averagebum
Dryer sheet wannabe
Hi. I have been lurking in this forum for a long time and have posted some comments in the past. Thank you for all the valuable information and the sharing of experiences.
I am 64. My finances are: 1.35 million in taxable account, 2.25 million in IRA, and 80,000 in Roth, all invested in individual stocks. I collect $108,000 dividends from the three accounts, with 38,000 from the taxable account and about 60,000+ from the IRA account. I eliminated dividend reinvestment from the high yield positions. By the end of August, I should accumulate about $50,000 cash in the taxable and IRA accounts for emergency cash. I need $7000 a month after tax to live on: $1500 from pension (which covers the mortgage--owe $110,000 at 4.5%), $3000 from part-time work, $2500 from dividends from taxable or IRA accounts (all after tax). Medical insurance is provided by my employer till the end of the year when I will file for Medicare. Two years from retirement, I will reach FRA. I will collect $3000 a month in SS. I will treat that as a pay raise if I continue with my part-time work. Until 72 (or 75 if the new Secure law passes), I will do annual back-door ROTH from my IRA account for about $40000 to 60000 a year (holding the tax rate at 24%), paying taxes from my taxable account.
FIRE calc gave me 100%. Should I be able to sleep soundly at night based on this plan? I appreciate any feedback. Thank you and happy holidays and new year!
I am 64. My finances are: 1.35 million in taxable account, 2.25 million in IRA, and 80,000 in Roth, all invested in individual stocks. I collect $108,000 dividends from the three accounts, with 38,000 from the taxable account and about 60,000+ from the IRA account. I eliminated dividend reinvestment from the high yield positions. By the end of August, I should accumulate about $50,000 cash in the taxable and IRA accounts for emergency cash. I need $7000 a month after tax to live on: $1500 from pension (which covers the mortgage--owe $110,000 at 4.5%), $3000 from part-time work, $2500 from dividends from taxable or IRA accounts (all after tax). Medical insurance is provided by my employer till the end of the year when I will file for Medicare. Two years from retirement, I will reach FRA. I will collect $3000 a month in SS. I will treat that as a pay raise if I continue with my part-time work. Until 72 (or 75 if the new Secure law passes), I will do annual back-door ROTH from my IRA account for about $40000 to 60000 a year (holding the tax rate at 24%), paying taxes from my taxable account.
FIRE calc gave me 100%. Should I be able to sleep soundly at night based on this plan? I appreciate any feedback. Thank you and happy holidays and new year!
