davidbeitz
Dryer sheet wannabe
Comments wanted on ER withdrawal strategy
I’m 60, retired and trying to decide how to begin my withdraw strategy. I’ll need to draw from my accounts to meet our budget in the range of 2.5%. The question is which account the money comes from.
For the next few years my projected taxable income will be at the upper end of the 10% bracket and i have approx 80% of my retirement funds in tax deferred accounts.
My FI recommends that I take the “typical” route and take from cash, brokerage, roth(s) in that order, however if I setup my my accounts (after tax brokerage and tax deferred) to distribute any dividends and interest into my budget account, I can come really close to not needing to sell any funds to meet our expenses.
This would be a tax liability since it’s from a tax deferred account that would move me into the low 12% bracket
Can anyone comment on these two methods? Pros? cons?
Thanks!
I’m 60, retired and trying to decide how to begin my withdraw strategy. I’ll need to draw from my accounts to meet our budget in the range of 2.5%. The question is which account the money comes from.
For the next few years my projected taxable income will be at the upper end of the 10% bracket and i have approx 80% of my retirement funds in tax deferred accounts.
My FI recommends that I take the “typical” route and take from cash, brokerage, roth(s) in that order, however if I setup my my accounts (after tax brokerage and tax deferred) to distribute any dividends and interest into my budget account, I can come really close to not needing to sell any funds to meet our expenses.
This would be a tax liability since it’s from a tax deferred account that would move me into the low 12% bracket
Can anyone comment on these two methods? Pros? cons?
Thanks!
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