For retirees and people a few years out · Durham, Chapel Hill and across North Carolina

Your first required withdrawal is coming, or a Social Security decision is. Here is what each one costs.

The money is there. The next ten years are decided by three choices most people make by default: when to claim Social Security, which account pays you first, and what to do in the low-tax years before required withdrawals start. Each one is arithmetic, and each one is shown below with the 2026 rules.

James Ustby, CFP®, APMA® · Wealth Advisor, LPL Financial

I work with retirees on the retirement paycheck: Social Security timing, withdrawal order and the tax each year, from eight Fidelity Bank branches in Durham, Chapel Hill and nearby. Verify me first: my CFP Board record and BrokerCheck.

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What will my first required withdrawal be, and what does it do to my taxes?

Roughly the December 31 balance divided by the IRS factor for the age you reach that year: at 73 the factor is 26.5, so a $1,000,000 IRA owes about $37,736, and every dollar of it is ordinary income. The two things that change the bill are what else is on the return that year and whether part of it goes to charity as a qualified charitable distribution, which never shows up in income. The worksheet above runs the arithmetic for each account; the call checks it against your return.

Which account should pay me first?

Usually the taxable account first, then the traditional IRA, then Roth last, with one exception that matters more than the rule: the years between retiring and the first required withdrawal are often the lowest-tax years of your life, and a partial Roth conversion in those years can cost less than it ever will again. It is a tax decision as much as an investment one, which is why your CPA sees the plan before you do.

What does working with you cost?

The first conversation is free: thirty minutes, in person at a Fidelity Bank branch, by phone or by video, and you leave with the three things worth looking at next, in writing. After that I am paid through LPL Financial by planning fees, advisory fees, and commissions on insurance products, all disclosed in writing before any engagement. Nothing moves unless you decide it should.

Lost a spouse in the last year? The money tasks have an order: the first 30 days, 90 days and first year.

Each lesson answers a single question you would ask a planner, in the order a planner would want you to ask them.

• October 16, 2026

  Should I roll my 401(k) into an IRA when I retire?

  Rolling a 401(k) into an IRA can widen choices and simplify withdrawals, but keeping the plan can win if you retire at 55 to 59 or hold company stock.

• October 14, 2026

  Is it worth paying a financial advisor a 1 percent fee?

  A 1 percent fee is worth it only if the planning, tax and behavior help you get is worth more than the dollars. Start by putting the fee in dollars.

• October 13, 2026

  What age should you take Social Security if you are married?

  For many couples, the higher earner waiting toward 70 matters most, because that check becomes the survivor's. Here is the math for one example couple.

• October 10, 2026

  How much do you lose by claiming Social Security at 62 instead of 67?

  Claiming at 62 cuts your check by 30 percent for life if your full retirement age is 67. Here is the math, the break-even age, and who should claim early.

• October 9, 2026

  How much monthly income does $1 million generate in retirement?

  About $3,300 a month before tax at a 4 percent withdrawal rate, and the real answer depends on taxes, Social Security, and which year you retire. Here is the math.

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Questions people ask next

How much do I need to retire?

A common starting point is about 25 times the annual income you need from savings after Social Security and any pension. That is a rule of thumb, not a guarantee. Taxes, healthcare before Medicare, and a bad market early in retirement can move the number.

Which account should I withdraw from first?

Often taxable accounts first, then traditional IRA and 401(k) money, then Roth last, with an important exception: the years between retirement and required minimum distributions can be useful for filling lower tax brackets on purpose. The right order is a tax decision as much as an investment one.

When should I take Social Security?

For many married couples, the higher earner waiting toward 70 protects the survivor benefit. Claiming at 62 permanently reduces the check if your full retirement age is 67. Health, other income, and whether you need the money to stop working all matter.

Does Medicare cover long-term care?

No. Medicare covers short rehabilitation after a qualifying hospital stay, not ongoing help with daily living. Long-term care is usually paid from savings, long-term care insurance, or Medicaid once eligibility rules are met.