As a fiduciary financial advisor in Midlothian, Holland Capital helps couples starting retirement decide which accounts to draw from each year, with Virginia’s income-tested age deduction weighed alongside federal tax and Social Security. Midlothian couples can plan with us over video and phone, and face-to-face meetings are arranged by appointment at the Forest Hill Avenue Regus center.
Paychecks ending. Withdrawals starting. A state deduction that shrinks as income grows.
Midlothian has about 18,300 residents, and about one in five is 65 or older. Residents commute to Richmond and Henrico, and Chesterfield County schools and government are local employers.
Virginia may allow an age deduction of up to $12,000 for each qualifying person age 65 or older. It is income-tested, so it can shrink or disappear as your income rises. Which account you tap changes that year’s income. A fixed-fee written plan sets the order of withdrawals and shows the tax effect, and you decide who carries it out. Anyone guiding these choices should be able to say whether they act as a fiduciary and what they are paid.
Where Each Dollar of Income Will Come From
We list every source the two of you will draw on, from Social Security and any pension to IRAs and taxable savings.
Virginia subtracts Social Security. Pension and retirement-account income is generally taxable by Virginia to the extent it is included in federal adjusted gross income, unless a specific Virginia subtraction applies.
Choosing the Order of Withdrawals
Each year, the plan names the account that pays the bills, keeping taxable income lower in some years and taking more in others.
Later, required withdrawals add income you do not choose. Our guide to required minimum distributions explains them, and the plan allows for them now.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Keeping the Deduction in Proportion
The age deduction is worth claiming when you qualify. It is not worth chasing if that raises your federal tax or upsets steady income. See how we weigh taxes across every account on our tax-efficient investing page.
Our investment management is there if you want it, guided by an investment policy statement that follows your withdrawal schedule.
How We Work with Clients in Midlothian
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, statements for every IRA, workplace plan and taxable account, any pension estimate and your last two tax returns.
You receive a year-by-year written withdrawal plan for a fixed fee agreed before we start. Follow it yourselves, hand it to the advisor you have, or ask us to carry it out.
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.
Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with clients in Midlothian primarily by video or phone. When an in-person meeting makes sense, we meet by appointment at the Regus center at 9211 Forest Hill Avenue, Suite 200, in Richmond.
For clients whose investments we manage, accounts are held directly at Charles Schwab in the client’s own name. Holland Capital manages the investments but does not take custody of client assets. If a client ever needs in-person assistance from Schwab, the closest branch is in Glen Allen at 11108 West Broad Street.
We work with clients throughout Virginia. You can see the other Virginia 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
Will We Qualify for Virginia’s Age Deduction?
It depends on your ages and your income each year. Because the deduction is income-tested, higher income can reduce it or remove it. We estimate it year by year and treat it as one factor, not the whole strategy.
Why Have a Fiduciary Financial Advisor Plan Your Withdrawals?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For a retiring couple, that means we pick the withdrawal order for your tax picture, not to keep more money in an account we manage.
The withdrawal plan is priced at a fixed amount agreed in advance, and asking us to manage your investments afterward would add a separate fee that we name before you choose.
Where Can Midlothian Couples Meet with Us?
We meet by appointment at 9211 Forest Hill Avenue, Suite 200, in neighboring Richmond, where Regus has a center.
Most planning conversations happen over video or the phone.
Photo: Packer1028 / Wikimedia Commons / CC0, cropped.
