Beyond the 401(k): A Roseville Pre-Retiree’s Checklist for Investment Structure

For many Californians nearing retirement, the 401(k) has been the backbone of their savings efforts for decades. It’s familiar, automatic, and often tied closely to employer benefits. But as retirement gets closer, relying on a single account type may leave important gaps unaddressed—especially given California’s higher cost of living and unique tax environment.

A well-rounded retirement position requires looking beyond employer-sponsored plans and reviewing how other accounts, investments, and future expenses fit together.

This checklist from Bulman Wealth Group is designed to help you review three key areas to manage your assets more thoughtfully as you prepare for the next phase of retirement planning in Roseville, CA.

1: Evaluating the “Account Stacking” Strategy

Account stacking refers to holding assets across different account types so income can be drawn from multiple tax buckets over time. Rather than relying solely on tax-deferred accounts like a 401(k), many pre-retirees also use a combination of traditional IRAs, Roth IRAs, and taxable brokerage accounts.

Each account type is treated differently for tax purposes. For example:

• Taxable accounts generate ongoing tax activity from dividends, interest, and realized gains.
• Tax-deferred accounts delay taxes until withdrawals begin, which can create higher income later in retirement when Required Minimum Distributions apply.
• Tax-free accounts, such as Roth IRAs, allow withdrawals without increasing taxable income.

Reviewing how assets are distributed across these buckets can make future income planning more flexible. For example, having access to taxable and tax-free funds may help manage income levels during years when tax brackets or Medicare premiums are sensitive to small changes.

For Californians, this review can be particularly valuable. Coordinating withdrawals across account types may help improve outcomes related to retirement tax benefits in California once distributions begin.

A helpful place to start is simply listing where assets are held today and identifying whether one bucket is carrying most of the weight. That snapshot can reveal whether additional balance across account types may be worth exploring.

2: Investment Location — Stopping Avoidable Taxation

While account stacking focuses on which accounts you use, investment location focuses on what you hold inside each account. It’s not about changing your overall investment mix, but about placing assets where they are treated most favorably from a tax standpoint.

Some investments generate income that is taxed at higher rates each year. Others produce income that is taxed more favorably or only when sold. Reviewing where these investments are held can affect how much tax shows up annually.

For instance, investments that produce ordinary income may fit better inside tax-deferred or tax-free accounts. Meanwhile, assets that generate qualified dividends or long-term capital gains typically work well in taxable accounts, where those gains may receive lower tax treatment.

This review also extends to non-retirement accounts. Taxable brokerage accounts may offer opportunities to realize losses that offset gains. Reviewing year-end statements for potential tax-loss harvesting is a practical way to reduce taxable income without changing long-term investment goals.

Completing this type of review can improve clarity around future tax reporting and contribute to the financial confidence that Roseville, California, households seek as retirement approaches.

Rather than focusing on performance alone, investment location encourages pre-retirees to think about how assets behave after taxes—especially once regular withdrawals begin.

3: Planning for Future Medical Expenses and Long-Term Care Costs

Investment checklists often focus on markets and returns, but healthcare costs deserve equal attention. Medical expenses can influence retirement income more than many expect, particularly later in life.

Planning for future healthcare needs involves more than estimating premiums. It includes understanding how potential care costs may interact with withdrawal strategies and account choices. This is where long-term care planning in California becomes an important part of the conversation.

Some pre-retirees use Health Savings Accounts as part of this planning. Others review insurance options or earmark certain investments for healthcare-related expenses. The goal is not to predict exact costs, but to understand how care needs could affect income flexibility down the road.

Without planning, healthcare expenses may force larger withdrawals from tax-deferred accounts, increasing taxable income during years when flexibility is limited. Reviewing this risk ahead of time allows you to think through funding sources that align with your overall retirement plan.

Including healthcare considerations alongside investment decisions helps create a more complete assessment—one that reflects real-world expenses rather than focusing solely on account balances.

Consider Bulman Wealth for Your Retirement Planning in Roseville, CA

Moving beyond the 401(k) involves several factors, like reviewing how assets are structured, where investments are held, and how future costs may affect income decisions.

This three-point checklist—account stacking, investment location, and planning for future healthcare costs—offers a practical framework for assessing assets beyond employer plans. Together, these areas help create a clearer picture of how retirement income may unfold over time.

Bulman Wealth Group works with Californians and clients nationwide, bringing decades of collective experience to retirement planning conversations. Our team takes a comprehensive approach to help individuals and families, bringing together investments, accounts, taxes, healthcare considerations, and estate planning so they work in sync with your goals and aspirations.

Have questions about ways to improve your current plan? A Bulman financial advisor in Roseville, California, can help you review these areas and identify where adjustments may be worth considering.

Contact us today to start the conversation.

Frequently Asked Questions

Should My Retirement Plan Include More Than a 401(k)?

While a 401(k) is a solid foundation, relying on a single account can limit your flexibility when managing income and taxes over time.

Why Does Investment Location Matter if My Asset Allocation Is the Same?

Holding the same investments in different account types can affect how and when you pay taxes, which can impact your annual tax reporting and future withdrawals.

When Should Pre-Retirees Start Planning for Healthcare Costs in Retirement?

It’s wise to start reviewing healthcare and long-term care costs in your 50s or early 60s. This gives you enough time to adjust your savings and account strategies accordingly.