How to Help Build a Retirement Income Plan in Delaware Without Relying on Annuities
Many people approaching retirement believe they need an annuity to guarantee income for life. The idea of predictable monthly payments can feel comforting, especially when faced with the uncertainty of market fluctuations and a long retirement timeline. But annuities are not the only path to financial security, and for many retirees in Delaware, they may not be the best option.
At Savant Wealth Management, our goal is to help individuals build sustainable retirement income. Our approach focuses on diversification, tax efficiency, and personalized strategies that evolve with your goals. If you live in Lewes or elsewhere in Delaware, we believe understanding the alternatives to annuities can help you retire with more flexibility and control.
Why Some Retirees Are Wary of Annuities
Often marketed as a one-size-fits-all solution to retirement income, annuities come with trade-offs. Some contracts are complex and difficult to understand. Many include high fees, surrender charges, or limited access to your money once the contract is in place. Others tie your returns to market performance but limit the upside while still exposing you to risks.
For retirees who value liquidity, control, and transparency, these restrictions can be frustrating. In some cases, advisors who earn commissions sell annuities, which may create a conflict between what is best for the client and what benefits the salesperson.
This is where we think a fee-only financial advisor in Lewes can make a difference. By not accepting commissions, fee-only advisors focus entirely on what is in the client’s best interest. That often means exploring non-annuity strategies that offer both flexibility and growth potential.
The Pillars of an Annuity-Free Retirement Income Strategy
There are many ways to generate income in retirement without locking your assets into an annuity. Here are some of the core components fiduciary financial advisors may use to help build lasting income plans.
Diversified Investment Portfolio
A well-balanced mix of stocks, bonds, exchange-traded funds, and cash equivalents can provide steady income and long-term growth. The right mix depends on your risk tolerance, income needs, and time horizon. Diversification helps reduce volatility and protect against downturns while still allowing your portfolio to grow.
Social Security Timing Strategy
Your decision about when to begin taking Social Security can have a significant impact on your lifetime income. Delaying benefits past full retirement age can result in larger monthly payments. Coordinating Social Security with your other income sources can also help improve your tax efficiency.
Tax-Efficient Withdrawal Planning
Many retirees have multiple types of accounts: taxable brokerage accounts, traditional IRAs, Roth IRAs, and more. Withdrawing from the right accounts in the right order can help reduce your tax burden and potentially extend the life of your portfolio. For example, strategic Roth conversions in early retirement may allow you to take advantage of lower tax brackets.
Required Minimum Distributions Planning
Once you reach a certain age, the IRS requires you to begin withdrawing from traditional retirement accounts. Managing these required minimum distributions is key to avoiding tax surprises. A smart plan can help minimize their impact and help you preserve more of your wealth.
Cash Reserve or Bucket Strategy
A cash reserve, or “bucket,” strategy involves keeping one to two years of expenses in cash or short-term investments. This allows you to cover daily expenses without selling investments when markets are down. It helps give your portfolio time to recover from volatility.
The Potential Benefits of Working with a Fee-Only Financial Advisor in Lewes
Not all financial advisors operate the same way. Clients directly compensate their fee-only advisors, not through commissions or product sales. This structure allows them to offer objective advice and prioritize your goals first.
In Lewes, where many residents are preparing for or actively navigating retirement, we believe having an advisor who truly puts your best interests first can make all the difference. Fee-only fiduciary advisors take the time to understand your full financial picture, including your lifestyle, family dynamics, tax situation, and legacy goals.
At Savant Wealth Management, our advisors serve as true partners with our clients. We do not recommend annuities or commission-based products. Instead, we help retirees create thoughtful, evidence-based plans that are designed to help provide income, protect against risk, and offer the flexibility to adapt over time.
Why This Approach Can Resonate in Delaware
Delaware continues to be a popular place to retire, thanks to its favorable tax climate, coastal beauty, and tight-knit communities. However, living in a retiree-friendly state does not eliminate the need for careful planning.
For residents of Lewes and other parts of Delaware, building a retirement income plan that avoids unnecessary fees and restrictions is often a priority. Many are looking for a strategy that can help provide freedom, not limitations.
By focusing on personalized investment planning and tax efficiency, retirees can stay in control of their assets and make decisions based on their goals, not a product pitch. This approach can help support long-term financial wellness and a retirement that reflects your values.
Talk to a Fiduciary Financial Advisor in Lewes
If you are approaching retirement and want a strategy that puts you in control, consider building a plan without annuities. At Savant Wealth Management, our advisors in Lewes work with retirees to help create customized income plans using diversified investments, tailored withdrawal strategies, and tax-efficient planning. Connect with our Lewes team or schedule a call to learn how we can help you retire with clarity.