Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 03-26-2018, 05:30 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
Just curious.... do you think that the 22/28% tax rate that you expect to pay on RMDs is lower or higher than your marginal tax rates when you deferred that income?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-26-2018, 07:22 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
street's Avatar
 
Join Date: Nov 2016
Posts: 9,417
Quote:
Originally Posted by Hermit View Post
Actually, you don't have to do anything with RMDs except pay tax and move the proceeds to a taxable account. With the cash you have you can pay the taxes out of that stash and just move the funds to taxable.
That is something I never would of even thought about. That is a great idea when the times that would be a great option.
street is offline   Reply With Quote
Old 03-26-2018, 08:19 PM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
Quote:
Originally Posted by street View Post
That is something I never would of even thought about. That is a great idea when the times that would be a great option.
Some brokerages even allow withdrawal in kind, so you don’t have to sell the asset in the IRA and then rebuy in taxable. Of course your new taxable basis will be established when the asset is withdrawn, so it is equivalent to having bought it exactly then.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 03-26-2018, 10:00 PM   #44
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 3,165
Quote:
Originally Posted by pb4uski View Post
Just curious.... do you think that the 22/28% tax rate that you expect to pay on RMDs is lower or higher than your marginal tax rates when you deferred that income?
About the same. Of course life does not always turn out how you expect or plan. A lot of my situation is caused by being single. The late DW was 10 1/2 years younger than me. I never even dreamed she would not out live me. In the current situation, I won't complain too much because between the pension without survivor benefits and SS on DW's account until I turn 70, I am doing pretty nicely financially.
Hermit is offline   Reply With Quote
Old 03-26-2018, 11:50 PM   #45
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 4,661
Quote:
Originally Posted by OldShooter View Post
IMHO it is tempting to over-plan this kind of stuff. Like treating a SWR as if it is graven in stone and cannot be changed. There is also a common belief that our year-to-year spending will be level. Not so. To me, finances in retirement is a little like driving my car. As situations occur and as I see potholes or opportunities to coast, I deal with them. Like driving, I make small corrections as needed.

For cash, a small Megacorp pension ($800/month) plus Social Security almost but not quite handles my regular monthly expenses. A thousand$ or so a month plus cash for real estate taxes, income taxes, travel, etc. is the remaining need.

So when I need to top up the checking acount, I sell a few$K of equities or transfer a few $K when a t-bill matures. This happens maybe six times a year. The $K amount is a tiny blip on our AA, so I really don't worry about that.

As far as "cash" is concerned I never hold any significant amount. T-bills is about as close to cash as I get. Both DW and I have standby credit lines on our checking accounts so in the highly unlikely case where we immediately needed ten or twenty $K it is available to us that way rather than via an emergency sale of investment assets.

I would suggest that you ignore your question until you're retired. Then wing it for a year or so and the answer to your question, for your particular situation, will probably become clearer.


I think this is great advice based on my situation in retirement so far (17 months). Pre ER, I was a pretty detailed planner, but post-ER, I’ve been much more laid back. We just spend what we want to/need to in order to support our desired lifestyle. Due to some employee benefit payments from my previous employer, so far we have withdrawn very little from our taxable investment portfolio. That may change over time but I have been happy with the “winging it” approach so far.

Since the market has performed so well, net worth is up considerably since ER. I might not feel as laid back about all of this if the market were down.
Scuba is offline   Reply With Quote
Old 03-27-2018, 06:07 AM   #46
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
street's Avatar
 
Join Date: Nov 2016
Posts: 9,417
Quote:
Originally Posted by audreyh1 View Post
Some brokerages even allow withdrawal in kind, so you don’t have to sell the asset in the IRA and then rebuy in taxable. Of course your new taxable basis will be established when the asset is withdrawn, so it is equivalent to having bought it exactly then.
audreyhi >>>>>> thank you for that info and I will ask them if they do that kind of transaction with RMD moneys.
street is offline   Reply With Quote
Old 03-27-2018, 06:45 AM   #47
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2011
Posts: 8,362
Quote:
Originally Posted by HadEnuff View Post
I keep about 3 months expenses in a local checking account (zero interest), and about 1 year of expenses in the Vang. Money Market account (right now that's about 1.5% interest). Every month I transfer from Vang. to my checking account about 1 month's worth.

Every 6 months I replenish the MM account, with a portion of my IRA Withdraw.
That's how we do it. We have about 2 years of dividends set aside in a short term bond fund and draw from that 2 or 3 times a year to replenish our checking as needed.

The dividends get replenished monthly/quarterly/annually.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is offline   Reply With Quote
Old 03-27-2018, 01:59 PM   #48
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
Send a message via Skype™ to kcowan
I have to manage cash in the form of dividends and maturing bonds. So every month I am able to top up our cash reserves. Our target is 12 months expenses. 6 months in pesos in Mexico and same in local currency. We are in a position of increasing our annual spend with transfers to kids/GCs and charities so that is a moving target but easily managed with our monthly process.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Best way to invest cash on hand danno1 Active Investing, Market Strategies & Alternative Assets 10 12-17-2016 05:27 PM
Do You Keep Cash on Hand? How Much? 38Chevy454 FIRE and Money 100 08-29-2014 05:26 AM
Cash on hand for emergencies A854321 FIRE and Money 24 01-02-2008 08:32 PM
How much cash (actual greenbacks) do you keep on hand and why? hogtied FIRE and Money 90 04-18-2007 09:50 AM
Rant: Everyone has their hand out... Jay_Gatsby Other topics 30 11-17-2005 10:28 PM

» Quick Links

 
All times are GMT -6. The time now is 02:23 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.