I did an OK job at accumulation, I think my disbursement is going to be a mess!
I listened to a Moningstar podcast and they were speaking to William Reichenstein about his withdrawal strategy of pulling from IRAs first vs the standard of puling from taxable accounts first. It was what I have been thinking about before hearing the podcast. By drawing down the IRAs to live, converting some extra of the IRA money to Roth money and waiting until 70 for us to start SS we could potentially be looking at no IRMAAs and no really high tax brackets when one of us is a widow(er).
We are currently in the 12% tax bracket and if we popped into the 22% bracket by $20K or $30K we wouldn't be looking at too high of a tax burden. The only drawback that I am seeing in my calculations is that bond yields in the 4 to 5% range with enough money in bonds and stock dividends will offset some of the money we would be pulling out of the IRAs so not quite the draw down as it could be.
Had I learned about the the challenges of withdrawing money 5 years ago I would have started then ... but then again those 5 years has been kind to us financially!
I listened to a Moningstar podcast and they were speaking to William Reichenstein about his withdrawal strategy of pulling from IRAs first vs the standard of puling from taxable accounts first. It was what I have been thinking about before hearing the podcast. By drawing down the IRAs to live, converting some extra of the IRA money to Roth money and waiting until 70 for us to start SS we could potentially be looking at no IRMAAs and no really high tax brackets when one of us is a widow(er).
We are currently in the 12% tax bracket and if we popped into the 22% bracket by $20K or $30K we wouldn't be looking at too high of a tax burden. The only drawback that I am seeing in my calculations is that bond yields in the 4 to 5% range with enough money in bonds and stock dividends will offset some of the money we would be pulling out of the IRAs so not quite the draw down as it could be.
Had I learned about the the challenges of withdrawing money 5 years ago I would have started then ... but then again those 5 years has been kind to us financially!
Statistics: Posted by Vinny_in_NJ — Sun Mar 31, 2024 10:44 am — Replies 3 — Views 255