Cortburg Speaks Retirement
Tune in every Wednesday to "Cortburg Speaks Retirement," your go-to podcast for the latest insights on investing, financial planning, and retirement strategies!
Join Certified Retirement Counselor, Miguel Gonzalez, as he delves into timely investment topics, offers expert advice on money management, and addresses common concerns about navigating the stock market.
Cortburg Speaks Retirement
Tax Diversification in Retirement Explained
Tax diversification gives you the power to manage taxes in retirement more efficiently. In this episode, Miguel Gonzalez, CRC, breaks down the three tax buckets and how to strategically withdraw income for long-term tax savings.
Cortburg Retirement Advisors is a boutique financial planning firm committed to helping you grow, protect, and preserve your assets from your first job to retirement. We specialize in wealth management, estate and tax planning, group retirement, employee benefits, insurance, and retirement planning to navigate any economic climate.
Miguel Gonzalez, a Retirement Specialist with 20+ years of experience, offers expertise in retirement income planning, investment management, and retirement plan design. With an MBA from Columbia Business School, and professional experience with JP Morgan Chase, Merrill Lynch, and more, Miguel is a trusted advisor for his clients.
Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®
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Welcome to Cortburg Speaks Retirement
An audio podcast about investing in the stock market, financial planning, money management and retirement planning. Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.
Now here is your host, Miguel Gonzalez.
Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.
This week, let’s explore a powerful strategy to manage your taxes in retirement: Tax diversification.
We all know investment diversification helps manage market risk. Tax diversification does something similar—it gives you flexibility to draw income in the most tax-efficient way possible.
Let’s break it down:
- Understand the Three Tax Buckets Your retirement savings likely fall into three categories:
- Tax-deferred accounts, like 401(k)s and Traditional IRAs—you pay taxes when you withdraw.
- Tax-free accounts, like Roth IRAs—contributions are after-tax, but withdrawals are tax-free.
- Taxable accounts, like brokerage or savings—you pay taxes on dividends, interest, and capital gains.
Having all three gives you choices to manage income and avoid tax surprises.
- Sequence Your Withdrawals The order in which you tap these accounts matters. Some strategies draw from taxable accounts first, then tax-deferred, then Roth. Others may mix and match. The right approach depends on your income level, tax bracket, and goals.
- Plan for Required Minimum Distributions (RMDs) At age 73, the IRS requires you to start withdrawing from tax-deferred accounts—even if you don’t need the income. These withdrawals can push you into a higher tax bracket or increase Medicare premiums. Roth conversions before RMD age can help reduce this impact.
- Use Roth Conversions Strategically Converting Traditional IRA funds to Roth IRA in low-tax years can lower future tax bills. It’s like paying taxes on your terms. Be sure to watch for the impact on Medicare premiums and other income-based thresholds.
- Work with a Tax-Aware Advisor Tax diversification isn’t about avoiding taxes—it’s about timing them well. The right mix of accounts and withdrawal strategy can help your money last longer.
In Closing Tax diversification gives you control over how—and when—you pay taxes in retirement. It can reduce surprises, improve flexibility, and help you get the most from your savings.
This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.
DISCLOSURES
CRC conferred by The International Foundation for Retirement Education. Securities offered through LPL Financial. Member FINRA/SIPC.
Investment advice offered through Private Advisor Group, LLC, a registered investment advisor. Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax. (157-LPL)
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. (22-LPL)
Cortburg Retirement Advisors, LLC. and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.
