Many start with DIY retirement planning, thinking it’s relatively simple and a good way to save on costs. However, as assets grow, things become far more complicated. What worked in the early stages of building wealth may no longer be effective when it’s time to preserve that wealth, draw income from it, and eventually pass it on.
Investment risk, tax exposure, and income strategy all need to evolve—and without professional insight, the risks can far outweigh any cost savings.
At PAX Financial Group, we bring over 100 years of combined experience helping individuals and families plan for every stage of retirement. Our financial advisors for retirement planning are fiduciaries committed to putting our clients’ interests first.
This article discusses the common pitfalls of DIY retirement planning and highlights how working with a skilled advisor can help you maximize retirement income—so your money works harder for you when it matters most.
The Pitfalls of DIY Retirement Planning
There’s no shortage of blogs, calculators, and YouTube videos offering retirement advice. But even with hours of research, DIY retirement planning often leads to costly oversights, especially when it’s time to turn savings into income.
Common retirement planning mistakes:
- Misjudging withdrawal rates: Taking out too much too soon can quickly drain your savings, especially without a plan to adjust for inflation or market conditions.
- Ignoring sequence-of-returns risk: Market losses early in retirement can have a lasting impact if withdrawals aren’t managed properly.
- Overlooking tax strategy: Required Minimum Distributions, taxable Social Security benefits, and Medicare surcharges can erode income.
- Not managing concentrated stock positions: Without hedging or diversification, a single company’s performance can dominate your financial future.
- Failure to build a coordinated investment strategy: A mix of taxable, tax-deferred, and tax-free accounts requires a deliberate plan for withdrawals and rebalancing.
- Emotional decision-making: DIY investors may panic during market downturns—selling at the wrong time or sitting in cash too long.
- Missing out on tax-saving tools: Strategies like Roth conversions, tax-loss harvesting, and using Health Savings Accounts are often overlooked.
Managing one’s retirement plan also means staying on top of tax laws, tracking market shifts, and making regular portfolio adjustments—all while juggling day-to-day responsibilities.
That’s where working with a seasoned advisor like those with PAX can make a meaningful impact.
How a Financial Advisor Maximizes Your Retirement Income
Experienced financial advisors don’t just manage investments—they help you design a plan that supports your lifestyle, accounts for taxes, and adapts to change. Through experience and strategic planning, they can help you avoid costly mistakes and create an income stream built to last.
Here’s how an advisor adds value beyond DIY planning:
- Optimized withdrawals: An advisor helps coordinate distributions from traditional IRAs, Roth IRAs, and brokerage accounts in a way that minimizes taxes. Strategies like the bucket method or guardrail withdrawals can also reduce the impact of sequence-of-returns risk in the early retirement years.
- Investment diversification: Advisors build portfolios that match your risk tolerance and goals while incorporating a broader range of investments, including alternatives, global exposure, and even values-based options. This depth helps smooth returns and can protect against market downturns.
- Social Security and pension planning: Claiming Social Security too early—or too late—can reduce lifetime benefits. An advisor helps evaluate timing strategies for both individuals and couples. If you’re eligible for a pension, they can also assess lump-sum vs. monthly payouts, considering your longevity expectations, tax bracket, and estate goals.
- Tax-efficient strategies: Advisors often uncover overlooked opportunities like Roth conversions, Qualified Charitable Distributions (QCDs), tax-loss harvesting, and Health Savings Account (HSA) planning—each of which can reduce your future tax burden.
- Estate and legacy planning: Advisors help structure beneficiary designations, Transfer on Death accounts, Donor-Advised Funds, and trusts to support your legacy, reduce probate issues, and provide philanthropic benefits.
At PAX Financial, our advisors take a comprehensive approach—reviewing your retirement accounts, pensions, investments, real estate, and healthcare costs to build a strategy that fits your goals.
For many, working with an advisor isn’t just about numbers—it’s about having a plan built with purpose and expertise.
Is It Time To Talk to a Financial Advisor for Retirement?
If you—or your spouse—are within a few years of leaving the workforce, this is a pivotal time to review your income plan, adjust your investment strategy, and fine-tune your tax approach. The earlier you begin, the more flexibility you have to strengthen your situation.
However, retirement timing isn’t the only reason to speak with an advisor. Many seek fiduciary guidance during key life transitions or when uncertainty sets in. Ask yourself:
- Do you feel like your planning is behind and need help catching up?
- Are you self-employed and unsure how to build retirement savings as a business owner?
- Will you be selling a business or receiving an inheritance soon?
- Are you preparing to help pay for a child or grandchild’s college education?
- Do you hold a significant stock position and feel concerned about market volatility?
- Are you wondering if there are tax or investment opportunities you’re missing?
- Are you second-guessing your current advisor, or simply want a second opinion?
These are all valid reasons to explore professional guidance.
PAX offers complimentary consultations with no pressure or obligation. It’s simply a conversation to help you evaluate your retirement strategy.
The Unique Value of PAX Financial Group
Not all advisors take the same approach. At PAX, our fiduciary duty means we’re committed to putting your interests first—always. That’s more than just a title; it’s a responsibility we take seriously with every retirement strategy we build.
We offer comprehensive services that go beyond investment advice. Whether you’re looking for help with retirement planning, tax strategies, legacy planning, or managing your overall wealth, our team provides solutions that reflect your goals, values, and stage of life.
Our advisors don’t follow cookie-cutter plans. Instead, we’ll take time to understand your situation and design a strategy around it.
Clients choose PAX because of our values-driven, faith-based philosophy and our long-standing reputation for straightforward, thoughtful guidance. Building a meaningful retirement takes more than market predictions—it takes understanding, empathy, and experience.
Looking for a trusted financial advisor who can help simplify your next steps? Consider a team that listens first and guides with care.
Schedule your free consultation with us today.
