The Different “Flavors” of Retirement Money–And the Cost of Choosing the Wrong Flavor!

Money is money, right? Actually that is not right, particularly for folks in retirement who may have significant savings in yet to be taxed retirement accounts. I like to refer to the financial resources of my clients as their different flavors of money. Fortunately, unlike a certain ice cream store chain or even a local farm creamery, there are not dozens of flavors of retirement money to choose from. But that smaller number of options still does require you to make a choice at any given time as to the most efficient use of your available funds.

In my admittedly simplistic approach to this, I have the four main flavors of “regular” money in the bank (or piggy bank), taxable investment funds in brokerage or mutual fund accounts, tax-free/tax-favored funds such as certain municipal bonds, life insurance cash value, and Roth IRA accounts, and the most challenging flavor, the pre-tax or “qualified” traditional retirement account. 

A retirement-focused financial advisor who takes a holistic approach to your financial and tax situation can help you choose which flavor, or combination of flavors, you might want to use in any given year to have the most tax-efficient and productive result. There is definitely no one size fits all (one flavor for all?) to this analysis as your personal situation is just that, personal to you. But if you, or your current advisor, is not looking at how best to choose your money flavors it might be time to change things up.

You can learn more about tax-efficiency in retirement at a free Lunch & Learn this coming Monday, November 10th, from noon-1pm, at Lefty’s Alley & Eats. Enjoy a pizza lunch while learning about Tax Traps and Opportunities for Retirees.

You may still have time this year for some tax planning or savings before the clock strikes midnight on New Year’s Eve. Don’t miss out on a tax savings opportunity for this year–and learn how to plan ahead for a tax-efficient 2026 using your own different flavors of money in the optimal way. 

RSVPs are required due to limited seating (and to make sure we have enough pizza!). Call Safe Harbor Financial Advisors at 302-313-6644 to save your spot, or use our handy on-line form at www.safeharborfinancialadvisors.com/free-workshop . You can learn more about Safe Harbor at www.SafeHarbor.financial.