Vincenzo Corleone
Full time employment: Posting here.
- Joined
- Jul 20, 2005
- Messages
- 617
I'm currently retired and 52 years old. DW plans to retire in a minimum of three years and will turn 54 in a few months.
We're struggling to determine whether it would be beneficial for her to stop contributing to her 401k ($25,000 - no employer match) so that we can instead add the money to our taxable accounts. We're currently in the 22% tax bracket.
When trying to figure it out, we think we'll need to take into account:
- RMDs on the tax sheltered accounts at 70.5
- taxes
- having that tax sheltered money inaccessible for another five years (from current date)
- that the next 10 years of market returns will likely be lower than what we've experienced
- Social Security (40% of expenses after taking a 50% SS cut - collecting at 70)
- her pension (27% of expenses)
- a likely very low seven-figure inheritance at some point in the future
- we could use a cash cushion in our taxable accounts upon retirement
What other data points would I need to consider to come to a more informed decision? Do you have any opinions about what to do? Thanks.
We're struggling to determine whether it would be beneficial for her to stop contributing to her 401k ($25,000 - no employer match) so that we can instead add the money to our taxable accounts. We're currently in the 22% tax bracket.
When trying to figure it out, we think we'll need to take into account:
- RMDs on the tax sheltered accounts at 70.5
- taxes
- having that tax sheltered money inaccessible for another five years (from current date)
- that the next 10 years of market returns will likely be lower than what we've experienced
- Social Security (40% of expenses after taking a 50% SS cut - collecting at 70)
- her pension (27% of expenses)
- a likely very low seven-figure inheritance at some point in the future
- we could use a cash cushion in our taxable accounts upon retirement
What other data points would I need to consider to come to a more informed decision? Do you have any opinions about what to do? Thanks.
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