Prague
Recycles dryer sheets
- Joined
- Apr 20, 2017
- Messages
- 53
I have a quick question for the group. It looks like our spending will be coming from dividend and interest from our taxable brokerage accounts 100%. We do not need to liquidate any of our shares in the taxable brokerage accounts, i.e. touch the "principles". We are in our early 50s and both retired and do not have access (or need to) touch our retirement accounts. We are very well of the 4% rule but curious of how to calculate the withdrawal rate in our case.
So using the following #s as an illustration:
1. Total asset value at beginning of the year is 3m with 2m in taxable brokerage accounts and 1m between traditional and roth IRAs.
2. Dividend and interest from the taxable brokerage accounts is about 90K and our actual spending is about 80K.
3. Dividend and interest from the retirement accounts is about 20K.
4. Dividend and interest frequency ranges from monthly, quarterly and semi-annually.
5. At the end of the year, total asset value is 3.3m, with 2.2m and 1.1m each in the taxable vs. retirement accounts.
6. Above values are for investment and retirement accounts only and does not include home value which is about 800K.
My question is, is the withdrawal rate 80K divided by
A. 3m (beginning of the year total value)
B. 2m (beginning of the year value for taxable accounts only)
C. 3.3m (end of the year total value)
D. 2.2m (end of the year for taxable accounts only) ?
And how does the home value come into play?
So using the following #s as an illustration:
1. Total asset value at beginning of the year is 3m with 2m in taxable brokerage accounts and 1m between traditional and roth IRAs.
2. Dividend and interest from the taxable brokerage accounts is about 90K and our actual spending is about 80K.
3. Dividend and interest from the retirement accounts is about 20K.
4. Dividend and interest frequency ranges from monthly, quarterly and semi-annually.
5. At the end of the year, total asset value is 3.3m, with 2.2m and 1.1m each in the taxable vs. retirement accounts.
6. Above values are for investment and retirement accounts only and does not include home value which is about 800K.
My question is, is the withdrawal rate 80K divided by
A. 3m (beginning of the year total value)
B. 2m (beginning of the year value for taxable accounts only)
C. 3.3m (end of the year total value)
D. 2.2m (end of the year for taxable accounts only) ?
And how does the home value come into play?
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