As retirement approaches, affluent Americans face a unique set of financial planning challenges. From minimizing taxes on substantial assets to ensuring income stability throughout a longer lifespan, the stakes are high. At CKS Summit Group, we believe in going beyond traditional retirement strategies by introducing the SMART Retirement™ approach—a forward-thinking, tax-focused methodology designed for long-term financial resilience.

What is SMART Retirement™?

SMART stands for Strategic Movement Around Retirement Taxation. It’s a comprehensive planning strategy focused on helping minimize retirement taxation, not income. Unlike conventional methods that focus primarily on rate of return, SMART Retirement™ considers the often-overlooked impact of taxation on long-term income.

The goal? Help retirees legally target the lowest possible tax bracket, maximizing spendable income while preserving wealth.

Learn more from CKS Summit Group’s official SMART Retirement™ page.

Why Tax Strategy is Critical for High-Net-Worth Retirees

The Institute on Taxation and Economic Policy (ITEP) reported that in 2024, the richest 1% of Americans paid 23.9% of all taxes (including federal, state, and local), slightly exceeding their share of total income, which was 20.1%. For affluent individuals, retirement doesn’t mean taxes disappear—it means new planning strategies are needed to avoid unnecessary losses.

Key reasons why tax strategy matters in retirement:

• Social Security Benefits May Be Taxed depending on the combined income.
• Required Minimum Distributions (RMDs) can push retirees into higher tax brackets.
• Capital gains, dividends, and other passive income may increase net taxable income.
• Medicare premiums can rise based on your adjusted gross income (AGI).

Core Pillars of the SMART Retirement™ Strategy

The SMART approach is designed around several key financial strategies that are all focused on sustainable wealth and tax efficiency:

1. Tax Arbitrage

This refers to drawing income from various accounts at strategic times to take advantage of lower tax brackets. For example, drawing from a Roth IRA in a high-income year versus a traditional IRA in a low-income year can lead to more tax-efficient withdrawals over time.

2. Income Stream Diversification

A diversified portfolio is more than just stocks and bonds. The SMART approach advocates for combining:

• Tax-deferred accounts (e.g., traditional IRAs, 401(k)s)
• Tax-free accounts (e.g., Roth IRAs)
• Taxable brokerage accounts
• Non-market-based income products

Diversifying income sources can help retirees better control their AGI and potentially reduce the taxation of Social Security or Medicare premiums.

3. Roth Conversions

Converting traditional retirement assets into Roth accounts during low-income years can help reduce future tax burdens. The key is converting just enough to remain in a lower tax bracket while avoiding unintended tax consequences.

4. Asset Location Optimization

This strategy involves placing investments in the right types of accounts to help maximize after-tax returns. For example:

• Tax-inefficient assets (like REITs or taxable bonds) are better suited for tax-deferred accounts.
• Tax-efficient assets (like ETFs or municipal bonds) work well in taxable accounts.

This may help reduce your tax drag—the silent killer of net returns.

Tackling Retirement Risks Head-On

The SMART Retirement™ methodology also addresses common retirement risks:

➤ Longevity Risk

With life expectancies increasing, portfolios must be designed to last 25–30 years or more. The SMART strategy emphasizes stable income-generating products, helping ensure you’re not overly reliant on stock market performance alone.

➤ Sequence of Returns Risk

Poor market returns early in retirement can have a lasting negative effect. SMART recommends incorporating non-correlated income sources to reduce dependence on portfolio withdrawals during down markets.

➤ Healthcare Costs

According to a 2024 Retiree Health Care Cost Estimate, a 65-year-old couple retiring today can expect to spend $315,000 in out-of-pocket healthcare expenses throughout retirement. SMART Retirement™ helps plan for these potential costs with dedicated income buckets.

Busting the Wall Street Myth: Rate of Return Isn’t Everything

Traditional advisors may fixate on the rate of return, but SMART Retirement™ focuses on what you keep after taxes. For high-net-worth individuals, even a high annual return can be offset by a poorly designed tax plan.

Tax-efficient strategies can often yield greater long-term spendable income than a few extra points in market return, especially when those extra points come with higher volatility or increased risk.

The CKS Summit Group Difference

At CKS Summit Group, we provide educational guidance tailored for affluent Americans approaching retirement. Our focus is on helping clients:

• Understand how taxes affect retirement.
• Strategically plan for future income needs.
• Reduce reliance on market performance.
• Protect assets from unnecessary taxation.

Our team works in collaboration with tax professionals and estate attorneys to help ensure your plan reflects current laws and your personal goals.

Planning in an Evolving Tax Landscape

With potential changes in federal tax policy on the horizon, high-net-worth individuals must stay ahead of the curve. The Tax Cuts and Jobs Act is set to expire in 2026, which could result in higher tax rates for many retirees.

By acting now, retirees can position themselves favorably before tax rates potentially increase.

Final Thoughts: Make Retirement Work Smarter, Not Harder

The SMART Retirement™ approach isn’t about chasing market highs—it’s about making informed, strategic decisions that legally help lower your tax burden and increase your financial flexibility. For affluent Americans, it’s a new paradigm that reflects both the complexity and opportunity of modern retirement.

If you’re nearing retirement and want a plan that’s as resilient as your career has been, it might be time to explore SMART Retirement™ with the professionals at CKS Summit Group.

✅ Ready to Get SMART About Retirement?

Schedule a strategy session with CKS Summit Group and discover how a custom retirement income plan focused on tax efficiency can help support your goals.

📍 Visit the SMART Retirement™ Page

Frequently Asked Questions (FAQs)

1. What is the SMART Retirement™ Approach?

The SMART Retirement™ Approach is a proprietary, educational retirement planning philosophy developed by CKS Summit Group. It stands for Strategic. Methodical. Asset-allocated. Retirement. Thinking. This approach focuses on creating customized retirement income plans that balance market exposure with risk management, tax efficiency, and sustainable income strategies. It emphasizes flexibility, longevity planning, and protecting lifestyle needs over time.

2. Who is the SMART Retirement™ Approach best suited for?

SMART Retirement™ is designed for affluent pre-retirees and retirees, typically those ages 50 and up, who want to preserve their wealth, minimize taxes, and create dependable income throughout retirement. It’s particularly valuable for individuals concerned about outliving their savings, market volatility, or the impact of taxes on their retirement income.

3. Does the SMART Retirement™ Approach involve specific investments or financial products?

No. The SMART Retirement™ Approach is educational in nature and not investment advice. It does not promote or endorse specific investments, products, or securities. Instead, it focuses on strategic principles like tax efficiency, income diversification, sequence of returns risk mitigation, and estate considerations. Clients are encouraged to consult a licensed financial advisor or tax professional for personalized advice.

4. How does the SMART Retirement™ Approach address rising life expectancies?

With life expectancy increasing, retirees need income strategies that can sustain their lifestyle for 20–30+ years. The SMART Retirement™ Approach builds in longevity planning by emphasizing sustainable withdrawal strategies, income layering, and protection against inflation, helping to ensure that your money lasts as long as you do.

5. How can I learn if the SMART Retirement™ Approach is right for me?

You can start by scheduling a complimentary educational consultation with CKS Summit Group. During this session, you’ll learn how the SMART Retirement™ principles can be tailored to your individual needs and long-term goals. This is not a sales meeting—it’s a chance to explore strategic retirement concepts and gain clarity on your path forward.

Disclaimers:

This blog is intended for educational purposes only. It does not constitute legal, tax, or financial advice. No investment recommendations or endorsements are implied. Past or hypothetical performance does not guarantee future results. CKS Summit Group does not provide investment advisory services; such services are offered by Sound Income Strategies, LLC, an SEC Registered Investment Advisor, with whom CKS is not affiliated.