Where should you pull money from first in retirement? Here's the standard order all retired Americans should consider

Group 1 - The article discusses the complexities of retirement income and savings, emphasizing that there is no one-size-fits-all approach to withdrawing funds during retirement [2][3] - It highlights the importance of assessing individual retirement situations in collaboration with financial professionals to determine the best withdrawal strategy [2] - The article provides a roadmap for retirees, suggesting a sequence for drawing from various sources of income [2] Group 2 - Cash reserves are recommended as the first source for withdrawals, especially if they exceed emergency fund requirements [3] - The article notes that cash loses value due to inflation, illustrating this with an example where $2,000 in 2000 would need to be $3,600 today to maintain purchasing power [4] - It mentions that retirees can still grow their cash through high-yield certificates of deposit (CDs) [5] Group 3 - Taxable accounts are identified as the next source for withdrawals, as they are less tax-efficient due to capital gains and dividend taxes [6] - The article advises retirees to consider strategic losses in stock trading to offset gains and maximize overall returns [6] - It cites research from Vanguard indicating that retirees who consult financial advisors can achieve up to a 3% increase in net returns compared to those who do not [7]