Quote:
Originally Posted by Rdub
I have been retired a couple years now. Several years ago Schwab had a really good article on tax efficient retirement withdrawal strategies. Below is the hierarchy they recommended. I can’t locate the article, but this is pretty much what I use. In my taxable accounts I move all interest/dividends and distributions to my cash account. I reinvest all interest/dividends/distributions in my tax deferred/free acts. When I have excess short term cash, i invest in short term treasuries or CDs, whichever produces the highest aftertax return. I rebalance my portfolio 1x per year. Hopefully this helps.
Cash
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Roth IRAs
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I do something similar which is no surprise since my daughter works for Charles Schwab. That is...all interest/dividends/distributions from my taxible M Funds goes to my cash account since I have to pay taxes.
I reinvest all interest/dividends/distributions in my IRA which is tax deferred since that money is not realized. My RMD will also go to my cash account and I use my cash account to enjoy my retirement.
Specifically I am hooked on 6 months Airbnb rentals in Hawaii, Europe and other exotic vacation hotspots. 6 days of overseas vacations while I was working was not enough. 6 months of overseas vacations while I am retired works for me.
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