Malibu is known for its beauty, exclusivity, and lifestyle—but living and working here comes with unique financial challenges. High incomes often come with high taxes, and many professionals and business owners in Malibu face the question: How do I build a retirement plan that preserves my wealth, supports my lifestyle, and leaves a legacy?

As Senior Financial Advisor David D. Kassir, AAMS®, CMFC®, CBDA®, I’ve helped clients across California, including Malibu professionals and entrepreneurs, design retirement strategies that balance growth, income, and tax efficiency.

Why Retirement Planning Looks Different in Malibu

For many Malibu residents, the biggest challenge isn’t just saving for retirement—it’s structuring wealth in a way that supports both lifestyle and long-term security.

Some common factors include:

• Higher living costs: Malibu’s cost of living means retirement savings often need to stretch further.
• Business ownership: Entrepreneurs must plan not only for personal retirement, but also for succession or exit strategies.
• Tax exposure: California’s high state taxes can eat into retirement income if not carefully managed.

Retirement Accounts for High-Earning Professionals

For employees and executives, maximizing tax-advantaged retirement accounts can make a big difference.

• 401(k) and 403(b): Contributing the annual maximum can help reduce taxable income. In 2025, that’s $23,000 for those under 50, and $30,500 for those 50 and older.
• Backdoor Roth IRA: For high earners phased out of direct Roth IRA contributions, this strategy allows future tax-free withdrawals.
• Deferred compensation plans: Executives at larger firms may use these to push income into lower-tax retirement years.

Example: A Malibu attorney earning $450,000 annually reduces taxable income by contributing $30,500 into a 401(k). Over 20 years, tax-deferred growth compounds significantly, creating a larger retirement balance.

Retirement Strategies for Business Owners

Business owners in Malibu have additional tools for retirement planning:

• SEP IRA: Simplifies contributions for self-employed professionals and small business owners.
• Solo 401(k): Allows higher contribution limits than a traditional IRA, especially for those without employees.
• Defined benefit plans: For high-income owners nearing retirement, these can accelerate savings while reducing taxes.

Example: A Malibu restaurant owner sets up a defined benefit plan and contributes $200,000 annually for 10 years. This both reduces annual taxable income and builds a substantial retirement fund.

Tax-Smart Income Planning

California taxes retirement income aggressively, so planning withdrawals and income streams is key.

• Municipal bonds: California-issued munis provide tax-free income at both state and federal levels.
• Asset location strategies: Keeping tax-efficient investments (like index funds) in taxable accounts and tax-inefficient ones (like bonds) in retirement accounts.
• Roth conversions: Shifting money from traditional IRAs to Roth IRAs during lower-income years to minimize future tax exposure.

Example: A Malibu couple sells their business and has one year of low taxable income. By converting $200,000 from an IRA to a Roth, they lock in future tax-free withdrawals.

Estate and Legacy Planning in Malibu

For many Malibu professionals, retirement planning isn’t just about themselves—it’s about family and legacy.

• Trusts: Help manage estate taxes and protect wealth for heirs.
• Charitable giving: Donor-Advised Funds or charitable trusts allow families to align giving with tax benefits.
• Succession planning: Business owners need clear strategies to pass ownership, sell, or exit gracefully.

Integrating Lifestyle with Retirement Goals

Retirement for Malibu residents often includes travel, philanthropy, and maintaining a coastal lifestyle. That means planning needs to be both practical and flexible.

At Manna Wealth Management, I work with clients to design retirement plans that reflect not just numbers, but values. My goal is to help you retire with confidence—knowing your lifestyle is sustainable, your taxes are minimized, and your wealth is positioned for the future. You can learn more about my approach in my advisor profile.

Final Thoughts

Malibu professionals and business owners have unique retirement challenges, but also incredible opportunities. With the right mix of retirement accounts, tax strategies, and estate planning, you can build a retirement that balances lifestyle and security.

The question isn’t just “When can I retire?” but “How do I make retirement work for my life and legacy?” Careful planning today ensures that your Malibu success story continues into retirement.