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Old 12-01-2019, 07:19 AM   #21
Recycles dryer sheets
 
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Originally Posted by pb4uski View Post
I'm trying to avoid taking money out of taxable at this point. For one, my unrealized gains are about 50% of value... so if I take out $100k to spend that means $50k of capital gains and $7.5k of capital gains tax... but it also means that is $50k less of tIRA withdrawals or Roth conversions.

I'm betting on stepped up basis for taxable accounts when one of us dies or both die and taxable equities are inherited... in that event the embedded gain never gets taxed... and I like that idea.

Another reason that I am prioritizing tIRA withdrawals for spending money and Roth conversions to the top of my ultimate tax bracket is because if one of the other of us dies, we might be catapulted into a higher tax bracket so the lower the tax-deferred balances the better.... probably less of an issue for us realistically depending on future investment results but possibily an issue for others.
As it relates to my taxable account, I am assuming roughly half of the $300K will come naturally from dividends/interest and the other half from capital gains. To your point, like many in this long bull market, I have many winners so not sure of the impact of the actual gains at this point.
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Old 12-01-2019, 07:23 AM   #22
Recycles dryer sheets
 
Join Date: Oct 2015
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Originally Posted by sanfanciscotreat View Post
My accountant told me in the early 80s when I complained about paying so much tax: "If you do not want to pay so much tax, earn less money". I disregarded his advice.
so that's the secret sauce...
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