How to Retire Without Running Out of Money

TL;DR: Running out of money in retirement is the #1 fear most people have. The good news? With the right planning—covering income, taxes, and flexibility—you can retire confidently knowing your money will last.

 

The Fear No One Likes to Admit

 

If you’re like most people approaching retirement, you’ve asked yourself some version of this question:

 

“Do I really have enough saved? What if I outlive my money?”

 

I hear this all the time from clients—whether they have $500,000 saved or $5 million. The dollar amount isn’t the real issue. It’s about whether your money is working in a way that supports the life you want.

 

The truth? Retirement isn’t just a number in your account. It’s a strategy.

 

Why People Run Out of Money in Retirement

 

Here are the most common mistakes I see:

  1. Relying on a single income source – like Social Security or a pension.

  2. Ignoring taxes – pulling money out of the wrong account at the wrong time.

  3. Using the “set it and forget it” method – assuming your expenses and markets will never change.

  4. Not planning for healthcare or long-term care costs.

  5. Failing to adjust – not revisiting your plan as life evolves.

The good news? Every one of these has a solution.

 

 

The Three Pillars of a Sustainable Retirement Plan

 

1. Build Multiple Income Streams

Think beyond Social Security. Your plan might include:

  • Pensions or annuities

  • Retirement accounts (401(k), IRA, Roth IRA)

  • Taxable investment accounts

  • Real estate income

  • Part-time or passion income

A mix of guaranteed and flexible income helps you weather uncertainty.

 

 

2. Manage Taxes Like They’re a Bill (Because They Are)

Taxes are often the single biggest expense in retirement. Smart planning can save you tens or even hundreds of thousands over a lifetime.

  • Sequence withdrawals (don’t just default to the 401(k) first).

  • Use Roth conversions strategically.

  • Harvest capital gains in low-income years.

  • Keep an eye on RMDs (Required Minimum Distributions).

For more strategies, see our guide on Tax-Efficient Retirement Withdrawals(link internally).

3. Keep Your Plan Flexible

No matter how well you plan, life will surprise you. Markets shift. Health changes. Goals evolve.

The retirees who succeed aren’t the ones with the “perfect” plan on day one. They’re the ones who revisit, adjust, and stay flexible year after year.

A Real Example

One couple we worked with came in worried they’d burn through their money by age 80. By creating a withdrawal strategy, staggering their Social Security, and building a tax-smart income stream, they not only secured their retirement—they gained the confidence to take the trips they’d always dreamed about.

That’s the difference a plan makes: going from “Will we be okay?” to “We know we’ll be okay.”

 

Key Takeaways

  • Retirement security isn’t about hitting a magic number—it’s about having a strategy.

  • Build multiple income streams, manage taxes intentionally, and keep your plan flexible.

  • Regularly revisit your plan so it evolves with your life, not against it.

Your Next Step

 

If you’re unsure whether your retirement savings will last, don’t wait until the last minute.

 

At Life Planning Advisors, we help clients:


→ Define what retirement freedom really looks like
→ Build an income and tax strategy to support it
→ Adjust the plan as your life changes

 

Want to see what this could look like for you? Book a Retirement Planning Session today.

Demystifying Economic Jargon

Economic news often comes with a slew of complex terms that can feel overwhelming. Understanding key economic indicators can help you make more informed decisions about your financial future. Here's a breakdown of five essential economic terms that frequently appear in market updates and policy discussions.

Producer Price Index (PPI)

The Producer Price Index (PPI) tracks the changes in selling prices received by domestic producers for their output. As a leading indicator of inflation, rising PPI values can signal forthcoming increases in consumer prices since higher production costs eventually lead to higher retail prices.

Consumer Confidence Index (CCI)

Published monthly by The Conference Board, the Consumer Confidence Index (CCI) gauges the overall optimism of consumers regarding the economy and their personal financial situations. A high CCI generally leads to increased spending and economic growth, as confident consumers are more willing to make purchases and investments.

10-Year Treasury Yield

The 10-Year Treasury Yield is a significant benchmark for interest rates across the economy. Rising yields can indicate expectations of inflation or economic growth, while falling yields may signal economic uncertainty or slower growth. Investors closely watch Treasury yields as they provide insights into the economic outlook and market conditions.

Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a measure that examines the average changes over time in the prices paid by urban consumers for goods and services. As the primary measure of inflation, shifts in the CPI affect purchasing power. A rising CPI reflects increased inflation, which can erode the value of money, impacting how much you can buy.

Consumer Sentiment Index

Compiled by the University of Michigan, the Consumer Sentiment Index measures consumer attitudes toward personal finances, business conditions, and spending plans. Similar in purpose to the CCI, it provides additional insights into consumer psychology. While both indexes serve to gauge consumer confidence, they derive from different methodologies and samples. With an understanding of these terms, you are better equipped to interpret market fluctuations and align your financial strategies accordingly. Keep this guide handy for when economic terms cloud your thoughts, and consider sharing it with those who might also benefit from clearer economic insight.