Explore strategies to balance your retirement income and legacy goals, including tax-efficient withdrawals, trusts, and philanthropic planning.

Blending Retirement and Legacy Goals Seamlessly

For high-net-worth individuals, retirement planning goes beyond meeting personal financial needs. It also involves creating a meaningful legacy for future generations. Achieving the right balance calls for a strategic approach that integrates income planning with estate and wealth transfer strategies.

Continue reading to discover how EP Wealth’s experienced financial advisors can help you synchronize your retirement and legacy goals with confidence and clarity.

Identifying Competing vs. Complementary Objectives

Retirement and legacy goals can sometimes be at odds. For example, the desire for a comfortable retirement lifestyle may compete with the intention to preserve wealth for heirs. Recognizing these potential conflicts is the first step toward developing a cohesive plan that effectively addresses both objectives.

Asset Segmentation and Purpose-Driven Allocation

Segmenting assets based on their intended purpose can help individuals balance the dual priorities of retirement and legacy planning. By assigning specific roles to different portions of your portfolio, you can create a more focused and effective strategy.

Retirement Income Assets

These are funds specifically set aside to maintain your lifestyle throughout retirement, covering essential expenses such as housing, healthcare, and day-to-day living expenses. Prioritizing stability and liquidity, these assets are often invested in lower-risk vehicles to provide reliable access when needed.

Growth Assets

These investments are intended to generate long-term appreciation, helping to build wealth over time that can eventually support legacy or philanthropic goals. Because they’re not needed immediately, they can typically withstand more market volatility and be allocated to assets with higher growth potential.

Legacy Assets

These are resources intentionally preserved for future generations or charitable endeavors, such as trusts, donor-advised funds, or bequests. Planning for these assets may involve tax-efficient strategies and legal structures to honor your wishes.

"By segmenting assets based on their intended purpose, you can create a more focused and effective strategy. This approach helps individuals balance the dual priorities of retirement and legacy planning, assigning specific roles to different portions of your portfolio."

Structuring Tax-Efficient Retirement Income

Effective tax planning is a key factor in safeguarding wealth for retirement and legacy goals. Here are a few strategies to consider:

Withdrawal Sequencing: Strategically withdrawing from taxable, tax-deferred, and tax-free accounts to manage tax liabilities. This can help minimize overall taxes paid over the course of retirement and extend the longevity of your portfolio.
Roth Conversions: Converting traditional IRA assets to Roth IRAs during lower-income years to potentially reduce future tax burdens. This strategy can also provide tax-free income later in retirement and lessen the tax impact on heirs.
Charitable Contributions: Incorporating charitable giving into your plan can provide tax benefits while supporting causes important to you. Options like Qualified Charitable Distributions (QCDs) or donating appreciated assets can be especially effective.

By thoughtfully integrating tax strategies into their retirement income plan, retirees can enhance financial efficiency, reduce unnecessary tax exposure, and better position their wealth to support current needs with legacy goals.

Incorporating Trusts into Retirement and Legacy Planning

Trusts can serve as effective tools for aligning retirement income with long-term legacy goals. The right structure can support both asset management and wealth transfer across generations.

A revocable living trust offers flexibility and control during your lifetime. It allows an individual to manage assets as the trustee and facilitates a smoother transition to beneficiaries by avoiding probate after death.

An irrevocable trust, by contrast, can remove assets from your taxable estate. This structure may support estate tax reduction and provide stronger protection against potential creditors or claims.

For those with philanthropic intentions, a charitable remainder trust (CRT) enables you to receive income during retirement while eventually passing the remaining assets to a charitable organization of your choice.

The appropriate trust structure will depend on your financial objectives, family dynamics, and tax situation. Given the complexity and long-term implications, working with experienced professionals can help align trust strategies with your broader retirement and legacy planning goals.

Philanthropy as a Bridge Between Retirement and Legacy Goals

Philanthropy can be a meaningful way to connect your retirement planning with your long-term legacy goals. Supporting causes during your lifetime offers potential tax advantages and the deep personal fulfillment that comes from making a positive difference in the world.

Creating a lasting impact through direct contributions or tools like donor-advised funds or a foundation allows you to coordinate giving with your personal values and extend your influence beyond your lifetime. Whether you're funding educational opportunities, advancing medical research, or supporting local communities, the act of giving can be incredibly rewarding.

Integrating philanthropy into your financial plan adds purpose to your wealth and enriches your retirement experience and the legacy you leave behind.

Coordinating Business or Real Estate Transition Planning

For business owners and real estate investors, transitioning these significant assets demands thoughtful, proactive planning.

Succession planning involves creating a clear strategy for transferring business ownership to family members, key employees, or external buyers to preserve the business’s value and continuity. The tax-efficient transfer of real assets, especially when the value of the assets may trigger estate taxes, requires careful planning.

By addressing these complex holdings as part of your broader retirement and legacy plan, you can potentially help facilitate a smoother, more intentional transition that supports both your personal goals and the long-term interests of your heirs.

Regular Plan Reviews

Your financial plan should evolve as your life and the broader landscape change. Regular reviews help keep your strategy aligned with your current priorities and long-term goals. Key times to revisit your plan include:

Major life events – Marriage, divorce, the birth of a child, or the loss of a loved one may all require updates to your estate documents, beneficiary designations, or retirement planning assumptions.
Legislative changes – Shifts in tax law or retirement regulations can impact income strategies, charitable planning, and estate decisions.
Market fluctuations – Volatility or prolonged changes in economic conditions may call for rebalancing investments or adjusting risk exposure.

Integrating Retirement and Legacy Planning

A comprehensive approach to financial planning considers both retirement needs and legacy aspirations. By addressing these elements cohesively, you can develop a strategy that supports your lifestyle while preparing for the future. Contact an advisor near you to explore EP Wealth retirement planning services and discuss your unique financial planning needs.

DISCLOSURES

EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.
Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
Hiring a qualified advisor and/or financial planner does not guarantee investment success, and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.
EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of option are subject to change without notice.
All investment strategies have the potential for profit or loss. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be suitable or profitable for a client’s portfolio. The risk of loss can never be eliminated even if working with a professional.
An estate plan is a helpful tool that can assist individuals in managing and arranging affairs in the event of death or incapacity. However, the scope and extent of the plan varies depending on the unique circumstances and desires of the individual client. It is for this reason, that the analysis encompassed herein is not intended to be comprehensive in nature nor should it be interpreted as legal advice. Please consult a legal professional to determine the extent, scope, and the drafting and creation of the appropriate estate documents. EP Wealth Advisors is not in the business of providing legal advice or preparing legal documents. Our review is limited to and in association with Financial Planning only.
Laws vary by state. The information presented herein is intended to be general in nature and may not apply to your state of domicile. Please consult local legal counsel to determine the best practices for your state.
Please consult with a CPA, tax professional, and/or attorney regarding your specific situation before implementing any of the strategies referenced directly or indirectly herein.

Seamlessly Blending Retirement and Legacy Goals

About the Author

Retirement Planning | July 29, 2025

Table of Contents

Table of Contents

Blending Retirement and Legacy Goals Seamlessly

Identifying Competing vs. Complementary Objectives