Where Should I Pull Funds From First in Retirement

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 trapWhy account preservation is the wrong metric for successA real-world example of how a single withdrawal can double your tax rateThe three "buckets" of money you need to understand: taxable, tax-deferred, and tax-freeA 4-step strategic approach to managing your withdrawalsHow to manage long-term impacts like RMDs and Medicare surchargesKey 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 conversionsFor more information and resources related to this episode, please visit the show notes.