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Retirement income planning is essential to the success of your retirement, financially, regardless of your savings and hard work. Without adequate planning market fluctuations and volatility can leave your nest egg greatly diminished, and your retirement financially devastated.

This is why KCA Wealth Management is so focused on ensuring their clients understand the importance of theories and books, such as “The Bucket Plan”. It is essential to see your retirement as an income source, in combination with other benefits, such as pensions, 401(K), social security, and other streams of income. In fact, strategies, such as consulting in retirement, can significantly assist those looking to stretch their retirement savings.

The Bucket Plan uses the methodology of seeing your retirement savings as a multitude of “buckets” or accounts. Using the now, soon and later bucket you can ensure your capital is adequately invested depending upon your needs now, soon (within 10 years), and later (10+ years). This ensures your capital is invested adequately for when you need it. The plan underscores the importance of liquid and stable assets you need access to now. This is all the while investing capital you won’t need for some time into growth-oriented strategies that have higher risk and volatility, over the short-term, but a larger opportunity for growth over time.

You can learn more by watching this video or request a copy here. KCA Wealth Management is a strong supporter of the strategy and even wrote the forward for a limited edition version of the book we’d love to share with you!

Systematic & Fixed Withdraws

Although strategies, such as “the bucket plan”, are excellent theories it is also important to have your long-term goals and actual expenses/income in each year of retirement projected. This is why KCA Wealth Management sees the importance of spending time with each of our clients, individually, to draw out a plan that meets your budget, while also ensuring your financial security regardless of the length of your retirement.

This is why strategies, such as the bucket plan, are so effective. However, one important element is the stability of using systematic and fixed withdrawals. You can find more here from KCA Wealth, including a calculator, of how long your systematic withdrawals can last. Many investors can find themselves in trouble when they withdraw inconsistently, or only when they need money. Especially if withdrawing directly from equities and other more volatile assets.

This strategy often leads to a significant difference in withdrawals as a percentage of your retirement savings depending on the market’s performance. We strongly advise clients to keep withdrawals below 4% of total savings each year to ensure their nest egg can stand the test of volatility and time. Further, we advise clients to take consistent and fixed withdrawals as this minimizes volatility through smaller, but consistent, withdrawals of liquid assets invested for the expected time horizon. This ensures your retirement has consistent and expected values at the time of withdrawal, rather than a gamble of your retirement savings at each turn and withdrawal. Furthermore, there are specific tax advantages to specific withdrawal amounts, especially around the end and beginning of the year, dependent upon your situation.

The ultimate risk is when retirees fall victim to market fluctuations withdrawing at marker lows in fear, and hesitating to withdraw at market highs in a booming market. This fact cannot be more evident than the 2008 crisis. The crisis cost many investors as much as 50% or more of their capital invested in equities. Nonetheless, the bull market, since 2008 lows, has returned in excess of 500% from S&P500 market lows of $676 to the all-time highs of over $3,700 the S&P 500 reached in late 2020.


Ensuring consistency in retirement is essential. Although growth is desired and necessary, it is just as important to ensure monthly expenses and lifestyle can be maintained regardless of the stock market’s performance. Such is why annuities, and other forms of insurance, are an essential part of every retirement.

Annuities, as defined by Investopedia, is a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future. 

There are three major types, which are:

  1. Fixed annuities, which pay out a guaranteed amount as specified.
  2. Variable annuities, which pay out dependent upon the performance of investments selected in your account.
  3. Indexed annuities, which provide a guaranteed amount, but are also tied to the performance of indices like the S&P 500.

Each of these types have their advantages and disadvantages, however, all annuities provide the stability we all need and desire in retirement. Further, these annuities provide your investment tax deferment, although they do accrue income tax when disbursed, so meeting with a financial expert is highly recommended when making these large decisions.


Insurance is an essential part of you and your partner’s retirement plan. Medical bills can quickly add up, especially in cases that long-term care is required. We’ve covered previously on how to adequately planning for healthcare costs in retirement as it is essential to ensure your insurance and estate is adequately prepared. Long-term care can be unbelievably expensive, and someone turning 65 today has a70% chance of needing some type of long-term care services and support in their remaining years. Further, women’s long-term care averages 3.7 years, whereas men’s care averages 2.2 years. Medicare and Medicaid cover little to none of the exorbitant costs of healthcare, which can have a devastating effect on an estate. Lastly, products, such as life insurance, can more adequately protect your assets for your heirs by covering the hefty cost of funeral expenses and inheritance taxes.

At KCA Wealth Management our mission is to be there every step of the way in supporting the members of our community with the financial and educational resources they need and deserve to prosper in retirement. 

Investing in securities involves risk of loss.  Further, depending on the different types of investments there may be varying degrees of risk.  Clients and prospective clients should be prepared to bear investment loss including loss of original principal. All guarantees of an Annuity are backed by the claims paying ability of the issuing insurer.

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