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Old 08-04-2015, 03:16 PM   #1
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I just saw an ad in Kiplinger's Personal Finance for this service for a "smart withdrawal strategy helps you get more, keep more". Has anyone tried this? Impressions?
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Old 08-04-2015, 03:56 PM   #2
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I saw it too. Haven't pursued it.
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Old 08-04-2015, 04:36 PM   #3
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I saw it though this post. I took a quick look through the site.
When to take SS.
How to allocate funds in the variety of accounts.
In what order to withdraw from accounts.
I would assume when to do roth or other conversions.

The example I looked at assumed static investment returns.

The biggest problem I have after being on investment forums for a while. There is not much really new in many of the sites I look @. DIY people spend some time to generate spreadsheets and simulations so they can estimate how retirement income will work. These guys seem to be putting together a handful of important topics which is good. I just wonder how advanced their simulations really are.
It might be interesting of see the free quickstart. Not sure how much $ I would throw into it.
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Old 08-04-2015, 06:05 PM   #4
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It might work. It might not. How much time and effort do you want to put into something that may not pay much if any in additional $$?
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Old 08-04-2015, 06:15 PM   #5
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Quote:
Originally Posted by pb4uski View Post
I just saw an ad in Kiplinger's Personal Finance for this service for a "smart withdrawal strategy helps you get more, keep more". Has anyone tried this? Impressions?
I believe KPF is the same guys as

Kiplinger & Social Security Solutions.

I used SSS and they did a pretty a good job. As matter of fact I spoke with the owner Bill Meyer, and he gave me a free report. If I can find it and it is worthwhile I will share it.
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Old 08-04-2015, 08:57 PM   #6
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I found an interesting paper (interesting to wonks like us that is) authored by two of the principals in RetireeIncome.com at http://twenty-first.com/pdf/tax-effi...strategies.pdf

My guess is that the analyses that they would provide are based on the principles in the paper.

I'm still digesting it, but a quick read is that is supports the approach that many of us are using of doing Roth conversions to the top of the tax bracket that you expect to be in later in retirement.

In essence:

Quote:
We also present two tax-efficient withdrawal strategies that use Roth conversions. In the first, the taxpayer converts sufficient funds from the TDA to a Roth IRA to fully use the 15% tax bracket; she would have been in the 25% bracket if all withdrawals came from the TDA. Then, she withdraws additional funds as needed to meet her spending needs from the taxable account. Once the taxable account has been exhausted, she withdraws sufficient funds each year from the TDA to fully use the 15% bracket and then withdraw additional funds from the TEA. The advantage of this strategy compared to the prior strategy is that the taxpayer has more funds in the TEA growing tax-free but fewer funds in the taxable account growing at an after-tax rate of return.

In the second tax-efficient strategy that uses the Roth conversion, the taxpayer makes two separate Roth conversions at the beginning of the first 25 retirement years with each conversion amount begin sufficient to fully use the 15% tax bracket. At the end of the year, she retains the funds in the Roth TEA with the higher returns and recharacterizes the other Roth TEA. This strategy allows her to avoid taxes on the returns earned in the year on the converted funds, and these funds henceforth will grow tax free in the TEA.

In a detailed example using the 2013 federal tax brackets, we demonstrated that the most tax-efficient withdrawal strategy can add about 7.5 years compared to a tax-inefficient strategy. In addition, the most tax-efficient withdrawal strategy added more than 4 years compared to the strategy advocated by the conventional wisdom.
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Old 08-04-2015, 10:11 PM   #7
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That does sound pretty close to my approach, except that I Roth convert beyond the 15% bracket and use many small conversions with one fund per Roth account so that I have more choice about which shares to recharacterize.
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Old 08-05-2015, 08:07 AM   #8
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Originally Posted by pb4uski View Post
I found an interesting paper (interesting to wonks like us that is) authored by two of the principals in RetireeIncome.com at http://twenty-first.com/pdf/tax-effi...strategies.pdf
Looks like a great article. Still reading it, some effort required to absorb all of it properly.
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