The MoneyReady Forum
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Does the Time Machine always calculate the most tax effiecient way to withdraw funds?

If a legacy is not a priority, is there any benefit to running the optimizer? 

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The Optimizer is for more than dealing with a legacy calculation.  It can determine the priority for withdrawals for your various types of accounts which can help you reduce your lifetime tax burden.  Use it to compare the results of your plan by running the Time Machine first, and then run the Optimizer afterward.

Here is a very detailed article on the Optimizer you can read to help you understand exactly what it does.

https://www.moneyreadyapp.ca/blog/post/8 

 

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The TIME MACHINE on its own does not optimize at all, it just follows your orders for your scenario that you set with AUTOMATIC WITHDRAWALS and your Withdrawal PRIORITIES, still enforcing tax rules along the way.

The WITHDRAWAL OPTIMIZER does optimize for tax efficiency over the retirement years indirectly. The optimizer algorithm considers more than just taxes and considers all those years together to maximizes your legacy and tries to beat the original TIME MACHINE scenario you set.  It does not matter whether you want to leave a legacy or not.

So yes you should use the optimizer to determine if your set withdrawal strategy is optimal, and if not, to consider the results of the optimal strategy obtained by the program.

 

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Thanks for the responses. This makes sense now. I have read the ebook and many of the help sectiuons on each page, I think I am starting to get it. I am trying to keep things simple at first, and I have put in my info as accurately as possible. More questions to follow.😄