So you did all the right things. You lived within your means and you diligently saved and invested over the years. Now you have accumulated a nice nest egg in taxable and tax deferred accounts. Wonderful! Did you, however, stop to think about the tax implications when you start to withdraw money from your tax deferred accounts?
I have thought extensively about this very matter. While I am grateful that I was able to benefit from tax advantaged accounts over the course of my career, I would like to continue to take advantage of tax minimization strategies when I start withdrawing funds from tax deferred accounts. This brings me to the subject of today’s post.
I have investigated the strategy in which you would marry withdrawals from tax deferred accounts with the use of leverage. In my opinion there are too many pitfalls/risks that could potentially derail any benefits, and therefore, I would avoid this strategy. Continue reading “Avoid Leverage in a Retirement Account Meltdown Strategy”