Monthly Economic Update – June 2019

admin • July 30, 2019

In this month’s recap:

Stocks, gold, and oil all surge, a door opens for U.S.-China trade talks to resume, and the Federal Reserve suddenly sounds dovish.

 

THE MONTH IN BRIEF

You could say June was a month of highs. The S&P 500 hit another record peak, oil prices reached year-to-date highs, and gold became more valuable than it had been in six years. (There was also a notable low during the month: the yield of the 10-year Treasury fell below 2%.) Also, a door opened to further trade talks with China, and the latest monetary policy statement from the Federal Reserve hinted at the possibility of easing. For most investors, there was much to appreciate.1

DOMESTIC ECONOMIC HEALTH

On June 29, President Trump told reporters, gathered at the latest Group of 20 summit, that he and Chinese President Xi Jinping were planning a resumption of formal trade negotiations between their respective nations. Additionally, President Trump said that the U.S. would refrain from imposing tariffs on an additional $300 billion of Chinese goods for the “time being.” A six-week stalemate in trade talks had weighed on U.S. and foreign stock, bond, and commodities markets in May and June.2

The Federal Reserve left the benchmark interest rate alone at its June meeting, but its newest policy statement and dot-plot forecast drew considerable attention. Among seventeen Fed officials, eight felt rate cuts would occur by the end of the year, eight saw no rate moves for the rest of the year, and just one saw a 2019 hike. The policy statement also removed reference to the Fed being “patient” about its stance on interest rates, and it mentioned economic and political “uncertainties” that may affect its near-term outlook. Stocks climbed after the announcement, and futures traders saw increased chances of a rate adjustment in either the third or fourth quarter.3

Fed Chairman Jerome Powell also moved the market on two other occasions during June. On June 4, stocks had their best day since January after he noted that the Fed was keeping a close eye on trade and tariff issues and would “act as appropriate to sustain the expansion” of the economy. Stocks had their poorest day of the month on June 25 after Powell commented that there was no need to “overreact” to a “short-term swing in sentiment” or incoming data.4,5

Some of the latest data seemed to hint at economic deceleration. The much-watched Institute for Supply Management Purchasing Managers Index for the factory sector fell to a 19-month low of 52.1 in May. The latest Consumer Price Index showed less inflationary pressure; it had advanced 1.8% in the 12 months ending in May, falling short of the Fed’s 2% target. The annualized pace of wholesale inflation dropped from 2.2% in April to 1.8% in May. Perhaps, most importantly, the economy added only 90,000 net new jobs in May, down from 205,000 a month before. (The main unemployment rate stayed at 3.6%; the U-6 rate, a broader measure which includes the underemployed and those who have dropped out of the job market, descended 0.2% to 7.1%.)6,7

Additionally, consumer confidence slipped. The Conference Board’s monthly index went from 131.3 in May to 121.5 in June (admittedly, the index had climbed higher for three consecutive months). The University of Michigan’s Consumer Sentiment Index treaded water, ending June 0.3 points above its previous reading.8,9

There were also encouraging signs, however. Retail sales rose 0.5% in May, according to the Census Bureau, and the Department of Commerce recorded a healthy 0.4% May advance for personal spending. The ISM’s non-manufacturing PMI rose 1.4 points to 56.9 in May.7,9

Early in the month, it seemed that trade negotiations between China and the U.S. were stalled. At the start of the month, President Trump proposed assessing tariffs on $300 billion more of Chinese imports (and he also talked of imposing a 10% tariff on all imported goods from Mexico, though this did not happen in June). Some optimism returned for investors when a meeting between President Trump and Chinese President Xi Jinping was scheduled for the month-ending Group of 20 summit in Japan.8

REAL ESTATE

Mortgage rates fell in June. By the June 27 edition of the Freddie Mac Primary Mortgage Market Survey, the average interest on a 30-year, fixed-rate home loan was 3.73%, compared with 3.99% on May 31. Rates for 15-year, fixed loans also descended in this timeframe, from 3.46% to 3.16%.17

30-year and 15-year fixed rate mortgages are conventional home loans generally featuring a limit of $484,350 ($726,525 in high-cost areas) that meet the lending requirements of Fannie Mae and Freddie Mac, but they are not mortgages guaranteed or insured by any government agency. Private mortgage insurance, or PMI, is required for any conventional loan with less than a 20% down payment.

The latest data on home buying came from May. Existing home sales rose 2.5%, according to the National Association of Realtors – a nice change from the 0.4% decline in April. New home sales, unfortunately, slid 7.8% during May, and that followed a 3.7% April retreat.7

Home prices flattened in April, according to the S&P/Case-Shiller 20-City Composite Home Price Index. (Data for May arrives in July.) In year-over-year terms, prices were up 2.5%.7

Lastly, housing starts weakened 0.9% in May, according to the Census Bureau, but the pace of building permits issued increased 0.3%.7

LOOKING BACK AND LOOKING FORWARD

The S&P surged 6.89% in June. The Dow Jones Industrial Average added 7.19%; the Nasdaq Composite, 7.42%. As the closing bell rang on the last market day of the month (June 28), the S&P settled at 2,941.76; the Nasdaq, at 8,006.24; the Dow, at 26,599.96.18,19,20

Prices of longer-term Treasuries rose in June, and correspondingly, their yields fell. On the first market day of the month (June 3), the yield on the 10-year note dipped under 2%; that had not happened since November 2016.21

All this greatly improved the year-to-date performance for these benchmarks. At the June 28 close, the S&P 500 was at +17.35% on the year; the Dow, +14.03%; the Nasdaq, +20.66%.18,19,20

This month, the current U.S. economic expansion became the longest on record. The economy grew 3.1% in the first quarter, by the assessment of the Bureau of Economic Analysis; the BEA’s initial estimate of Q2 economic growth is scheduled to appear July 26. The Federal Reserve’s next monetary policy meeting concludes on July 31.5,9

 

 

Disclosures

Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA & SIPC, Registered Broker Dealer and a Registered Investment Advisor. Centaurus Financial Inc. and Five Pine Wealth Management are not affiliated. This is not an offer to sell securities, which may be done only after proper delivery of a prospectus and client suitability has been reviewed and determined. Information relating to securities is intended for use by individuals residing in (OR, OH, ID, CA, WA, MT, UT, NY). Centaurus Financial Inc. does not provide tax or legal advice. A portion of this material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs, or expenses. Investors cannot invest directly in indices. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. The MERVAL Index (MERcado de VALores, literally Stock Exchange) is the most important index of the Buenos Aires Stock Exchange. The MSCI World Index is a free-float weighted equity index that includes developed world markets and does not include emerging markets. The MICEX 10 Index is an unweighted price index that tracks the ten most liquid Russian stocks listed on MICEX-RTS in Moscow. The FTSE Straits Times Index (STI) is a capitalization-weighted stock market index that is regarded as the benchmark index for the Singapore stock market. It tracks the performance of the top 30 companies listed on the Singapore Exchange. The Bovespa Index is a gross total return index weighted by traded volume & is comprised of the most liquid stocks traded on the Sao Paulo Stock Exchange. The FTSE TWSE Taiwan 50 Index is a capitalization-weighted index of stocks comprises 50 companies listed on the Taiwan Stock Exchange developed by Taiwan Stock Exchange in collaboration with FTSE. The CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. The Hang Seng Index is a free float-adjusted market capitalization-weighted stock market index that is the main indicator of the overall market performance in Hong Kong. The Korea Composite Stock Price Index or KOSPI is the major stock market index of South Korea, representing all common stocks traded on the Korea Exchange. The DAX 30 is a Blue-Chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. The SSE Composite Index is an index of all stocks (A shares and B shares) that are traded at the Shanghai Stock Exchange. The Nifty 50 (NTFE 50) is a well-diversified 50-stock index accounting for 13 sectors of the Indian economy. It is used for a variety of purposes such as benchmarking fund portfolios, index-based derivatives and index funds. The BSE SENSEX (Bombay Stock Exchange Sensitive Index), also-called the BSE 30 (BOMBAY STOCK EXCHANGE) or simply the SENSEX, is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE). The U.S. Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. CITATIONS: 1 – cnbc.com/2019/06/21/it-was-a-monumental-week-for-markets-with-major-milestones-in-stocks-bonds-gold-and-oil.html [6/21/19] 2 – bloomberg.com/news/articles/2019-06-29/xi-trump-agree-to-restart-trade-talks-china-says [6/29/19] 3 – bloomberg.com/news/articles/2019-06-19/fed-scraps-patient-rate-approach-in-prelude-to-potential-cut [6/19/19] 4 – foxbusiness.com/markets/us-stocks-wall-street-june-4-2019 [6/4/19] 5 – apnews.com/36e95b56e88e444bb67d997b47b046d6 [5/29/19] 6 – bloomberg.com/news/articles/2019-06-03/asia-factories-feel-trade-war-pain-led-by-south-korea-and-japan [6/3/19] 7 – investing.com/economic-calendar [6/28/19] 8 – thehill.com/policy/finance/450322-consumer-confidence-fell-in-june-amid-trump-tariff-threats-report [5/28/19] 9 – marketwatch.com/tools/calendars/economic [6/28/19] 10 – global-rates.com/interest-rates/central-banks/central-banks.aspx [6/25/19] 11 – bloomberg.com/news/articles/2019-06-27/ecb-seen-cutting-rates-in-september-as-draghi-reloads-stimulus [6/27/19] 12 – reuters.com/article/us-britain-eu-johnson/boris-johnson-says-he-is-serious-about-no-deal-brexit-threat-idUSKCN1TP2SR [6/24/19] 13 – markets.on.nytimes.com/research/markets/worldmarkets/worldmarkets.asp [6/28/19] 14 – msci.com/end-of-day-data-search [6/28/19] 15 – money.cnn.com/data/commodities/ [6/28/19] 16 – marketwatch.com/investing/index/dxy/historical [6/28/19] 17 – freddiemac.com/pmms/archive.html [6/27/19] 18 – money.cnn.com/data/markets/sandp [6/29/19] 19 – money.cnn.com/data/markets/dow [6/29/19] 20 – money.cnn.com/data/markets/nasdaq [6/29/19] 21 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [6/28/19] 22 – markets.wsj.com/us [12/31/18]

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The 457 Mistake That Could Cost Early Retirees Thousands

April 1, 2026
Key Takeaways Taking early withdrawals from your 457 while letting your IRA grow can help you build a more balanced retirement plan. First responders with LEOFF or PERSI pensions can use their 457 plan as a bridge between retirement and traditional retirement account access. Rolling your 457 into an IRA at retirement removes penalty-free access to funds before age 59½. Many first responders in Washington and Idaho can realistically retire early. Thanks to pensions like WA LEOFF Plan 2 or ID PERSI, disciplined savings, and a long career of service, retiring at 55 is common. If you've been putting money into a 457 deferred compensation plan, you may be sitting on a sizable balance by the time you retire. As retirement approaches, you may be wondering: “What do I do with my 457 deferred compensation plan?” Many people unintentionally make a costly mistake. They roll their entire 457 balance into an IRA the moment they retire, thinking it's the right move. It might seem logical to combine accounts and keep things simple by moving everything into one IRA. However, this move eliminates a key advantage of a 457 plan: you lose penalty-free access to your money before age 59½. Let’s look at how this works and how you can set up your retirement accounts to stay flexible in your early retirement years. Early Retirement at 55: The Income Gap Problem Whether you're covered by LEOFF Plan 2 or PERSI, retiring around age 55 is entirely realistic. LEOFF Plan 2 members can retire with a full benefit at age 53 (or as early as 50 with 20 years of service and a reduced benefit). Idaho PERSI first responders can retire as early as 50 under the Rule of 80. The years between ages 55 and 59½ are a unique financial period. Your pension might cover a portion of your income needs, but often not everything. Social Security usually starts much later, and if most of your retirement savings are in IRAs, taking out money early can trigger penalties. This is where your 457 plan can be especially helpful. Unlike most retirement accounts, 457 plans let you take out money without the 10% early withdrawal penalty once you separate from service. This rule gives you a helpful bridge between retiring and the time when traditional retirement accounts become easier to access. You lose this benefit if you move your money into an IRA too soon. If your pension doesn't cover all your needs and you rolled everything into an IRA, you might face penalties or be unable to access your money. This early-retirement gap is exactly what good 457 planning can help you avoid. 457 Plan Withdrawal Rules Once you separate from service, whether you quit, get laid off, or retire, you can start taking 457 withdrawals from your 457 plan without a 10% penalty, no matter your age. Whether you're 55, 45, or even 35, the penalty doesn't apply. If you move money from your 401(k) or another account into your 457 and then withdraw it, that money loses the 457's penalty-free status. It’s now treated like IRA money and is subject to the 10% early withdrawal penalty. Only the original 457 money stays penalty-free. You will still owe ordinary income taxes on every withdrawal from a traditional 457, just like an IRA. The key difference is that you don’t have to pay the extra 10% penalty, which can save you thousands of dollars. Should I Roll My 457 Into an IRA? Now that you know the withdrawal rules, you might be asking yourself, “Should I roll my 457 into an IRA?” This is an important question, and the answer is: it depends. Usually, moving everything at once isn’t the best idea. Many people roll their entire 457 into an IRA at retirement because it’s often suggested as a way to “consolidate” and “simplify.” While there are legitimate reasons to roll some money into an IRA, doing it all at once at age 55 means you lose your penalty-free income bridge. A few of the advantages of rolling some money into an IRA are: More investment options Estate planning flexibility Roth conversion strategies A better strategy for most first responders retiring around 55 is to split your 457 balance into two parts, or “buckets,” each with its own role in your retirement plan: Bucket 1: Use your 457 account for early-retirement cash flow. This is the money you'll live on from age 55 to 59½ (or whenever your pension plus other income is sufficient). The 457 allows penalty-free withdrawals at any time, so you control both the amount and timing of distributions. This bucket bridges the gap until your other income starts coming in. Bucket 2: Roll into an IRA for long-term growth. Once you've determined how much you need for the early years, the rest can be rolled into a traditional IRA. The IRA bucket offers more investment choices and greater flexibility for estate planning or Roth conversion. Here’s an example: Jason is a firefighter retiring at 55 from Washington with $300,000 in his 457. His LEOFF Plan 2 pension covers most of his expenses but leaves a $1,500 per month gap. Instead of rolling everything to an IRA, he keeps $90,000 in the 457, which covers about five years of that gap at $1,500/month, and rolls the remaining $210,000 into a traditional IRA. The $90,000 stays accessible, penalty-free, and the $210,000 continues to grow. By the time he turns 59½, the IRA restrictions are gone, and he hasn't paid any unnecessary penalties. Deferred Compensation Rollover: What You Need to Know If you decide to roll part of your 457 into an IRA, the process is simple. You can move your 457 into another retirement account, like a traditional IRA, Roth IRA, 401(k), 403(b), or another 457 plan. There are a few things to keep in mind: Direct rollover is the best option. Have your 457 plan send the money straight to your IRA provider. If you get the check yourself, you have 60 days to put it into your IRA, and your employer will withhold 20% for taxes. If you miss the 60-day deadline, it will be treated as a taxable withdrawal. Roth conversions are possible, but watch the tax hit. You can convert your 457 to a Roth IRA, but be careful about taxes. If you do this soon after retiring, your income might be lower, which could make it a good time for a Roth conversion. Just make sure not to convert everything at once without checking the tax impact. Putting IRA money back into your 457 is usually not a good idea. Once IRA or other retirement plan money goes into your 457, it loses the penalty-free withdrawal benefit. Only do this if you have a very specific reason. Washington's DCP and Idaho's PERSI Choice 401(k) have their own rules. Washington state's Deferred Compensation Program (DCP) is administered by the Department of Retirement Systems (DRS). Idaho first responders may have the PERSI Choice 401(k) as well as other 457 plans. Be sure you know which accounts you're dealing with before starting any rollovers. Here are two helpful resources: Washington DRS (DCP information) Idaho PERSI A Note on Taxes and Required Minimum Distributions Even if you don’t pay a penalty, you still need to think about taxes. Every dollar you take from a traditional 457 counts as regular income for that year. If you're not careful with how much you withdraw, you could end up in a higher tax bracket, especially if your pension income is already high. This is one reason the bucket approach is helpful: you can control how much you withdraw from your 457 each year and keep your taxable income in a comfortable range. It’s also important to know that required minimum distributions from traditional 457 accounts begin at age 73 or 75, depending on when you were born. Beginning in 2024, Roth 457(b) accounts in governmental plans became exempt from RMDs under the SECURE 2.0 Act. This is another reason to think about whether Roth contributions or conversions are right for you. Talk With Us Before Rolling Your 457 The 457 plan is a powerful tool, and rolling it into an IRA without careful thought means losing the feature that makes it so valuable for retirees. At Five Pine Wealth Management, we help many first responders and public employees in Washington and Idaho. We know the ins and outs of WA LEOFF Plan 2, Idaho PERSI, deferred compensation plans, and the unique challenges of retiring earlier than most people. If you're within 10 years of retirement, or if you're already retired and want to make sure your money is set up the right way, we'd be happy to help. Call us at 877.333.1015 or email info@fivepinewealth.com. Before making a decision about your 457 rollover, let’s make sure your retirement accounts are working together as they should be. Frequently Asked Questions (FAQs) Q: Does a 457 rollover to an IRA count as a taxable event? A: A direct rollover from a traditional 457 to a traditional IRA is not taxable. Q: Can I take money out of my 457 while I'm still working? A: Generally, no. 457 plans don't allow withdrawals while you're still employed, except for very limited exceptions (such as an unforeseeable emergency). The penalty-free access kicks in once you separate from service. Q: What happens to my 457 if I roll it into an IRA and then need money before age 59½?  A: You lose the 457's penalty-free protection. If you roll 457 funds into a traditional IRA, you lose the flexibility of penalty-free early withdrawals and become subject to a 10% early withdrawal penalty

“Which Account Do I Pull From First?” A Guide to Smarter Retirement Withdrawals

March 26, 2026
Key Takeaways Your retirement withdrawal order affects your taxes, Medicare premiums, and how long your money lasts. The traditional sequence (taxable → tax-deferred → Roth) is a useful starting point, but it isn't right for everyone. Drawing from multiple account types at the same time can help you manage your tax bracket year to year. Roth conversions in the early years of retirement can reduce your future RMD burden. If you're approaching retirement, there's a good chance you've spent decades doing everything right. You saved consistently, maxed out your accounts, and built a solid nest egg across multiple account types. But once retirement arrives, the question shifts. It's no longer "How do I save more?" It's "Which account do I pull from first?" It's a question most people haven't thought much about — and understandably so. You've spent years focused on building. But how you draw down your accounts matters just as much as how you built them up. Why Your Retirement Withdrawal Order Matters It's tempting to assume you can just pull from whichever account is most convenient. And honestly, in the short term, that works fine. Over a 20- or 30-year retirement, though, the sequence of your withdrawals shapes your tax bracket every single year, your Medicare premiums, the growth potential of your remaining accounts, and what you eventually leave behind for your family. Your retirement accounts aren’t taxed the same way: Traditional 401(k) or IRA : Tax-deferred, owing ordinary income tax on withdrawals Roth IRA : Tax-free, no taxes on qualified withdrawals Taxable brokerage account : More favorable long-term capital gains rate when holding investments for a year or more A thoughtful withdrawal strategy draws from each bucket in a way that keeps your taxable income as smooth and low as possible throughout retirement. The Traditional Withdrawal Order (and When It Makes Sense) For many retirees, the conventional wisdom goes like this: 1. Start with taxable accounts. Brokerage accounts and savings are often tapped first because the growth in these accounts is taxed annually anyway, and using them first lets your tax-advantaged accounts continue to grow undisturbed. 2. Move to tax-deferred accounts next. Your traditional IRA, 401(k), or 403(b) accounts are next in line. Withdrawals here are taxed as ordinary income, so drawing on them in a thoughtful, measured way helps you avoid unnecessary jumps into higher tax brackets. 3. Preserve Roth accounts for last. Roth IRAs aren't subject to Required Minimum Distributions (RMDs) during your lifetime, and withdrawals are tax-free. Letting your Roth sit and grow as long as possible tends to pay off, both for you and for any heirs who may inherit it. This framework is a reasonable starting point, and for some retirees, it works well. But it's not a universal rule. Where the Traditional Order Falls Short Here's a scenario we see fairly often. A client retires at 63 with most of their savings in a traditional IRA. They draw from their taxable accounts first — totally reasonable. But by the time they hit 73, their IRA has grown large enough that the required distributions push them into a higher tax bracket than they were in at the start of retirement. Throw in Medicare surcharges (called IRMAA), and what felt like a smart, conservative strategy in their 60s has quietly created a real tax burden a decade later. That's why we often recommend a more nuanced approach — one that considers what your tax picture looks like across your entire retirement, not just in the first year or two. Tax Diversification and the Case for Blending A blended decumulation strategy, rather than a strict withdrawal sequence, often serves retirees better than following one account type at a time. The goal is to keep your taxable income in a range that helps you stay below the thresholds that trigger higher tax brackets, IRMAA surcharges, and heavier taxation on Social Security benefits. Here's a practical example: if your expenses can be covered by a mix of Social Security and modest IRA withdrawals that keep you in the 12% tax bracket, you might also consider doing some Roth conversions that same year. You'd move money from your traditional IRA to your Roth while your tax rate is still low. Yes, you pay the tax now. But from that point on, your Roth grows tax-free — and your future RMDs shrink. It takes careful planning and realistic income projections, but for many retirees, it's one of the most effective tools available. The Behavioral Side of Withdrawal Strategy We've covered the math. But there's a human side to this that doesn't get talked about enough. A lot of retirees feel hesitant to touch certain accounts, especially ones they spent decades carefully building. We've worked with clients who had more than enough saved but were pulling too little — simply because spending down their IRA felt uncomfortable. That emotional hesitation sometimes led them to draw from the wrong accounts for the wrong reasons. Having a clear, written withdrawal plan takes a lot of that pressure off. When you know which account you're pulling from and why, you're far less likely to second-guess yourself when markets get bumpy or make reactive moves that throw off an otherwise solid plan. Think of it as guardrails: a defined spending amount, a clear account order, and a scheduled check-in to revisit when things change. There’s No One-Size-Fits-All Answer The right withdrawal sequence depends on things specific to you: how much you have and where it's held, your expected income in retirement, when you plan to take Social Security, whether you have a pension, how your state treats retirement income, and what you'd like to leave behind. A strategy that's a perfect fit for one person can create real headaches for another. That's why this is one of the first things we talk through with clients who are getting close to retirement — and one we revisit as things change. If you're within five to ten years of retirement and haven't mapped out a withdrawal plan yet, now is a good time to start. Before RMDs kick in is often when you have the most flexibility to plan. We'd love to walk through what this looks like for your specific situation. Reach out anytime at info@fivepinewealth.com or call 877.333.1015. Frequently Asked Questions (FAQs) Q: Does my withdrawal order change if I have a pension? A: Yes, it can. A pension provides guaranteed income, so you may already be covering a good chunk of your expenses before touching your investment accounts. That changes how aggressively you need to draw from tax-deferred accounts — and may create more room for Roth conversions early in retirement. Q: How does Social Security timing affect my withdrawal strategy? A: If you delay Social Security to boost your monthly benefit, you'll need to cover living expenses from your portfolio in the meantime. That gap period is often a smart time to draw down traditional IRA balances at a lower tax rate, before Social Security income pushes your taxable income higher. Q: Can my withdrawal order affect my Medicare premiums?  A: It can. Medicare uses your income from two years prior to set your Part B and Part D premiums. A large IRA withdrawal that bumps your income above certain thresholds could mean higher premiums (IRMAA surcharges) two years down the road. Keeping those thresholds in mind when planning withdrawals can help you avoid some unwelcome surprises. Five Pine Wealth Management is a fee-only, fiduciary financial planning firm based in Coeur d'Alene, Idaho. We work with individuals and families across the country who want thoughtful, personalized guidance — without the conflicts of interest that come with commission-based advice.