Originally Posted by jIMOh
Here's my question- you have 40% of assets in taxable accounts... how much is this relative to 4 year expenses needed to bridge to 59.5?
The 8% IRA- how much is this relative to 4 year expenses?
the 2.5% shift per year to cash, how does this relate to gross income needed during next 4 years?
My thought would be 72t the 8% Intermediate bonds. Supplement this by selling some of the stock in the after tax account. Lower taxes this way, and avoids RMD's later in life.
I have a pension that = 12.5% of our yearly target Ret income. Our current portfolio is 25x the remaining 87.5% or target Ret Income. In other words, Our portfolio supports 87.5% of our yearly expenses (@ 4% WR) today, but the pension is not available to me for another 4.x years.
TromboneAl stated the problem with the after-tax account (Potentially Selling stock in a down market). If the stock market is doing well, I would not have a problem. However, I want to have an approach just in case.
The After-Tax account equals 10 years of expenses (however most is in stock MF). (40% of the portfolio)
We have a target of 40% in fixed securities can cover 10 years of income. 33% of the fixed in in tax deferred accounts 7% of the fixed will be in after-tax Money Market.
The 401k will solve the problem if there is no penalty. I will confirm the rules on the 401k withdrawal.
LOL! is correct... It is fairly difficult to navigate the maze of high expenses, tax traps, etc in these tax deferred accounts. Working might be easier
except that is a habit I am trying to break.