Strategies For All Taxable Income
Unlike some folks who have large collections of Roth funds, cash or taxable funds, rental properties, privately owned businesses; almost all the income my wife & I have is taxable. We have taxable pensions, mine Federal my wife was a teacher, my wife could take SS for the years she taught in parochial schools but it is a small amount, maybe $200 a month because of her state teachers pension. We have IRAs which are taxable on withdrawal. About 10% of our assets are in cash (credit union) and 10% in a taxable investment account which is actually growing a bit. We have started to draw down our IRAs to bolster our pensions and converted a small amount ($5K) into a Roth, but not go into the next tax bracket. I am not sure when RMDs come in 6 years that they will be significant, we would naturally be drawing down at the RMD level at least in the first few years.
So all the discussions about delaying SS, converting traditional IRAs to Roth for those with 0% or 15% tax rates, drawing down taxable funds to delay IRA withdrawals, all seem to not apply to our situation. No matter what we do pretty much everything will be taxable now and forever.
Wonder if I missed anything and looking for ideas about optimal approaches to retirement funding for this situation.
Old men ought to be explorers