Standard advice is to use already taxed accounts first, then deferred then tax free (i.e., Roth). Our portfolio is predominantly tax deferred and we have no pensions so we have withdrawn from it pretty generously since retirement and reaching age 59 1/2. Until recently we have supplemented IRA withdrawals with already taxed $. Regular IRA is currently about 75% of our portfolio and have kept at about 15% tax rate but not above since retiring in 2000. Have even done some Roth conversion thinking would be advantageous later on and help keep RMDs from getting really large early on in 70's.
Our already taxed $, except for IBonds, are down now and we have planned to supplement IRA at marginal tax bracket with Roth and/or IBonds. Roths are approximately 15% and IBonds 10% of total portfolio. Those IBonds by the way are vintage 3.4% and greater real return kind, so cashing in will be very hard! Have also thought might want to move Roths or part of Roths to Wellesley and take the dividends that way supplementing IRA some every year. Wellesley is 1/3 of our portfolio allocation already but is all located in the IRA.
Would be interested in others' thoughts on this and strategies of others who have already ER'd on when and how they tap various accounts.
Our already taxed $, except for IBonds, are down now and we have planned to supplement IRA at marginal tax bracket with Roth and/or IBonds. Roths are approximately 15% and IBonds 10% of total portfolio. Those IBonds by the way are vintage 3.4% and greater real return kind, so cashing in will be very hard! Have also thought might want to move Roths or part of Roths to Wellesley and take the dividends that way supplementing IRA some every year. Wellesley is 1/3 of our portfolio allocation already but is all located in the IRA.
Would be interested in others' thoughts on this and strategies of others who have already ER'd on when and how they tap various accounts.
