Retirement Income Strategy: How Much Do You Need?

Educational Tool: Access the Retirement Plan Checklist to benchmark your current 401(k) and Social Security strategy against 2026 inflation.

Topical Deep-Dive: Visit the Modern Wealth Education Center for peer-reviewed instructional content on withdrawal strategies and tax-efficient portfolio design.

Fiduciary Consultation: To move from education to a personalized Financial Independence plan, you can Schedule a Meeting with our CFP® and CPA team.

A sustainable retirement income strategy for 2026 involves calculating the "post-retirement cash flow" deficit—the difference between total desired spending and guaranteed income sources like Social Security or pensions . To bridge this gap, retirees should consider utilizing a "three-bucket" framework that organizes assets into safe (1–2 years), moderate (3–7 years), and growth (10+ years) categories to ensure immediate liquidity while protecting against sequence of return risk.

This analysis, featuring Dean Barber and Neal Falkenberry, CFA, details the shift from the near-zero interest rate environment of the previous decade to the 2026 landscape where taxable bonds yield 4–5% and tax-free municipal bonds offer approximately 3.5%. We explore the impact of the One Big Beautiful Bill Act, specifically the senior deduction that allows married couples over 65 with a gross income of $140,000 to qualify for a 0% capital gains rate. Furthermore, we address Medicare IRMAA (Income Related Monthly Adjustment Amount) surcharges, which increase premiums for those with a Modified Adjusted Gross Income (MAGI) exceeding $210,000.

Sources:
Presented by Dean Barber and Neal Falkenberry, a Chartered Financial Analyst (CFA) and Managing Director at Modern Wealth Management. This presentation emphasizes the fiduciary standard, providing objective education to combat high-commission financial sales tactics. This content was reviewed by internally to ensure compliance with tax law changes and fiduciary standards.

How Americans are feeling about their finances as they age
https://www.pewresearch.org/social-trends/2025/11/06/how-americans-are-feeling-about-their-finances-as-they-age/ 

Three Major U.S. Stock Indices (1990 -2000):
https://www.researchgate.net/figure/Three-Major-US-Stock-Indices-1990-2000_fig2_272661669 

Sequence of Returns Risk and Why Timing Matters:
https://www.modwm.com/sequence-of-returns-risk-and-why-timing-matters/ 

2026 Tax Brackets:
https://taxfoundation.org/data/all/federal/2026-tax-brackets/ 

The Great Recession - December 2007-June 2009
https://www.federalreservehistory.org/essays/great-recession-of-200709