Thanks all for the comments.
My conclusion from all of this is I will just have to look at my assets when I hopefully launch in 3 yrs and figure out my best blend withdrawal strategy. As mentioned, while still accumulating and in the highest bracket, I see my best strategy of maxing out any tax differed accts before funding taxable/other. Roth conversion today would be at the top bracket. Some comments to your comments...
- I agree taking a purely "best tax avoidance" strategy only is foolish. I have always looked at my investments on net after tax return basis regardless of fees/taxes and measured the risk/reward. That said, all things being equal paying less taxes is better, ehh!!??
- Admittedly, I have not run the tax return math as things could change in 3 yrs, but if $96K is creates 0 tax liability, then perhaps creating the balance desired won't sting as much in terms of an overall effective tax rate. Part of what I am trying to do is estimate my effective tax rate as that will push my required nut to generate my planned SWR. I have been using 25% to be conservative, but suspect it will be less than that with some level of tax efficiency. A 5% swing in effective tax rate can mean the difference in when I launch.
- Like every who retires, I will have to construct a plan that I am sure will have some Roth conversion and involve a strategy that is very sensitive to RMDs.
- I suppose there could be a place for munis or even annuities, but not really on my radar now. My logic on munis has always been if I can generate a higher net income, even if taxed, on a preferred or similar risk/reward asset, why go munis? Re annuities, I am just wired not mix my insurance with my investments... if you need insurance, buy term. Again, have not studied the overall impact of incorporating these when I RE, so perhaps they will deserve a look.