Description

You may have heard the general rule of thumb for retirement withdrawals: Spend your taxable accounts first, then tax-deferred accounts, and save your Roth IRAs for last.

While there IS truth to that logic because it preserves tax-favored money, it fails to address how to minimize your overall tax bracket throughout retirement.

In this episode, Brett Fellows, CFP®, explains why the conventional withdrawal sequence can accidentally push you into higher tax brackets year after year.

Brett explores:

• The three deeply ingrained beliefs that cause CRNAs to fall into a tax trap
• Why account preservation is the wrong metric for success
• A real-world example of how a single withdrawal can double your tax rate
• The three "buckets" of money you need to understand: taxable, tax-deferred, and tax-free
• A 4-step strategic approach to managing your withdrawals
• How to manage long-term impacts like RMDs and Medicare surcharges

Key Timestamps: 
(0:00) The problem with the "general rule of thumb" 
(1:02) Three beliefs that create a retirement tax trap 
(1:31) Example: How to accidentally double your tax bracket 
(2:45) Creating your own paycheck in retirement 
(4:20) The ideal approach: Managing tax brackets 
(4:40) The three buckets of money (Taxable, Deferred, Tax-Free) 
(5:35) Step 1: Identify your fixed income sources 
(6:02) Step 2: Calculate your shortfall 
(6:27) Step 3: Strategic withdrawal planning 
(7:35) Step 4: Consider long-term impacts (RMDs and Surcharges) 
(10:14) Tax gain harvesting and Roth conversions

For more information and resources related to this episode, please visit the show notes.