As a fiduciary financial advisor in Leland, Holland Capital helps recently retired couples use the years before required minimum distributions to plan withdrawals, Roth conversions and Social Security. We work with clients in Leland by video and phone, and meet in person by appointment at Common Desk on North Front Street in Wilmington.
Retired, but not yet at RMD age.
Leland has about 30,000 people, and more than a quarter of them are 65 or older. Several large planned communities here were built with active retirees in mind.
If you retired in your early 60s, you may be in a window that does not last. The paycheck has stopped. Required minimum distributions (RMDs) have not started yet. Social Security may not have started either.
For some couples, these are the lowest-income years they will have for a long time. That can make them a good time to plan taxes ahead.
The Years Before RMDs
For IRAs, RMDs generally begin at age 73 or 75, depending on your birth year. After that, a set amount must come out of traditional IRAs each year, and the taxable part counts as income. Workplace plans can follow different timing if you are still working there.
Large balances can mean large RMDs later. Drawing some money earlier, while income is low, can spread the tax over more years. Our guide on required minimum distributions explains the rules.
Roth Conversions in the Window
Converting shifts savings out of a traditional IRA and into a Roth IRA. You owe tax that year on the taxable part, on both your federal and North Carolina returns. In exchange, qualified Roth withdrawals come out tax-free, and the original owner of a Roth IRA never faces RMDs.
Converting some money each year can use lower tax brackets while keeping your total taxable income in check. For the trade-offs, see our Roth conversion guide.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Where Social Security Fits
The age you claim Social Security changes your income in the window. Waiting can leave more room for conversions now and a larger check later. Claiming earlier gives income sooner and less room to convert.
For a married couple, the two claiming ages work together. Our Social Security claiming guide lays out the choices for couples.
At Holland Capital, investment management follows the withdrawal and conversion plan year by year.
How We Work with Clients in Leland
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring both of your Social Security estimates, two years of tax returns, and a statement for each IRA, 401(k), Roth and taxable account.
We map out each year until RMDs begin: what to withdraw, how much to convert, when each of you claims Social Security and the expected tax.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Leland, we meet by appointment at Common Desk at 226 North Front Street in downtown Wilmington, about 14 minutes from Leland, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Leland.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
How Much Should We Convert to a Roth Each Year?
There is no single answer. It depends on your tax bracket, your other income, your health coverage and how long the money can stay invested. We test several amounts before you decide.
Why Work with a Fiduciary Financial Advisor Before RMDs Begin?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. In the years before RMDs, that means advice on withdrawals, conversions and Social Security together.
How we are paid is set out in writing first.
Where Can Leland Clients Meet with Us?
Across the river in downtown Wilmington, at the Common Desk coworking space, about 14 minutes away. Meetings are by appointment.
Between meetings, we keep in touch by phone and video.
Photo: Idawriter / Wikimedia Commons / CC BY-SA 3.0, cropped.
