Lisa is semi-retired. Mike’s still working, but not because he has to. It’s because he enjoys it. They’ve built a good life. They’re not extravagant, but they’re intentional. They still spend Mondays together when Lisa’s off, even if it’s just to run errands.

You can tell how much they enjoy the little things.

They’re the kind of couple who shows up to a meeting with handwritten notes, a highlighted checklist, and thoughtful questions. Not because they’re stressed… but because they genuinely care about getting it right.

And when we talked, they had one concern that kept bubbling up: “We know we’ve saved enough. But we don’t want to start pulling from it too early. And we’re not sure what the tax hit will really be.” Mike echoed that hesitation in a way many people can relate to: “I don’t think I have to keep working… but I also don’t want to start taking money out just yet.”

This is the emotional no-man’s land where many retirees get stuck - the tension between freedom and fear.

Wanting to step away from work… but worried that the money they’ve worked so hard to save might get eaten up by Uncle Sam if they touch it too soon.

The IRS Doesn’t Care If You Need the Money

Here’s what most people miss: retirement taxes don’t just show up when you “spend” the money.

They show up when you’re forced to take money out, even if you don’t need it.

That’s the real kicker with Required Minimum Distributions (RMDs). It’s not about whether you want to take money from your IRA. It’s about whether the IRS says you have to.

Mike and Lisa had both hit the point in life where RMDs were on the horizon. They weren’t worried about affording retirement. They were worried about disrupting their entire tax plan - and potentially their Medicare premiums - just because they were forced to withdraw income they didn’t need.

That’s when they stumbled on something that stopped them in their tracks.

The Strategy That Flipped Their Tax Picture

While going through our Retirement Readiness Checklist, one small detail sparked a big conversation and opened the door to a powerful strategy they had never heard of before...

Using a tax-refundable bond strategy inside of their IRA.

Now, at first glance, that sounds like financial jargon. So let’s break it down.

Typically, when you take money out of your IRA to satisfy RMDs, it’s taxed as ordinary income. That’s standard. You take the withdrawal, and the IRS takes their cut.

But this strategy works differently.

Instead of taking distributions directly and triggering a tax bill, Mike and Lisa learned how to use a special class of tax-refundable bonds inside their IRA. These bonds generate fixed, predictable monthly income. And when the income is withdrawn - it qualifies for a federal tax refund.

Yes, you read that right: a refund.

This strategy doesn’t eliminate RMDs. But it satisfies them in a way that dramatically reduces the tax bite.

And in Mike and Lisa’s case, that changed everything.

“It Wasn’t About How We Saved… It Was About How We Took It Out.”

That was Lisa’s realization - and it hit her hard.

They had done all the hard work. They had saved consistently, invested wisely, and avoided the common traps.

But they almost missed the most important piece of the puzzle: how to get the money out efficiently.

They didn’t need more growth. They needed a better withdrawal strategy.

Once they saw it, the fog lifted. Mike no longer felt like he had to keep working just to delay RMDs. Lisa could confidently step fully into retirement. Not because they suddenly had more money - but because they had more clarity and control.

That peace of mind isn’t just financial. It’s emotional.

The Hidden Retirement Tax Risk (That No One Tells You About)

Here’s the part that frustrates me most - this isn’t new. The IRS rules haven’t changed overnight. But very few people talk about these strategies until it’s too late.

Retirees are out here doing all the “right” things: maxing out 401(k)s, building up their nest egg, living within their means.

And then they hit retirement and get blindsided by taxes they never saw coming. Not because they did anything wrong - but because they were playing defense instead of offense.

The truth is: how you take money out matters just as much as how you saved it.

And if you’re not planning for taxes until the year you retire… you’re already behind.

Don’t Just Look at the Number. Look at What Comes Next.

Mike and Lisa didn’t need a bigger portfolio. They needed a better plan.

If you’re reading this and wondering whether you’ve missed something - you’re not alone. And you’re not behind. But this is your cue to start asking smarter questions.

Start with the Retirement Readiness Checklist. It’s free, and it’s helped a lot of families start seeing the real risks in their retirement plan before they turn into regret.

Because at the end of the day, retirement isn’t just about hitting a number. It’s about knowing how to navigate what comes next… and keeping more of what you’ve worked so hard to build.