arch57
Recycles dryer sheets
- Joined
- Dec 14, 2013
- Messages
- 110
I've seen plenty of threads about AA percentages but have not seen any on the ratio of taxable funds vs. non-taxable. Our ratio is 88/12 so most of our "wealth" is tied up in accounts that trigger taxes. We both have been retired for 4+ years and prior to that I ran all the spreadsheets and FireCalc models and pulled the trigger at 100%.
I had a slight panic attack last year as I was running them again when I realized the tool doesn't account for the taxes so if you have $1M in an IRA you really have access to $750K-$800K depending on brackets. I plugged in lower numbers and still no problems but that got me thinking. What kind of ratios do other FIRE folk have?
My DW feels a bit financially insecure because only 12% of our funds are available without thinking about taxes and I have to admit it would be nice to have a larger amount of funds to pull from, especially for travel or remodeling expenses.
I had a slight panic attack last year as I was running them again when I realized the tool doesn't account for the taxes so if you have $1M in an IRA you really have access to $750K-$800K depending on brackets. I plugged in lower numbers and still no problems but that got me thinking. What kind of ratios do other FIRE folk have?
My DW feels a bit financially insecure because only 12% of our funds are available without thinking about taxes and I have to admit it would be nice to have a larger amount of funds to pull from, especially for travel or remodeling expenses.