7 Steps on How to Retire Smarter in Texas
Retirement is one of the most significant financial milestones you’ll reach—and one of the most personal. Whether you're a business owner in Rockwall, a successful professional, or someone who has diligently saved over the years, retirement isn't just about having “enough.” It’s about making what you’ve built work efficiently, sustainably, and in a way that aligns with your values.
At Rockwall Wealth Advisors, we work with families and individuals with $250,000 or more in investable assets to build retirement strategies that are not just safe—but optimized.
If you’ve ever asked yourself questions like:
“How do I turn my savings into reliable income?”
“Am I doing everything I can to reduce taxes in retirement?”
“What’s the smartest way to leave a legacy to my family?”
…then this post is for you.
Here’s how to retire smarter—in Texas and beyond.
1. Retirement Is a Cash Flow Problem, Not a Net Worth Problem
Many people believe that once they hit a certain number—say $1 million or $2 million—they’ll be “set” for retirement. While net worth is important, it’s not the whole picture.
What matters more is how much income your assets can safely generate, after taxes, over the course of a 20-30 year retirement.
For example:
A million-dollar IRA invested conservatively may provide ~$40,000 to $50,000/year in income.
But depending on how you withdraw that money, how you’re invested, and how inflation plays out, that income may need to stretch more than expected.
A smart retirement plan focuses not just on growing your nest egg—but on creating sustainable, tax-efficient income tailored to your lifestyle goals.
2. Texas is Tax-Friendly, But That Doesn’t Mean You’re in the Clear
Texas doesn’t have a state income tax—great news, right?
Yes, it can be a strategic benefit in retirement. But federal taxes still apply, and without a proactive plan, they can take a bigger bite out of your income than necessary.
Here’s where optimization comes into play:
Withdrawals from Traditional IRAs and 401(k)s are taxed as ordinary income.
Social Security benefits may be taxable, depending on your other income sources.
Required Minimum Distributions (RMDs) at age 73 can unexpectedly push you into a higher tax bracket.
Smart tax planning might include:
Roth conversions in low-income years
Tax diversification across account types (Traditional, Roth, Brokerage)
Qualified charitable distributions (QCDs) to reduce taxable income after age 70½
Without a strategy, many retirees end up paying more in taxes than they need to—silently shrinking their retirement income.
3. Timing Your Social Security Claim Is a Big Deal
Many people are surprised to learn just how big of a difference timing makes with Social Security. You can start as early as age 62 or wait until 70—but the longer you wait, the more your benefit grows.
Here’s a quick breakdown:
Claiming at 62 can reduce your benefit by up to 30%.
Waiting until full retirement age (66–67) gives you your full benefit.
Waiting until 70 earns delayed retirement credits—about 8% more per year.
Choosing when to claim depends on your health, life expectancy, income needs, and whether you have a spouse who may rely on survivor benefits.
A financial advisor can help model different scenarios to determine what claiming strategy aligns best with your plan.
4. Health Care: The Most Overlooked Retirement Expense
Healthcare is one of the largest (and most underestimated) retirement costs. According to Fidelity, a 65-year-old couple retiring today may need over $300,000 in today's dollars to cover healthcare expenses throughout retirement.
Here’s how to plan smarter:
Consider Medicare timing and strategy (especially if you’re still working past 65).
Use Health Savings Accounts (HSAs) while you’re still working—they offer triple tax advantages and can be used tax-free for qualified expenses in retirement.
Evaluate long-term care insurance options before age or health disqualify you.
Failing to plan for healthcare doesn’t just threaten your lifestyle—it could derail your legacy goals too.
5. Legacy and Estate Planning Is More Than Just a Will
Retiring smarter means thinking beyond your lifetime. Most high-net-worth individuals want to leave something behind—whether for their kids, grandkids, or favorite charities.
But without an intentional plan, that wealth may not transfer as smoothly or efficiently as you’d hope.
Key considerations include:
Updating beneficiaries on all accounts and policies
Coordinating with an estate attorney to create or update your will, trust, and power of attorney
Considering gifting strategies or charitable giving during your lifetime to reduce estate taxes or see your impact firsthand
Even in Texas—where probate is more straightforward than in some states—a well-thought-out estate plan ensures that your money goes where you want, how you want, when you want.
6. Sequence of Returns Risk: Timing Matters More Than You Think
One often overlooked risk is something called sequence of returns risk—the risk of poor investment returns early in retirement when you’re starting to withdraw funds.
Even if the long-term average return is strong, a bad few years at the beginning can have an outsized impact on your portfolio.
A smarter approach:
Keep 1–2 years of expenses in cash or stable investments to avoid selling in down markets
Use a bucket strategy to segment your assets by time horizon (short, medium, long-term)
Revisit your asset allocation as you transition from accumulation to distribution
This protects your portfolio’s ability to recover and gives your investments the time they need to rebound.
7. Work with a Professional Who Understands You
Retirement isn’t just a math equation—it’s about your life. Your dreams. Your family. Your values.
A good financial advisor should:
Understand your goals and concerns personally
Help you optimize, not just accumulate
Coordinate across investment, tax, and estate planning
Provide peace of mind when the markets get rocky
At Rockwall Wealth Advisors, we take a personalized, transparent approach to retirement planning. We’re here to help you retire smarter, not just richer.
Final Thoughts: Your Retirement Deserves a Plan
You’ve worked hard to build your wealth. Now it’s time to make that wealth work for you—on your terms.
Retiring smarter means being proactive, not reactive. It means optimizing—not guessing. And it means having a partner who’s looking out for you every step of the way.
Whether you’re five years out from retirement or already there, we’d love to help you build a plan that brings clarity, confidence, and purpose to your next chapter.
📍 Rockwall Wealth Advisors
Serving Rockwall, Texas and clients virtually across the state
📞 214-923-5237
📧 contactus@rockwallwealthadvisors.com
🌐 www.RockwallWealthAdvisors.com
