I have barely enough $ to retire (firecal success rate 98% with the failures less than -20K, assuming I accurately estimated what I will need to withdraw each year), and was planning to retire in August but now looks more likely to be end of the year or next spring. I will start taking SS when I retire (maybe 2 months earlier if I work until next spring), this will only be a year or less before than my full SS retirement age.
I feel very overwhelmed by withdrawal strategies. Is there a very easy book that could help me understand the best way to sell my investments in retirement?
For example, do I withdraw dividends and not sell the source of the dividends, or do I sell a little bit of everything? Does it make a difference that most of the dividends are apparently in the regular IRA?
I use Fidelity and I am not even sure what strategy to use to take the RMD from the little inherited IRA I have. I don't know what strategy it used to do, I turned it off for 2020 because I didn't have to take that rmd, and now that I have to turn it back on, I don't know whether to pick a source for it to sell to get the RMD or choose the option to evenly withdraw from each thing. One of the items in the account is bonds, do I take the RMD from the bonds first and wipe that out, it would run out in a couple years?
There is an example page on Fidelity that shows taking money proportionally from taxable and non taxable accounts reduces the total spent on taxes in retirement. But, I have very little in non-taxable accounts, and I wonder if I should preserve it for some year that I need to replace my car, or maybe use it up first of all to enjoy myself extra (travel) in my first year or two of retirement without having a lot of taxes?
I did not pay attention to financial topics soon enough in my life to provide myself with an ideal balance of account types. I have this percentage split of account types:
Investment account: 22%
Regular IRA/Regular 401K: 68%
Inherited IRA: 7% (inherited under old rules)
Roth IRA: 2%
an old HSA (no longer eligible to contribute): 1%
Anyone know a book or webpage with simple rules that aren't overwhelming?
Thanks!
I feel very overwhelmed by withdrawal strategies. Is there a very easy book that could help me understand the best way to sell my investments in retirement?
For example, do I withdraw dividends and not sell the source of the dividends, or do I sell a little bit of everything? Does it make a difference that most of the dividends are apparently in the regular IRA?
I use Fidelity and I am not even sure what strategy to use to take the RMD from the little inherited IRA I have. I don't know what strategy it used to do, I turned it off for 2020 because I didn't have to take that rmd, and now that I have to turn it back on, I don't know whether to pick a source for it to sell to get the RMD or choose the option to evenly withdraw from each thing. One of the items in the account is bonds, do I take the RMD from the bonds first and wipe that out, it would run out in a couple years?
There is an example page on Fidelity that shows taking money proportionally from taxable and non taxable accounts reduces the total spent on taxes in retirement. But, I have very little in non-taxable accounts, and I wonder if I should preserve it for some year that I need to replace my car, or maybe use it up first of all to enjoy myself extra (travel) in my first year or two of retirement without having a lot of taxes?
I did not pay attention to financial topics soon enough in my life to provide myself with an ideal balance of account types. I have this percentage split of account types:
Investment account: 22%
Regular IRA/Regular 401K: 68%
Inherited IRA: 7% (inherited under old rules)
Roth IRA: 2%
an old HSA (no longer eligible to contribute): 1%
Anyone know a book or webpage with simple rules that aren't overwhelming?
Thanks!