5 Retirement Income Mistakes That Cost DFW Retirees Thousands
Most retirees in the DFW area make at least one of these mistakes in their first year of retirement. Not because they're careless. Because nobody warned them.
The first year of retirement is where the money is made or lost. Not in the market. In the decisions. Wrong withdrawal order. Bad Social Security timing. Tax surprises that didn't need to happen.
Here are the five retirement income mistakes I see most often — and how to avoid every one of them.
1. Taking Social Security Too Early Without Running the Math
The most common retirement income mistake starts with a guess. "I'll just take Social Security at 62." No analysis. No spousal coordination. No tax modeling. Just a feeling.
Social Security is a six-figure decision. The difference between filing at 62 and waiting until 70 can exceed $100,000 in lifetime benefits — sometimes more when you factor in spousal and survivor benefits.
The right age isn't 62, 67, or 70. The right age is whatever your numbers say. And "your numbers" means running the actual math — not listening to what your neighbor did.
Every situation is different. A married couple in Northlake with a pension has a completely different optimal filing strategy than a single retiree in Frisco with only a 401(k). The math matters. The feelings don't.2. Withdrawing From the Wrong Accounts First
2. Withdrawing From the Wrong Accounts First
Most people retire and start pulling from whatever account is easiest to access. Usually the IRA. Sometimes the brokerage. Rarely in the right order.
Withdrawal sequencing is one of the most overlooked strategies in DFW retirement planning. The order you pull money from your accounts — taxable, tax-deferred, tax-free — directly impacts how much you keep and how long your money lasts.
Pull from the wrong account first and you can push yourself into a higher tax bracket. Trigger Medicare surcharges. Miss Roth conversion windows that would have saved you tens of thousands over a decade.
The account you withdraw from first isn't a preference. It's a strategy. And it should be modeled before you take your first dollar out.
3. Ignoring Texas's Tax Advantages (and the Traps That Remain)
Texas has no state income tax. That's a real advantage. But it's not a complete tax strategy.
Federal income taxes still apply. Medicare surcharges still apply. Required Minimum Distributions still apply. Capital gains taxes still apply. Property taxes in Denton County are among the highest in the state.
I've seen DFW retirees assume their tax bill would drop in retirement simply because they live in Texas. Then they get their first full-year tax return and wonder what happened.
A Texas address isn't a tax plan. It's a starting point. The real strategy is in how you structure withdrawals, time conversions, and manage income thresholds — all within the federal code that still applies to every Texan.4. Not Stress-Testing Your Plan Against a Market Downturn
4. Not Stress-Testing Your Plan Against a Market Downturn
Everyone's retirement plan works in a bull market. The question is whether it survives a bear.
Most retirement income mistakes show up when the market drops 20% in your first two years. That's called sequence-of-returns risk — and it can permanently damage a portfolio if you're withdrawing without a strategy.
A real plan accounts for bad years. It includes guardrails. It has a cash reserve strategy. It doesn't panic because it was built to absorb exactly this kind of shock.
If your plan only works when the market goes up, you don't have a plan. You have a wish.
Stress-testing isn't pessimism. It's preparation. And in the DFW retirement planning world, preparation is what separates the retirees who sleep well from the ones refreshing their portfolio at 2 a.m.
5. Going It Alone When a Second Opinion Could Save You Six Figures
This is the one nobody wants to hear. Because it costs money to get help. And most people think they can figure it out themselves.
Some can. Most can't — not because they're not smart, but because retirement planning involves the intersection of taxes, Social Security, Medicare, investments, estate planning, and behavioral finance. That's a lot of moving parts.
A single missed Roth conversion window can cost $50,000. A bad Social Security filing decision can cost $100,000. A poorly timed withdrawal can trigger years of Medicare surcharges.
The cost of going it alone isn't always obvious. It shows up slowly — in taxes that didn't need to be paid, in benefits that were left on the table, in money that ran out five years too early.
A second opinion isn't a luxury. It's insurance against the mistakes you didn't know you were making.The Bottom Line
The Bottom Line
Retirement income mistakes are expensive because they're permanent. You can't un-file for Social Security. You can't un-trigger a tax bomb. You can't put the money back once it's gone from the wrong account at the wrong time.
The first year of retirement defines the next thirty. That's not fear — it's math.
If you're within five years of retirement, or you've already retired and aren't sure your plan is optimized, now is the time to find out. Not next year. Not after tax season. Now.
Book a complimentary Swan Fit Call to see where your retirement income plan stands. We'll look at your Social Security timing, withdrawal order, tax exposure, and stress-test your plan against a downturn — all in one conversation.
