‘Which bucket do I draw from first?’ Suze Orman’s strategy to help low-income retirees maximize withdrawals

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Suze Orman is no stranger to offering advice on retirement savings strategies. On an episode of her podcast, Women and Money, she advised Ellen, a 67-year-old retiree, on a fundamental financial question: “Which bucket do I draw from first (1)?”

Ellen, who is primarily dependent on Social Security for most expenses, sought advice on using her retirement savings for other costs, such as traveling.

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Orman’s response emphasized a strategic approach to help Ellen maximize her retirement savings while still enjoying leisure activities. She advised prioritizing withdrawals from taxable accounts first, like traditional IRAs, over tax-free options such as Roth IRAs.

“Your Roth IRAs are growing tax-free — so you should allow them to grow tax-free for as long as you possibly can and do not touch them,” said Orman.

Thanks to the standard deduction, Orman’s suggestion takes advantage of Ellen’s low income by recommending tax-free withdrawals from her traditional or rollover IRAs of up to $15,000 annually. This approach helps Ellen’s Roth IRAs grow tax-free for longer, safeguarding their potential growth and ensuring her financial security.

And financial security is a key concern for retirees in 2026. According to a recent survey by LiveCareer, nearly half of U.S. workers age 50 and older say they’re worried about outliving their retirement funds.

In fact, 91% of respondents report that inflation or tariffs have impacted their retirement plans, and 75% say they’re delaying retirement due to stock market volatility (2).

Whether you’re behind on retirement savings, concerned about unpredictable markets, or in a predicament like Ellen’s, here are a couple more buckets you can fill and withdraw from during retirement.

While many Americans worry about whether they’ll have enough money to survive during retirement, Suze Orman consistently advocates for Roth IRAs as a top choice for retirement savings (3), though not necessarily the first bucket you should withdraw from.

Aside from a Roth, there are specialized IRAs that you could consider based on specific circumstances and preferences. For instance, billionaire hedge fund manager Ray Dalio has long favored gold, recently calling it the “safest money” in a volatile market (4).

Meanwhile, Orman has spoken at length about the importance of putting your money in a tax-advantaged retirement account (5).

A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.

Opening a gold IRA with the help of Priority Gold allows you to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold — making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.

To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.

Before nearing retirement, seeking financial advice to tailor a retirement plan that aligns with your lifestyle is important. Regardless of the bucket you choose to withdraw from, there are various strategies, like the 4% rule, which suggests that retirees withdraw 4% of their retirement savings in the first year, adjusting annually for inflation to ensure funds last at least 30 years.

Orman has previously criticized the 4% rule as “very dangerous,” suggesting that retirees should extend their working years and withdraw no more than 3% to minimize risk (6).

How many retirement “buckets” do you need? And which one should you draw from first to maximize your total retirement savings? If you aren’t sure of the answer and want to find the optimal strategy to help you save for the future, it might be worth speaking to a professional who can help.

You can talk to a financial advisor to better understand your spending habits and create a retirement plan that allows you to live comfortably during your nonworking years.

With Advisor.com, finding the right advisor is simple. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.

A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations — two key factors in building the right asset mix for your portfolio.

Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.

In addition to your retirement accounts, it’s a good idea to stash some cash in readily accessible accounts in case of emergencies. According to the LiveCareer survey, 61% of workers over 50 are actively withdrawing from retirement accounts to cover everyday expenses — a less-than-ideal scenario.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s 10 times the national deposit savings rate, according to the FDIC’s March report (7).

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

You might not place a lot of importance on your stock investments during your sunset years, given your potentially limited disposable income. But investing a few dollars can round up over time to provide you with a sizable nest egg.

With Acorns, you can automatically invest spare change from your everyday purchases into a diversified portfolio of ETFs managed by experts at leading investment firms like Vanguard and BlackRock.

For instance, if you buy a cup of coffee for $3.25, Acorns will round up the purchase to $4 and invest the change in a smart investment portfolio. So a $3.25 purchase automatically becomes a 75-cent investment in your future.

Most Americans earn a dismal 0.39% APY on their cash at big banks. Unlock 4.05% APY and pay $0 in account fees instead with a Wealthfront Cash Account
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Suze Orman (1), (3), (5); LiveCareer (2); CNBC International Live (4); Moneywise (6); FDIC (7)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.