5 Ways To Preserve Your Purchasing Power During Retirement

Core Insights - The article emphasizes the importance of protecting purchasing power in retirement to maintain a comfortable lifestyle amidst inflation [2][3]. Group 1: Tax Planning Strategies - Retirees should plan wisely for taxes by considering all income sources, including drawing from Roth IRAs or taxable accounts during low-income years to keep taxable income lower [4]. - The passage of the "Big Beautiful Bill" introduces a new senior deduction, which may allow retirees with modest incomes to owe little to no federal tax [5]. - Higher-income retirees need to engage in smart tax planning, utilizing strategies like capital gains harvesting and optimizing withdrawal timing to maximize income and reduce tax exposure [6]. Group 2: Income Stability - Modern retirees face longer lifespans and unpredictable markets, necessitating financial strategies that ensure long-term income stability rather than merely preserving savings [8].