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Old 07-22-2015, 11:42 AM   #41
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I tried all sorts of things including the Simple Retirement Plan spreadsheet, which I want to thank Animorph for. Because I wanted pretty accurate tax models and SS payment models I ended up buying ESPlanner. It calculates taxes and SS payments for you.

If you do use this program, you will find that the calculated living standard changes over time as your Roth rollovers change. So in order to clearly understand the effect of the Roth rollover value, I built a simple spreadsheet to put in the stream of payments and reduce everything to NPV. The combination of this spreadsheet plus ESPlanner reports helps me to understand what I need to do to minimize taxation and maximize living standard/$$ left to heirs.

If you wanted to see what my models look like I would be happy to have a skype sharing session with you. This is easier than reading or trying to learn all this stuff yourself.
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Old 07-22-2015, 09:43 PM   #42
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For those with a bunch of errors, you might try turning off the optimizations (T2 and BL12 set to zero). That will at least significantly reduce the number of iterations required. Turn BL12 back on first, let it run. And then try T2, which should really grind away.

BL12 optimizes the yearly spending to reach the final net worth target. T2 controls the tax bracket fills.
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Old 07-22-2015, 10:15 PM   #43
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When I check tax caster it calc's my return around $5500 a year from the government ? I will pull $65k from 401k and pension 20k from social sec
Can this be right? Filling married
Doesn't seem right after all the years I have paid in


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Old 07-24-2015, 02:52 PM   #44
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Quote:
Originally Posted by ImThinkin2019 View Post
I tried all sorts of things including the Simple Retirement Plan spreadsheet, which I want to thank Animorph for. Because I wanted pretty accurate tax models and SS payment models I ended up buying ESPlanner. It calculates taxes and SS payments for you.
If the tax calculation of ESPlanner included PPACA, I'd probably find it more useful. My tax rate for 2014 was -111%, but if I hit the cliff, I jump into positive territory (where I'd need to pay instead of receive).
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Ditto pb4uski coments and strategy
Old 07-27-2015, 08:27 AM   #45
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Ditto pb4uski coments and strategy

Quote:
Originally Posted by pb4uski View Post
Well, it gets real complicated real quick. Essentially you need to construct a long term projection and then also include an annual tax calculation and then include Roth conversions to the top of your desired tax bracket (15% in my case) and see how things end up after pensions, SS and RMDs start. While each situation is different, my modeling suggests that if I do Roth conversions to the top of the 15% tax bracket from now (59) until I'm 70 that I only spend one year in the 25% tax bracket vs a decade, and my age 100 NW is 20% higher.

Note to pb4uski: Our (DW and myself) situation is identical to what you're describing.

To all: This is not complaining about paying taxes when taking tIRA distributions. Using a tax efficient strategy like this helps to make it as pleasant as possible.
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