Continuing on in the tax management series, this month we’ll look at account sequencing during wealth accumulation and retirement withdrawal periods. The basic questions are:

1) When accumulating funds, what accounts (tax-deferred, taxable, etc.) should be funded first?

2) When withdrawing funds, in what order should funds be withdrawn?

Individual circumstances may constitute different strategies, but the following examples demonstrate two common approaches. The first is based on someone in the accumulation phase who pays taxes in the highest bracket, and the second is a retiree in the withdrawal phase who will leave behind some amount of inheritance:

Following logical strategies for adding and withdrawing funds ensures that you accumulate and retain the maximum after-tax amount possible.

Next month, we’ll look at matching investments with the most appropriate account types.

As we mentioned in last month’s blog, the momentum behind our approach to investing continues. The New York Times’ best-selling author, Dan Solin, published this recent piece on the same topic.

Click here to read the full article.

On Friday, August 15th, our team met in St. Louis to attend a Habitat for Humanity build at 12128 Trampe Heights Lane. We extend our thanks to a friend of the firm, John Castagno, for the invitation and also for serving as house leader during our build. We enjoyed the opportunity to learn some new skills, and we were proud to further Habitat’s efforts to create housing for someone in need.

Habitat For Humanity St. Louis is an impressive organization with over 350 homes in the St. Louis area. Everything in the process is guided by thoughtful planning—from thoroughly vetting homeowners to energy-efficient designs that make living in their homes more affordable. Visit their website to learn more about Habitat’s work.