Using the TSWP gifting strategy with an estate plan - Michelle Munro

August 7, 2020

Michelle Munro, Director, Tax and Retirement Research, discusses the mechanics of leveraging Fidelity’s Tax-Smart Withdrawal Program® in a gifting and estate planning strategy, as well as other planning topics. In retirement, a systematic withdrawal plan (SWP) applies the same principles of the accumulation strategy, but in reverse, by selling fixed amounts of investments over equal periods of time. This strategy is essentially the reverse of dollar-cost averaging. Fidelity’s Tax-Smart Withdrawal Program® (T-SWP) provides cash flow without actually disposing of units. Michelle notes that you can adjust between 5% and 8% payouts without triggering capital gains tax, based on your needs. The strategy is flexible, and investors aren’t locked in to either percentage. 

Recorded on July 30, 2020.