How to Spend from Your Portfolio Tax-Efficiently in Retirement

Learn how to sequence withdrawals from taxable, tax-deferred, and Roth accounts, as well as the wisdom of Roth conversions. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=&utm_content=_58992&utm_id=30189&elqTrackId=ecda585d384945eb8952f329e721b19b&elq=c3bd012477fb4226a9b0077904200eba&elqaid=58992&elqat=1&elqCampaignId=30189&elqak=8AF50ED4841748C2FA86771A60C96808F21B4B9B92005E9DD2F230CB7E7310839615) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] from a portfolio in retirement can get complicated quickly. In addition to [structuring investments to support cash flows]( and [calibrating a safe spending rate]( retirees also have to consider the tax implications of their spending decisions. This week on Morningstar.com, we ran [my interview with tax and Social Security expert Mike Piper]( about tax-efficient withdrawal sequencing as well as key considerations when converting traditional tax-deferred accounts to Roth. The interview is an excerpt from my new book, [How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement](. Long-term-care planning is another vexing aspect of retirement planning and aging. In my travels, I’ve found that people are confused about whether Medicare will cover long-term care (it won’t) and how to address the financial risk of big long-term-care outlays later in life. For the companion podcast/video series “How to Retire,” I asked author and researcher Howard Gleckman to address those issues as well as the implications for family members who are providing care for their loved ones. [Jeff Ptak and I had previously interviewed Howard]( for the Morningstar podcast [The Long View]( and he has a lot of valuable insights to offer on “the elephant in the room” for retirement planning. Elsewhere on the retirement front, Amy Arnott and I interviewed veteran Wall Street Journal retirement reporter Anne Tergesen about trends she sees on her beat, including the state of our retirement system and retirement preparedness in the US. With Veronica Dagher, Anne has been doing [wonderful profiles of actual retirees]( that are among my favorite features in The Wall Street Journal. In the podcast, she discusses how older adults are usually satisfied with their lives no matter their level of wealth. I also appreciated [Amy Arnott’s recent look at situations when the investors might depart from the standard advice for asset allocation]( at their life stage. Amy delves into setting an asset allocation if your spouse is much younger than you, if you think you’ll have a longer-than or shorter-than-average life expectancy, or if you hold a lot of employer stock, among other situations. Finally, [Morningstar’s annual review of the best 529 college savings plans]( launched this week. These plans have been steadily improving over the past several decades, with investment options getting better and fees coming down. I can’t help but think that our analysts’ objective reviews have played a role in that positive trend. Also working in 529 investors’ favor: Thanks to the retirement legislation known as Secure 2.0, [unused 529 assets can now be transferred to a Roth IRA]( subject to certain limits. With warm regards, Christine Benz [How to Find the Right Asset Allocation for Retirement]( In this excerpt from the new book ‘How to Retire,’ Christine Benz discusses in-retirement asset allocation with author and financial historian William Bernstein. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [How to Spend More in Retirement]( In this excerpt from the new book ‘How to Retire,’ Christine Benz discusses retirement spending with financial planner and retirement researcher Jonathan Guyton. [Read More]( [How to Spend From Your Portfolio Tax-Efficiently in Retirement]( Learn how to sequence withdrawals from taxable, tax-deferred, and Roth accounts, as well as the wisdom of Roth conversions. [Learn More]( [Howard Gleckman: ‘We Pretend This Isn’t a Problem’]( An expert on aging discusses long-term care in the U.S., including the toll on caregivers, innovations in Alzheimer’s disease treatment, and the financial ramifications for older adults. [Listen Now]( [When It’s Time to Rethink Your Asset Allocation]( Eight scenarios where you may need to tweak your portfolio. [Read More]( [Morningstar 529 Ratings: The Best Plans of 2024]( Five plans earn the highest marks in our latest assessment of 529s. [Check It Out]( [Your 529 Plan Questions, Answered]( We address common questions about 529 plan investment menus, fees, withdrawals, and more. [Keep Reading]( What's the secret to a healthy, happy, and wealthy retirement? To find out, Christine Benz asked 20 retirement experts to each share one key lesson they believe leads to success. The result is her new book, How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement. Her latest work is designed to give you the tools and insights you need—whether you're nearing retirement or already retired—to approach it with confidence, wisdom, and a specific plan to maximize both your financial and personal resources. [Order Christine's New Book, How to Retire, Today!](zg_bs_g_2731_d_sccl_1/143-2932733-6203903?utm_source=eloqua&utm_medium=email&utm_campaign=&utm_content=_58992&utm_id=30189&psc=1&elqTrackId=a68ce115c5eb4e348a4b4a7025738670&elq=c3bd012477fb4226a9b0077904200eba&elqaid=58992&elqat=1&elqCampaignId=30189&elqcst=272&elqcsid=4241&elqak=8AF5F70B0CA8CB3FF3BD30EC7202B1B90E704B9B92005E9DD2F230CB7E7310839615) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602