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Old 09-21-2018, 05:54 PM   #21
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Originally Posted by njhowie View Post
I agree with ERD50 - I think you are complicating it for little benefit. ...
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I'd also add that IMO most people's real world of retirement does not include nice level spending year after year. Your $60K is likely to vary by quite a bit with travel, a vehicle once in a while, uneven charitable contributions maybe and some quiet years where spending is low. So simplicity will be helpful. As others have suggested, I would also not draw your whole expected year's spending at the beginning. No plan survives first contact with the enemy.

Finally, you can pay your year's estimated taxes with one withholding payment in December. No need to pay when you draw, to pay quarterly, or to guess what your taxes will be. We just pay the safe harbor amount near year-end and don't worry about calculating anything.
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Old 09-21-2018, 06:36 PM   #22
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Originally Posted by OldShooter View Post

Finally, you can pay your year's estimated taxes with one withholding payment in December. No need to pay when you draw, to pay quarterly, or to guess what your taxes will be. We just pay the safe harbor amount near year-end and don't worry about calculating anything.
That may be OK for Federal taxes, but CA wants installments. I got slightly gigged because I made 4 quarterly payments of 25%.
CA wants it in a weird way:
1Q-30% 5% behind

2Q 40% 20% behind

3Q 0 5% ahead

4Q 30% even
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