2026 Tax Changes Reshape Retirement, Estate Plans

Many retirees worry about outliving savings; the $1,000-a-month rule (Wes Moss) — using a 5% withdrawal rate — implies about $240,000 saved for each $1,000 per month of retirement income. Tax planning is essential to protect discretionary retirement income, and advisors recommend mapping assets into taxable, tax-deferred, and tax-free buckets and working with wealth professionals to tailor strategies. Because tax laws and personal circumstances change, review trusts and estate plans regularly; 2026 brings a permanent increase in the federal gift and estate tax exemption to about $12.92 million per individual, which may affect planning. With 2026 tax brackets likely lower for many earning under $200,000, consumer advisor Clark Howard suggests favoring Roth 401(k) contributions to lock in tax-free growth and withdrawals. For higher-income investors seeking stable, post-tax returns amid recent tax changes, hybrid Income Plus Arbitrage fund-of-fund strategies are being proposed as an alternative to traditional debt funds.