Retirement Withdrawal Strategy May Need a New Twist!

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on whatsapp
Share on pinterest
Share on email
A VPN is an essential component of IT security, whether you’re just starting a business or are already up and running. Most business interactions and transactions happen online and VPN

Jim Lorenzen, CFP®, AIF®

The right retirement withdrawal strategy shouldn’t follow conventional wisdom blindly.  What’s right for you might be very different.

Conventional wisdom says retirees should withdraw funds from taxable accounts first, tax-deferred accounts (IRAs, 401(k)s, etc.) second, and tax-free money (Roth IRAs for example) last.

But, should you do it that way?

The current tax laws aren’t permanent.  These current low rates some taxpayers enjoy may not last forever.  Maybe it might make sense to withdraw money from tax-deferred accounts during years when you can take full advantage of these low marginal rates.

Another idea:  Convert funds from tax-deferred accounts to a Roth IRA to take full advantage of the 15% tax bracket (be sure to pay the taxes from other taxable money); or, you may want to reserve funds in a tax-deferred account to accommodate the possibility of large tax-deductible expenses, such as medical costs which can occur later in life.

These are  ideas only.  Your situation is unique.  Don’t do anything without talking to your team:  You financial, legal, and tax advisors can help you craft the strategy that’s right for you.

Jim


Jim Lorenzen, CFP®, AIF®

Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and an ACCREDITED INVESTMENT FIDUCIARY® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

————————————

Interested in becoming an IFG client?  Why play phone tag?  Schedule your 15-minute introductory phone call!

Jim Lorenzen, CFP®, AIF®

Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-based registered investment advisor with clients located in New York, Florida, and California. He is also licensed for insurance as an independent agent under California license 0C00742.  IFG helps specializes in crafting wealth design strategies around life goals by using a proven planning process coupled with a cost-conscious objective and non-conflicted risk management philosophy.

Opinions expressed are those of the author.  The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

Jim's picture
Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-based registered investment advisor with clients located in New York, Florida, and California. He is also licensed for insurance as an independent agent under California license 0C00742.

Schedule Your
20-Minute “Right Fit” Introductory Call Now!

Recent Posts

Archives

Schedule Your 20-Minute
“Right Fit” Introductory Call Now!