Retirement Withdrawal Strategies: How the Right Sequence Can Save You Thousands in Taxes
08/19/2025
This week, my name, Alonso Rodriguez Segarra, appeared in an incredible and, I must admit, unexpected place: GoBankingRates list of the Top 100 Money Experts. Sharing a list with figures I deeply admire, like Warren Buffett, Robert Kiyosaki, Dave Ramsey, Suze Orman, Mark Cuban, and Barbara Corcoran, this recognition is an honor that has made me reflect on the journey so far and, more importantly, the path that still lies ahead.
For our firm, this award isn’t just a title; it’s a reaffirmation that our model, centered on transparency and client well-being, is the right direction. This recognition validates our unwavering commitment to the fee-only model, proving that it’s possible to offer elite financial advice without conflicts of interest, right here in Boca Raton.
How many fee-only financial advisors are available in the United States?
According to a 2024 article in The Wall Street Journal, less than 2% of the more than 285,000 financial advisors in the United States are fee-only. Keep in mind that, according to the CFP Board, in 2025, there are more than 100,000 advisors who are Certified Financial Planners. This is one of the most prestigious recognitions for financial planning preparation, and its characteristics are that CFPs must meet fiduciary criteria and act in the best interest of their clients.
So, suppose you find an advisor who is both a CERTIFIED FINANCIAL PLANNER® and a fee-only advisor. In that case, you’ve found a needle in a haystack. This professional will have no conflicts of interest because they do not receive commissions from third parties, and they will also be 100% fiduciary. At Advise Financial, we are a fee-only firm, and our CEO holds a CFP® designation.
Why are so few financial advisors?
Being a fee-only advisor presents challenges. Simply put, most advisors working for large financial groups are not fee-only; they are fee-based, meaning they earn commissions on the sales of products.
Imagine what it means for an independent advisor to compete against these large financial groups, which have all the resources in terms of marketing budgets and whose advisors receive larger bonuses for selling more expensive products. On the other hand, we have advisors who seek long-term relationships without charging these high commissions.
This means that the temptation to receive a hefty commission on the sale of a financial or insurance product is exceptionally high. Only a small number of advisors choose the fee-only model, despite this approach being what clients would logically prefer. The fee-only structure ensures that clients receive services that prioritize their best interests and minimize conflicts of interest, leading to unbiased advice.
To learn more about this topic, read our blog on 3 Reasons to Hire a Fee-Only Financial Planner
The Value of a Fee-Only Financial Advisory Firm
As a fee-only firm, our sole source of income is the direct fee our clients pay for our services. This means we don’t accept commissions for selling financial products, insurance, or investments. This structure eliminates any conflict of interest, ensuring that every recommendation—whether it’s on a Roth Conversion strategy, managing an Inherited IRA, or optimizing your RMDs—is 100% aligned with our clients’ best interests.
This complete transparency is the foundation of our relationship with everyone who comes to us in Boca Raton. Clients know exactly what they are paying for and can be certain that the advice they receive is impartial and designed to serve their goals.
A Holistic Financial Analysis for a Solid Future
At our firm, we understand that financial planning is much more than a spreadsheet. It’s a personalized map that charts your dreams, your goals, and your fears. The first step we take with every client is an assessment of their risk and investor profiles. You can’t design an effective plan without understanding the person behind the portfolio. This profile isn’t just a form; it’s a deep conversation that helps us understand your emotional tolerance and financial capacity for market fluctuations. It’s the foundation of everything that follows.
Once we establish your profile, we move to a 360-degree view of your wealth. We provide a view of the consolidated portfolio compared to the benchmark. It doesn’t make sense to analyze a single asset without seeing the complete picture. We analyze the performance of your entire portfolio relative to relevant benchmarks. This helps us understand if your assets are working as hard as they should be and if they are outperforming or underperforming expectations.
Diversification is a topic that many people are familiar with, but few apply it correctly. Our concentration and diversification analysis goes beyond simply “owning a bit of everything.” We delve into your sector, geographic, and asset exposures to ensure your portfolio has no blind spots. A well-diversified portfolio is the best defense against market volatility, and our job is to ensure yours is a true shield.
Retirement Planning Is No Longer a Mystery
Retirement is a destination that feels uncertain for many. To combat this, we use technology and expertise to perform advanced retirement scenarios forecasting. We don’t just tell you if you’ll have enough money; we show you, in different scenarios (a bull market, a bear market, or moderate growth), what your finances will look like 20 or 30 years from now.
These advanced models enable us to collaborate with our clients on withdrawal analysis to achieve their financial goals. This means we determine the best way to withdraw money from your retirement accounts so you don’t run out of funds and your withdrawals last your entire life. The way you withdraw your money can be as important as the way you invest it, and a small mistake can cost you thousands, if not millions, of dollars over the years.
The Magic of Roths, IRAs, and RMDs: Optimizing Your Financial Future
Now, let’s get into the more technical part—the heart of our work. Our previous blogs have touched on these topics because they are vital, but we want to delve into how our expertise directly benefits our clients.
And speaking of strategies, in addition to our blog, you can find informative videos on our YouTube channel, such as the one below: “Don’t Run Out of Money in Retirement! The Right Order to Withdraw Funds”.
Roth Conversions and the Power of Strategy
A Roth Conversion isn’t a simple yes-or-no decision. It’s a complex tax strategy that requires meticulous analysis. Our job is to perform ROTH Conversions and RMD scenarios. We analyze your current and projected tax situation for the coming years. We consider your age, income, and future earnings. By converting a traditional IRA to a Roth, you pay taxes now so your future withdrawals are completely tax-free. This is a significant advantage, especially if you anticipate being in a higher tax bracket in the future. Our analysis will show you exactly when, how much, and why to do a conversion. It’s not generic advice; it’s a personalized action plan.
The RMD Trap
RMDs (Required Minimum Distributions) are the Achilles’ heel of many retirees. The rules are confusing, the deadlines are strict, and the penalties for non-compliance are brutal: a 25% penalty on the amount you failed to withdraw. Our job is not just to remind our clients to take their RMDs; it’s to calculate the exact amount and the ideal timing to do so, sometimes even strategically combining them with a charitable giving plan or a broader withdrawal strategy to minimize their tax impact. Our clients never have to worry about this issue because we take care of every detail.
IRAs and Inherited Accounts
And, of course, there’s the management of Inherited IRAs. As we’ve discussed in other blogs, the rules have changed dramatically. The option to stretch withdrawals over a lifetime no longer exists. Now, in most cases, the account must be liquidated within a ten-year period. Our job is to guide beneficiaries through this maze of rules and deadlines, ensuring they avoid tax penalties and manage this asset as efficiently as possible.
Would you like to know more about Inherited IRAs: The Hidden Tax Trap Most Beneficiaries in Boca Raton Overlook?
A Proactive Approach: The Constant Review of Your Plan
Our service doesn’t end with the creation of a plan. A financial plan is a living document that requires regular review and adjustment. That’s why our services include a tax return analysis to identify areas for improvement. Once a year, we review our clients’ tax returns to identify opportunities to optimize their tax strategy for the upcoming year. This may include adjustments to your investment strategy or contributions to your retirement accounts.
Additionally, we meet to review financial goals and analyze their progress. Life changes. Goals change. A plan from five years ago may not be relevant today. That’s why we review your goals, your progress, and make the necessary adjustments. This ongoing review is crucial to keeping your plan on track, ensuring your financial future is as solid as you want it to be.
The True Award
At the end of the day, the recognition from GoBankingRates is a reminder that our passion for our clients’ financial well-being is what drives us. It’s an honor that encourages us to continue striving and improving every day to better serve the community of Boca Raton.
If you’re looking for a partner who not only has the expertise to be recognized nationally but also has an unwavering commitment to your best interests, we invite you to start a conversation with us. We are here to be your guide, your ally, and your advocate on the path to financial peace of mind.
Alonso Rodriguez Segarra – CERTIFIED FINANCIAL PLANNER®
Which provides hourly, fee-only, and fiduciary financial planning services. He has over 25 years of experience in the financial world and has been named among the Top 100 Financial Advisors in the US by Investopedia and by etf.com
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Note: The comments given in this guide are for educational purposes only. Before making a financial decision, consult your financial advisor or conduct appropriate research. Remember that historical results are not a guarantee of future returns. In the comments provided, this guide does not consider tax impacts. Always consult your particular case with a specialist. We are not your financial advisor, so remember that each case differs.
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All rights to this guide are reserved, and the occasional mention of third-party brand names is made solely for educational and reference purposes, without any interest in financial gain. This information is for educational purposes only and does not represent an offer of products or services.
