Vanguard employees approaching retirement often have significant accumulated savings, deferred compensation, and a clear sense of what they want their retirement to look like. What they need is a concrete income plan that makes it sustainable. Blackshire Wealth Management provides fee-only, fiduciary retirement planning 20 minutes from Vanguard's Malvern campus.
For many Vanguard retirees, the years between leaving work and when Social Security begins, and between Social Security and when required minimum distributions kick in at 73, represent a window of lower income. This window is often the best time to convert traditional IRA and 401(k) assets to Roth.
Roth conversions in low-income years reduce future RMD amounts, reduce the portion of Social Security subject to tax, and reduce future IRMAA Medicare premium surcharges. The math depends on your specific balances and income forecast, but this window is too valuable to leave unplanned.
For married Vanguard employees, the Social Security claiming decision is not just about when you claim, but about the coordination between spouses. The higher earner delaying to 70 creates a larger survivor benefit that protects the lower-earning spouse for life. Modeling different claiming scenarios explicitly, rather than using a rule of thumb, almost always reveals a meaningfully better strategy.
Vanguard employees understand index funds, long time horizons, and the drag of fees and conflicts of interest. Blackshire is fee-only and fiduciary: no commissions, no product sales, no conflicts. The values are identical. See our Vanguard early retirement page →
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Income sequencing: deciding which accounts to draw from, in what order, and at what amounts in each year. Done well, it can reduce your lifetime tax bill by hundreds of thousands of dollars. Done poorly, it accelerates RMDs, increases Medicare premiums, and increases the portion of Social Security that is taxable.
For most people with the financial resources to delay, waiting until 70 maximizes the lifetime benefit. Every year you delay past 62 increases your benefit, with the largest increases coming between your full retirement age and 70. If you are married, the coordination between spouses' claiming ages can also significantly affect the survivor benefit, which makes the analysis more complex than a simple breakeven calculation.
You can leave the 401(k) in the Vanguard plan, roll it to an IRA, or begin drawing from it. Rolling to a traditional IRA typically provides more flexibility over withdrawal timing, broader investment options, and easier integration with your overall income plan. Required minimum distributions begin at age 73 regardless of which account holds the assets.
IRMAA is a surcharge on Medicare Part B and Part D premiums for beneficiaries above certain income thresholds. It is based on your income from two years prior. Large Roth conversions, deferred compensation distributions, or portfolio sales in years close to Medicare enrollment can trigger IRMAA surcharges that persist for years. Managing income around these thresholds is an important part of a coordinated retirement plan.
We are fee-only and fiduciary. We are paid only by our clients, never by commissions on annuities or financial products. Our only incentive is to help you build a retirement plan that works.