EL PASO, Texas – On the latest edition of KVIA’s “Smart Money” program, local financial expert Brian Mirau of Mirau Capital Management cautioned retirees that the long‑standing “4% rule” is only a starting point. Mirau explained that a one‑size‑fits‑all withdrawal guideline fails to consider each retiree’s unique expenses, investment performance and legacy goals.
Why the 4% rule falls short
For decades, the 4% rule has served as a simple benchmark: withdraw four percent of a retirement portfolio in the first year and adjust for inflation thereafter. Mirau noted that while the rule offers a convenient baseline, it does not account for variations in health costs, family obligations, or the desire to leave assets to heirs. “A strategy needs to reflect the person, not just a percentage,” he said.
Mixing income sources for better outcomes
The segment highlighted a recent study indicating that retirees who blend multiple income streams—such as taxable investments, tax‑advantaged accounts and annuities—can sometimes achieve more reliable cash flow than relying on a single method. Annuities, while providing predictable payments, come with fees and surrender restrictions that may not suit everyone. Mirau urged listeners to evaluate how each source can cover essential living costs and unexpected expenses.
Medicare surcharge warning
Another pressing issue discussed was the upcoming 2027 Medicare Income‑Related Monthly Adjustment Amount (IRMAA) surcharge. Higher‑income retirees could face increased premiums based on income reported two years earlier. Withdrawals from traditional IRAs, 401(k)s or other taxable accounts can push retirees over the surcharge threshold. Mirau recommended coordinating retirement withdrawals with a tax professional to avoid surprise premium hikes.
Practical steps for El Paso seniors
Mirau offered three concrete actions for local retirees:
- Assess all income sources. List Social Security, pensions, investment dividends, rental income and any annuity payments.
- Model different withdrawal scenarios. Use a spreadsheet or financial planner to see how a 3%, 4% or 5% draw impacts portfolio longevity under various market conditions.
- Integrate tax planning. Consider Roth conversions, charitable contributions and timing of withdrawals to keep adjusted gross income below the IRMAA cutoff.
Mirau emphasized that “don’t rely on a single rule.” He encouraged viewers to seek a personalized plan that balances flexibility with long‑term security.
How to learn more
Residents interested in a deeper dive can request a complimentary consultation and a retirement toolkit, which includes a copy of Mirau’s book “Smart Money for the Backside of Life.” The offer is available by calling (915) 233‑2904 or visiting miraucapital.com/tv.
This advice comes at a time when many El Paso seniors are reassessing their financial futures amid rising living costs and evolving health‑care premiums. By moving beyond a generic rule and tailoring strategies to individual circumstances, retirees can aim for a more secure and dignified retirement.
Original reporting: El Paso News (HLL/CB) — read the source article.
