Tax-efficient withdrawal strategies

• Autores: Kirsten A. Cook, William Meyer, William Reichenstein
• Localización: Financial analysts journal, ISSN-e 0015-198X, Vol. 71, Nº. 2, 2015, págs. 16-29
• Idioma: inglés
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• Resumen

  • The authors considered an individual investor who holds a financial portfolio with funds in at least two of the following accounts: a taxable account, a tax-deferred account, and a tax-exempt account. They examined various strategies for withdrawing these funds in retirement. Conventional wisdom suggests that the investor should withdraw funds first from the taxable account, then from the tax-deferred account, and finally from the tax-exempt account. The authors provide the underlying intuition for more tax-efficient withdrawal strategies and demonstrate that these strategies can add more than three years to the portfolio’s longevity relative to the strategy suggested by the conventional wisdom.