mathjak107
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 27, 2005
- Messages
- 6,206
well we are in the home stretch now and retiring in july,
40 years in the making and i can't believe it is here.
i have been running the numbers over and over trying to find the most efficient way of handling withdrawals both in current taxes and in taxes when rmd's kick in.
so here are the final stats :
marilyn is 64 and i am 62.
she is collecting now 868 a month . i will file in january and get 24k and she will be boosted to 12k a year.
so we have 36k in ss and a 20k pension to start with .
that gives us 56k. we are planning around an income of 130-140k as a max but have actual expenses in the 110k range we also live in queens nyc,
we have about 2.8 million split just about evenly between ira's and taxable account and another 300k after tax money due us tied up in 2 remaining co-op apartments over looking central park with rent stabilized tenants.
they are not accepting buy out offers on their lease and rents are near break even so we are keeping that out of the equation.
we are 45/45/10 equities bonds cash.
so here is the questions i am running into.
we both are finishing up working by july and since i am working part time now i doubled up on my 401k and between that and medical i will have about 8-10k in taxable income this year left over.
marilyn will have just about all her taxable income offset by her ira deduction.
so we are starting off with about 20k in pension ,36k in ss and the rest withdrawals from the cash .
that seems to be the most efficient means of doing it year 1 .
i also set up the 50k we get from the taxable accounts in dividends and distributions to start to go in to our money market for the following years money. we have enough cash to finish until that point.
the big question i can't figure out is are we better off leaving the cash sit , spending down the ira money at a higher tax rate now and having less rmd's later.
i can't get the fidelity rip calculator to do anything but pull the taxable account first.
anyone have software than can run the two scenarios ?
do we hit the cash first , let some of the distributions take advantage of the zero capital gains bracket or do we shed as much ira money early on as we can.
this stuff is making my hair hurt.
40 years in the making and i can't believe it is here.
i have been running the numbers over and over trying to find the most efficient way of handling withdrawals both in current taxes and in taxes when rmd's kick in.
so here are the final stats :
marilyn is 64 and i am 62.
she is collecting now 868 a month . i will file in january and get 24k and she will be boosted to 12k a year.
so we have 36k in ss and a 20k pension to start with .
that gives us 56k. we are planning around an income of 130-140k as a max but have actual expenses in the 110k range we also live in queens nyc,
we have about 2.8 million split just about evenly between ira's and taxable account and another 300k after tax money due us tied up in 2 remaining co-op apartments over looking central park with rent stabilized tenants.
they are not accepting buy out offers on their lease and rents are near break even so we are keeping that out of the equation.
we are 45/45/10 equities bonds cash.
so here is the questions i am running into.
we both are finishing up working by july and since i am working part time now i doubled up on my 401k and between that and medical i will have about 8-10k in taxable income this year left over.
marilyn will have just about all her taxable income offset by her ira deduction.
so we are starting off with about 20k in pension ,36k in ss and the rest withdrawals from the cash .
that seems to be the most efficient means of doing it year 1 .
i also set up the 50k we get from the taxable accounts in dividends and distributions to start to go in to our money market for the following years money. we have enough cash to finish until that point.
the big question i can't figure out is are we better off leaving the cash sit , spending down the ira money at a higher tax rate now and having less rmd's later.
i can't get the fidelity rip calculator to do anything but pull the taxable account first.
anyone have software than can run the two scenarios ?
do we hit the cash first , let some of the distributions take advantage of the zero capital gains bracket or do we shed as much ira money early on as we can.
this stuff is making my hair hurt.
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