How to Spend Your $2.5M Retirement Portfolio Without Running Out of Money

Video Description

Episode #700 ~~~ Subscribe to our Weekly Newsletter: www.biggerpocketsmoney.com ~~~ Want to download the slides from today’s episode? - https://biggerpocketsmoney.com/resources/ ~~~ Want to be a guest on the show? Apply here: https://biggerpocketsmoney.com/contact/ ~~~ Get 50% Off Your First Year of Monarch by using code ‘Pockets’: https://www.monarchmoney.com/ ~~~ Connect with Scott and Mindy: Scott: https://www.instagram.com/scott_trench/ Mindy: https://www.instagram.com/_mindyatbp/ ~~~ Follow BiggerPockets Money on Social: Facebook: https://www.facebook.com/groups/BPMoney Instagram: https://www.instagram.com/biggerpocketsmoney/ ~~~ Building a $2.5 million retirement portfolio is challenging—but spending it without running out is even harder. Most people focus on accumulation and fail at decumulation, the phase where retirements succeed or fail. Welcome to the 700th episode of the BiggerPockets Money Podcast! Hosts Mindy Jensen and Scott Trench celebrate this milestone with the ultimate guide to retirement withdrawal strategies. Learn how sequential drawdown, blended withdrawal methods, and cyclical strategies compare, and discover which approach maximizes your money while minimizing lifetime taxes. This deep dive covers tax-efficient retirement planning, optimal withdrawal order from 401(k)s, IRAs, Roth accounts, and taxable brokerage accounts, plus Roth conversion timing, healthcare cost planning for early retirees, estate planning tactics, and the costly mistakes that can derail even the best-funded retirements. Whether you're planning for FIRE (Financial Independence Retire Early), already retired, or helping clients navigate the decumulation phase, this episode is your complete roadmap to making your retirement savings last. 00:00 Decumulation Strategies in Early Retirement 03:53 The Ultimate Guide to Retirement Drawdown 05:16 Accumulation vs. Decumulation 07:16 Diversification in Decumulation Portfolios 11:35 Tax Treatment of Different Accounts 16:28 Investment Order of Operations 17:30 Decumulation Strategies Overview 20:44 Understanding Estate Planning and Tax Implications 21:15 Sequential Drawdown 23:01 Blended Drawdown 25:56 Tax Rates and Capital Gains 32:26 RMD Suppression Strategy 40:33 72T and Roth Conversion Ladder