Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 06-04-2014, 12:02 AM   #21
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 3,067
urn2befree.............excellent point......I was so focused on trying to translate OP's question (which I may have misinterpreted) into a tax answer that I myopically forgot to take the higher level view that you did. Except for a minor math error in your final calculation, I agree with you.

kaneohe is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-04-2014, 02:31 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2005
Posts: 5,464
one area most folks screw up is in going by rules of thumb and not their own situation.

common wisdom says spend tax deferred money last and let it grow and taxable accounts first. but for many that is poor advice.

uncle sam gives a 65 year old couple the ability to not only take over 20k a year in tax free income every year but the ability to take almost 42k and pay as little as 1800 bucks tax on it.

folks let that ability go unused year after year by spending money they already paid taxes on or the little bit of distribution income they get in taxable accounts while letting that tax free money ability go unused.

someone delaying ss to 70 can actually pull 320k out of retirement money and pay very very little tax on it.

mathjak107 is offline   Reply With Quote
Old 06-04-2014, 04:57 AM   #23
Recycles dryer sheets
Islandtraveler's Avatar
Join Date: Apr 2012
Location: Long Island
Posts: 113
Originally Posted by urn2bfree View Post
I am confused. Why take the dividends from the tax deferred account? As long as they stay in the tax deferred account they are not subject to taxes.

Why not take the $44 in dividends from the taxable side and sell $106k from the taxable account? (87% is return of principle and not taxable) making
Sorry for the lack of clarity. That is exactly my intention. At my current allocation of 70/30, I feel it prudent to scale down the equity portion of my portfolio. My anticipated draw of 150 on the taxable portion of the portfolio should accomplish this. I just mentioned the dividends from the deferred account from a standpoint of the tax question.
Islandtraveler is offline   Reply With Quote
Old 06-04-2014, 05:07 AM   #24
Recycles dryer sheets
Islandtraveler's Avatar
Join Date: Apr 2012
Location: Long Island
Posts: 113
BTW, Great suggestions from all. I have already ordered a copy of the 2013 TurboTax as well as started playing around with those online calculators. I already feel that I have a better understanding of what I will be dealing with. I am amazed at the small amount of tax that I should have to pay! This will be a refreshing change from those giant checks that I have been writing each year! Thanks to all.

Islandtraveler is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax Efficient Withdrawal Strategies chinaco FIRE and Money 7 09-27-2011 06:44 PM
Tax-Efficient Sequencing of Accounts ats5g FIRE and Money 5 11-02-2006 12:42 AM
457 tax/withdrawal strategy. nun FIRE and Money 14 10-30-2006 06:17 AM
M* discovers that ETFs are more tax efficient than mutual funds Nords FIRE and Money 4 02-15-2006 06:14 PM
Tax efficient mutual fund or not animefans Young Dreamers 7 07-29-2004 03:19 PM


All times are GMT -6. The time now is 09:00 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.