3 Reasons to Fully Liquidate (or reposition) Your Taxable Accounts in Retirement

(don’t forget to checkout the video of this blog too)

The first step in developing a retirement plan is always to ensure you have enough retirement income to last all the way through retirement.

This is likely going to center around maximizing your Social Security income, pension income (if you have one), with additional income being layered on as needed.

But what type of money is the best to SPEND in retirement⁉️

If you have enough to retire comfortably, then your taxable money is likely the best money to liquidate or reposition for a Tax-free Wealth Transfer.

Here are 3 very important reasons to focus on spending (or repositioning) your taxable retirement money:

✅ Taxable Money Can Be A HUGE Tax Liability For Your Loved Ones

Not only do your loved ones have to fully liquidate your retirement account in 10 years…

…they have to pay all the taxes as well.

This can be compounded if they are in a high tax bracket in the years they are taking those income distributions from this inherited money.

✅ Maximizing Income From Taxable Accounts Protects More Favorable Assets

One of the best ways to squeeze the most income out of a taxable account is with an Income Annuity.

Not only does this maximize your retirement income (even if the account value is 0)…

But you will still receive 100% of this income but the insurance company will foot the bill for the rest of your life!

This allows you to leave more favorable money like stocks, real estate, and even your Roth IRA, completely untouched for retirement income…

Allowing you to transfer much more favorable assets to your loved ones without a huge tax liability.

✅ Reposition Income Not Needed For A (Leveraged) Tax-free Transfer

This is a big one.

Once you’ve determined that you don’t need any more income you STILL want to liquidate that account (if you can do it in favorable tax brackets).

The best way to do this is to start repositioning it into a vehicle that allows EVERY SINGLE DOLLAR to transfer 100% Tax-free.

Not only do the dollars you reposition transfer tax-free….

But so do the dollars that accumulate!

This is done with a specific type of life insurance contract designed for wealth transfer.

But it’s still one of the biggest IRS loopholes in the tax code.

Let’s chat 💬😎