Looking to bounce this three year plan off the board here.
Retire Target date: Feb 2022 at 56. Turn 59.5 in Nov 2024.
Current household income $130k gross / $75K net. Expect about $30K in income in 2022. No work income after that, unless I decide to work somewhere part time.
Currently no debt, own home. Retirement base living expenses $60k/yr + HC guestimate of $25k/yr. Total $85K
Accounts:
Cash Brokerage Acct: $638k in a single stock, If sold, total LTCG would be $495K about $93k in taxes.
401K: $950K, will have access using Rule 55.
ROTH: $2.1M - growth
Planning to take SSI at age 70, $50k/yr combined.
Retire Feb 2022 to Nov 2024 Plan
-2022 401k Acct: Move 100% to something like Wellington fund. Use this account for small amount of income around $25k and as a backup.
-2022 CASH Brokerage Acct: Use brokerage acct for income by regularly selling shares up to $75K/year. LTCG rate 0%. With cost basis of 80% this would provide up to $93k a year, $30k + 93K = $123K Fed tax rate 0%, AZ tax ~$2000.
-2023/24 401K account: pull out $25k/yr
-2023/24 Cash Brokerage Acct: Pull out $80K for income of up to $125k/ yr in total. Fed tax rate 0%, AZ tax ~$2000.
Withdrawal rate is about 2.3% to 3.4% with this plan for three years.
While the CASH Acct is at risk of a major drop, I prefer not to sell it all at once and take a $95K+ tax hit. The account can drop 50% with maximum income still being sustained. Obviously if it does not come back from such a drop which is unlikely at the moment, but not impossible, this plan would fully deplete the CASH Brokerage account. I would also have the 401K account as a backup. The account could also rise significantly, and that would be a plus. Not bad from an account that started with $37k in it in 2017.
After 30 years of working and accumulating I guess I'm looking for confirmation if this is realistically doable? Other alternatives to get to 59.5? Thanks.
Retire Target date: Feb 2022 at 56. Turn 59.5 in Nov 2024.
Current household income $130k gross / $75K net. Expect about $30K in income in 2022. No work income after that, unless I decide to work somewhere part time.
Currently no debt, own home. Retirement base living expenses $60k/yr + HC guestimate of $25k/yr. Total $85K
Accounts:
Cash Brokerage Acct: $638k in a single stock, If sold, total LTCG would be $495K about $93k in taxes.
401K: $950K, will have access using Rule 55.
ROTH: $2.1M - growth
Planning to take SSI at age 70, $50k/yr combined.
Retire Feb 2022 to Nov 2024 Plan
-2022 401k Acct: Move 100% to something like Wellington fund. Use this account for small amount of income around $25k and as a backup.
-2022 CASH Brokerage Acct: Use brokerage acct for income by regularly selling shares up to $75K/year. LTCG rate 0%. With cost basis of 80% this would provide up to $93k a year, $30k + 93K = $123K Fed tax rate 0%, AZ tax ~$2000.
-2023/24 401K account: pull out $25k/yr
-2023/24 Cash Brokerage Acct: Pull out $80K for income of up to $125k/ yr in total. Fed tax rate 0%, AZ tax ~$2000.
Withdrawal rate is about 2.3% to 3.4% with this plan for three years.
While the CASH Acct is at risk of a major drop, I prefer not to sell it all at once and take a $95K+ tax hit. The account can drop 50% with maximum income still being sustained. Obviously if it does not come back from such a drop which is unlikely at the moment, but not impossible, this plan would fully deplete the CASH Brokerage account. I would also have the 401K account as a backup. The account could also rise significantly, and that would be a plus. Not bad from an account that started with $37k in it in 2017.
After 30 years of working and accumulating I guess I'm looking for confirmation if this is realistically doable? Other alternatives to get to 59.5? Thanks.
Last edited: