Originally Posted by frugalthirty
My wife and I are at a point that we have enough money in our retirement accounts to grow for 28 years and provide a comfortable retirement at age 60. We'd like to retire at 50, though. I've been putting money into a brokerage account to fun age 50-60, but I hate the idea if paying taxes on my gains during growth years. Should I put the money into the Roth IRA instead and 72t it from 50-60?
One thing for you to consider is that if your taxable income in ER is in the 15% tax bracket (total income of ~$94k for a couple in 2014 assuming MFJ and standard deductions) then any qualified dividends and LTCGs that are included in the $94k are tax free. So if you are living off your taxable accounts and your taxable accounts are mostly equities, it is conceivable that your federal taxes could be zero.
To see it for real go to https://turbotax.intuit.com/tax-tool...ors/taxcaster/
an put in $92,500 of dividends or long term capital gains. (The 2014 amounts are slightly higher because of inflation).
Even during the "growth years" qualified dividends and LTCG from your taxable accounts will be tax at lower tax rates than ordinary income unless your income is so high you are subject to AMT.