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Old 10-10-2014, 08:18 PM   #41
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My comment was entirely related to portfolio withdrawal timing, not taxes.
Sorry if I muddied the waters. The fact that dividend/CG distributions are taxed no matter what played into my decision to switch in ER from reinvesting to paying out.
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Old 10-11-2014, 04:54 AM   #42
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it really does not matter how you do it. if you reinvest the dividends and pull from a cash buffer then the equities compound over time.

but if yoo pull from a cash buffer so you can do that then the cash acts as a weight that isn't invested and it is a question of taking it from the left pocket or the right one.

personally i rather use the cash buffer. as 2008-2009 showed us dividends get slashed or cut just at the worst times. i want a smooth flow of income so i prefer the cash buffer to counting on dividends directly.
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Old 10-13-2014, 06:44 AM   #43
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The 8% doesn't change according to the IRS office I was at.
8% is only from FRA to age 70 and it is simple, not compounded. IOW,, if your FRA is 66 and you wait until 70 then your benefit is 132% of your FRA benefit.

From 62 to FRA there is a less generous and more complicated formula.
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