Hi Jan,
Tax efficiency in retirement is not really about finding the right strategy. It is about making sure the right decisions are happening in the right order and working together.
This week's article gets into what that actually looks like, starting with asset allocation, moving into where different investments should live across your accounts, and finishing with how to think about withdrawals in a way that keeps you in control of your tax picture rather than reacting to it.
The podcast this week is a natural companion to that, covering five specific tax planning mistakes that tend to quietly cost retirees more than they realize. The McLean piece below looks at distribution order and sequence risk, which ties directly into the withdrawal coordination piece.
| | | | Why Tax-Efficient Retirement Income Is About Structure Taxes are one of the biggest levers in retirement. The goal is straightforward: maximize what you keep after taxes. Where things go off track is how people try to do it. The way your portfolio is built and how income is pulled from it often matters more than any single-year tactic. Three decisions drive that outcome: how you invest, where you place those investments, and how you spend them down. When those pieces are coordinated, the outcome tends to be smoother, more predictable, and more efficient.
By Retirement Researcher | | | | Avoiding the Pitfalls of Retirement Distribution Order The order in which you take funds can have long-term tax consequences that directly affect how long your savings last. Many retirees underestimate this, focusing only on how much they withdraw rather than how they withdraw. Your withdrawal strategy can make a significant difference in how much of your money you keep after taxes. By understanding some key principles of withdrawal sequencing, you can avoid common mistakes and stretch your retirement resources further.
By McLean Asset Management
| | | | 5 Tax Planning Mistakes That Can Reduce Your Retirement Income
Wade and Alex dig into asset location and the tax pitfalls that tend to catch retirees off guard, including the Social Security tax torpedo, IRMAA surcharges on Medicare premiums, and the preferential income stacking problem that can push your effective marginal tax rate well above what your bracket suggests. A good listen for anyone thinking about Roth conversions or how to sequence withdrawals without triggering avoidable tax costs.
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