The Withdrawal Order Nobody Taught You (And How to Save 10% on Taxes Annually in Retirement)

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And On to the Show Notes!

Most retirement advice gives you a simple withdrawal order:

Taxable.
Traditional.
Roth.

Useful? Yes.

Always right? Not even close.

In Part 2 of the Art of Decumulation series, Tyler digs into what actually determines where your retirement income should come from each year — taxes, healthcare, market conditions, account type, and the life you’re trying to fund.

Because retirement withdrawals aren’t a problem you solve once.

They’re a decision you revisit every year.

In this episode, Tyler covers:

• Why the “taxable → traditional → Roth” rule is only a starting point
• How to use low tax brackets strategically instead of simply minimizing withdrawals
• Why asset location matters just as much as asset allocation
• How sequence-of-returns risk changes the early years of retirement
• Monthly vs. annual withdrawals — and why the mathematically “best” answer may not be the best life answer
• When ACA subsidies and Roth conversions should override the usual withdrawal order
• Why the Roth is often best preserved for last

The core idea:

The best withdrawal strategy changes with the year in front of you.

Do the math carefully.

But remember what the math is for.

This is Part 2 of the Art of Decumulation series. Next week: Roth conversions, RMDs, and IRMAA.

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Hope this gives you something to think about this week.