Original Wally
Recycles dryer sheets
Here is my situation. Wife and i are both 58 and HAPPILY retired.
Income = $84k
Debt = ZERO. (Only current month charges on M/Card!)
Income is $55.5 California Public Employees, with a max 5% COLA
and $28.5 Social Security Disability.
Investments are...
Old Employer [FONT=Times New Roman, serif]§457 Plan = $70k[/FONT]
IRA (rolled from 401(k) Plan = $305k
After Tax Brokerage Acct = $150k
WIth that income level, STD deduction (no MTG interest ) we have a taxable income of around $63k - FIRMLY in the (current) 15% bracket. My plan is to GRADUALLY shift over funds from the §457 Plan first, then the IRA to the brokerage acct. I figger that 15% is a cheap cost to convert. AND, for THAT matter, the next bracket, 25% ain't THAT bad. I **HATE** to have to pay the tax, but EVENTUALLY it has to be paid. AND, in the event that DW and I both pass it makes the Estate much easier NOT having tax deferred issues. AND if I pass, it would just generally make life easier for HER to not have to deal with tax issues.
QUESTION.... am I NUTS? Or is this a reasonably sound plan?
Income = $84k
Debt = ZERO. (Only current month charges on M/Card!)
Income is $55.5 California Public Employees, with a max 5% COLA
and $28.5 Social Security Disability.
Investments are...
Old Employer [FONT=Times New Roman, serif]§457 Plan = $70k[/FONT]
IRA (rolled from 401(k) Plan = $305k
After Tax Brokerage Acct = $150k
WIth that income level, STD deduction (no MTG interest ) we have a taxable income of around $63k - FIRMLY in the (current) 15% bracket. My plan is to GRADUALLY shift over funds from the §457 Plan first, then the IRA to the brokerage acct. I figger that 15% is a cheap cost to convert. AND, for THAT matter, the next bracket, 25% ain't THAT bad. I **HATE** to have to pay the tax, but EVENTUALLY it has to be paid. AND, in the event that DW and I both pass it makes the Estate much easier NOT having tax deferred issues. AND if I pass, it would just generally make life easier for HER to not have to deal with tax issues.
QUESTION.... am I NUTS? Or is this a reasonably sound plan?
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