Snapshot of where we are at 52

[imjustawarrior]

The 165K is what is spent per year on expenses. So naturally we have to cover tax paid on gains and withdrawals.

Great. Taxes are an expense. All in with everything, what is your annual spend in retirement?

 

[MercyMe]

The 165K is what is spent per year on expenses. So naturally we have to cover tax paid on gains and withdrawals.

Be sure to get a handle on your taxes in retirement. That is an important task to do. Your annual expense budget should include taxes. Leaving them out and then settling on an annual withdrawal amount, could set you up for some disappointment.

 

[pb4uski]

IRS & State Tax Calculator | 2005 -- 2025 is helpful in assessing your likely income tax burden. Note that it indicates what you keep after taxes, which in your case you would want to target $165k.

 

[chemEguy]

IRS & State Tax Calculator | 2005 -- 2025 is helpful in assessing your likely income tax burden. Note that it indicates what you keep after taxes, which in your case you would want to target $165K

https://www.irscalculators.com/tax-calculator

I may be stupid.

I was using the calculator (very helpful, thanks) to figure out tax burden and was wrongly treating the lump withdrawal that we’d use to pay expenses as 100% gains and zero principal.

I looked at our largest taxable account cost basis and long term gains across all holdings is a combined 43% of the total account value. So I redid the entries treating 43% of the yearly withdrawal as taxable gains and the balance as principal. This was just meant to be a representative year.

I’m not pulling 200K to cover 165K in this sample year, I’m pulling more like 180K.

I think we may be in decent shape.

Still want to work another two years for college costs though.