When:
October  20th, 2026
3:30 pm Eastern; 12:30 pm Pacific
~45 minutes & Q/A included

How: Zoom Meeting
Recorded and available to retrieve for one
month

Cost: Free to ongoing clients; $10 per session for guests

Email us for the recording!

Should You Do a Roth Conversion?
How to Think About It, and the Mistakes to Avoid

Hosted by: Anna Sergunina, CFP®

Guest commentator: Rob Colon, CFP®, EA

Tax Professional: MainStreet Tax Services

Should you convert part of your IRA to a Roth, and is this the year to do it? It’s the question we hear most in client meetings this fall, and many people get stuck debating it while the window for 2026 closes on December 31. Join Anna Sergunina, CFP®, and Robert Colon, CFP®, EA, the tax professional who prepares returns for MainStreet clients, for a practical conversation about how to think through the decision, the costs that go beyond the income tax, and the mistakes we see most often on real tax returns.

Meet Robert Colon, CFP®, EA

Rob is an independent tax professional and trusted partner of MainStreet Financial Planning. With over 15 years of experience in financial planning and accounting, he provides tax preparation and proactive tax planning services to MainStreet clients. As both a CFP® professional and an IRS Enrolled Agent, Rob works closely with our financial planners to help clients make tax-smart decisions that support their overall financial goals.

MainStreet Tax Services: Tax preparation and forward-looking tax planning for active MainStreet clients, built into your Money Roadmap so your planner and your tax preparer are working from the same plan.

Some of the topics we’ll discuss:

• Should you convert at all? The basic trade-off of paying tax now or later, and who pays it later, you or your heirs
• The years when converting makes the most sense, and when it doesn’t
• Costs beyond the income tax: Medicare premiums (IRMAA) and ACA health insurance subsidies
• How much to convert, without overshooting your tax bracket
• The mistakes we see most often
• Next steps, what documents to gather and what professionals to engage
• Your questions, answered live

Disclaimer: This is a broad group session and certain strategies may or may not be appropriate for specific situations. MainStreet makes no claim that all member posted information is accurate or should be acted upon without professional and individual financial planning, tax and/or legal advice.

The post Chalk Talk: Should You Do a Roth Conversion? How to Think About It, and the Mistakes to Avoid appeared first on MainStreet Financial Planning.

However, a Roth conversion isn’t automatically the right move for everyone. We never want the “tax tail to wag the dog,” so it’s important to look at the bigger picture before deciding whether a conversion makes sense for you.

Here are a few tax-related considerations to keep in mind:

1. Could it increase your Medicare premiums?

If you’re already enrolled in Medicare, a Roth conversion increases your Modified Adjusted Gross Income (MAGI), which could cause you to pay higher Medicare Part B and Part D premiums through the Income-Related Monthly Adjustment Amount (IRMAA). IRMAA is based on your income from two years prior and the income thresholds are structured in brackets, so crossing into a higher bracket can result in a significant increase in your Medicare premiums. This means the tax cost of a Roth conversion isn’t necessarily limited to the income tax you pay on the conversion. For someone on Medicare, it’s important to consider the potential additional Medicare premiums as part of the overall cost. Learn more about Medicare costs and IRMAA.

2. Could it affect your ACA health insurance subsidies?

If you retire before Medicare eligibility and purchase health insurance through the Affordable Care Act (ACA) Marketplace, your income can affect the amount of premium tax credit you receive.

A Roth conversion generally counts toward the income used to determine your ACA subsidy. As a result, a large conversion could reduce your subsidy—or potentially eliminate it altogether, depending on your circumstances.

For early retirees, this can be a significant consideration. The additional income tax from the conversion may be only part of the equation; losing some or all of your health insurance subsidy could add substantially to the cost.

3. How will you pay the taxes?

It’s important to consider where the money for the tax bill will come from.

Ideally, you have cash or other non-retirement assets available to pay the taxes generated by the conversion. If you instead withhold money from the IRA to pay the taxes, you’ll have less money actually making its way into the Roth IRA.

4. What tax bracket will the conversion put you in?

A Roth conversion is taxable as ordinary income which means the amount you convert can push some of your income into a higher marginal federal and/or state income tax bracket. This doesn’t necessarily mean a conversion is a bad idea. The key question is whether paying taxes on the money today makes sense compared with the taxes you or your heirs may pay if the money remains in a Traditional IRA. Rather than simply asking, “Should I do a Roth conversion?” it can be more useful to ask, “How much should I convert this year?” A partial conversion that fills a particular tax bracket may make more sense than converting a large amount all at once.

5. Could the conversion affect other tax benefits or deductions?

Because a Roth conversion increases your taxable income, it can affect more than just your marginal tax rate. Depending on your circumstances, higher income could also affect items such as the taxation of Social Security benefits, certain deductions or credits, and other income-based benefits.

This is one reason Roth conversions are best evaluated as part of your overall tax plan rather than in isolation.

Roth conversions can be a powerful retirement planning tool. They may help reduce future RMDs, provide greater flexibility over where your retirement income comes from, and allow future growth and qualified withdrawals to be tax-free. But the decision isn’t simply about whether you want more money in a Roth IRA. It’s about when and how much to convert, and what the conversion will cost you today compared with the potential tax benefits in the future.

Other Resources:

Basics of a Roth IRA Conversion

Is there Room Left in Your Tax Bracket?

Basics of a Roth IRA Conversion

The post Tax Considerations for Roth IRA Conversions appeared first on MainStreet Financial Planning.

The truth is that a fulfilling and financially secure retirement rarely happens by accident. It is the result of thoughtful planning and intentional decisions made long before your last day on the job. Just like building a house, retirement requires a strong foundation and a solid framework to support the lifestyle you envision.

As a financial advisor with more than 20 years of experience, I’ve found that the happiest and most successful retirees have one thing in common: they follow a simple three-step process that allows them to retire with confidence, clarity, and peace of mind.

Step 1: Create Your Vision for Retirement

Before you can determine how much money you’ll need, you first need to define what retirement looks like for you. Retirement isn’t just about leaving a job. It’s about creating the next chapter of your life.

Ask yourself questions such as:

• When do you want to retire? Will you retire early, at a traditional retirement age, or transition gradually through phased retirement?
• Where do you want to live? Will you stay in your current home, relocate to another state, downsize, or even move abroad?
• How do you want to spend your time? Will you travel, pursue hobbies, volunteer, spend more time with family, work part-time, start a business, or launch a second career?

The clearer your vision, the easier it becomes to build a financial plan that supports it.

Retirement is about more than finances. It’s also a major life transition. If you’re thinking about what will make this next chapter fulfilling, you may also enjoy our article on The Science Behind a Happy Retirement.

Step 2: Get Clear About Your Finances

Once you know what you want your retirement to look like, the next step is determining what it will cost and whether you’re on track to achieve it.

Rather than relying solely on a rule of thumb about how much of your current income you’ll need, start by looking at what you actually spend today. Then consider which expenses may decrease in retirement and which may increase, such as healthcare, travel, hobbies, or helping family.

If you’re not sure where to begin, our article How Do I Figure Out What I’ll Really Spend in Retirement? can help you work through your retirement spending.

Next, identify every potential source of retirement income, including:

• Social Security
• Pensions
• Employer retirement plans such as 401(k)s or 403(b)s
• Traditional and Roth IRAs
• Taxable investment accounts
• Rental property income
• Business income
• Inheritances
• Other assets, such as your home, that could provide income if needed

Comparing your expected retirement expenses with your available income sources helps you identify any gaps while you still have time to make adjustments. Those adjustments might include increasing your savings, investing more strategically, delaying retirement, reducing future expenses, or a combination of these strategies.

It’s also important to think about how your different financial decisions work together. When you claim Social Security, which accounts you withdraw from, taxes, and healthcare costs can all affect your retirement plan. For example, the years after you retire but before required distributions begin can create valuable tax-planning opportunities. Read more in Is There Room Left in Your Tax Bracket?.

And if you’re considering retiring before Medicare eligibility, Retirement Planning? What to Do Before Age 65 covers several important planning decisions to consider as you approach age 65.

Step 3: Build a Plan and Monitor Your Progress

A retirement plan isn’t something you create once and forget. Since retirement can easily last 30 years or more, your plan should evolve as your life changes.

A well-designed retirement plan helps you:

• Understand where you are today and where you want to be.
• Identify any financial gaps before they become problems.
• Create specific, measurable action steps that keep you moving toward your goals.
• Stay flexible by reviewing your plan annually and making adjustments as your finances, health, family situation, or the economy change.

Regular reviews help ensure you’re making informed decisions and staying on course, even when life throws you unexpected challenges.

Once you’re retired, those reviews can also help answer another important question: Are you actually comfortable spending the money you’ve worked so hard to save? If that transition feels difficult, take a look at Spending in Retirement – Giving Yourself Permission to Spend What You’ve Saved.

The Bottom Line

Retiring on your own terms doesn’t happen automatically. It happens because you intentionally prepare for it.

Start by creating a clear vision for the retirement you want. Then understand what that vision will cost and how you’ll pay for it. Finally, develop a written plan and review it regularly to keep yourself on track.

When you take these three steps, you’re doing more than preparing financially. You are creating the freedom to retire with confidence, clarity, and purpose, knowing you’ve built a retirement that reflects the life you truly want to live.

Ready to See If Your Retirement Plan Is on Track?

At MainStreet Financial Planning, we help people bring these pieces together into a comprehensive financial plan, including retirement spending, Social Security, taxes, investments, healthcare, and withdrawal strategies.

If you’re approaching retirement and want to know whether your plan supports the life you envision, get started with MainStreet Financial Planning.

The post Ready to Retire? Start With These 3 Steps appeared first on MainStreet Financial Planning.

One of the most common concerns I hear as a financial planner is “Can I really afford to spend this money?” Even clients with substantial savings often struggle to shift from a saving mindset to a spending mindset in retirement. Years of financial discipline can make it emotionally difficult to draw from investment accounts, even when their plan clearly shows they can afford to do so.

Research has consistently found that most retirees naturally spend less as they age. After adjusting for inflation, spending generally declines by about 1% to 2% per year, meaning many retirees are worrying about overspending at a time when their expenses are likely to decrease on their own.

There are three often-used phases of retirement spending that you’ve probably heard from MainStreet if you’ve been a client for a while:

• The “Go-Go” Years: Early retirement is often the most active. Travel, hobbies, home projects, and time with family can make these some of the highest-spending years.
• The “Slow-Go” Years: As lifestyles become more settled, discretionary spending often decreases, even as healthcare expenses gradually increase.
• The “No-Go” Years: Later in life, travel and entertainment expenses typically decline significantly. While medical costs become a larger portion of the budget, total household spending often continues to trend downward.

Despite these natural spending patterns, many retirees spend less than they comfortably could. They worry about market downturns, inflation, healthcare costs, or simply running out of money. These concerns are understandable, but they can sometimes prevent retirees from fully enjoying the financial security they’ve spent decades building.

One of the most valuable roles of a financial plan is providing confidence, not just about avoiding financial mistakes, but about making the most of retirement. A well-designed retirement plan can help answer questions like:

• Can I take that dream vacation?
• Is it okay to help my children or grandchildren financially?
• Can I replace my car or renovate my home?
• Can I spend more now without jeopardizing my future?

Sometimes, the greatest value of a retirement plan isn’t telling someone they need to spend less. It’s showing them that they can responsibly and confidently spend more. I have recently “given permission” to clients to buy the business class ticket, buy the car they’ve always dreamed of and to get the nicer Airbnb on their European vacation.

So how do you start giving yourself permission to spend?

Here are a few simple ideas:

• Create a “yes” fund. Set aside a specific amount each year for travel, hobbies, or family experiences. When you’ve already planned for it, spending becomes much easier.
• Plan your spending with the same intention you used to save. At the beginning of each year, choose one or two experiences or purchases that would make retirement more meaningful, then commit to following through if your financial plan supports those decisions.
• Ask yourself one simple question: “If not now, then when?” If your financial plan shows you’re on track, remind yourself that your savings were meant to support your life, not simply grow your account balance.

The goal isn’t to leave retirement wishing you’d saved more when you already had enough. It’s to use your savings intentionally to support the life you’ve worked so hard to create. A thoughtful financial plan can provide something many retirees need most: permission to enjoy the retirement they’ve earned.

Source:

-The Go-Go, Slow-Go, and No-Go framework is generally credited to Michael Stein’s book “The Prosperous Retirement”

-Vanguard, The Vanguard Retirement Outlook: Strong National Progress, Opportunities Ahead (2025).

The post Spending in Retirement – Giving yourself permission to spend what you’ve saved. appeared first on MainStreet Financial Planning.

I have some version of this conversation almost every week. Someone sits down with me, newly retired or a year or two out, with money in three places. A brokerage account, a traditional IRA or 401(k), and usually a Roth. They ask which one to live on first, and most already have an answer in their head from something they read. Spend the brokerage account first, then the IRA, and save the Roth for last.

It’s a clean rule. And for a lot of couples, it quietly hands the IRS thousands of dollars they never owed.

Walk through it with me. Say you both retire at 63 with $1.2 million in a traditional IRA, $400,000 in a brokerage account, and $150,000 in a Roth. Social Security hasn’t started. You need about $80,000 a year to live on, and if you don’t know that number yet, figure out what you’ll spend in retirement first, because the whole plan rests on it.

The IRS won’t make you start pulling from that IRA until your required age, which is 73 if you were born before 1960, and 75 if you were born in 1960 or later. For most people retiring in their early 60s today, that’s 75, so the account can sit and grow for more than a decade. Spend the brokerage account down first and the IRA grows untouched the whole time, until the year you hit that age and the government makes you start taking money out whether you need it or not. Those required withdrawals can run $60,000 a year or more, they pile on top of your Social Security, and by then you’ve lost the room to do much about the tax bill.

I call the years in between, from the day you stop working to the year those withdrawals start, your golden years. Your income is the lowest it will ever be, and most people let those years slip by without using them. In 2026, a married couple can have about $130,000 of income, after the standard deduction, and still stay in the low 12% tax bracket. If you’re living on $80,000 from the brokerage account and showing little else on your tax return, you’ve got a big, empty stretch of that 12% bracket going to waste.

That empty space is the opportunity. Instead of leaving the IRA to grow into a tax problem later, you take money out of it now on purpose, or convert a piece to your Roth, filling that low bracket while you’re sitting in it. The difference, in plain numbers: pull $50,000 out of the IRA at 12% and the tax is about $6,000. Leave it, and that same $50,000 can come out later at 22%, once Social Security and the required withdrawals are both running, for a tax of about $11,000. Same money, nearly double the tax for waiting.

And this isn’t a plan you build once and file away. The brackets move, the rules change, and your life does too, so the smart move shifts a little from one year to the next. Some years you fill more of the bracket, some years less.

So when someone asks me which account to spend first, my real answer is that the order is its own decision, worth mapping out and keeping current, not a rule of thumb you set once and forget. If you’re in your golden years now, or you can see them coming, it’s worth a look before December, while this year’s room in the bracket is still open. That kind of year-by-year planning is the heart of what we do inside a Money Roadmap, and it’s why the clients we work with come back to it with us every year.

The post Is There Room Left in Your Tax Bracket? appeared first on MainStreet Financial Planning.

Why Consider a Roth IRA Conversion?
• Tax-free growth – Your investments can grow without future tax burdens.
• Tax-free withdrawals – You and your heirs can enjoy tax-free distributions in retirement.
• No required minimum distributions (RMDs) – Unlike Traditional IRAs, Roth IRAs do not require withdrawals during your lifetime.

Key Considerations Before Converting

Do you need these funds within the next 5 years?
• Withdrawals of converted funds within five years may be subject to taxes and penalties. If you’ll need access to the money soon, this may not be the best option.

Will the conversion push you into a higher tax bracket?
• The amount converted is taxed as ordinary income. A large conversion could push you into a higher tax bracket. To manage this, consider converting smaller amounts over several years.

How will you pay the taxes on the conversion?
• Using cash from outside your IRA to pay the tax bill helps maximize tax-free growth.
• If you use IRA funds to cover taxes, your investment balance shrinks.

Will your tax rate be higher now or in the future?
• If you expect to be in a higher tax bracket later, converting now at a lower rate may save money in the long run.
• If your current tax rate is higher than your expected future rate, conversion may be less beneficial—unless you have a long time horizon for growth.

Who is your Roth IRA for?
• If you don’t anticipate needing these funds for your own lifestyle, a Roth IRA conversion can be earmarked for the next generation, allowing up to 10 additional years for tax-free growth.
• However, this remains your asset first and can support your needs if circumstances change.

Final Thought: No Do-Overs
Once you complete a Roth IRA conversion, it cannot be reversed. You must pay taxes on the converted amount in the year of the conversion.

A Roth conversion isn’t inherently “good” or “bad”—it’s a timing decision. The right answer depends on your current tax situation, future expectations, and how this move fits alongside the rest of your financial plan. Thoughtful planning, often done over multiple years, can turn this into a powerful tool rather than an expensive mistake.

The post Basics of a Roth IRA Conversion appeared first on MainStreet Financial Planning.

The truth is, figuring out retirement spending doesn’t start with a magic formula. It starts with looking closely at the life you live today — and the one you imagine for the future. That process is simpler than most people think, but it requires a willingness to pull out the numbers and see them for what they are.

Step 1: Look at today’s spending

The best predictor of your retirement lifestyle is how you spend money right now.

Begin by asking:

• What do I spend each month on housing, food, transportation, and healthcare?
• Which costs are essential versus optional?
• How consistent is my tracking — do I actually know what I spend?

This step may feel basic, but it’s powerful. Using credit card and bank statements to ground your answers in reality helps you “feel” the numbers, not just guess at them. If you need tools to make that easier, see 3 Alternatives to the “Mint” Budgeting App.

Step 2: Separate fixed and variable expenses

A simple but powerful way to think about money is to split your expenses into two buckets:

• Fixed expenses: Mortgage or rent, property taxes, insurance premiums, utilities, basic groceries. These are your non-negotiables — they don’t go away just because you retire.
• Variable expenses: Travel, dining out, hobbies, gifts, entertainment. These are the lifestyle choices that make retirement fun, and they can flex up or down depending on your circumstances.

To get a sense of balance between these categories, many clients also find the 50-30-20 Rule of Thumb helpful — it’s a quick way to compare essentials, lifestyle, and saving against what you’re currently spending.

Step 3: Ask what carries over into retirement

Not all expenses disappear when you stop working. Some shrink, some grow, and others surprise you.

Ask yourself:

• Will I still have a mortgage, or will the house be paid off?
• How will healthcare costs change once I’m on Medicare?
• Will I travel more — or spend less on commuting and work clothes?
• What new hobbies, family support, or giving might I want to add?

You don’t need perfect answers. Even rough estimates highlight what will stay the same, what will change, and what could catch you off guard.

Step 4: Don’t forget the surprises

Even the most careful planners underestimate certain costs:

• Healthcare and long-term care: Premiums, prescriptions, and in-home or assisted care can be significant. Genworth estimates median costs at $5,000–$10,000+ per month.
• Home maintenance: Roofs, HVAC systems, and other big-ticket repairs don’t vanish in retirement.
• Lifestyle creep: More time can mean more spending on hobbies, entertainment, or family experiences.

Step 5: Put it all together with a worksheet

After walking through these steps, the next move is to put your numbers in one place. A Retirement Spending Worksheet helps you:

• Capture today’s fixed and variable expenses.
• Decide which ones continue into retirement.
• Estimate how your costs shift — higher in some areas, lower in others.
• Create a simple snapshot you can revisit every year.

You don’t need perfect answers — even ballpark numbers bring clarity and confidence.

FAQ

Here are some of the most frequently asked questions I hear from clients — they’ll help you gauge if you’re on track as you work through this exercise with the worksheet.

Q: How much does the average retiree spend per month?

A: According to the U.S. Bureau of Labor Statistics, consumer units with a reference person aged 65 or older reported average annual expenditures of about $49,872 in 2020–2021. That works out to roughly $4,150/month.

Q: Will my expenses go down in retirement?

A: Some will (commuting, payroll taxes), but others rise (healthcare, hobbies, travel). That’s why separating fixed and variable expenses matters.

Q: How often should I update my plan?

A: At least once a year, or after big life changes such as paying off a mortgage or a health shift.

Q: What if I don’t know exact numbers?

A: Use ranges or estimates. Clarity, not perfection, is the goal.

Figuring out retirement spending starts with looking at today, separating fixed from variable, and asking which expenses carry forward. From there, you can begin to see your future life with more clarity.

At MainStreet, the clients we work with often find this exercise to be a turning point. What feels vague and overwhelming at first becomes tangible once the numbers are laid out side by side. And while the worksheet itself is simple, the act of doing it is where the real value lies. Pulling out credit card and bank statements, writing down real spending categories, and comparing them to what life might look like in retirement helps make the numbers real.

That’s exactly what the Retirement Spending Worksheet is designed to do — take your best guesses and your real numbers, and turn them into a snapshot you can build on with confidence.

Next step: Download our worksheet and sketch out your numbers. The moment you see them on paper, you’ll feel more in control of your retirement.

Fill out the form to get the worksheet link sent to you and to join our MainStreet Inbox Club

The post How Do I Figure Out What I’ll Really Spend in Retirement? appeared first on MainStreet Financial Planning.

Thanks to the SECURE Act 2.0, the starting age for RMDs has recently changed:

• If you were born between 1951 and 1959, your RMDs begin at age 73
• If you were born in 1960 or later, they begin at age 75

This gives many retirees a bit more time to plan—whether that’s converting to a Roth IRA, using taxable accounts first, or simply letting your money grow a little longer. We covered this in more detail in our article, SECURE Act 2.0 May Change Your RMD Age.

How do RMDs work?

Each year, the IRS uses your prior year’s December 31 account balance and a life expectancy factor to calculate your required withdrawal. You can withdraw more if you’d like, but not less. If you don’t take your RMD by the deadline, you could face a steep penalty—50% of the amount you were supposed to withdraw (though recent law changes now allow for more leniency if corrected promptly).

And keep in mind, RMDs are taxable as ordinary income, so they can impact your overall tax picture, Social Security taxation, and even Medicare premiums. That’s why we always encourage building RMDs into your broader retirement income strategy.

Charitable Giving Strategy: QCDs

If you’re charitably inclined, there’s a smart way to meet your RMD and support a cause you care about: the Qualified Charitable Distribution (QCD). This allows individuals age 70½ or older to donate directly from their IRA to a qualified charity—up to $100,000 per year. QCDs count toward your RMD and don’t increase your taxable income.

We go deeper on how this works in our article, Give Your Way: Exploring the Many Paths to Charitable Giving.

3 Tips to Stay Ahead of RMDs:

1. Track your age and know when your RMDs begin—missing one is costly.
2. Set a reminder for the December 31 deadline each year (except for your very first RMD, which can be delayed to April 1).
3. Work with your financial planner to coordinate withdrawals with your other income sources and tax planning opportunities.

The truth is, RMDs aren’t just about following IRS rules—they’re a key part of managing your retirement income wisely. With the right strategy in place, you can turn RMDs into a tool for reducing taxes, supporting causes you care about, and staying in control of your financial future.

The post Understanding Required Minimum Distributions (RMDs) appeared first on MainStreet Financial Planning.

These small, intentional moves aren’t just about staying organized in the short term—they also help you protect your long-term financial health, including your ability to continue building toward retirement.

1. Plan Ahead for Seasonal Spending

Think about what’s coming: back-to-school shopping, Halloween, Thanksgiving travel, holiday gifts. These expenses can quickly throw off your monthly cash flow—and may even lead to pausing retirement contributions or dipping into savings.

Take a few minutes to map out expected costs and start setting aside a small amount weekly. Even $25–$50 per week can ease pressure later. Look for early deals, repurpose gift cards, and make use of any unused credit card rewards. For more ideas, read our article on Joyful Holiday Spending.

2. Explore Extra Income Opportunities

If your summer schedule allows, consider bringing in a little extra income now to help offset upcoming expenses, without sacrificing your retirement savings goals. This could mean selling items you no longer use, offering a skill-based service, or trying out a small side project.

Even a few hundred dollars can go a long way in preserving your regular savings plan. Check out our tips on Using Credit Card Cashback Rewards for Holiday Spending for additional ways to stretch your money further.

3. Organize and Update Key Documents

Summer is also a great time to review the paperwork side of your financial life. Make sure your beneficiary designations are current, check your insurance coverage, pull your credit report, and revisit estate planning documents. These foundational pieces are essential to protecting the retirement future you’re working toward—and they’re often overlooked during busier seasons.

Final Thought

A quick summer check-in doesn’t require an overhaul. These thoughtful steps—planning seasonal spending, exploring flexible income options, and staying organized—can help you feel more in control today while staying aligned with your retirement goals.

If you’d like to review your progress or make sure your short-term decisions are supporting your long-term plans, we’re here to help.

The post 3 Smart Summer Moves to Keep Your Financial Plan (and Retirement Goals) on Track appeared first on MainStreet Financial Planning.

While AUM advisors may seem appealing, they often come with high lifetime fees and potential conflicts of interest. In contrast, a fee-only, flat-fee financial planner provides transparent pricing, unbiased advice, and comprehensive financial planning—without taking a percentage of your investments.

If you’re searching for a fiduciary financial planner, flat-fee financial planning, or the best alternative to AUM-based advisors, this article will help you decide which model is right for you.

Fee-Only, Flat-Fee Financial Planners: Transparent, Unbiased, and Cost-Effective

A fee-only financial planner charges a fixed fee for financial planning services, regardless of the size of your portfolio. Unlike AUM-based advisors, they do not earn commissions or take a percentage of your investments. Instead, they provide objective, conflict-free financial advice at a predictable cost.

Why a Fee-Only, Flat-Fee Financial Planner is the Better Choice

✔️ Transparent & Predictable Costs – You know exactly what you’re paying, making it easier to budget for financial planning services.
✔️ Unbiased Advice from a Fiduciary – Fee-only financial planners are fiduciaries, meaning they are legally required to act in your best interest. Unlike AUM advisors, they don’t have an incentive to keep assets under management, so their recommendations are truly objective.
✔️ Comprehensive Financial Planning is Included – Many AUM advisors charge extra for estate planning, tax strategies, and retirement planning. A flat-fee financial planner includes these services in a transparent pricing model.
✔️ More Cost-Effective Over Time – Instead of paying an ongoing percentage of your investments, a fee-only financial planner charges a fixed amount for their services—often saving clients hundreds of thousands of dollars over time.
✔️ Best for High-Income Professionals & Retirees – A flat-fee financial planner is ideal for business owners, young professionals, high-net-worth individuals, and retirees looking for financial planning without hidden fees.

AUM-Based Financial Advisors: The Hidden Costs of Percentage-Based Fees

AUM-based financial advisors charge a percentage of the assets they manage for you. A standard fee is 1% annually, meaning that if you have $500,000 under management, you’d pay $5,000 per year—even if you don’t need much ongoing advice.

Why AUM Advisors May Not Be the Best Choice

❌ High Long-Term Costs – A 1% AUM fee may seem small, but over decades, it can cost hundreds of thousands of dollars in lost investment growth.
❌ Conflicts of Interest – Since their fees are based on assets, AUM advisors may hesitate to recommend paying off debt or making large withdrawals for major life goals.
❌ Financial Planning May Cost Extra – Many AUM advisors charge separately for estate planning, tax optimization, and retirement planning—so your total costs could be even higher than expected.

Are There Any Benefits to AUM-Based Advisors?

✔️ Hands-Off Investment Management – If you prefer a professional to handle asset allocation, rebalancing, and investment selection, an AUM-based advisor can actively manage your portfolio.
✔️ Ongoing Portfolio Monitoring – AUM advisors continuously review your investments and adjust strategies based on market conditions and economic trends.

Side-by-Side Comparison: MainStreet’s Fee-Only, Flat-Fee Model vs. AUM Advisors

The Bottom Line: Why a Fee-Only, Flat-Fee Financial Planner is the Best Choice

💡 A Fee-Only, Flat-Fee Financial Planner is the Smarter Choice If:
✔️ You want cost transparency and predictable expenses.
✔️ You prefer a fiduciary financial planner who isn’t incentivized to keep assets under management.
✔️ You want comprehensive financial planning included—without extra fees.
✔️ You want to keep more of your money growing for your future instead of paying it to an advisor.
✔️ You’re a do-it-yourself investor, pre-retiree or retiree, or business owner looking for a fee-only fiduciary advisor.

Find the Best Fee-Only, Flat-Fee Financial Planner Today

🔹 Looking for transparent, fee-only financial planning? MainStreet Financial Planning offers a flat fee structure with no hidden charges, ensuring you receive expert financial guidance without percentage-based fees eating into your savings.

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