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Michael Kitces: How Higher Yields Affect Asset Allocation and Retirement Planning

The Long View

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How to Generate Cash in Retirement

We find we can often make the asset location decisions quite independently of how we're drawing down accounts from a sequencing end. In practice, it's really quite manageable to generate cash while optimizing asset location and optimizing account sequencing separately. Yes, at some point, you will need to sell something from your brokerage accounts that is up and generates a capital gain. But if you've drilled down everything and all that's left is capital gains, that probably literally means you already are so far ahead of the game in tax efficiency.

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