Your advice on a withdrawal strategy

[Finance Dave]

You said you needed about $85K to live on. Add to that the money needed to pay the taxes on it and I doubt you can supplement the $65,100 with $30,000 or so from after tax money for very long. I might have missed something. If I did you can stay at the 15% marginal rate.

Once you cross over you might as well maximize the 25% bracket to get as much money transferred as possible to avoid the higher tax rate when you start SS. Retiring at 56 gives you a few years to move money no matter when you start SS.

I was just giving you a non-nasty (I thought) ribbing on your income. I'll make my financial post when I feel closer to the moment and give everyone a shot at me. Our family income isn't much different than yours.

Thanks 2B, good points. I didn't take your ribbing as nasty...just wasn't sure what you meant by FA...I work in corporate finance, I'm not a financial advisor.....but perhaps you meant financial analysis...which is a portion of my job.

 

[2B]

Thanks 2B, good points. I didn't take your ribbing as nasty...just wasn't sure what you meant by FA...I work in corporate finance, I'm not a financial advisor.....but perhaps you meant financial analysis...which is a portion of my job.

I thought you were a financial advisor. I must have misread your meaning in some previous posts.

 

[jIMOh]

We must be talking past each other....the after-tax money will be withdrawn at zero percent...I already paid taxes on it.

Are you sure?? My understanding is you get tax free compounding, but would pay taxes on withdraws at ordinary income rates.

 

[Finance Dave]

Are you sure?? My understanding is you get tax free compounding, but would pay taxes on withdraws at ordinary income rates.

Yes I'm sure. I'd be really if they tried to tax it a second time....given that I'm in the 28% bracket, that would be 56%.