Guardian Resources says taxes can be retirees’ biggest expense

Guardian Resources founder Clifton Ross is urging Minneapolis retirees to treat taxes as a central part of retirement planning, not an afterthought. The firm says tax-aware withdrawal decisions can affect Social Security, investment income and the total cost of major expenses.

Why it matters: - Taxes can take a bigger bite out of retirement income than many Minneapolis retirees expect. - Withdrawal choices from retirement accounts can change the tax bill on Social Security, investment gains and other income sources. - The timing and source of money used for major expenses can shape long-term retirement outcomes.

What happened: - Guardian Resources highlighted tax considerations in retirement planning after founder Clifton Ross appeared on KSTP-ABC Channel 5 News. - Ross used the segment to argue that retirees should plan for taxes before taking money from retirement accounts. - The firm said a tax-forward approach can help families understand the impact of future withdrawals, investment sales, pensions and Social Security benefits before money moves.

The details: - Traditional 401(k)s and IRAs can help during working years, but withdrawals are generally treated as ordinary taxable income. - Large distributions can also affect how Social Security benefits and investment income are taxed. - Ross gave an example of a retiree who needed about $20,000 for a home retaining wall. - An IRA withdrawal would have created taxes on the distribution and could have affected other taxable income. - Using checking account funds instead produced a different tax result. - Ross said the location of savings can matter as much as the amount saved. - Guardian Resources said its Retire Roadmap™ process combines income, investments, taxes, healthcare considerations and withdrawal planning. - The firm said possible strategies include reviewing tax-deferred balances, evaluating capital gains, coordinating income sources and considering Roth conversions or health savings account distributions when appropriate. - The firm said the right strategy depends on income, account balances, tax brackets, healthcare needs and long-term retirement goals. - Guardian Resources is a Minneapolis-based retirement planning and wealth management firm focused on retirement income, investment planning, tax considerations, healthcare planning and long-term financial decisions. - More information is available in Guardian Resources' Minneapolis retirement planning services. - A full recording of the KSTP-ABC Channel 5 News segment is also available.

Between the lines: - The message reflects a broader shift in retirement planning toward tax location, not just portfolio size. - For retirees with sizable tax-deferred savings, the order and source of withdrawals can influence multiple parts of the financial picture at once. - The firm's emphasis on coordinated planning suggests tax decisions should be made alongside healthcare and income planning, not separately.

What's next: - Guardian Resources is encouraging people approaching retirement to review the tax characteristics of retirement accounts, investment assets and major future expenses before making large withdrawals. - Retirees who want to reduce tax surprises may need to revisit withdrawal sequencing, Roth conversion timing and the mix of taxable and tax-deferred assets. - The firm's Minneapolis retirement-planning outreach is likely to stay focused on tax-aware decision-making as part of broader retirement income planning.