Why Your Withdrawal Order Impacts Tax Efficiency More Than Your Asset Allocation

Episode 113 of Wealth Building with Fexingo explores the concept of withdrawal sequencing—the order in which you tap retirement accounts—and why it can have a bigger impact on your after-tax income than your asset allocation. Using a concrete example of a retiree with a $1.2 million portfolio split across taxable, tax-deferred, and Roth accounts, Lucas and Luna walk through how drawing from taxable accounts first, then tax-deferred, and leaving Roth for last can save tens of thousands in taxes over a 30-year retirement. They compare this to the common 'proportional withdrawal' mistake and explain the logic behind the 'taxable-first' strategy, including nuances like tax brackets, dividend tax rates, and the effect of required minimum distributions. This episode drills into one specific number—the difference in total taxes paid between two withdrawal orders—to help listeners make a concrete, actionable change to their retirement income plan. #WithdrawalOrder #TaxEfficiency #RetirementWithdrawals #TaxableFirst #RothIRA #TraditionalIRA #TaxDeferred #RequiredMinimumDistributions #CapitalGains #TaxBrackets #RetirementIncome #WealthBuilding #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #RetirementPlanning #TaxStrategy Keep every episode free: buymeacoffee.com/fexingo