UnThreaded | Threaded | Whole Thread (23) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: GWPotter Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75642  
Subject: Re: Withdrawal Strategies...Again Date: 3/9/2014 6:04 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
IP my experience says the Standard Advice is generated by folks in the financial services industry - they want to leave all that untaxed money in the account so they can manage it and extract their percentage each year.

For a first cut plan, I assume that our portfolio will increases at whatever rate inflation is or more. Since tax brackets and other things are generally keyed there also - my assumption makes for a simple determination of whether I want to take sheltered or non-sheltered funds between now and the time all our IRA accounts are subject to RMDs.

Next I go the the IRS and find the divisor for age 70 is 27.4. So I divide our current IRA value by 27.4 and contemplate what that amount of additional income each year will mean.

More taxes is one things, but getting drastically more funds that we will spend or being pushed into a higher tax bracket is another.

We found the funds we will be forced to withdraw will result in significantly more income than we expect to need. So our solution is to withdraw funds from the IRAs rather than from the non-sheltered accounts. I don't think the beneficiaries of our estate will care if they get money from an IRA or from a traditional investment account.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (23) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Apple

Apple and Ninety Years Ago
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement