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Where to Draw Money First in Retirement: The Optimal Order (HSA, Roth, Brokerage, IRA)

Erin Talks Money | Erin Moriarity

250,820 views

00:00 - Intro & The Four Buckets
00:42 - Setup & Assumptions (67, balances, SS, spending, 5% return)
01:23 - How Each Bucket Is Taxed (HSA, Roth, Traditional, LTCG)
02:25 - Deductions & OBBB (2025 single filer)
02:50 - The High-Level Draw Order (Ages 67–72)
03:10 - HSA Rules You Must Know
04:24 - Protect the Roth (Let It Compound)
04:35 - Age 73+: RMDs, Roth-Last, QCDs
05:01 - Why This Order Usually Wins (3 reasons)
06:36 - Brokerage-First at 67: Run the Numbers
08:11 - $0-Tax Roth Conversion: How Much Can You Do?
09:56 - Ordinary vs. Capital Gains: The Two-Layer Cake
10:48 - Traditional-First at 67: Run the Numbers
12:39 - Same AGI, Different Tax (Comparison)
13:49 - Convert a Little vs. Convert More (10–15k plan)
14:12 - Why Ages 67–70 Are Special (OBBB window)
15:38 - Following the Plan to 73: Projected Balances
16:35 - Why the Hybrid Beats Traditional-Only
19:39 - Simple Operating Plan (67–70, 71–72, 73+)
22:24 - Annual Guardrails to Check
23:12 - Bottom Line & Call to Action
23:49 - Bloopers

Unlock the optimal retirement withdrawal order—HSA → Roth → Brokerage → Traditional IRA—to cut lifetime taxes, reduce RMDs, and keep more of your money. We walk through a brokerage-first strategy with $0 long-term capital gains (2025 brackets), Roth IRA conversions (including a $0-tax window), and how this stacks with Social Security. You’ll see step-by-step math, tax-efficient drawdowns, and guardrails for Medicare IRMAA so you avoid bracket spikes. Perfect for anyone serious about retirement planning, tax strategy, and wealth management.

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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.

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20 Comments

@1975Pflyer 1 year ago

Solid information. I learned more in 25 minutes than the last 6 months of YouTube surfing. No fluff, or sales pitch. This is information I can use. Thank you ...

@athenarisman 1 year ago

I would love to see an example of someone who isn’t eligible for SS and has to rely solely on investments in retirement. It’s more complex than just needing to save more, but no one ever discusses it.

@spicyjalapeno 1 year ago

Consistently the most informative, accurate, click bait free presentation of this subject matter.

@richodell4356 1 year ago

I’d like to see a similar video for someone that retires earlier than 67. Say 60 and married.

@DougD-o2k 1 year ago

I listen to a lot of financial podcast. I’m getting to the point that I usually don’t learn much. This was excellent, learning so much in this well presented topic

@Kayahdog 1 year ago

Absolutely your best, most comprehensive video yet. Perfectly presented to outline real world applications. Can’t thank you enough, and love the blooper reel at the end to show off your wonderful personality! Thank you…

@Bondbeer 1 year ago

Good video. I am drawing down the taxable first. With a MAGI of $150k including significant tax free bonds any pretax withdrawal will cause a phase out of the new senior deduction. By withdrawing from taxable I get a similar result as it relates to future taxes (higher RMDs but less other income) while staying in the zero cap gain bracket.

@sarawill9455 1 year ago

Your presentation is so professional and calming. I always look forward to your posts. I do have several accounts (Brokerage, HSA, and a 401K both traditional and Roth. This post really helped on what accounts to touch when. I also will have a pension and a HRA account.

@thomaswestfall7403 4 months ago

Great talk! It would be nice to have a worksheet to help us in our situation.

@skmirch 4 months ago

@Erin Thanks for the excellent video. It will take me some time to digest this. I might have to watch it again (the beauty of this content being on YT). My head is still reeling from the dense information you have provided. Great, effortless presentation in just 20-odd minutes. This type of information is exactly what I have been looking for. Thank you!

@rarelycares8416 1 year ago

Retired for 1.5 years, age 57. We have all 4 buckets, but not in equal amounts. Traditional is by far the biggest bucket at about 70%, then brokerage at about 17%, then Roth at about 11%, with the remaining 2% in an HSA. We are doing large Roth conversions now until at least age 63 because our RMD's will be huge. After 63 we will have to see which will be worse...future taxes or IRMAA surcharges.

@chrisdg100 2 months ago

100% the best video on this important, but complex, topic.

@ghjong001 1 year ago

Great video - my big takeaway from this is that whatever order you withdraw, it needs to be tailored to your specific financial situation. This was a great primer, but the closer you look at your own situation, there will almost certainly be more variables than can be considered in a video intended for a broader audience: whether you're married, the age/income of your spouse, the size of the various accounts (most will not be evenly split like assumed in the video), spending patterns, etc.

@raymondbunetta8965 11 months ago

Hi Erin, you are by far my favorite retirement source to work out my plan. The detailed info, accuracy and multiple topics you present come close to home for me as I search for personal relevance. I've listened to the rest but you are the best - thank you. From another Michigander.