RockyMtn
Thinks s/he gets paid by the post
A question for the group....
I am analyzing my assets to determine what I should utilize to fund my 2010 living expenses. As this is my first full year of retirement I want to get it right. I'm quite comfortable that my withdrawal rate will be right around 3% of total assets (not including house NAV).
The question is do you include estimated tax payments that will need to be paid during the year on things such as dividends, interests and capital gain in your total living expenses when determining a safe withdrawal rate?
I have seen articles that suggest that a safe withdrawal rate of 3% to 4% does not include taxes due that year and is really related to just actual living expenses. But if taxes are an expense that need to be paid during the year why wouldn't they be included?
That being said I guess you wouldn't be paying the taxes on the gains if your investments weren't growing.
I am not of the age where I am having to take required monthly withdrawals from any retirement accounts.
Your feedback is appreciated.
I am analyzing my assets to determine what I should utilize to fund my 2010 living expenses. As this is my first full year of retirement I want to get it right. I'm quite comfortable that my withdrawal rate will be right around 3% of total assets (not including house NAV).
The question is do you include estimated tax payments that will need to be paid during the year on things such as dividends, interests and capital gain in your total living expenses when determining a safe withdrawal rate?
I have seen articles that suggest that a safe withdrawal rate of 3% to 4% does not include taxes due that year and is really related to just actual living expenses. But if taxes are an expense that need to be paid during the year why wouldn't they be included?
That being said I guess you wouldn't be paying the taxes on the gains if your investments weren't growing.
I am not of the age where I am having to take required monthly withdrawals from any retirement accounts.
Your feedback is appreciated.