475 | How to Access Your Retirement Accounts Before 59.5 | Sean Mullaney
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Prioritize spending down taxable assets for tax planning and creditor protection
Prioritizing spending down taxable assets before tax-advantaged accounts offers multiple advantages. By reducing uncontrolled income from dividends and capital gains, individuals can improve tax planning and potentially lower future tax liabilities. Additionally, spending down taxable assets can enhance creditor protection, as tax-advantaged accounts like 401ks and IRAs generally offer greater protection from creditors. This strategy also allows the tax-advantaged accounts to grow over time, increasing the overall personal balance sheet with some creditor protection. Overall, aiming to fund retirement until age 59 and a half with taxable assets is considered ideal, providing financial security and flexibility.
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