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

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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.Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howNew 2026 IRA rules are here. See how to protect your nest egg from inflation before the next tax deadline with physical gold. Get your free guide from Priority GoldDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAPOrman’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.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 66,783.45 -460.12 (-0.68%)ETH-USD Ethereum USD 2,029.03 -24.53 (-1.19%)XRP-USD XRP USD 1.29 -0.02 (-1.79%)SPCE Virgin Galactic Holdings, Inc. 2.4600 +0.0600 (+2.50%)SOL-USD Solana USD 78.79 -1.30 (-1.62%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 103.91 +17.56 (+20.34%)SBAC SBA Communications Corporation 204.04 +32.48 (+18.93%)YSS York Space Systems, Inc. 28.03 +4.43 (+18.77%)VSAT Viasat, Inc. 53.69 +8.46 (+18.70%)LUNR Intuitive Machines, Inc. 23.99 +3.75 (+18.53%)Top losersKNF Knife River Corporation 73.91 -8.20 (-9.99%)WIX Wix.com Ltd. 81.95 -8.55 (-9.45%)PBH Prestige Consumer Healthcare Inc. 52.48 -5.20 (-9.02%)ENPH Enphase Energy, Inc. 34.92 -3.36 (-8.78%)RGC Regencell Bioscience Holdings Limited 30.80 -2.92 (-8.66%)Most activeNVDA NVIDIA Corporation 177.39 +1.64 (+0.93%)INTC Intel Corporation 50.38 +2.35 (+4.89%)NOK Nokia Oyj 8.82 +0.55 (+6.65%)PLUG Plug Power Inc. 2.4100 +0.1600 (+7.11%)TSLA Tesla, Inc. 360.59 -20.67 (-5.42%)Top economic eventsEarnings eventsMy earnings eventsEarnings events