Episode 225: 3 Tax Strategies to Improve Retirement Income Efficiency
From Retire With Style by Wade Pfau & Alex Murguia
April 21, 2026 · 29 min · Season 2 · Episode 25
About this episode
The episode discusses tax strategies to improve retirement income efficiency and maximize after-tax spending power.
This week on Retire with Style, Alex and Wade focus on how retirees can improve tax efficiency to maximize after-tax spending power. They walk through the structure of the tax system, emphasizing the importance of understanding adjusted gross income (AGI), above-the-line and below-the-line deductions, and how different tax rules interact. They also introduce the concept of tax diversification across taxable, tax-deferred, and tax-free accounts, explaining how each account type is taxed and how strategic use of all three can create more flexibility and better long-term outcomes. The discussion highlights that tax planning is not about loopholes, but about working within the rules to avoid unnecessary taxes and unintended consequences. Listen now to learn more! Takeaways Tax efficiency is about increasing after-tax spending power, not just minimizing taxes in a single year Adjusted gross income (AGI) is a critical planning lever since many tax rules, phaseouts, and surcharges are tied to it Above-the-line deductions (like retirement contributions and HSAs) directly reduce AGI and are especially valuable Below-the-line deductions (standard or itemized) reduce taxable income but do…
People in this episode
Hosts: Wade Pfau, Alex Murguia
Topics covered
- tax strategies
- retirement income
- tax efficiency
- adjusted gross income
- tax diversification
- deductions
Keywords
- tax efficiency
- retirement income
- AGI
- deductions
- tax diversification
- taxable accounts
- tax-deferred accounts
- tax-free accounts
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- Episode 229: How to Leave More Wealth to Your Children After Taxes · May 19, 2026 · 41 min
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