Optimal Withdrawal Strategies for Retirees with Multiple Savings Accounts

November 2006
Journal of Financial Planning;Nov2006, Vol. 19 Issue 11, p62
Academic Journal
The article discusses optimal withdrawal strategies for retirees with multiple savings accounts. Investors with tax-advantaged savings accounts that have both front-end tax benefits and back-end tax benefits can benefit from having multiple types of accounts from which to make withdrawals, depending on the tax-rate environment. In a setting with uniform marginal tax rates, withdrawal strategies are irrelevant, while stochastic tax-rate environments should be approached with an informed strategy of making withdrawals when tax rates are low.


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