I am hoping to transistion from attorney to recovering attorney early next year at 62. My bride will be 66 next year and retired 4 years ago with a good state pension. We have been forunate enough to saved approximately 1.8M. If the market doesn't tank, we can probably both delay SS to 70. Our current thought is based on 3.5% withdrawal rate. We have a stock/bond/cash ratio of 73/17/10. Of that about 65% is in tax deferred investments with 35% after tax investment/bonds/cash.
What I am unclear about is the best withdrawal plan to maximize tax benefits. Should we withdraw after tax investments first, or tax deferred investments first, or a blend based on a formula? If a blend, how do you go about calculating the blend?
What I am unclear about is the best withdrawal plan to maximize tax benefits. Should we withdraw after tax investments first, or tax deferred investments first, or a blend based on a formula? If a blend, how do you go about calculating the blend?