So I realize I may not be the norm here, but I suspect some of you are in a similar situation. Yes, this is a first world problem, but if I/you are looking to maximize our potential after tax cash flow long term what is the right/best strategy?? Here's the pickle...
- I'm 56 with a DW, 4 grown/self sufficient kids (for the most part), 1 granddaughter, struggling with OMY syndrome, but thinking I may launch at the end or 2020 if someone just pushes me in the pool!
- Current income tax rates are arguably at their lowest level they will be at so odds are they will only be higher in the future.
- I am planning on a $300K + annual withdrawal (before you judge me, this is very discretionary spending as I have no debt) at a 3%-ish SWR, holding +/- 60/40 AA, maybe slide to 55/45.
- Half of my RE assets are in taxable accounts so the initial plan was to deplete those funds first and then deal with the tax devil when I have to, whatever the tax rates are.
So here is the pickle, do I enjoy the lower effective tax rate by depleting my taxable account first, which keeps my taxes much lower than drawing from my tax deferred accounts, or, do I do I do Roth conversions knowing I will probably be in 32% (maybe 24% if I'm lucky) tax bracket? My gut says roll the dice and DO NOT do Roth conversions? Any help?
- I'm 56 with a DW, 4 grown/self sufficient kids (for the most part), 1 granddaughter, struggling with OMY syndrome, but thinking I may launch at the end or 2020 if someone just pushes me in the pool!
- Current income tax rates are arguably at their lowest level they will be at so odds are they will only be higher in the future.
- I am planning on a $300K + annual withdrawal (before you judge me, this is very discretionary spending as I have no debt) at a 3%-ish SWR, holding +/- 60/40 AA, maybe slide to 55/45.
- Half of my RE assets are in taxable accounts so the initial plan was to deplete those funds first and then deal with the tax devil when I have to, whatever the tax rates are.
So here is the pickle, do I enjoy the lower effective tax rate by depleting my taxable account first, which keeps my taxes much lower than drawing from my tax deferred accounts, or, do I do I do Roth conversions knowing I will probably be in 32% (maybe 24% if I'm lucky) tax bracket? My gut says roll the dice and DO NOT do Roth conversions? Any help?