Should We Always Pull From our Brokerage Account First in Retirement? (Hint: No)

Patrick and Mary will soon both be retired. They are curious about what their withdrawal strategy should be as they balance various retirement accounts, including a pension, IRAs, and a brokerage account. They've been using tax gain harvesting to minimize taxes and plan to eliminate gains by 2024. A key question is whether to withdraw from their IRAs or brokerage account first, considering their state’s tax exclusion. James explains that by managing withdrawals and Roth conversions strategically, some retirees can reduce tax liability, optimize income streams, and preserve the tax-free growth of Roth accounts during retirement. Questions answered: Should retirees withdraw from their taxable brokerage accounts or IRAs first to minimize taxes? How can Roth conversions and state tax exclusions be used to optimize income and lower taxes during retirement? Submit your request to join James: On the Ready For Retirement podcast: Apply Here On a Retirement Makeover episode: Apply Here Timestamps: 0:00 - Meet Patrick and Mary 3:14 - Retirement taxes are different 6:37 - Consider combined tax rates 8:42 - Tax gain harvesting 12:35 - Strategizing income in retirement 16:48 - Realized gains 20:12 - A twist on traditional thinking 23:47 - The bottom line Create Your Custom Strategy ⬇️ Get Started Here. Join the new Root Collective HERE!