The Early Retirement Withdrawal Order That Saves Thousands in Taxes

Lucas and Luna break down the optimal sequence for withdrawing money from retirement accounts in early retirement, focusing on how to minimize taxes by strategically pulling from taxable, tax-deferred, and Roth accounts. Using a concrete example of a couple retiring at 45 with a $1.5 million portfolio, they show how the wrong withdrawal order can cost over $100,000 in extra taxes over a decade. Lucas explains the 'progressive withdrawal strategy' that prioritizes taxable accounts first, then Roth conversions, then tax-deferred withdrawals, all while staying within the 12% tax bracket. The episode also touches on how this strategy interacts with the Affordable Care Act subsidy cliff and Medicare surcharges. A must-listen for anyone planning to retire before 59 and a half. #EarlyRetirement #WithdrawalStrategy #TaxEfficient #RothConversionLadder #TaxableAccounts #TaxDeferred #FIRE #RetirementPlanning #SequenceOfReturns #ProgressiveWithdrawal #ACA #MedicareSurcharge #CapitalGains #OrdinaryIncome #12PercentBracket #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo