Where should you pull money from first in retirement? Here’s the standard order all retired Americans should considerMoneywiseNovember 13, 2025 at 1:17 AM0 Copied
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Retirement income and savings take many, many forms but don’t come with a whole lot of instructions when it comes to which to tap first. Liquid savings? Stocks? Bonds? Home equity? Social Security?
Even the sale of equipment from a business can produce a good chunk of change, though where that comes in the pecking order assumes you have a pecking order in the first place.
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Confused? It’s understandable.
Everyone’s retirement situation differs and there’s no paint-by-numbers guide to pulling money in a foolproof sequence. Rather, a clear-eyed assessment of your situation — best done in conjunction with a financial professional — can help you make sense of where to start.
The good news is that certain rules of thumb apply to most retirees. This roadmap offers suggestions for drawing from the right sources at the right time, in the right order.
1. Cash
Cash is king for those who hope to kick off the golden years in royal style. If you’ve built cash reserves that surpass your emergency fund, start your withdrawals there.
For starters, cash doesn’t work for you the way investments do. In fact, it loses value in direct proportion to inflation. The effects may startle you, as $2,000 in the year 2000 could purchase $3,600 worth of goods today if the money kept pace with the cost of living. But is cash sitting in a shoebox or a zero-interest checking account? It would still be worth $2,000 today.
The good news is that you can grow your cash, even in retirement, with certificates of deposit (CDs) that offer high rates of return in exchange for securing your investment with the bank for a fixed term.
To learn more about the best high-yield savings accounts, check out Moneywise’s list of Top Savings Accounts.
2. Taxable accounts
The next place you should look for withdrawals is your taxable accounts. The logic is that taxable brokerage accounts are the least tax-efficient because they’re subject to capital gains and dividend taxes.
However, when buying and selling stocks, it’s important to remember how strategic losses can help you offset your gains, thereby maximizing your overall returns through tax savings.
You can ensure you’re making the right choices by working with a financial advisor in retirement to ensure your plan for withdrawals gives you the most bang for your buck. Research from Vanguard shows that investors who consult financial advisors can see up to a 3% increase in net returns compared to those who plan for their retirement alone.
Finding a financial advisor that suits your specific needs and financial goals is simple with Advisor.com.
Advisor.com can quickly match you with an advisor who can guide you through your options. The platform’s advisors are fiduciaries, meaning they are legally obligated to act in your best interest.
Just answer a few questions about your investment timeline and your goals, and Advisor.com will match you with a reputable financial advisor.
Book a free, no-obligation call today to see if they’re the right fit for your needs.
Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
3. Collectibles
With art and vintage items, the appeal is obvious.
After all, which is more fun? Owning 1,500 shares of General Motors, (worth about $68,000) or snagging a GM throwback like a 1960 Chevy Corvette that currently fetches an average of $69,200?
As for whether a collectible-based strategy is a reliable income stream in retirement, there’s no way to know definitively.
In all, 83% of wealthy young Americans ages 21 to 43 own or are interested in an art collection compared to 40% of the wealthy overall. They’re investing in “blue chip art,” said Drew Watson, Bank of America’s Head of Art Services, in a Bloomberg interview.
“The fastest-growing segment of the art market is still post-World War II and contemporary art”, Watson added.
Many Americans collect art but what if you could invest in blue-chip artworks to give you a passive income source you can draw from in retirement instead of selling your family heirlooms or personal collections?
One of the firms looking to increase access to art is Masterworks. Instead of spending millions on a single painting at auction, investors can now purchase fractional shares of blue-chip paintings by renowned artists including Pablo Picasso, Jean-Michel Basquiat, and Banksy.
You can browse Masterworks’ impressive portfolio, choose how many shares you’d like to buy, and once the firm sells the piece you’re invested in, you’ll get a return from the net proceeds — and Masterworks has already sold roughly $45 million worth of art to date.
Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5%* (among assets held for longer than one year).
Since launching in 2019, they have exited 23 of their paintings, all at a profit. Just like any investment, art takes patience, and you need a relatively long-term horizon to see meaningful returns.
New offerings often sell out quickly but you can skip the waitlist here.
See important Regulation A disclosures at Masterworks.com/cd
4. Tax-advantaged retirement accounts
Your last port of call for your retirement withdrawals should be your tax-advantaged accounts. While you may worry about hitting this bedrock financial storehouse, you can take comfort when you’ve done it in the right order after exercising the options mentioned above.
Pre-taxed accounts include traditional IRAs, 401(k)s, 403(b)s, 457s and SEP IRAs, along with Roth accounts (where taxes are paid upfront).
If you’re still in the retirement planning stage, you know the importance of an IRA in your portfolio. But you may not know that in addition to traditional retirement accounts, a gold IRA can be a safe way to boost your finances and save for retirement.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
