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I am retired and am making withdrawals from my taxable retirement accounts. At my last meeting with my advisor they claimed I should still be putting money into investments. Aside from rebalancing accounts, it doesn’t make sense to me to be putting money in at the same time I am taking money out.
Thoughts?
That gave no reason for their suggestion, no proposed strategy?
Withdrawing funds only to reinvest the very same cash does seem like strange circular logic. Being uncharitable about it, you could argue it sounds suspiciously like churning for fee improvement — though I suspect that’s unlikely. I don’t know the US tax system well enough to say for certain, but could this be a strategy to shift money from taxable accounts into tax-free ones ahead of your RMDs? Or perhaps some other tax-advantaged manoeuvre? Either way, the reasoning isn’t obvious, and your advisor should be able to explain it clearly. If I were in your position, that’s the first question I’d be asking.