No. of Recommendations: 7
See that's the problem I've always had with your analysis - you assume everyone's picture looks like yours. ... Unlike you, my assets are roughly divided...

Nobody here knows what my picture looks like, because I've never discussed it in anything other than general terms. People might guess roughly, based on my discussions of take lots of cruises and a few very long cruises. But that's it.
Hell, my wife doesn't even know the details of what our picture looks like, she just knows that she can pretty much spend what she wants to (which is almost exclusively craft hobby stuff and twice a month housecleaning service.)

I try to write and analyze this stuff from the standpoint of an upper-mid income family--- because that's basically the audience here at TMF. Either we here are in that area or are planning to be. And I mostly take a married-filing-joint tax viewpoint, because that's where most people are.

And, sadly, upper-mid income singles take it in the ear on taxes. With the 25% threshold being only $37,950, you are either living in a refrigerator box or being in the 25% (or higher) tax bracket. Just about any significant income will have you well above the 15% bracket.

pre-tax/Roth/taxable at 40%/20%/40%.
An ususual allocation, I believe. From talking to a few FA's right before we retired early, they said that most people had the bulk of their retirement money in 401Ks and IRA, and not all that much in Roths and taxable.

A $2M pre-tax account would imply about $5M in assets; but I'll be retiring long before that happens.
Now it's you that is assuming that everyone's picture looks like yours. ;-)
I bet that 80/10/10 is more typical than your 40/20/40.
There's another frequent poster who also complains about my analyses. IIRC, he is already in the 33% bracket, therefore not in the upper/mid income area that is my focus. You guys just have to realize that your situtations are not the ones I am addressing and they don't apply to you.

And for you, my remarks about not being able to convert significant amounts of money from IRA to Roth apply with a vengeance. Virtually all of a $50K conversion would be solidly in the 25% bracket. Ugh.

Say you have enough assets so that you can safely and comfortably retire early, maybe at 55 or 58. That implies a minimum of somewhere around $1M. Starting from 55, you have 15 years of growth to age 70. At 8% average annual return, your $1M will grow to $3M.
At the unusual ratio of 40/20/40, the IRA/401K will be about $1.2M.
The 1st RMD will be about $44,000. Even if you have NO other taxable income, that right there will put a single filer in the 25% bracket.
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