50% of portfolio is in taxable accounts (of which some will be principle and some will be taxed at capital gains tax rate)
50% of portfolio is in traditional IRA (a very small portion will be principle and the rest will be tax at income tax rate)
If I know what I predict to spend in a year, how do I calculate how much to take out of my accounts to cover the taxes?
This is an important question for retirement modeling purposes. If I can figure out an average tax rate, then I can simply apply that to my predicted expenses to come up with the amount I need to withdraw each year.
50% of portfolio is in traditional IRA (a very small portion will be principle and the rest will be tax at income tax rate)
If I know what I predict to spend in a year, how do I calculate how much to take out of my accounts to cover the taxes?
This is an important question for retirement modeling purposes. If I can figure out an average tax rate, then I can simply apply that to my predicted expenses to come up with the amount I need to withdraw each year.