A Four-Step Process to Build Stability, Flexibility, and Tax Efficiency in Retirement
By Decima Wealth Consulting
If you are working for Pfizer, you are probably aware that your benefits package has many moving parts. Coordinating those benefits to manage taxes and risk can feel daunting. We find that the transition to retirement can be both exciting and a little overwhelming. Even if you have saved a large amount, you may wonder how all of the movies pieces fit together. In our experience, it is not always the retirees with the largest balance that are most successful. The most successful retirees have a coordinated plan that gives them confidence and clarity to enjoy life. Retirement income planning is a lot more than just withdrawing from your accounts. It’s about creating a deliberate, tax-aware strategy that balances safety and growth — so you can enjoy retirement without worrying about the next market swing.
At Decima Wealth Consulting, we help Pfizer executives and professionals build a Retirement Cash Flow Plan around three key “buckets”:
- The Emergency Bucket for immediate and unexpected needs
- The Protection Bucket to generate consistent, predictable income
- The Growth Bucket to outpace inflation and sustain long-term wealth
We use a four-step framework to bring these pieces together in a way that aligns your lifestyle goals, tax strategy, and legacy priorities.
Step 1: Evaluate the Tax Return — Because Taxes Touch Everything
For many Pfizer Colleagues, taxes are their biggest expense in retirement. It can be challenging to balance PSSP payouts, long term incentives vesting, as well as what to do with Pension and 401k. Retirement is when a tax strategy can make a world of difference. Every dollar you withdraw, every Medicare premium you pay, every Social Security benefit you collect — all are influenced by your tax picture.
Our first step is to review your most recent tax return. This isn’t about line items — it’s about uncovering opportunities.
We analyze how taxes impact your:
- IRMAA thresholds (which can dramatically increase Medicare premiums)
- Social Security taxation, where up to 85% of your benefit may be taxable
- Roth conversion opportunities before required minimum distributions (RMDs) begin
- Charitable and legacy gifting strategies to reduce long-term tax exposure
- PSSP payout schedule to determine if an adjustment should be made prior to retirement
- Upcoming RSU and TSRU vesting to see how taxes will grow over time
By coordinating your future withdrawals and conversions with your tax return, we can plan how to fill each tax bracket strategically. The goal is not to avoid spending. The focus is to understand exactly what your ideal retirement looks like, and then determining how to achieve that with the lowest tax bill possible. By using bracket topping and strategic Roth conversions, we can capture today’s lower rates and minimize future taxes for you and your family.
Integrating taxes in your retirement income and investment strategy is one of the biggest tools you can manage to preserve and build your wealth.
Step 2: Review Assets, Liabilities, Income & Expenses — and Solve for the Gap
Once your tax picture is clear, we turn to your balance sheet and cash flow. This is where the “Retirement Cash Flow Plan” takes shape.
We evaluate:
- Your current income sources (Social Security, pension, deferred comp, dividends, interest)
- Your fixed and variable expenses
- Your liabilities, including mortgage or medical costs
- Your liquid and illiquid assets — brokerage accounts, IRAs, Roths, RSUs, and savings
From here, we create a plan to “solve the gap” — the difference between what you need to live comfortably and what your guaranteed income provides.
This is also where tax strategy and cash flow strategy intersect. We coordinate with your tax return to determine:
- Which accounts should fund your living expenses first (tax-deferred, tax-free, or taxable)
- How much room remains for bracket topping (filling up a specific tax bracket)
- How much to allocate toward Roth conversions while keeping Medicare premiums stable
This step builds the foundation for your Protection Bucket — the assets that will generate stable, predictable income to cover your essential needs.
Step 3: Review Legacy Goals, Gifting, and Estate Planning Alignment
For most people we work with, they either want to maximize their quality of life while they are living, create a legacy, or a combination of both.
In Step 3, we discuss your legacy goals — both during your lifetime and after. If something happens to you, who will be impacted? We then determine what contingency plans need to be in place. We will discuss your priorities around maximum spending, or the ability to make a difference for your loved ones.
We explore:
- Annual gifting and donor strategies while maintaining financial flexibility
- Tax consequences of giving appreciated assets or retirement funds
- Beneficiary alignment across retirement accounts and insurance policies
- Estate documents (wills, trusts, and powers of attorney) to ensure consistency with your goals
- Contingency planning, so your spouse or heirs can manage easily if something happens to you
This ensures your “why” — your purpose and legacy — is reflected across every part of your financial plan.
Step 4: Build a Custom Investment Strategy Around Your Income Plan and Legacy Priorities
Finally, we integrate everything into an investment strategy built around your life, not the market.
Your portfolio is structured into three clear buckets:
Emergency Bucket
Cash and short-term assets to cover 6–12 months of expenses and any unexpected events — home repairs, healthcare surprises, or travel opportunities. This bucket gives you peace of mind and liquidity.
Protection Bucket
This is your paycheck in retirement. It includes predictable income sources like pensions, annuities, or bond ladders. For Pfizer retirees, this step often includes evaluating:
- Pfizer Pension vs. Lump-Sum options — balancing guaranteed income with flexibility
- PSSP payouts and their potential impact on taxes
- Timing of Social Security — to maximize benefits and coordinate with Roth conversions
We use these tools to design a reliable income stream that meets your needs without overexposing you to market volatility.
Growth Bucket
Investments designed to outpace inflation and extend the longevity of your wealth. Here we prioritize tax efficiency and growth potential across Roth IRAs, brokerage accounts, and deferred compensation plans.
For Pfizer executives, this may include managing the vesting and diversification of RSUs, TSRUs, and performance awards — and timing their liquidation to minimize tax impact.
By aligning your investment design with your income and legacy plan, we ensure every dollar has a purpose — to provide security today, and opportunity tomorrow.
Bringing It All Together
Retirement cash flow planning is not a single decision; it’s a coordinated system.
Each step — tax review, cash flow analysis, legacy planning, and investment design — works together to create a living, adaptive plan that evolves as life changes.
At Decima Wealth Consulting, we specialize in guiding Pfizer colleagues approaching retirement through this process — helping them turn complex benefit programs into a coordinated retirement strategy.
Ready to Design Your Three-Bucket Retirement Cash Flow Plan?
Let’s build your personalized roadmap — integrating your tax strategy, investment mix, and legacy priorities — so you can retire with confidence and clarity.
👉 Schedule a complimentary consultation to begin your Decima Retirement Cash Flow Plan.
