The Personal Finance Podcast

Host: Andrew Giancola

Episode Title: Which Accounts Should I Draw From In Retirement? (Rapid Fire Q&A)
Date: October 1, 2025

Brief Overview

In this action-packed, rapid-fire Q&A episode, Andrew Giancola addresses 15 listener questions on a range of retirement and investing topics. The focus is on practical advice for maximizing retirement withdrawals, optimizing account order, tackling debt, choosing between Roth and traditional plans, and strategies for building wealth at every age. Andrew maintains an enthusiastic, energetic tone and offers both actionable tips and personal insights from his own experience.

Key Discussion Points & Insights

1. Order of Drawing Retirement Accounts (Solo 401k Roth vs. Pre-Tax)

[06:40]

• With a Solo 401k, you are both the employee and employer.
  • Employee contribution: up to $23,500 (2025), $30,500 if over 50, can be Roth or Pre-Tax.
  • Employer side: up to 25% of net business income, always Pre-Tax.
• Andrew's strategy:
  • "My specific order is usually to max out the Roth employee side first. Then, if you want that tax-free growth, you can add the employer pre-tax for the tax deduction. But I like the Roth for the tax-free growth." — Andrew [08:27]
• Seek a CPA’s advice for tailored tax optimization.

2. How Long Can I Leave My Old 401k Before Rolling Over?

[10:52]

• No deadline to roll over, as long as balance is above $5,000.
• You might leave it if the plan is good; otherwise, rolling into an IRA (he prefers Vanguard) gives more flexibility and control.
• Consider 401k rules like the Rule of 55 for early access before rolling.
  • "For most people, I recommend you look into a rollover IRA because you can do some other cool things with it." — Andrew [12:16]

3. Should I Open a Brokerage Account If My Roth IRA Isn’t Maxed?

[15:18]

• "Generally, maxing tax-advantaged accounts first is ideal."
• But brokerage accounts add flexibility, especially for early retirement goals.
• Having three 'buckets'—pre-tax, post-tax, taxable—offers withdrawal flexibility in retirement.
  • "All three of those are going to help you in retirement... the pros to having that taxable bucket is the additional flexibility." — Andrew [17:07]

4. After Maxing Roth IRA, Should I Contribute More to a 457B?

[18:00]

• If you have extra savings capacity, contributing to a 457B is "an excellent next bet," especially government, non-penalty plans.
• Always capture the employer match first.

5. Paying Off $117,000 in High-Interest Student Loan Debt

[20:00]

• Motivation is fleeting; focus on discipline and automation.
• Suggested the 1-3-6 method: 1 month expenses in savings, then attack high-interest debt.
• Track net worth to gamify payoff progress ("My favorite way to track progress is net worth. When you pay down debt, it directly improves your scoreboard").
• Look into refinancing to lower interest rates.

6. Roth IRA vs. Index Fund for Grandkids (Age 5)

[28:40]

• Roth IRA is only possible if the child has earned income.
• Index fund = investment; Roth IRA = account holding investments.
• For kids, Andrew prefers a taxable brokerage in his name with children as beneficiaries, for control until they are ready (“When I was 18, I’d have blown all that money on the dumbest things!”).

7. Should a 19-Year-Old With $20,000+ Invested Start Building Credit?

[31:44]

• Build credit as early as possible; it’s about financial profile, not necessarily debt.
• Recommends secured cards and being an authorized user if parents are responsible.

8. High-Fee Mutual Fund vs. Low-Fee ETF—Stop Mutual Fund?

[35:16]

• “Fees will absolutely destroy your wealth-building ability.”
• Unless fees are justified by consistent, after-fee, after-tax outperformance (rare), stick to low-fee options.
• Mutual funds are also less tax efficient.

9. Which Account Do I Draw From First in Retirement?

[40:10]

• Common order:
  1. Taxable brokerage accounts (use up long-term capital gains first)
  2. Tax-deferred (401k, Traditional IRA—because of Required Minimum Distributions)
  3. Roth accounts (let that tax-free growth compound)
• Caveat: Specifics depend on your tax bracket, Social Security timing, and healthcare plans.

10. Is Traditional or Roth 401k Better at Age 30?

[43:14]

• Age isn’t the deciding factor, tax bracket is.
• Lower tax bracket: Roth usually wins (“You’ll pay lower taxes now for tax-free growth later”).
• Higher bracket: Traditional may make more sense.
• Consult your CPA for customized advice.

11. Should I Lock Profit Every Time ROI >15% With a 3% Fee for Reinvesting?

[47:08]

• Not recommended to market time or “capture profits”; stay invested for the long term.
• 3% reinvesting fee is a high drag; avoid if possible.
• “If you’re not willing to hold a stock for 10 years, don’t even consider holding it for ten minutes.” — Warren Buffett quoted by Andrew [48:33]

12. How Do High Net Worth Individuals Maintain Personal Info Privacy?

[49:12]

• Use multi-factor authentication and password managers.
• Key strategies:
  • Freeze your credit at all three bureaus, unfreezing only for new accounts.
  • Remove info from data broker websites (Andrew recommends Delete Me).
  • “Your financial information is puzzle pieces. If someone can piece together the puzzle, they can start stealing money from you.” — Andrew

13. How to Pass a Taxable Brokerage Account to a Child?

[54:15]

• Options:
  1. Keep account in your name; child gets step-up basis at death.
  2. Add joint ownership or TOD (transfer-on-death) designation.
  3. Gift during life (less tax efficient).
• Most use TOD or include in will/trust for best tax outcome.

14. Strategy for CoastFI: 401k Match or Brokerage?

[56:56]

• Typical approach: Get 401k employer match, direct additional funds to taxable brokerage for early retirement/bridge needs.
• If unsure about retirement age, split between both.

15. Why Money Market Funds Instead of High Yield Savings for High Earners?

[59:23]

• Certain money market funds (Treasury and Municipal) offer strong tax benefits (e.g., no state/local or federal taxes).
• Lower gross yields, but often net higher post-tax returns for higher earners due to tax savings.

Notable Quotes & Memorable Moments

• On Roth vs Pre-Tax 401k contributions:
  “I always go Roth first, then pre-tax later...unless I really need that tax deduction.” — Andrew [08:37]

• On retirement withdrawal order:
  “A common order for a lot of people: taxable, tax-deferred, then Roth accounts. Let that tax-free growth ride as long as you can.” — Andrew [40:45]

• On paying down debt:
  “Motivation is fleeting. Your discipline is what is going to rule over everything else.” — Andrew [21:19]

• On high-fee investments:
  “Fees will absolutely destroy your wealth-building ability if you don’t get control...that’s a multi-million dollar decision.” — Andrew [36:12]

• On credit building for young adults:
  “Building credit is a multi-million dollar decision. You can improve the rates you get on everything by six figures over your lifetime.” — Andrew [33:37]

• On long-term investing:
  “We’re long-term investors here. If you’re not willing to hold a stock for 10 years, don’t even consider holding it for ten minutes.” — Andrew quoting Warren Buffett [48:33]

Timestamps for Major Segments

| Segment | Timestamp | |--------------------------------------------------------------|------------| | Solo 401k: Roth vs Pre-Tax & Contribution Order | 06:40 | | 401k Rollover Rules | 10:52 | | Brokerage Acct vs. Roth IRA Contribution | 15:18 | | 457B Contributions After Maxing Roth IRA | 18:00 | | Paying Down High-Interest Student Loan Debt | 20:00 | | Roth IRA vs. Index Fund for Grandkids | 28:40 | | Should 19-Year-Old Start Building Credit? | 31:44 | | High-Fee Mutual Fund vs. Low-Fee ETF | 35:16 | | Account Drawdown Order in Retirement | 40:10 | | Traditional vs. Roth 401k at Age 30 | 43:14 | | Locking in Profits vs Long-Term Investing | 47:08 | | High Net Worth Privacy Strategies | 49:12 | | Passing a Taxable Brokerage Account to Children | 54:15 | | CoastFI Strategy: 401k Match vs. Brokerage | 56:56 | | Money Market Funds vs. High Yield Savings for High Earners | 59:23 |

Tone & Style

Andrew maintains a motivational, direct, and approachable style. He frequently sprinkles personal anecdotes (“When I was 18, I’d have blown all that money on the dumbest things!”) and consistently emphasizes long-term thinking, discipline, and tax advantages.

Summary Takeaways

• Always prioritize tax-advantaged accounts but keep flexibility with taxable brokerage accounts for early retirement.
• Discipline trumps motivation, especially in debt payoff.
• Minimize fees and taxes to compound wealth effectively.
• Protect your privacy and build credit early on.
• Investment decisions—withdrawal strategies, account selection—are best made with a CPA or qualified professional’s guidance when possible.

For more personalized questions, join Andrew’s Master Money newsletter or consider Master Money Academy for community and accountability.