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If I wanted to generate an additional 50K/yr out of our retirement savings, which accounts should I tap first and in what order?

Any thoughts from my fellow fools?


First, don't touch the Roth IRA. Let that be the last money you plan to spend.

Who are the beneficiaries of your Life Ins? Think about how you want to handle that before deciding anything else.

With a $50K annual dole, you could reckon that at a present value of $2.8 million (30 years, 4% interest). Your other assets come to $1.3 million, and you haven't mentioned Social Security. By my estimate, you are loaded. ($4.1 million)

The usual rule for a Safe Withdrawal Rate is 4% per year. so figure an annual income of (0.04*4.1 million) or $164,000. You already have $50K, so an additional $114,000 annual would be "safe", ergo an additional $50K is a no-brainer.

From what I have said, I am down to the taxable MM account, the insurance policy, or the IRA. Does the MM account make any money? Less than 4%, I vote to get rid of it, unless you feel the need for a rainy day savings.

Either the insurance policy or the IRA gets my vote, depending on what your plans are for the insurance. If you want to leave a nice bequeath to a child, leave that alone. (Or change the beneficiary to me!)

So, I think you know the answer: The IRA.

Congratulations on a fine retirement nest egg.

Count No'Count
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