6. Optimize and Minimize Income Taxes
One of the biggest expenses for retirees are income taxes, so that’s the first place you should try to minimize if you want to optimize your savings. You can’t really avoid paying taxes, but you can avoid paying too much at the same time with clever financing tips.
What you need to do, in broad strokes, is coordinate your withdrawals- easier said than done since you have to balance portfolio withdrawals, Social Security benefits, and other retirement savings.
Like we mentioned earlier, account spending order is something you’ll hear mention of often. But, again, just make sure this makes sense for your finances.