UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next
Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35367  
Subject: Re: CD or treasury bill ? Date: 6/21/2006 8:27 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
You might want to consider withdrawing at least enough from your IRA to fill up the 15% bracket.

Important point, Vicki. I've got a few year, yet, and it isn't clear where the brackets will be at that point (even if tax law is the same or similar) or exactly what earnings from savings and stock dividends in taxable account will be at that point.

My current thinking is gradually cashing out, over a few years, some rollover IRA money, paying 15%, and moving it into a Roth. But it may be possible to do that with some money from the main retirement account, too (the rules are confusing and there's no hurry to try to figure them out, since they will probably change, anyway). The rollover IRA does have more flexibility (e.g., CDs or Treasuries).

Then there's the question of when to start taking SS. I had assumed waiting, since we won't need the money through phase 1, makes most sense. But there are a lot of variables, including if they do something that hurts folks like us.

This is why I'm big on understanding all the options and running various scenarios. My bad case scenarios still have us with initial withdrawal of about 3% not including SS. I can't see any way of protecting against worst case scenarios that wouldn't greatly increase vulnerability to bad case and normal case scenarios.

Are you remembering, in your budgeting, to include big ticket items/home mainenance and long-term care insurance?
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Deranged Monkey Criticism

RadioShack Afloat on a Sea of Financing
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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