I figured this might warrant a new thread as opposed to segueing my current thread on tax minimization strategies.
I am planning on a $300K/yr gross withdrawal rate (highly discretionary) which included a budget of 25% as an effective tax rate. My RE income will come solely from my investments which are split 50/50 taxable and tax differed. I have not gone into the weeds yet as to my planned withdrawal strategy (i.e. which accounts/Roth conversions/capital gains), but will have the flexibility to design my my strategy once I start withdrawals. I realize the sources of income can have a significant impact on your final effective tax rate as well as what your state tax rate is, but am wondering if I am budgeting appropriately for my taxes.
For those of you pulling say $200K/yr +, can you share the following...
- Annual withdrawal amount?
- Effective Tax rate (using gross withdrawal amount)
- What is the breakdown of the withdrawal $$ (What percent is taxed at normal tax rates such as pensions/IRA withdrawals, capital gains/qualified dividends, Roth withdrawals, other)?
- Are you taking any deductions other than standard deductions (i.e. charitable contributions)?
I am planning on a $300K/yr gross withdrawal rate (highly discretionary) which included a budget of 25% as an effective tax rate. My RE income will come solely from my investments which are split 50/50 taxable and tax differed. I have not gone into the weeds yet as to my planned withdrawal strategy (i.e. which accounts/Roth conversions/capital gains), but will have the flexibility to design my my strategy once I start withdrawals. I realize the sources of income can have a significant impact on your final effective tax rate as well as what your state tax rate is, but am wondering if I am budgeting appropriately for my taxes.
For those of you pulling say $200K/yr +, can you share the following...
- Annual withdrawal amount?
- Effective Tax rate (using gross withdrawal amount)
- What is the breakdown of the withdrawal $$ (What percent is taxed at normal tax rates such as pensions/IRA withdrawals, capital gains/qualified dividends, Roth withdrawals, other)?
- Are you taking any deductions other than standard deductions (i.e. charitable contributions)?