Hey, James. So there's a phrase we talk about called goal post planning. That's when people are like, I'm going to retire once I have two million, maybe two and a half, three million, one more bonus, and they're just pushing back the goalpost to when they retire. Now, that's a nice phrase that we use to illustrate the concept, but there are people that will do this and it can be because of one expense. Hey, should I push off retiring because I still need to buy a new car because I've had the same one for 20 years. And what if I do that at the same time of a home remodel and which account do I pull from? Is it cash? Is it a Roth IRA? Is it a traditional IRA? What we're going to be going over today is a comment that was left in the root collective, which is our community.

So if you have not seen the previous episodes where we go into detail on that root collective,

certainly check that out. It is free and in the description of this episode, whether you're

watching on YouTube or listening on our various podcasts. I'm going to read this comment,

and then we're going to get to address it. So,

you ready, James? I'm ready. Cool. This comes from Gary R. And he posts and says his subject

line is one-time expense soon to be retired. Howdy, y'all? I'm in my final recreational

employment months. So he's speak in our language, either four or 10 to retirement, and thinking of having some work done on the house, approximately 40K.

This brings up the question of where to pull portfolio funds from.

I'm firmly in the 24% tax bracket now.

He's just flexing on us, guys, okay, with the possibility of dropping to 22% post-retirement,

lower in retirement. Confident my portfolio can handle the hit without an impact on my retirement

goals. That being said, I'd still like to pull the funds, as Ari would say, optimally.

Here are the options as I see them. Taxable account, which we call this

superhero. Of all potential sources, the 40K would represent the largest percentage of our

brokerage accounts other than any cash we have, but we would get the benefit of the long-term capital

gains rate. So that's number one, option one. Option two, tax deferred account. So although

I'm not 59 and a half, I'm still able to pull money for my 401k without incurring a 10%

penalty. Whoa, whoa, whoa, how do you do that? We'll mention that in a little bit. I could pull from here

and pay 24% without this fear of jumping to that next bracket, 32.

And then the third option is tax-free.

He says, I don't have access to all of the money in my Roth, but I believe I could pull

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