Dex,
I think a 24% (?) tax rate is too high -- you should be able to keep your taxes lower because of
a) low brackets (10% and 15% federal brackets)
b) personal exemptions
c) deductions (prop taxes, charitable donations, sales taxes paid)
d) no more social security FICA, Medicare payroll taxes
e) virtually no capgains distributions or capgains accumulated in your assets
d) some of your funds are no doubt in retirement accounts not taxed
Having said that, I don't think your estimate for 5% return after tax is so high, given that you want to be in all fixed income.
I also think you should assume, (since you are still in your 40s?) that you'll live even longer than 84, and instead of thinking you'll draw down your $, instead think of trying to maintain the real value of your portfolio over time. If nothing else, it will give you an added sense of security.
You'll move yourself away from the spreadsheet (too static, not enough of the whipsaw of real world market returns) and into the realm of FireCalc and the stress testing of historical ups and downs and patterns of returns/withdrawals.
When all is said and done, though, I think you'll find yourself in pretty good shape. Especially if you can bring yourself to move, over time, into equities and other asset classes -- Commercial Real Estate,Commodities, Oil & Gas, Private investments.
Congrats on getting to 'your number'
I think a 24% (?) tax rate is too high -- you should be able to keep your taxes lower because of
a) low brackets (10% and 15% federal brackets)
b) personal exemptions
c) deductions (prop taxes, charitable donations, sales taxes paid)
d) no more social security FICA, Medicare payroll taxes
e) virtually no capgains distributions or capgains accumulated in your assets
d) some of your funds are no doubt in retirement accounts not taxed
Having said that, I don't think your estimate for 5% return after tax is so high, given that you want to be in all fixed income.
I also think you should assume, (since you are still in your 40s?) that you'll live even longer than 84, and instead of thinking you'll draw down your $, instead think of trying to maintain the real value of your portfolio over time. If nothing else, it will give you an added sense of security.
You'll move yourself away from the spreadsheet (too static, not enough of the whipsaw of real world market returns) and into the realm of FireCalc and the stress testing of historical ups and downs and patterns of returns/withdrawals.
When all is said and done, though, I think you'll find yourself in pretty good shape. Especially if you can bring yourself to move, over time, into equities and other asset classes -- Commercial Real Estate,Commodities, Oil & Gas, Private investments.
Congrats on getting to 'your number'
