A Lakewood Ranch Retiree’s Withdrawal Guide

lakewood ranch

A Lakewood Ranch Retiree’s Withdrawal Guide

Congratulations! You’ve retired here in Lakewood Ranch and can now spend your days hitting the greens at the Lakewood National Golf Club, checking out polo matches at the Sarasota Polo Club, or sipping on craft beer at Good Liquid Brewing Company in the up-and-coming Waterside Place waterfront neighborhood. But before you start splurging, you have to figure out where the money to pay for it all will come from. This is called your Order of Withdrawal Strategy.
Hopefully, you have a variety of retirement income sources to choose from, whether it be a company 401(K), IRA, a Roth variant of either, a pension, social security, or something else. Assuming you have all of the above, the below strategy is a general withdrawal strategy, though it may differ depending on your financial situation.

1. Taxable Accounts

A general rule of thumb is to pull from taxable accounts first, such as an investment account from a brokerage. Your taxes will be kept to a minimum since any withdrawals will be taxed at a capital gains rate of a maximum of 15% at the time of writing. This will allow your tax-advantaged retirement accounts to continue to grow tax-deferred or tax-free if it is a Roth. The longer they grow without being taxed, the better!

2. Tax-Deferred Accounts

Next, you’ll want to start pulling from tax-deferred accounts, such as a 401(K) or IRA, usually before you start receiving social security checks. This will help you pay fewer taxes because, with a lower income, you will be in a lower tax bracket. Once you start taking social security benefits, your tax rate may go up. There are cases when you may want to start pulling from social security first, such as during a market downturn when your portfolio needs time to recover.
If that’s not the case, next you’ll want to wait until you reach full retirement age before you start taking social security. If you’re able to, wait even longer! Waiting until the age of 70 will significantly increase your monthly income for the rest of your life. According to the Social Security Administration, if you were to retire in 2022 at age 62, you would receive, at maximum, $2,364 a month. If you were 65, you would get up to $3,345 per month. But if you were 70, your maximum would be $4,194. As you can see, it’s quite worth it to wait until 70 if you can. There’s no point in holding off until after 70 though, as there is no added benefit.

3. Tax-Free Accounts

Finally, you’ll want to start pulling from your Roth accounts. Since these investment accounts grow tax-free, you want to utilize the magic of compound growth for as long as possible. The Roth also has other unique benefits. Unlike a traditional IRA or Roth 401(K), there are no age restrictions as to when you must start withdrawing from them. In theory, you could leave funds in a Roth until you are 90, 95, or 100 years old, or until you pass. If you plan on leaving an inheritance, a Roth is a great way to pass on funds tax-free.

Contact Us

If you’d like to find the best withdrawal strategy for you, click the button below to schedule a free introductory meeting in our Lakewood Ranch office or a quick phone call.
  • Dan DiLascia

    Dan has over 22 years of experience in financial services. His career started as an intern in 1998 learning the financial planning business from the ground up before graduating with a Finance Degree from Siena College in Loudonville, NY in 1999. Working as a fiduciary financial advisor, putting the client’s needs first, is the foundation on which he’s built his practice. Dan’s office is located in Lakewood Ranch.

  • Sean Koscho

    Sean Koscho is a financial advisor with a passion for helping others – whether that’s in the office managing their wealth, as a passionate 10-year high school football coach or in the line of duty, for the last 9 years, as a Firefighter/EMT with the Sarasota County Fire Department.

  • Kyle Howell

    My education, experience and professional affiliations have fostered my practical approach to offering financial services and advice to my clients. Rather than just recommending a hodgepodge of unrelated products, first I’ll consider your specific financial goals and investment objectives. Working together, we’ll formulate a strategy to help you achieve your goals. Then I’ll recommend the appropriate products and services to help you execute your strategy.

Ready for your Journey?
Fill out the form below!

SUBSCRIBE TO OUR YOUTUBE CHANNEL!

Click here to go to our YouTube channel and subscribe for weekly financial updates and more! We’d love your help to in getting to 500 subscribers!

Register for our Open House event!

2022 Tax Document Information

As a Base Wealth Management client, you should receive your paper tax documents via mail in the coming weeks. Or, if you previously had an online account with Pershing’s NetX360, you should be able to access your 2022 tax documents through that portal. 

If not, or if you experience any issues, please reach out to Tim O’Brien (tim.obrien@intervestintl.com).

Get a FREE Solo 401(K) Guide

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Roth 457 Guide!

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Roth 401(K) Guide

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Solo 401(K) 2-Pager for FireFighters

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE copy of Divorce the IRS

If you would like to request a physical copy of Divorce the IRS, please fill out the form below.

"*" indicates required fields

Name*
Address*
This field is for validation purposes and should be left unchanged.
 *This book is most suitable for households with $250K or more in investable assets.
 

OOPS!

You’ve stumbled across an element that isn’t quite ready for the web yet. We’re working on a lot of new features so stay tuned.

-The Base Wealth Team

Choose your advisor

Dan DiLascia

Sean Koscho

Kyle
Howell

Josh
Pisa