Hi! I'm new to this site. I've done a bunch of reading over the years about indexing, SWR etc. I feel comfortable with setting up my asset allocation, the vehicles in each asset allocation and SWR rates.
What I'm stuggling with is how to divvy up my asset allocations between Tira's and taxable account...not in the sense of "which assets are most tax-wise in which account" (I felt comfortable with that, too, BEFORE I retired and had to draw from my portfolio for every day expenses.)
My dilemma is how best to divvy my asset categories in taxable vs tax-deferred while withdrawing my living expenses from these accounts.
I'm currently 60, recently retired. 2/3 of my assets are in taxable account, 1/3 are in Tira. I can live off of 3-4%/yr of my total assets. My overall AA is 55/45 (equity/FI).
Should I have 100% of my equity allocation in taxable account, and withdraw my 3-4%/yr from that account with 1. fixed income interest (remember that I have some FI in the taxable account only because I want to maintain my overall AA) and 2. liquidated equities (to reach the 3-4% SWR that the FI interest does not cover)?
With this scenario, I would keep my Tira assets untouched (until I ran out of taxable assets and/or turned 70 and then I'd be forced to withdraw), and nearly 100% invested in FI vehicles.
I'm trying to be tax-wise. But since I expect to be in 15% marginal bracket, am I just mentally masturbating
What are your thoughts? References?
Thanks,
kd
What I'm stuggling with is how to divvy up my asset allocations between Tira's and taxable account...not in the sense of "which assets are most tax-wise in which account" (I felt comfortable with that, too, BEFORE I retired and had to draw from my portfolio for every day expenses.)
My dilemma is how best to divvy my asset categories in taxable vs tax-deferred while withdrawing my living expenses from these accounts.
I'm currently 60, recently retired. 2/3 of my assets are in taxable account, 1/3 are in Tira. I can live off of 3-4%/yr of my total assets. My overall AA is 55/45 (equity/FI).
Should I have 100% of my equity allocation in taxable account, and withdraw my 3-4%/yr from that account with 1. fixed income interest (remember that I have some FI in the taxable account only because I want to maintain my overall AA) and 2. liquidated equities (to reach the 3-4% SWR that the FI interest does not cover)?
With this scenario, I would keep my Tira assets untouched (until I ran out of taxable assets and/or turned 70 and then I'd be forced to withdraw), and nearly 100% invested in FI vehicles.
I'm trying to be tax-wise. But since I expect to be in 15% marginal bracket, am I just mentally masturbating
What are your thoughts? References?
Thanks,
kd