Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
Retirement income and savings take many, many forms, but don’t come with a whole lot of instructions when it comes to what 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 one in the first place.
And that assumes you have money socked away in the first place. Many Americans have no retirement savings at all.
A 2025 analysis from Gallup found that only six in 10 respondents reported having a retirement savings plan like a 401(k) or IRA (1). Based on data from the Federal Reserve’s 2023 Survey of Consumer Finances, the median retirement account balance for Americans between 65 and 74 was just $200,000 (2).
This is far below the $1.26M many Americans think they’ll need to retire, according to a report by Northwestern Mutual (3). So, if you’re lucky enough to have multiple sources of income for retirement, using them to your advantage is key.
Suffice to say, everyone’s retirement situation differs, and there’s no paint-by-numbers guide to pulling money in a foolproof sequence. 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.
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. For instance, $2,000 at the turn of the century could purchase about $3,839 worth of goods today, provided it kept pace with the consumer price index. But if your cash has been sitting in a shoebox or a zero-interest checking account for 26 years, it would still be worth $2,000 today.
One way to keep pace with inflation is to park your cash in a high-yield account. That way, you can earn interest on your funds to reduce the sting of inflation over time.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your emergency funds, offering both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get a 0.65% boost during their first three months for a total APY of 3.95%. That’s ten times the national deposit savings rate, according to the FDIC’s January report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
The next place you could 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 to ensure your retirement 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 (4). This is supported by a report from Envestnet, which also identifies a 3% annual value add, broken out across five categories such as tax management, financial planning and asset allocation (5).
Finding a financial advisor who suits your specific needs and financial goals is simple with Vanguard.
With a minimum portfolio size of $50,000, this service is best for clients who already have a nest egg built and would like to try to grow their wealth with a variety of different investments. All you have to do is set up a consultation with a Vanguard advisor, and they will help you set a tailored plan and stick to it.
With art and vintage items, the appeal is obvious. Many collectibles exist outside of traditional markets, and their value comes from collectors — not necessarily the economy. This can make them more resilient to dramatic dips, but also harder to access.
But there’s one globally recognized asset that has a near-zero correlation with the S&P 500, acts as a hedge against inflation and is a popular pick among the ultra-rich for preserving wealth.
If you need a hint, in 2022, late Microsoft co-founder Paul Allen’s holdings in this asset class were sold for a staggering $1.5 billion at Christie’s New York (5).
So what was at auction that day? His art collection.
And it’s not just established players who are buying into art as a diversification strategy. Overall, 83% of wealthy young Americans ages 21 to 43 own or are interested in an art collection compared to 40% of the wealthy overall (6). Specifically, they’re investing in “blue chip art,” according to Drew Watson, Bank of America’s Head of Art Services, in an interview with Bloomberg (7).
“The fastest-growing segment of the art market is still post-World War II and contemporary art”, Watson added.
Until recently, this desirable subset of alternative assets has been locked away behind a complex network of dealers, appraisers, brokers and curators.
Now, Masterworks is changing the game by opening the door to art for retail investors. Instead of spending millions on a single painting at auction, investors can now purchase fractional shares of blue-chip paintings by renowned artists such as Pablo Picasso, Jean-Michel Basquiat and Banksy.
After sign-up, you can browse Masterworks’ portfolio and choose how many shares you’d like to buy in a given painting. Then, once the firm sells the piece you’re invested in, you’ll get a return from the net proceeds. Masterworks has already sold over $65 million worth of art to date (including the principal) across 25 exits.
Even better, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% among assets held for longer than one year.
Note that Investing involves risk. See Reg A disclosures at Masterworks.com/cd.
Your last port of call for your retirement withdrawals should be your tax-advantaged accounts.
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). The only thing to be cautious about here is the required minimum deductions, or RMDs.
Starting at 73, older Americans need to make mandatory annual withdrawals from their retirement accounts to stay compliant with the IRS. Depending on your age, this may bump up the timing for withdrawing funds from your tax-advantaged accounts in priority.
However, it’s important to remember that retirement accounts are still affected by market fluctuations. If you’re concerned about the state of the S&P 500, or a potential bubble burst right as you’re going into retirement, you may want to consider more resilient tools for preserving your wealth.
One option is to work with Priority Gold, an industry leader in precious metals, offering physical delivery of gold and silver. Although stocks and bonds typically make up 60% and 40% of portfolios, according to conventional retirement wisdom, alternative assets like gold are increasing in popularity.
If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you potentially insulate your nest egg from market shocks, you can download their free 2026 gold investor bundle to learn more about making gold work for you. With that said, keep in mind that gold, silver and other precious metals are typically best used as just one part of a well-diversified portfolio.
