When and how you make withdrawals can impact your tax burden
There are tax-sensitive strategies we can apply to withdrawals
When managing withdrawals, techniques can be used to help potentially reduce an investor's tax obligation
When it comes time to withdraw money from a managed account, if not done carefully, an investor may end up paying more in taxes than necessary, or shifting their investment mix out of alignment with their long-term goals.
If regular withdrawals are necessary in order to meet ongoing income needs, we can maintain a cash reserve, if requested, at no additional cost. This reserve will be created so that the investor's investment mix will remain aligned with their strategy. If the cash reserve runs low, we’ll sell investments in the investor's portfolio to replenish it, remaining mindful of the account owner's overall tax situation.
In the event a large withdrawal is needed, we can use a similar approach to help reduce the potential tax impact, while seeking to maintain an appropriate investment mix.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Optional investment management services provided for a fee through Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser and a Fidelity Investments company. Discretionary portfolio management provided by its affiliate, Strategic Advisers LLC, a registered investment adviser. These services are provided for a fee.
Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, Strategic Advisers, FPTC, FBS, and NFS are Fidelity Investments companies.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917