Midpack
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An advanced question often asked, rarely answered specifically that I’ve seen. In the past, these threads seem to elicit few replies?
With DW finally retired, we have a 5-7 year window where our taxable income will probably be at it’s lowest, before Soc Sec and RMDs hit, and the tax torpedo. TIRAs are about 29% of our holdings, so RMD will be significant. We have no Roth accounts. We haven’t had room for Roth conversions without exceeding the 0% cap gains threshold, but we may for the next 5-7 years. It may well be we’re better off paying more taxes now (above the 0% threshold) to do conversions before age 70 anyway.
My cocktail napkin approach has been to try and keep taxable income constant inflation adjusted year after year as a means to minimize taxes long term.
I’m decent with spreadsheets, so I’ve tried several times to build one to model retirement income and taxes but there are just too many interdependent moving parts for my brain to keep straight. I haven’t been able to build one I trust.
Online searches provide tons of articles explaining all the variables and issues, but not solutions other than talk to ‘your tax advisor’ - we’ve never had or needed one before.
IME Vanguard won’t touch anything significantly related to taxes with a 100’ foot pole, I’ve asked several times, several ways.
Some financial advisors do appear to include tax planning, but every one I’ve talked to pushes/insists on managing investments also - preferably ongoing, at a % of AUM of course. That’s not going to happen if I can help it. I only want a tax plan for income optimization.
I realize assumptions of future taxes have to be set, and that predicting taxes exactly is therefore impossible. But that doesn’t mean no plan, and I am willing to make specific assumptions. Ideally I’d like to see a plan with tax rates and cap gains the same inflation adjusted, and another assuming higher tax rates. We also know when some of the current rates/laws are set to expire.
So I’m looking for professional guidance, and expect to pay for it. Any ideas? Again we don’t know any tax advisors, and we’ve just moved to another state (our problem) so references are almost non existent as we build a new network of friends and contacts.
With DW finally retired, we have a 5-7 year window where our taxable income will probably be at it’s lowest, before Soc Sec and RMDs hit, and the tax torpedo. TIRAs are about 29% of our holdings, so RMD will be significant. We have no Roth accounts. We haven’t had room for Roth conversions without exceeding the 0% cap gains threshold, but we may for the next 5-7 years. It may well be we’re better off paying more taxes now (above the 0% threshold) to do conversions before age 70 anyway.
My cocktail napkin approach has been to try and keep taxable income constant inflation adjusted year after year as a means to minimize taxes long term.
I’m decent with spreadsheets, so I’ve tried several times to build one to model retirement income and taxes but there are just too many interdependent moving parts for my brain to keep straight. I haven’t been able to build one I trust.
Online searches provide tons of articles explaining all the variables and issues, but not solutions other than talk to ‘your tax advisor’ - we’ve never had or needed one before.
IME Vanguard won’t touch anything significantly related to taxes with a 100’ foot pole, I’ve asked several times, several ways.
Some financial advisors do appear to include tax planning, but every one I’ve talked to pushes/insists on managing investments also - preferably ongoing, at a % of AUM of course. That’s not going to happen if I can help it. I only want a tax plan for income optimization.
I realize assumptions of future taxes have to be set, and that predicting taxes exactly is therefore impossible. But that doesn’t mean no plan, and I am willing to make specific assumptions. Ideally I’d like to see a plan with tax rates and cap gains the same inflation adjusted, and another assuming higher tax rates. We also know when some of the current rates/laws are set to expire.
So I’m looking for professional guidance, and expect to pay for it. Any ideas? Again we don’t know any tax advisors, and we’ve just moved to another state (our problem) so references are almost non existent as we build a new network of friends and contacts.
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