essential.

— For those who are retiring to pursue hobbies, start-up costs may be a factor to consider.

It’s up to you to define your essential expenses. The closer you are to retiring, the more accurate your list and estimated costs should be.

Make a wish list of your discretionary expenses

Not every expense will be a must-have in retirement. You’ll also need to build in a fair amount of flexibility. For example, you may need a new car or two over a 30-year retirement period, but when and what you buy are flexible. Or, if travel is going to be a big part of retirement, great! You may spread out the trips a bit further or make them a bit shorter to stay within your budget.


It’s fun to think about all the things you might do in retirement, but you may have to make some adjustments or compromises about when and what you can comfortably afford.

Determine your sustainable or guaranteed sources of income

Putting together a retirement income plan can help you get a good handle on the amount of reliable income you are on track to receive in retirement. These sources are ones you can count on every month for the rest of your life. Typically, there are three possibilities:

SOCIAL SECURITY

Most workers qualify for Social Security. Look at the current estimates on your statement (available on SSA. gov/myaccount). You’ll want to know how much less you’ll get each month if you claim too early and how much more by waiting up to age 70. If you’re married, it’s also important to consider what will happen if you die first. How will your surviving spouse’s income be changed by your claiming decision?

PENSIONS

A defined benefit pension plan may be part of your retirement income. These payments are designed to provide monthly income for as long as you live. Take great care in deciding how to take the payments if you are married or have a dependent who will count on this income if you die first.

INCOME ANNUITIES

Insurance companies offer a variety of guaranteed income products. You might already have savings in an annuity product that you’ll turn into a guaranteed income stream, or you might consider buying one. While annuities can be complex, they are the only financial product backed by an insurance company.*

Take a full inventory of all your personal accounts and how they can deliver cash

After a lifetime of work and saving, you may find you have more accounts than you realize. Each account helped you save and will now become part of your retirement paycheck. And each type of account has unique options, distribution rules and tax obligations. Here are some of the more common accounts you may have in your inventory:

401(k)s, 403(b)s and 457(b)s

Tax-deferred when saving, but distributions are taxable. Required Minimum Distributions (RMDs) are required once you reach a certain age. You may be able to delay RMDs from your current employer if still working there.

Traditional IRAs, SEPIRAs and SIMPLE-IRAs

Usually tax-deductible when you made the contributions, but withdrawals are taxable in retirement.

Inherited IRAs

If you were named as a beneficiary on someone else’s IRA (not your spouse), you likely must fully liquidate the account in 10 years and may owe income tax.

Roth accounts

If the holding period and other rules are met, you can generally take money out income tax-free. Hooray!

Health Savings Accounts

These triple-tax advantaged accounts can be used in retirement to pay for qualified health expenses, including Medicare Part B and Part D premiums. When used for qualified expenses, withdrawals are income-tax-free.

Savings accounts and Certificates of Deposit (CDs)

Money socked away in these types of accounts are typically for emergencies. Interest earned is taxable each year

Brokerage and investment accounts

Any interest or capital gains earned from brokerage and/or investment accounts are taxable in the year of the transaction

Nonqualified deferred compensation

Distributions from various NQDC accounts are taxable. As the amounts may be substantial, estimated taxes are often owed as well.

There are many other types of accounts depending upon the complexity of your financial household. And if you have a spouse, they may also have a suite of their own similar accounts.



You can see how important it is to get all your accounts well-organized before retiring. Ensuring you are handling all accounts in the most tax-effective way will help you enjoy sufficient retirement income and achieve your legacy goals.

When planning for your retirement income, creating a simple visual helps you see your financial future.



You’ll want to know what you’ll have as income sources and how you’ll pay for your expenses for 30 years, more or less.

Making a visual 4 part retirement income plan

1. PERSONAL ACCOUNTS

  • Tax-deferred accounts
  • Taxable accounts
  • Roth accounts
  • HSAs1. PERSONAL ACCOUNTS

2. RELIABLE INCOME

  • Social Security
  • Pension payouts
  • Income annuities

3. FLEXIBLE EXPENSES

  • Travel
  • Golf, fishing, sports
  • Parties and dining out
  • House renovations

4. ESSENTIAL EXPENSES

  • Food, shelter, health care
  • Taxes
  • Utilities and tech
  • Retirement goals

Know if you have a gap

After pulling together your four financial parts for retirement, do some simple math to answer these five key questions:

  1. How much of my essential expenses will be paid for by my guaranteed sources of income?
  2. If my essential expenses are higher than my guaranteed sources of income, how much will I need to pull from my personal savings accounts?
  3. What will change, if anything, once I reach the RMD age and must begin taking them?
  4. Do I understand how much I will pay for Medicare and other health care needs and where my HSA can help?
  5. If I have a spouse or partner, have we considered how retirement income will change for the surviving person?

Simplify and organize

Once you have an inventory of your personal accounts, organize them.

Whether that means at one financial institution, one financial advisor or in one integrated money management platform. If you have several same types of accounts (a rollover IRA, SEP IRA, and traditional IRA, for example), simplify by combining them.



Lastly, create a binder or online file of all the latest statements from all your future income sources. Review it at least once a year to keep track of changes.

The Gasaway Team

Gasaway Investment Advisors

7110 Stadium Dr

Kalamazoo, MI, 49009

(269) 324-0080

info@gasawayinvestments.com

www.gasawayinvestments.com


The Gasaway Team

Gasaway Investment Advisors

7110 Stadium Dr

Kalamazoo, MI, 49009

(269) 324-0080

info@gasawayinvestments.com

www.gasawayinvestments.com


This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. ©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent

This is not an offer or a solicitation to buy or sell securities. Material is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. The information has been compiled from third party sources. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. ©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute outside original intent.

Gift Giving & Estate Planning

October 17, 2025
As the season of giving approaches, many people look for meaningful ways to share their wealth with loved ones or places that make an impact in their local community. Whether it’s helping a grandchild with college expenses, supporting a favorite charity, or simply giving a thoughtful financial gift, strategic gift giving can play an important and impactful role in your estate planning strategy. Working with a financial advisor can help guide your generosity and align it with your long-term goals. Why Gift Giving Belongs in Your Estate Plan Gift giving isn’t just an act of kindness, but it can also be a smart financial planning strategy. By incorporating gifting into your estate plan, you can: Reduce your taxable estate: The IRS allows individuals to gift up to a certain amount each year per recipient without triggering federal gift taxes. This can help reduce the size of your taxable estate over time. Support family members or causes during your lifetime: Instead of waiting to pass assets through inheritance, you can witness the impact of your generosity today. Simplify wealth transfer: Strategic gifting can make the estate settlement process smoother and less stressful for your beneficiaries. A financial professional can help you navigate annual exclusion limits, lifetime exemptions, and other tax considerations so your gifts are both meaningful and efficient. Understanding the Annual Gift Tax Exclusion Each year, the IRS sets a gift tax exclusion limit. This is the amount you can give to an individual without using your lifetime exemption or owing gift taxes. For example, if you give $19,000 or less per person (based on 2025 and 2026 IRS limits)1, those gifts are generally tax-free for both you and the recipient. This strategy can be especially effective for parents and grandparents looking to transfer wealth gradually. You can give to multiple children, grandchildren, or anyone else each year, reducing your estate while providing financial support to those you care about. Gifting Beyond Cash: Creative Estate Planning Ideas Gift giving doesn’t have to be limited to cash. A well-rounded estate plan might include: Education funding: Contributing to a 529 college savings plan is a great way to invest in a child’s future while enjoying potential tax benefits. Charitable gifts: Donating to qualified organizations can provide both emotional and tax rewards. Each of these strategies carries unique financial and tax implications, so professional guidance is key. How a Financial Advisor Can Help A trusted financial advisor can help you integrate gifting into your broader estate planning and wealth management strategy. They can: Evaluate how gifting fits into your long-term financial goals Help calculate potential tax savings and implications Coordinate with your estate attorney and CPA for a comprehensive plan By working with professionals, you can have your generosity reflect both your values and your financial vision for the future. Sources: 1: https://www.nerdwallet.com/article/taxes/gift-tax-rate

September Market Update

October 17, 2025
Market Indices Performance 

Year-End Tax Planning: How a Financial Advisor Can Help You Start the New Year Strong

October 13, 2025
As the year winds down, it’s the perfect time to review your finances and take steps to optimize your tax situation. Year-end tax planning isn’t just about reducing what you owe, it’s about setting yourself up for financial success in the year ahead. With thoughtful planning and guidance from a financial advisor, you can make the most of available strategies to help strengthen your financial foundation. Why Year-End Tax Planning Matters Many important tax-related opportunities close once the calendar year ends. By taking action before December 31, you may be able to: Maximize deductions and credits Adjust investment strategies for tax efficiency Contribute to retirement accounts Review capital gains and losses Ensure charitable contributions are properly documented A proactive approach allows you to make informed decisions that align with both your short-term goals and long-term financial plan. Key Year-End Tax Strategies to Consider Here are a few strategies individuals often review before the new year begins: Maximize Retirement Contributions – Contributions to accounts like a 401(k) or IRA may reduce taxable income while helping you grow savings for retirement. Harvest Investment Losses – Selling investments that have declined in value can offset capital gains elsewhere in your portfolio. Review Charitable Giving – Donating to qualified charities may provide a deduction if you itemize. A financial advisor can help you explore options like donor-advised funds for strategic giving. Evaluate Withholding and Estimated Taxes – Adjusting now can help you avoid surprises at tax time. Use Flexible Spending Accounts (FSAs) – Check your FSA balance and use eligible funds before they expire. Each situation is different, and the right mix of strategies depends on your income, goals, and tax bracket. The Value of Working with a Financial Advisor A financial advisor can help you see the full picture. Not just for your taxes, but how each decision fits into your broader financial plan. Working with an advisor can help you: Identify personalized tax-saving opportunities Coordinate strategies with your accountant or tax professional Align investment choices with your long-term goals Create a plan to start the new year financially confident Your advisor can also help you prepare for upcoming changes in tax laws or contribution limits that could affect your 2026 planning. Start the New Year Strong Year-end tax planning is an opportunity to reflect, rebalance, and refine your financial strategy. By working with a financial advisor, you can move into the new year with clarity and confidence knowing you’re making decisions that support your long-term goals.

Good Debt vs. Bad Debt: A Quick Guide

October 6, 2025
Not all debt is created equal. While debt often gets a bad reputation, it can be a powerful financial tool or a costly mistake. The key is to know the difference between good debt and bad debt. What Is Good Debt? Good debt is borrowing that helps you build long-term value or increase your income. It’s typically low-interest and tied to investments in your future. Examples include: Student loans for education that increases earning potential Mortgages that build home equity Business loans that fund growth Investment property loans generating rental income Good debt works for you and helps you acquire assets or improve your financial position over time. What Is Bad Debt? Bad debt is borrowing for items that lose value quickly or don’t contribute to your financial growth. It often carries high interest and leads to long-term repayment without lasting benefit. Examples include: Credit card debt from non-essential spending Payday loans with extremely high fees Auto loans for luxury or unnecessary vehicles Consumer loans for vacations or electronics  Bad debt drains your finances and can limit your ability to save or invest.

Retirees at Risk: How Financial Professionals Help Defend Against Digital Scams

September 29, 2025
As retirees increasingly rely on digital tools for banking, investing, and communication, they’ve also become one of the primary targets for today’s most sophisticated financial scams. In 2025, Americans over the age of 65 represented the largest share of victims in reported financial cybercrimes. 1 With billions (16.6 billion in 2024) lost to phishing attacks, fake tech support calls, fraudulent investment schemes, credit card information stolen, and identity theft, many of these scams are no longer obvious. 1 They mimic real institutions, use familiar language, and in some cases even clone the voices of loved ones using AI. Why Are Retirees Targeted? Scammers often target retirees for several reasons: They are more likely to have accumulated savings. Many manage their finances independently, without employer oversight. Some may be less familiar with newer digital threats or fast-changing technology. Emotional manipulation. Such as pretending to be a grandchild in trouble is highly effective with this demographic. The Role of Financial Professionals Financial advisors and planners play a crucial role in protecting retirees. From market volatility to tax savings financial advisors help retirees stay concrete in their financial future. But as the digital age has grown, this also expands into the more prevalent invisible digital threats that may arise. Here’s how they help: 1. Education and Awareness Advisors can proactively teach clients how to spot scams, question suspicious requests, and avoid common traps like urgent money transfers or unfamiliar links. 2. Account Monitoring Many advisors help monitor for irregular account activity, unexpected withdrawals, or patterns that suggest coercion or fraud, especially for older clients. 3. Preventive Structures Professionals can set up account protections, including multi-factor authentication, trusted contact authorizations, and restricted access to certain funds or accounts. 4. Fraud Response In the event a scam does occur, financial professionals assist clients in contacting the right institutions, freezing accounts, reporting the fraud, and taking legal next steps if necessary. Peace of Mind Through Partnership In retirement, peace of mind doesn’t just come from a well-balanced portfolio. It comes from knowing your finances are protected, your accounts are monitored, and someone you trust is just a phone call away. The best financial advisors act as a first line of defense. If something feels suspicious, they want to hear about it before you respond or send money. One quick check-in could prevent a costly mistake. Final Thought If you're retired or approaching retirement, now is the time to strengthen your financial defenses. Make sure your financial professional is helping you stay not only invested, but protected. And remember: When in doubt, pause, then call your advisor. Sources: 1. https://www.pewresearch.org/internet/2025/07/31/online-scams-and-attacks-inamerica-today/

August Market Update

September 24, 2025
Market Indices Performance 

Why You Might Want to Look at Life Insurance & Long-Term Care Earlier Than You Think

September 19, 2025
Talking about insurance isn’t exactly everyone’s favorite topic, but it’s an important one. Life insurance and long-term care (LTC) coverage are tools that can help you prepare for the unexpected. While many people wait until later in life, starting younger often means more flexibility, lower costs, and a wider range of choices. What They Cover Life insurance → pays a benefit to your beneficiaries if you pass away. This can help cover expenses like rent, loans, or general household costs. Long-term care insurance → helps cover care expenses if you ever need help with daily activities over an extended period. This can include in-home care, assisted living, or nursing facilities costs that typically aren’t covered by health insurance or Medicare. Why Younger Can Be Better Costs are usually lower. Premiums are generally based on age and health. Applying earlier can mean lower monthly payments. More likely to qualify. Good health makes approval easier. Waiting until health issues arise can limit options. More choices. Some policies or riders are only available if you apply earlier. Time to plan. Starting younger lets you spread out costs and build coverage into your budget gradually. Less uncertainty. Putting coverage in place sooner can reduce the risk of being caught off guard later. Things to Consider Premiums are an ongoing cost, so make sure they fit within your budget. You may be paying for long-term care coverage years before you use it. Inflation riders, waiting periods, and benefit limits vary by policy. It’s important to understand the details. Insurance needs can change over time. Reviewing coverage every few years is a good practice. Getting Started Think about who depends on your income now or who might in the future. Compare different companies and products to understand what’s available. Look at both stand-alone and combination (life + LTC) options. Work with a licensed professional and financial planner who can walk through your personal situation. Final Thought Exploring life insurance and long-term care while you’re younger doesn’t mean you expect the worst. It means you’re preparing ahead of time, so future choices are less stressful and potentially more affordable. Disclaimer: This blog is for informational purposes only. It is not intended as legal, tax, or investment advice. Insurance products vary, and everyone’s situation is different. Please consult with a licensed insurance or financial professional before making decisions about coverage. Any opinion included in this blog constitutes our judgment as of the date of this report and are subject to change without notice. The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .

Your Money Can Work While You Sleep (So You Don’t Have to Work Forever)

September 12, 2025
Imagine waking up in the morning and realizing your money has been busy working while you slept. That’s the power of a thoughtful financial plan—shifting from working for every dollar to having your dollars quietly working for you. Creating Your Financial Roadmap Financial planning starts with clarity. A financial advisor or consultant can help outline a plan that reflects your goals, resources, and time horizon. This can include:  Individual and personal financial planning for major milestones like buying a home or funding education. Financial planning for businesses to align growth with long-term stability. Retirement plans for small businesses that support both owners and employees. A financial planning firm brings together these services so you can look at the bigger picture, not just one piece at a time. Preparing for the Unexpected Life doesn’t always go according to script, which is why planning for the “what ifs” is so important. Disability planning and life insurance services can provide support for you and your family in unforeseen circumstances. Estate planning is another key step. Working with an estate planner or using estate planning services helps organize how your assets are managed in the future. Making Your Investments Work Investing is one of the most effective ways to put your money to work. Investment advisors, investment managers, and advisory firms can provide guidance tailored to your situation. Services such as investment management and the use of investment models help bring structure and consistency to your approach. If retirement is on your horizon, retirement income planning, retirement plan investments, and ongoing retirement planning services can help align your resources with the lifestyle you want. Managing Risk Along the Way Every financial plan comes with some level of risk. That’s why risk management services and financial risk assessments are essential. A risk manager can help identify potential challenges before they become major issues. For those who need additional oversight, fiduciary services can help ensure that financial decisions are carried out in accordance with established standards. Support for Businesses Business owners often juggle both personal and commercial priorities. That’s where business plan consulting and commercial financial services come in. Combining these with broader financial planning creates a consistent framework for both sides of the equation. Letting Your Money Do the Work At the end of the day, the goal of financial planning isn’t about working harder—it’s about giving your money the chance to do some of the work for you. With support ranging from personal planning to investment management, retirement strategies, and risk awareness, your finances can be set up to keep moving even when you’re not. So go ahead—get some rest. Your plan can keep working while you sleep. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This is for informational purposes only and does not constitute an offer to sell or a solicitation to purchase any products or services. All investments involve risk (the amount of which may vary significantly), and investment recommendations will not always be profitable. Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .

The Latte Factor: Can Skipping Coffee Really Make You a Millionaire?

September 9, 2025
You’ve probably heard the advice: “Skip your daily latte and retire rich.” This idea, now commonly known as The Latte Factor, was popularized by author David Bach. But is skipping coffee really the secret to building wealth or just financial clickbait? What Is the Latte Factor? The Latte Factor refers to small, everyday purchases that add up over time. A $5 coffee might not seem like much, but spent daily, that’s around $1,825 per year. If invested with a 7% annual return over 30 years, it could grow to $172,390. Can It Make You a Millionaire? In short, no, not by itself. Skipping coffee won’t make you a millionaire unless you pair it with other smart money moves like investing regularly, increasing your income, and avoiding high-interest debt. The real point of the Latte Factor isn’t about coffee. It’s about awareness of where money is going. Small, unconscious spending habits can prevent you from achieving bigger financial goals. When It Makes Sense to Cut Back Consider cutting out small expenses if: You’re struggling to save or pay down debt You're living paycheck to paycheck You’re spending out of habit, not enjoyment What Builds Real Wealth? Skipping lattes might help, but true wealth comes from: Consistent saving and investing Growing your income Avoiding lifestyle inflation Making intentional financial choices Final Thought The Latte Factor is a helpful metaphor, but it is not a magic formula. It’s not about guilt; it’s about being mindful. If your coffee brings joy and fits your budget, enjoy it. Just make sure your financial habits support your long-term goals. Sources: 1. The Latte Factor: Why you Don’t Have to Be Rich to Live Rich, by David Bach and Kohn David Mann. Copyright 2019. All content presented is for educational purposes only and should not be construed as a solicitation or offer to sell securities or provide investment, tax, or legal advice. All examples are hypothetical, for illustrative purposes only, and are merely arithmetic calculations. They are not representative of the performance of any type of investment, security, or strategy offered by the firm. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Hypothetical returns do not reflect actual trading and may not be indicative of the performance of any specific investment. They are based on assumptions and estimates that may not be accurate or applicable to your individual situation. Always consult with a qualified financial advisor before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Advisor Public Disclosure Site https://adviserinfo.sec.gov/firm/summary/123807 .

The Tariff Situation

August 29, 2025
As you likely know, tariffs have been a major theme of the Trump administration in 2025. These tariffs are being implemented for a few reasons: negotiation/bargaining, punishment/sanction, and improving the U.S.’s economic situation. As a reminder, a tariff is a tax on imported goods. For example, raising the tariff rate on Japan to 25% means that all goods that U.S. companies import from Japan will be subject to a 25% tax at the port of entry. Punitive and Reciprocal Tariffs The tariff announcements began in February, with President Trump threatening 25% punitive tariffs on Canada and Mexico if they didn’t stop the flow of fentanyl across their borders. In April, Trump and the Secretary of Commerce Howard Lutnick announced “reciprocal tariffs”, aimed at lowering the trade deficits between the U.S. and foreign countries. These included a base 10% duty on all countries that have tariffs on U.S. goods, as well as significantly higher rates on countries with high tariff rates on U.S goods (like 46% on Vietnam). This announcement sent stocks reeling as the rates were much higher than expected. Stocks fell 14% in the next 4 days. Then, Trump put a 90-day pause on these reciprocal tariff and stocks rose almost 10% that day. As of August, these tariffs have gone into effect for all countries who haven’t made deals with the U.S. (Japan, Vietnam, and the EU have notably made deals). Targeted 50% Tariffs: India & Brazil India and Brazil have emerged as focal points of the new tariff strategy. India initially faced a 25% reciprocal tariff, but that was doubled to 50% since they are continuing to import Russian oil. Brazil’s tariff rate was raised from 10% to 50%, mostly for political reasons.