Greetings from Seattle.
I am looking forward to my exit from work life in less than 90 days.
I gave my notice just over a year ago on the day I received my 10th year longevity award in October of 2016.
I was planning to retire at 50 but delayed it for two years because I wanted to give myself the option of applying for citizenship while I am still working. However, at this stage I am having second thoughts about remaining in the US due to the political climate.
I will be retiring with around 1.8m in assets that will be mostly based in stocks (87%), and some cash (10.6%) in my portfolio which excludes the value of my home, (if you include it, then my net worth is just north of 2m,) with the remainder in alternatives and bonds. If all goes well, then I hope my portfolio will be closer 2m again by the time I retire in July. I was 20K short of 2m in March before the correction.
My annual pay is 72K plus another 16K in annual bonuses that go directly into my 401K. I have been maxing out my contributions to my 401K since I hit 50, so my take home is fairly small. Especially this year when I get done in July.
My annual expenses rarely go above 38K a year. The rest of it usually goes into my Roth and my investment account. I have been maxing out my Roth since I started working 12 years ago. This year however, I won’t be able to contribute to my Roth for next year due to a lack of funds as I have barely enough to live on after maxing out my 401K.
My main concern now is how do I generate income without touching the principal going forward after I am retired.
What is the best way to keep that 2m intact and growing whilst providing me with a reasonable income of 3K a month? Will dividends generated from about 230K in my Roth be enough? What sort of taxes will I be contending with?
I plan to rollover my 401K into an IRA sometime in mid August. I have about 280K in it for now.
Is it possible to generate dividends inside of my Roth that can be drawn out for income?
Any advice would be most welcome.
Thanks in advance.
A.
I am looking forward to my exit from work life in less than 90 days.
I gave my notice just over a year ago on the day I received my 10th year longevity award in October of 2016.
I was planning to retire at 50 but delayed it for two years because I wanted to give myself the option of applying for citizenship while I am still working. However, at this stage I am having second thoughts about remaining in the US due to the political climate.
I will be retiring with around 1.8m in assets that will be mostly based in stocks (87%), and some cash (10.6%) in my portfolio which excludes the value of my home, (if you include it, then my net worth is just north of 2m,) with the remainder in alternatives and bonds. If all goes well, then I hope my portfolio will be closer 2m again by the time I retire in July. I was 20K short of 2m in March before the correction.
My annual pay is 72K plus another 16K in annual bonuses that go directly into my 401K. I have been maxing out my contributions to my 401K since I hit 50, so my take home is fairly small. Especially this year when I get done in July.
My annual expenses rarely go above 38K a year. The rest of it usually goes into my Roth and my investment account. I have been maxing out my Roth since I started working 12 years ago. This year however, I won’t be able to contribute to my Roth for next year due to a lack of funds as I have barely enough to live on after maxing out my 401K.
My main concern now is how do I generate income without touching the principal going forward after I am retired.
What is the best way to keep that 2m intact and growing whilst providing me with a reasonable income of 3K a month? Will dividends generated from about 230K in my Roth be enough? What sort of taxes will I be contending with?
I plan to rollover my 401K into an IRA sometime in mid August. I have about 280K in it for now.
Is it possible to generate dividends inside of my Roth that can be drawn out for income?
Any advice would be most welcome.
Thanks in advance.
A.