Tax-Efficient Retirement Income Planning in San Diego

By Elisabeth Dawson, Founder of Copia Wealth Management & Insurance Services

The Concern: Will I Get to Keep What I’ve Saved?

One of the most common concerns I hear from clients—especially those approaching retirement—is this:
“Elisabeth, I’ve saved well. But I’m worried about how much of it I’ll actually get to keep after taxes.”
That concern is valid. If you’re like many people in San Diego who have worked hard, saved diligently, and done “all the right things,” taxes could still pose one of the biggest threats to your retirement lifestyle.
That’s why tax-efficient retirement income planning isn’t just a buzzword—it’s a necessity. And it’s something we specialize in at Copia Wealth Management & Insurance Services.

Let me walk you through what it means, why it matters, and how it can protect your income for the rest of your life.

What Is Tax-Efficient Retirement Income Planning?

Tax-efficient retirement income planning is the strategy of withdrawing money from your various retirement accounts in a way that minimizes your tax liability—not just today, but over the course of your entire retirement.
It’s about when, how much, and from which accounts you pull your income.
The goal?
To keep more of what you’ve earned… and stop unknowingly giving away thousands of dollars every year to unnecessary taxes.

Why It’s Especially Important in San Diego

Let’s face it—San Diego isn’t the most affordable place to retire. Between rising housing costs, inflation, and healthcare expenses, your retirement income needs to go further.
Unfortunately, many retirees discover too late that taxes are silently eroding their savings. That dream retirement? It can start to feel a lot less secure when tax planning is missing from the picture.
But the good news is: with the right planning, we can dramatically reduce your tax burden—without compromising your lifestyle.

The 3 Buckets of Retirement Income

Let’s start with a foundational concept I teach every client: the three tax buckets your retirement income typically falls into.

🪣 1. Taxable Accounts

Examples: brokerage accounts, savings, CDs
These accounts are taxed on capital gains, dividends, and interest each year.

🪣 2. Tax-Deferred Accounts

Examples: Traditional IRAs, 401(k)s, 403(b)s
You didn’t pay taxes on the money going in, but you will pay ordinary income tax when it comes out.

🪣 3. Tax-Free Accounts

Examples: Roth IRAs, certain life insurance policies, HSAs
Withdrawals are tax-free (if certain rules are met), making these your most powerful retirement income tools.
Tax-efficient planning means knowing how to sequence withdrawals from each bucket in a way that minimizes taxes and maximizes long-term income.

Common Mistake: Delaying Tax Planning

Too many people wait until they’re already retired to start thinking about tax efficiency.
By then, some of your best options are off the table.
Tax planning should start 5–10 years before retirement—what we call the “retirement red zone.” This is where we can:

• Strategically convert Traditional IRAs to Roth IRAs
• Reposition taxable assets for long-term growth
• Lock in lower tax brackets before Required Minimum Distributions (RMDs) kick in

How We Help Our San Diego Clients Reduce Retirement Taxes

Let me show you how we take a proactive approach with every client we work with.

✅ Roth Conversion Planning

Roth IRAs are tax-free vehicles—but you have to pay taxes to convert. We help clients find the right time to do this (often between retirement and age 73) to take advantage of low tax years.
Roth conversions can:

• Reduce future RMDs
• Lower your Medicare premiums (by avoiding IRMAA brackets)
• Create a tax-free income stream later in life

✅ Social Security Timing Strategy

When you claim Social Security affects your taxes. Many people don’t realize that up to 85% of their Social Security income can be taxed based on other income sources.
We help determine:

• The optimal age to claim
• How to reduce taxation by adjusting other income streams

✅ Required Minimum Distribution (RMD) Strategy

Once you hit age 73, the IRS requires you to start withdrawing from your tax-deferred accounts—even if you don’t need the money.
This can trigger a tax chain reaction:

• Higher tax brackets
• Increased Medicare premiums
• More taxable Social Security
  We help you prepare for this before it’s too late, by creating a distribution strategy years in advance.

✅ Qualified Charitable Distributions (QCDs)

If giving is part of your heart—and many of my clients here in San Diego are deeply philanthropic—this is a powerful strategy.
You can donate directly from your IRA to a charity and avoid paying taxes on that withdrawal, up to $105,000 per year (for couples in 2025).
It’s a win-win: lower your taxable income and support causes you care about.

Case Study: Protecting Retirement Income Through Planning

Let me share a quick story about one of my wonderful clients—we’ll call them Tom and Susan.
Tom was a recently retired engineer, and Susan had just sold her small business. They had healthy savings, but all of it was in tax-deferred accounts. After running their numbers, we realized that RMDs would push them into a much higher tax bracket by the time they were 73.

Together, we:

• Created a Roth conversion plan over five years
• Reallocated a portion of their brokerage account to more tax-efficient investments
• Planned their Social Security withdrawals to avoid overlapping with higher income years
• Established a Donor-Advised Fund for Susan’s charitable goals

By making these moves early, they are now on track to save over $150,000 in future taxes—money they can use to enjoy retirement on their terms.

Why You Need a Fiduciary Approach

There are plenty of advisors out there, but not all of them are looking out for your best interest when it comes to tax planning. Many don’t touch taxes at all.
At Copia, we believe in a true fiduciary standard—that means coordinating with your CPA, reviewing your full financial picture, and building tax-aware income strategies that fit your retirement lifestyle.
This is what I call a comprehensive financial partnership, and it’s how we help our clients go from uncertainty to peace of mind.

Ready to Maximize the Retirement Income You Keep?

If you’re 5–10 years from retirement—or already retired—and you haven’t had a deep conversation about taxes and income planning, I invite you to connect with me.

Let’s talk about:

• What your actual retirement cash flow looks like
• Where your tax blind spots may be hiding
• How we can turn “good savings” into “great income”

We can’t control tax laws, but we can control how we prepare for them.

Schedule your complimentary Retirement Income for Life Strategy Session today.
Because the money you’ve worked hard to earn… should be money you get to keep.

Warmly,
Elisabeth Dawson
Founder | Fiduciary Advisor | Author
Copia Wealth Management & Insurance Services
📍 San Diego, CA
CA LIC #0C71264, #0G81294
Investment advice offered through Copia Wealth Management Advisors, Inc.
Copia Wealth Management Advisors, Inc. is a registered investment advisor.