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I am not bragging about my RMD’s just presenting how I’m taking the monies and what I intend to do with the distribution in essence answering the topic.
As the late Paul Harvey would say “and now you know the rest of the story”. Thought an explanation on how I got there might be of value
Under grad and MBA worked +35 years surviving two corporate takeovers finishing as a minor executive with a Fortune 200 company who was well compensated Maxed out on 401K every year on pay and bonus with a 6% company match. In the Early years I had to give money back for over funding basis the rest of the company employees contribution. Maxed out on IRA every year. When I retired at 62 (six years ago) $580,000 of a lump sum part of my pension went into the IRA. At 69 I have $3,000,000 in my IRA and my wife (67) who retired in the late 80’s to take care of the four kids has $500,000 in hers.
Funds are all in stocks and have always been. Fidelity large cap, mid cap, small cap and international fund. No bonds. Financial advisors say Im crazy but the reality is the funds are destined to the kids when I go four paws up.
Once again no bragging just showing what can be accomplished if you prioritize saving for the future.
I am not bragging about my RMD’s just presenting how I’m taking the monies and what I intend to do with the distribution in essence answering the topic.
As the late Paul Harvey would say “and now you know the rest of the story”. Thought an explanation on how I got there might be of value
Under grad and MBA worked +35 years surviving two corporate takeovers finishing as a minor executive with a Fortune 200 company who was well compensated Maxed out on 401K every year on pay and bonus with a 6% company match. In the Early years I had to give money back for over funding basis the rest of the company employees contribution. Maxed out on IRA every year. When I retired at 62 (six years ago) $580,000 of a lump sum part of my pension went into the IRA. At 69 I have $3,000,000 in my IRA and my wife (67) who retired in the late 80’s to take care of the four kids has $500,000 in hers.
Funds are all in stocks and have always been. Fidelity large cap, mid cap, small cap and international fund. No bonds. Financial advisors say Im crazy but the reality is the funds are destined to the kids when I go four paws up.
Once again no bragging just showing what can be accomplished if you prioritize saving for the future.
You’re not crazy at all. If you have way more than you’ll ever need, why not go 100%? I’ve done essentially the same. It helps with managing AGI also, as LTCGs are taxed at a lower rate then current income and can be offset with any losers you might still hold. Congratulations!
Speaking of "smoothing tax bills", I am being audited by the IRS. It appears that people who have solid after-tax funds to live on (such as return of their after-tax annuity premium in the form of non-taxable portion of annuity income) may not be eligible for ACA tax refund, despite adequately low AGI (ie, taxable income). Interesting that it coincides with Bernie Sanders calling for annual taxation of total assets, rather than of newly earned income. Stay tuned; I'll let you know how it ends.
If people end up means-tested to the point of taxation of assets (rather than taxation of newly generated income), the IRA withdrawal strategy, or any other pattern of withdrawal of savings in retirement, may become irrelevant - we could be taxed over and over and over again on funds that were taxed before.
Ha, I never followed up on this. It went on for a long time, but they gave me the ACA refund in the end. The person processing my tax return initially tried to argue that my total annuity income (including simple return of my after-tax premium) was too high for the ACA refund, even though my AGI (the taxable interest part of my annuities) was low.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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for 2023 RMD year, Appears to be worthwhile to have sequenced the RMD distributions now in Dec 2023 rather than Jan 2023. ~ 20% ahead (benchmark SP5) by delaying and lump sum withdrawal.
We are moving, 2024, to monthly distributions in our variable and fixed-indexed GLWB annuities, and brokerage IRA accounts. Getting too complicated to keep track what's required and amounts in our older age.
MMMV
Last edited by leastprime; 12-13-2023 at 01:23 PM..
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