Good Book For Planning Retirement Acct Distributions?
- Thread starter haha
- Start date
No. It'd have to be posted as an attachment to a post-- the "Additional Options" box below the posting text box.
I think you're making a case for either getting hammered by RMDs or for making a Roth IRA conversion.
walkinwood
Thinks s/he gets paid by the post
ESPlanner from ESPlanner.com optimizies withdrawals to smooth out your consumption over time. It takes into account unrealized capital gains, tax-deferred accounts, SS and taxes (state & federal), so is a good tool. However, it costs $$. I found it worth the cost.
My early ER years (if that makes sense) will be funded mainly from after-tax funds, so I'm looking at a pretty low tax rate. I'm hoping to use that period to move funds from my traditional IRAs to Roth IRAs at a low tax rate.
Brat
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
His recent book "Ready, Set, Retire" covers a lot more complicated retirement income planning issues. Buckets was a great starter for me.
clifp
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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That article made my bookmarks. A very nice review of the issues involved with withdrawing assets. Unfortunately in anything involved with taxes the devil is in the details. So I think a book would be of a marginal value and almost always obsolete by the time it was published.
In general you do want 3 pools of money; a taxable account, heavily weighted with index funds, and dividend stocks, and whatever cash you need. A traditional IRA heavily weighted toward bonds and/or REITs, and Roth IRA with what ever investments you want.
As the article suggest when you are in high bracket take money from your Roth or spend cash in your taxable account. When you are in a low bracket convert money to a Roth to take advantage of the lower brackets. Assuming the tax laws remain the same (very very doubtful) you can also plays some games with Social Security and reduce you income one year to minimize the taxes on SS and then make it higher another year.
One trick worth mentioning that I just did this is year is to set up 3 separate Roth conversions. Account #1 is an individual stock #2 is a US mutual fund #3 is an Pacific ETF. At the end of the year I am going to keep one of these as Roth accounts (which ever preformed the best) and re-characterize the other two back as a traditional IRA. I'll repeat the process next year.
In general you do want 3 pools of money; a taxable account, heavily weighted with index funds, and dividend stocks, and whatever cash you need. A traditional IRA heavily weighted toward bonds and/or REITs, and Roth IRA with what ever investments you want.
As the article suggest when you are in high bracket take money from your Roth or spend cash in your taxable account. When you are in a low bracket convert money to a Roth to take advantage of the lower brackets. Assuming the tax laws remain the same (very very doubtful) you can also plays some games with Social Security and reduce you income one year to minimize the taxes on SS and then make it higher another year.
One trick worth mentioning that I just did this is year is to set up 3 separate Roth conversions. Account #1 is an individual stock #2 is a US mutual fund #3 is an Pacific ETF. At the end of the year I am going to keep one of these as Roth accounts (which ever preformed the best) and re-characterize the other two back as a traditional IRA. I'll repeat the process next year.
I thought he might be retired and have a fair amount of latitude wrt to realizing capital gains.
Cb
