Which accounts to tap first?
General investment wisdom states that it may be better to tap assets in taxable accounts first, allowing assets in traditional IRAs and other tax-deferred retirement accounts to continue compounding as long as possible. Remember that, with some exceptions, the IRS requires individuals to begin withdrawing money from certain tax-deferred accounts no later than age 70½, at which point you may want to rethink your withdrawal strategy.
Strategies for making the most of your money and reducing taxes are complex. Plan ahead and meet with a competent tax advisor and a financial professional to help you sort through the options.
Contact Lake Michigan Investment Services by going online to LMCU.org/investments, or call (616) 234-6358 for a free, no obligation financial review of your unique situation.