4-Step Process to a Tax-Free Retirement

We’re talking about the 4-step process to get to a tax-free retirement. Step one, recognize that tax rates are going to go up. Step two, recognize that in a rising tax rate environment, there's a mathematically perfect amount of money to have in the taxable bucket and the tax-deferred bucket. Step three is anything above and beyond those ideal balances in the first 2 buckets should be systematically, year by year, over a period of time, repositioned to the tax-free bucket. Step four is to make sure that you're getting some good diversity within your tax-free streams of income. Make sure that once you decide what’s the ideal amount of money to be shifted to tax free, that it gets funneled into a few different places.