Katoslake
Recycles dryer sheets
With an AA of 40 stock 55 bonds 5 cash, what are the pros vs cons of monthly vs annual withdrawal ? If this has been debated, please point me to the thread.
Thanks
Thanks
ScecondCor521, can you explain the "Simpler for heirs in the year of death" part a bit. Is it simply that it eliminates the need for them to cancel the automatic withdrawals? Thanks.
I am looking forward to the change in factors starting in 2021
We just withdraw when we need money, probably 4-6x per year. Basically all of our money is in tIRAs, so in December we withdraw the safe harbor amounts for the feds and state, specifying 100% withholding.
IMO there are two aspects to this question. One is personal financial logistics. Some people like to have a "paycheck," others like us are more ad hoc. The second is that it is a market timing question. Especially to the extent that you are liquidating equities, being pessimistic about the year might cause you to take the year's needs in January. Optimistic? Sell as late as possible in the year.
People are different; strategies are thus necessarily different too.
I dunno. That feels a little like you may be letting the tax tail wag the investment dog, but I just don't have the patience to work through that kind of stuff to find out for sure. It would depend on market growth this year and in future years, tax rate on this year's income, tax rates on future years' RMD income, snips, snails and puppy-dogs' tails. Too much for me.There is another aspect to market timing where you might be optimistic about the year's gains, but want to do a Roth conversion early in the year to burn the IRA down in order to reduce future RMD amounts. By converting early, given a finite dollar amount, you effectively reduce the IRA more than if that same amount was converted late in the year. One must to RMD's before any other withdrawal or conversions. So many situations and choices. .
I dunno. That feels a little like you may be letting the tax tail wag the investment dog, but I just don't have the patience to work through that kind of stuff to find out for sure. It would depend on market growth this year and in future years, tax rate on this year's income, tax rates on future years' RMD income, snips, snails and puppy-dogs' tails. Too much for me.
With an AA of 40 stock 55 bonds 5 cash, what are the pros vs cons of monthly vs annual withdrawal ? If this has been debated, please point me to the thread.
Thanks
Go to Portfolio Visualizer. Enter 45% VTSMX. 55% VBMFX and 5% CASHX. $1m portfolio with $3,996 annual withdrawal and click Analyze Portfolio. Final balance = $3.505 million.
Change withdrawals to $3333 monthly... final balance $3.391 million.
Sort of what one would expect in a rising market but I think at the end of the day the real question is what is your preference.
Go to Portfolio Visualizer. Enter 45% VTSMX. 55% VBMFX and 5% CASHX. $1m portfolio with $3,996 annual withdrawal and click Analyze Portfolio. Final balance = $3.505 million.
Change withdrawals to $3333 monthly... final balance $3.391 million.
Sort of what one would expect in a rising market but I think at the end of the day the real question is what is your preference.
I think you mistyped and meant to say "$39,996 annual withdrawal". As expected in a rising market, which the markets have historically done over the long run, the longer money is in the market the better balance at the end.
I believe so but have no way to tell.Is the annual withdrawal near the end of the year?
I believe so but have no way to tell.
Go to Portfolio Visualizer. Enter 45% VTSMX. 55% VBMFX and 5% CASHX. $1m portfolio with $3,996 annual withdrawal and click Analyze Portfolio. Final balance = $3.505 million.
Change withdrawals to $3333 monthly... final balance $3.391 million.
Sort of what one would expect in a rising market but I think at the end of the day the real question is what is your preference.