Davies Wealth Management

The DROP program sounds straightforward: build a lump sum, then retire.

But the tax side catches people off guard — and we've seen it happen even with careful planning.

A large DROP distribution in a single year can push a retiree into a higher bracket they weren't expecting. And two years later? Those same dollars can trigger IRMAA surcharges on Medicare premiums.

The fix isn't complicated — but it has to happen *before* you lock in your enrollment date, not after.

Modeling your distribution year in advance can open real planning opportunities: a gap year before Social Security, space for Roth conversions, smarter withdrawal sequencing.

If you're a Florida public employee — or have a family member in the FRS system — this is worth reading before any decisions are made.

We put together a plain-language breakdown of how DROP actually works and the tax factors worth discussing with your advisor:
👉 https://tdwealth.net/drop-program-florida-books-retirement/



⚠️ Educational only. Not investment advice. Davies Wealth Management is a registered investment advisor. Past performance ≠ future results.

When was the last time you looked at what tax bracket you'll actually be in during retirement — not now, but the year *after* you stop working?

Most people assume their tax bill will shrink when the paychecks stop. And for a few years, it might.

But for households with a pension, Social Security, and traditional IRA savings — there's a quiet shift that happens around age 73 when required minimum distributions begin. Suddenly, taxable income can climb back up. Sometimes higher than expected.

Here's what many families miss: the years *between* retirement and RMDs can actually be the lowest-income window of your financial life. And that window matters.

Converting some traditional IRA money to Roth during those years — while your income is temporarily lower — may reduce the size of future RMDs. Smaller RMDs can mean a lower tax bracket later, and potentially lower Medicare IRMAA surcharges, which are tied directly to your income.

It's not about paying zero taxes. It's about understanding *when* you'll pay them — and whether there's a smarter sequence.

Have you mapped out what your taxable income looks like at 75? It might surprise you.

At Davies Wealth Management, we help Treasure Coast families think through exactly this — before the window closes and the options narrow.

Our Florida Retirement Guide walks through the income and tax planning framework we use with every family: tdwealth.net/florida-retirement-guide/



⚠️ Educational only. Not investment advice. Davies Wealth Management is a registered investment advisor. Past performance ≠ future results.

Skilled nursing care in Florida now averages over $100,000 a year.

If that's a two-year stay, you're looking at $200,000 — drawn from the same portfolio you planned your retirement around.

That's the part of long-term care planning most people don't sit with long enough.

It's not just about whether you *can* afford care. It's about what funding that care actually looks like in practice — selling assets during one of the most stressful seasons a family goes through, possibly at the wrong moment in the market.

On a quiet Sunday morning, it's worth asking: does your retirement income plan account for this?

We work with families on the Treasure Coast who are thinking through exactly this. Not with fear — but with a clear-eyed plan.

If you'd like to talk through how long-term care risk fits into your retirement picture, we'd welcome the conversation.

👉 Book a complimentary call: https://meetings.hubspot.com/tdavies1/phone-consulation?uuid=333c2495-4e09-40cc-9c98-60d78848a34c

Happy Sunday from Stuart. 🌴



⚠️ Educational only. Not investment advice. Davies Wealth Management is a registered investment advisor. Past performance ≠ future results.

Things Boomers Should Never Sell in Retirement
Thinking of selling assets in retirement? 🏡💰 Discover why keeping stocks, life insurance, and even your home could protect your legacy and your heirs’ future. Curious what’s best to pass on? Find out now!
https://www.vusocial.com/agent-news/thomas-davies/1798327-Things-Boomers-Should-Never-Sell-in-Retirement

Your will is airtight. Your beneficiary forms? Still naming your ex-spouse from 2003.

That's not a joke — it happens more often than you'd think.

Here's something we've seen across more than 30 years in this industry: the retirees who stress the least about taxes aren't the ones who earned the most. They're the ones who planned their income *sources* intentionally, years in advance.

The reason? Not all retirement income is taxed the same way.

Social Security. Traditional IRA withdrawals. Roth distributions. Long-term capital gains. Each one sits in a different tax "bucket" — and pulling from the right one at the right time can make a meaningful difference in what you owe every single year.

It's called tax-bracket management, and it's one of the most overlooked retirement planning strategies there is.

If you're within five years of retirement, this is worth understanding before year-end — when you still have time to act.

Take our free Financial Wellness Quiz to see where your retirement income plan stands today. It takes about five minutes and gives you a clear starting point.

👉 tdwealth.net/wellness-quiz/

Happy Saturday, Treasure Coast. ☀️



⚠️ Educational only. Not investment advice. Davies Wealth Management is a registered investment advisor. Past performance ≠ future results.

New video from Davies Wealth Management!

"Couple Retirement Calculator: How to Plan for Two Incomes"

Watch: https://www.youtube.com/watch?v=ha7NbTQchTk

For educational purposes only. Not investment advice. Davies Wealth Management.