
6 Financial Moves to Dominate Your 2025 Retirement Planning
The new year is here, and it’s the perfect time to take charge of your retirement plans. Like many Californians, you likely lead a busy life and understand the unique challenges of retiring in the Golden State. With a few smart moves now, you can reduce stress and make the most of your opportunities for the future.
In this blog, the Bulman Wealth Group shares six powerful financial strategies to help you stay on track and take control of your retirement goals.
Move #1: Maximize Your Retirement Income Sources
Retirement income typically comes from multiple sources, and managing these streams is key to maximizing earnings.
Social Security: Consider the timing of your benefits. For example, delaying benefits until age 70 can boost monthly payouts, and coordinating spousal benefits increases total household income.
Pensions: Evaluate payout options, such as lump sums or lifetime payments, and consider survivor benefits for spousal support.
Retirement accounts: Maximize 2025 contributions to employer plans or SEPs/solo 401(k)s if self-employed. Plan withdrawals carefully to avoid higher tax brackets.
Investment income: Manage income from real estate, dividends, or business sales wisely to balance growth, risk, and reward.
Bulman Wealth advisors create tailored retirement income plans with the goal of maximizing your income sources while addressing tax implications to help you make the most of your retirement.
Move #2: Optimize Your Retirement Tax Benefits
Leveraging retirement tax benefits in California plays a critical role, given the state’s high taxes.
Roth IRAs and conversions: Roth IRAs offer tax-free growth and withdrawals, while phased conversions can reduce future taxable income. A Bulman advisor can evaluate if this strategy fits your plan.
Social Security tax exemption: Social Security benefits are exempt from state taxes, providing significant savings for retirees.
State-specific credits and deductions: California’s property tax caps under Proposition 13 stabilize housing costs, while Proposition 19 lets eligible homeowners transfer their tax basis when relocating. Additional benefits include solar tax credits, disaster loss deductions, Senior Property Tax Postponement, and medical expense deductions.
Using these tax benefits strategically can stretch your savings and build the financial comfort California retirees need.
Move #3: Factor in Healthcare Costs
Healthcare is often one of the largest expenses for retirees, making it vital to account for all medical aspects in your retirement plan.
Medicare and Medigap: Medicare covers many needs, but supplemental insurance like Medigap fills coverage gaps.
Long-term care planning California strategies: Medicare and Medigap don’t cover extended nursing home stays or home health care. Long-term care insurance helps with the high costs of in-home care or assisted living. Hybrid policies combining life insurance with long-term care benefits offer flexibility and tax perks.
Alternative strategies: Building a savings buffer specifically for healthcare or exploring Health Savings Accounts (if eligible) can also reduce financial stress later.
Planning for healthcare expenses can prevent medical costs from disrupting your financial plan or draining your savings.
Move #4: Craft a Tax-Smart Withdrawal Strategy
Managing Required Minimum Distributions (RMDs) is crucial for retirees over 73, as these mandatory withdrawals from retirement accounts can create tax challenges if not planned well.
Here’s how to approach withdrawals thoughtfully:
- Coordinate and time withdrawals: Combining RMDs with other income sources can help balance your tax liability. Avoid waiting until the last moment to take RMDs. Planning distributions throughout the year can minimize the risk of unexpected tax surprises.
- RMD tax strategies: Consider strategies like Qualified Charitable Distributions (QCDs), which allow you to meet RMD requirements while donating directly to a charity, reducing taxable income.
- Asset placement: Hold high-tax investments in tax-advantaged accounts and place tax-efficient assets, like municipal bonds, in taxable accounts.
- Tax-loss harvesting: Offset capital gains with losses in taxable accounts to reduce your overall tax impact.
Proactively managing RMD withdrawal strategies satisfies regulatory requirements and helps maintain your overall financial health.
Move #5: Solidify Your Estate and Legacy Plan
Estate and legacy planning is more than just writing a will; it’s about ensuring your assets are distributed according to your wishes while minimizing taxes and complications for your heirs.
Key elements to consider:
- Trusts: Setting up a trust can help bypass probate, offer privacy, reduce legal fees, and save time for your loved ones. Make sure your trust is properly funded by transferring assets into it and regularly updating paperwork to reflect changes in your finances or family situation.
- TOD and beneficiary designations: Update the transfer-on-death (TOD) designations and beneficiaries on your retirement accounts, insurance policies, and other financial assets to match your current wishes.
- Charitable strategies: Utilize tools like Donor-Advised Funds (DAFs) or Charitable Remainder Trusts to support causes you care about while gaining potential tax benefits.
Bulman aims to provide comprehensive wealth management and legacy planning solutions that can assist you in aligning your legacy with your values while minimizing potential financial burdens on your family.
Move #6: Seek Professional Guidance From a California Financial Advisor
The financial environment is always changing, making it essential to stay informed for a solid retirement strategy. Tax laws, market volatility, and life events can all impact your plans.
Retirement planning has many moving parts, but professional guidance can simplify the process. Experienced financial advisors in California, like those with Bulman Wealth, can offer insights tailored to California’s unique economic landscape.
Personalized planning: Seasoned advisors help create a retirement strategy that fits your circumstances, aligning your income, investments, and healthcare planning for long-term success.
Tax expertise: Whether managing RMDs, considering Roth conversions, or exploring tax-loss harvesting, a Bulman advisor can guide you through practical strategies to potentially reduce tax burdens.
Comprehensive support: Advisors also provide professional experience in estate and legacy planning, helping you design a plan that aims to meet your goals while preserving wealth for your loved ones.
Consider Bulman for Your Retirement Planning in California
A plan is just a plan until it’s put into action. The six moves to dominate your retirement in 2025 are only as effective as their execution. With decades of experience, Bulman Wealth Group focuses on helping Californians turn financial strategies into tangible results.
Whether you’re looking for a Roseville, CA, financial advisor or a financial advisor in Temecula, our team provides personalized guidance to help you comfortably navigate retirement.
Don’t wait to take charge of your financial future—schedule a complimentary consultation today and start turning your retirement goals into reality.