In some cases your options might be limited, but a tax -
smart retirement withdrawals strategy can result in significant savings, and more importantly can possibly help stretch your nest egg a bit longer.
Incidentally, just yesterday I submitted a guest post to FiveCentNickel
regarding retirement withdrawal strategies (ie, how much to take out of tax - deferred accounts each year before going to tax - free or taxable accounts).
Here's my advice: Let your goals dictate
your retirement withdrawal strategy, not the other way around.
That's why it's important to develop
a retirement withdrawal strategy.
The first topic to consider when devising
a retirement withdrawal strategy is coming up with a retirement «why.»
PAVE can be used to help formulate
a retirement withdrawal strategy and / or provide recommendations for Roth conversion strategies.
A key piece of
your retirement withdrawals strategy will involve taxes and it is important to understand both how taxes work for various accounts and investments, as well your overall tax situation.
From
a retirement withdrawal strategy standpoint, the tool helps determine the optimal withdrawal strategy that can generate the most tax - efficient method of withdrawing from investable assets while providing optimal heir lifetime value.
Over time it's more likely that you will need to review, revise and adjust
your retirement withdrawals strategy in terms of the amount you take and the accounts from which withdrawals are taken.
Retirement Income: A key part of developing
a retirement withdrawal strategy is to inventory all of your sources of retirement income — especially fixed income.
Basically, he asked if I would be interested in participating in an ongoing conversation amongst retirement bloggers about their personal
retirement withdrawal strategy.
Be sure to check out all the other bloggers participating in this topic for an inside look at their PERSONAL
retirement withdrawal strategies:
Needless to say, I don't yet have a personal
retirement withdrawal strategy.
The first topic to consider when devising
a retirement withdrawal strategy is coming up with a retirement «why.»
Keep reading to learn
some retirement withdrawal strategies and how you can maximize your earnings for retirement.
If you already have a 401 (k) or other retirement plan, think about implementing
a retirement withdrawal strategy to help lower the taxes you pay on your retirement income.
Do
the retirement withdrawal strategies that assume a 4 % annual withdrawal assume taxes are paid before calculating the 4 % amount, or do the taxes also need to be paid from the 4 % annual allocation?
But what is
my retirement withdrawal strategy?