SilentWalker
Recycles dryer sheets
- Joined
- Jul 12, 2015
- Messages
- 61
I have been FI for a while now and starting to feel like late this year or early next year might be the perfect time for me to clock out of the megacorp world. DW who is a lot younger than I will continue working but her income is fairly modest so I am going to need to withdraw 50k per year from my portfolio to cover most of our expenses.
I really lack understanding about taxation of withdrawals. My initial thought has been to earmark $1.25M of my portfolio as a source of this regular 50k withdrawal and put it in either Vanguard Wellesley Admiral or Vanguard Managed Payout Fund and use WR 4% on this portion of my portfolio while keeping rest of my portfolio (mostly deferred) untouched and invested with 60/40 allocation (well, probably will be doing Roth conversions but that's another topic).
How do I know which one of these two funds will be more tax efficient? DW's income is fairly limited and will be virtually tax free because it will be spent entirely on our pre-tax insurance payments, her retirement savings and HSA savings.
I really lack understanding about taxation of withdrawals. My initial thought has been to earmark $1.25M of my portfolio as a source of this regular 50k withdrawal and put it in either Vanguard Wellesley Admiral or Vanguard Managed Payout Fund and use WR 4% on this portion of my portfolio while keeping rest of my portfolio (mostly deferred) untouched and invested with 60/40 allocation (well, probably will be doing Roth conversions but that's another topic).
How do I know which one of these two funds will be more tax efficient? DW's income is fairly limited and will be virtually tax free because it will be spent entirely on our pre-tax insurance payments, her retirement savings and HSA savings.