chinaco
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- Joined
- Feb 14, 2007
- Messages
- 5,072
DW and I intend to FIRE @ 55 (about 4 years). We have assets stashed in a variety of accounts that have accumulated over the years. We intend to travel during the early years. I am trying to figure out a Withdrawal strategy that minimizes taxes and generally makes the most sense.
Our accounts look like this right now
- 401ks (12%)
- Deferred Var Annuity (7%) .... I know, I know... other tax def was maxed out at the time
- IRAs (9%)
- Profit Sharing Trust (36%) retirement equivalent of pension
- Taxable Assets (MF accounts) (36%)
I am not sure how the PST is handle in terms of tax law and ER About 2/3 is tax deferred.
We also have a pension that (if taken @ 55) will cover 10% of our pre-tax income needs.
I want to consider the tax consequences when we start receiving SS in the future, RMDs later in life, etc. While I know that the tax laws are a moving target... the current state is my best guess about the future. Except... I am suspecting that the Federal Govt will increase taxes on SS later on (in other words a means based progressive tax/penalty)
I know I can take an annuitized payment from 401k, IRA, etc. until we reach 59.5. I could use our taxable assets until we reach 59.5
I am considering having the Bond/fixed parts of the investment Portfolio in tax deferred accounts for tax efficiency, however, that might cap the amount that can be withdrawn to make up the 90% gap. If I put bonds in taxable account, I will be paying out more taxes yearly.
I will need to rebalance the portfolio and draw down cash. How is occurs is a bit determined by the market. But....
Our accounts look like this right now
- 401ks (12%)
- Deferred Var Annuity (7%) .... I know, I know... other tax def was maxed out at the time
- IRAs (9%)
- Profit Sharing Trust (36%) retirement equivalent of pension
- Taxable Assets (MF accounts) (36%)
I am not sure how the PST is handle in terms of tax law and ER About 2/3 is tax deferred.
We also have a pension that (if taken @ 55) will cover 10% of our pre-tax income needs.
I want to consider the tax consequences when we start receiving SS in the future, RMDs later in life, etc. While I know that the tax laws are a moving target... the current state is my best guess about the future. Except... I am suspecting that the Federal Govt will increase taxes on SS later on (in other words a means based progressive tax/penalty)
I know I can take an annuitized payment from 401k, IRA, etc. until we reach 59.5. I could use our taxable assets until we reach 59.5
I am considering having the Bond/fixed parts of the investment Portfolio in tax deferred accounts for tax efficiency, however, that might cap the amount that can be withdrawn to make up the 90% gap. If I put bonds in taxable account, I will be paying out more taxes yearly.
I will need to rebalance the portfolio and draw down cash. How is occurs is a bit determined by the market. But....
- What should we do to prepare over the next few years?
- What is the most tax efficient way to get the other 90% of our income from age 55-59.5?
- Should we withdraw from taxable resources only, tax deferred only or a mix?
- Or is this something that I should break-down and hire a good tax accountant?