I've read many threads where posters were at odds with each other or not getting their points across because they were thinking assets were held with differently. I remember one discussion of the SS tax hump where the example was someone who at taken IRA withdraws to just below the SS tax hump and then you needed a few k for an emergency, so the example used that you take it from the IRA. I'm thinking either use your emergency fund or take some from your taxable account.
There are other entering ER in their mid 50's noting all assets are in IRAs and are wondering how you create income without penalties. OK, these are some ways to do this. But these people were living life just before retiring. I would assume (maybe incorrectly) that they had some level of after tax assets while doing so.
The above are just a couple observations from my experiences on this forum. They are not meant to be I'm right and their wrong, but maybe just seeing things from different viewpoints. What I'm more curious about is what roughly are the tax diversification of the ER group? Did you plan this or it just kind of happened? and what do you think helped you the most and biggest head ache?
Approx Tax diversification
56% taxable
37% TIRA
1% annuity
6% RIRA
Thing that has worked, the after tax has been nice. I take dividends (mostly qualified) for spending. Typically little selling goes on.
At ER I have very little RIRA (yes it is still small, but growing). This is likely my biggest mistake/headache. I had already rolled a 401k with tax basis into an IRA by the time Roths came into being. So much of the easy roths were not available.
There are other entering ER in their mid 50's noting all assets are in IRAs and are wondering how you create income without penalties. OK, these are some ways to do this. But these people were living life just before retiring. I would assume (maybe incorrectly) that they had some level of after tax assets while doing so.
The above are just a couple observations from my experiences on this forum. They are not meant to be I'm right and their wrong, but maybe just seeing things from different viewpoints. What I'm more curious about is what roughly are the tax diversification of the ER group? Did you plan this or it just kind of happened? and what do you think helped you the most and biggest head ache?
Approx Tax diversification
56% taxable
37% TIRA
1% annuity
6% RIRA
Thing that has worked, the after tax has been nice. I take dividends (mostly qualified) for spending. Typically little selling goes on.
At ER I have very little RIRA (yes it is still small, but growing). This is likely my biggest mistake/headache. I had already rolled a 401k with tax basis into an IRA by the time Roths came into being. So much of the easy roths were not available.