InvestorKeep monitors financial accounts to ensure your money is secure and that your accounts and investments are efficient in terms of fees, fit, and quality. In terms of security, one of the InvestorKeep alerts is: “Large Withdrawal” If you receive this alert you need to ensure it was actually you that made the withdrawal. Next, you will want to ensure that the funds arrived at the intended location. Finally, it may be prudent to talk with your financial professional about how large withdrawals fit into your financial plan.
There are plenty of good reasons for large withdrawals: A large purchase, payment of a debt, or a new investment. Large withdrawals, particularly from retirement accounts, can have tax implications (leading to larger tax bills). If you need cash, but are concerned about selling part of your portfolio because of tax consequences, it could make sense to borrow to fund your need.
InvestorKeep always advises speaking with your financial professional prior to making large withdrawals. They can ensure funds are pulled from the best possible account, saving you in taxes, fees, and other potential loss, allowing your funds to grow in the most efficient manner.