| This week's retirement planning conversation centers on a crucial insight: where you hold your investments and how you withdraw from them often matters more than chasing any single tax-saving trick. Experts are emphasizing that the same portfolio, simply arranged across the right account types—taxable, tax-deferred, and Roth—can produce meaningfully different outcomes over a 20 or 30-year retirement. |
Why does this matter right now? Because many retirees are heading into required minimum distribution territory with tax-deferred accounts that have grown larger than expected. Without coordination, income can "cluster" in certain years, pushing you into higher brackets and triggering increased Medicare premiums. The goal isn't to pay zero taxes—it's to decide when you pay them, rather than letting the system decide for you. Track all your accounts free with Empower 🧠 THIS WEEK'S SMART MOVE: Review Your Account Location Strategy With tax planning front and center this week, now is an excellent time to look at which investments sit in which accounts. Many folks have the same mix of holdings repeated across their IRA, 401(k), and taxable brokerage—but each account type is taxed differently. Bonds and high-dividend investments generate taxable income every year; holding them inside tax-deferred accounts can contain that drag. Meanwhile, broad equity index funds that generate fewer taxable events are often better suited for taxable accounts. This isn't about changing your overall investment strategy. It's about arranging what you already own so more of it works for you over time. A simple review now could save you real dollars down the road. Get your estate plan started at Trust & Will |