Tax-Efficient Withdrawal Strategies In Retirement

Picture this: a client is so excited to retire. They have saved and planned and are ready to move into this next chapter of their life, but there is one question they are still unclear about: “How do I actually get the money from my retirement savings into my bank account to pay my bills?”

Generating sustainable retirement cash flows involves more than determining an appropriate withdrawal rate or investment allocation. Financial advisors must also decide where investment assets should be located, how to generate cash from client portfolios, and how to adjust these strategies as client circumstances change. These decisions can significantly influence lifetime tax liabilities, after-tax wealth, and the effectiveness of a retirement income plan.

In this session, Michael Kitces examines three approaches to generating retirement cash flows: income-focused investing, capital gains top-up strategies, and fully invested total return strategies. He explores how withdrawal sequencing across taxable brokerage accounts, traditional retirement accounts, and Roth accounts can improve after-tax outcomes by smoothing taxable income across retirement years. Michael also examines the role of partial Roth conversions, the impact of required minimum distributions, and the importance of balancing current and future marginal tax rates rather than simply deferring taxes for as long as possible.

Learning Objectives: 

- Differentiate among income-focused investing, capital gains top-up strategies, and fully invested total return approaches for generating retirement cash flows, including their operational considerations and tradeoffs.

- Analyze how withdrawal sequencing across taxable brokerage accounts, traditional retirement accounts, and Roth accounts affects lifetime tax liabilities and after-tax retirement wealth.

- Evaluate the use of partial Roth conversions, tax bracket management, and required minimum distribution planning to balance current and future tax rates and reduce lifetime taxation.

- Apply the asset location smile framework to determine appropriate investment placement across taxable, tax-deferred, and Roth accounts based on expected returns and tax efficiency.

- Develop a coordinated retirement withdrawal strategy that integrates cash sourcing, account sequencing, asset location, and ongoing adjustments to changing client circumstances.

Accessing the webinar:
You can find your custom link by accessing the email confirmations that have been sent to you via email from webinar.host@bigmarker.com. You can also find your individual sign-on link within the downloadable calendar invite for the webinar.

Continuing Education (CE): 1.5 Credits
For attendees who want to receive CE credit for designations managed by the CFP Board, IWI, and American College, we will report your attendance directly to these organizations within 72 hours as long as you enter your certification numbers during registration and attend the live session for at least 75 minutes.

For attendees who want to receive CE credit as an Investment Adviser Representative (IAR), we will report your attendance directly to FINRA within 72 hours as long as you enter your certification numbers during registration and attend the live session for at least 75 minutes. Additionally, Kitces Members must have purchased the IAR Add-on to have their CE reported to FINRA as an IAR.

NASAA does not endorse any particular provider of CE courses. The content of the course and any views expressed are my/our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions

For attendees who want to receive CE credit as a Certified Public Accountant (CPA), you must attend the live session for at least 75 minutes and complete all polls presented at the live event. A certificate will be provided to you for self-reporting to NASBA.

All attendees who meet the minimum attendance requirement of 75 minutes will also receive a completion certificate that you can use to report CE to other organizations. We don't report for state-level insurance licensing although some states may accept completion certificates if you self-report.

Recordings:
Non-Members: Those who are NOT Kitces.com Members will have access to the recording for 30 days. Though continuing education is available for the live session, the recording is not CE eligible. 

Kitces.com Basic & Premier Members: The video presentation and a recording of the live Q&A will be available on the Webinars page in the Members Section. Note: If you were not able to attend the live session for the full 50 minutes, successful completion of a quiz will be required in order to receive CE for viewing the RECORDED VERSION posted to the Members Section.