This clip (Craig Wear, CFP®) advises viewers to create an investment transition plan that prioritizes the order in which holdings are converted so they can maximize tax-free growth. Converted assets grow tax-free with no required distributions, giving the owner control over timing and tax-free withdrawals; investors should identify which holdings will benefit most from prolonged, tax-free compounding.
Consider what your investment transition plan is going to be. So decide on the order in which you convert your holdings. It really does matter. So a lot of times, well understand this. Whatever you convert is going to grow tax free until you want the money or until your heirs are forced to distribute it because there are no required distributions. So then it becomes you get to be in charge of when you want it and when you get it, there's no tax. But from an investment standpoint, it's going to grow totally free of any tax. So you need to ask yourself, which of my holdings will benefit most from time to.
