[USER]

6 years from retirement. I anticipate I will have the following income sources when I retire (age 60):
Pension – $20k/yr
401/457 – $800K
Roth IRA – $100K
Cash – $200k

Planning to delay collecting SS to 70 if I can at $4200/mo
My initial thought is to draw down my pretax accounts in my Go-Go years.

Live reasonably well and stay very active. Use cash and Roth IRA in down market years.

Live on SS and pension money in my No-Go years.

Can I get some general advice on withdraw strategy?

General strategy on keeping my tax liability low?

Thanks

[Paulo]

Dont delay SS. Retire as early as you can. what if you die in your 60s?

[Stephen]

With that much in pre-tax you have a potential tax time bomb coming with RMD’s as it continues to grow.

Might make sense to review tax planning and consider converting to Roth over next few years and pay the taxes earlier then later.

General rule some people use is spend pre-tax, tax-deferred then Roth but I’ve seen many scenarios where advancing.

The tax deferred earlier in retirement helps with lifetime tax liability.

[Aaron]

I personally think you need to look at 401/457 conversions to Roth accounts now. When you hit RMDs you might have a tax problem in your No Go years that affect how SS is taxed etc.

I would recommend you meet with a fee only fiduciary CFP to unpack everything for you.

It could save you 100s of 1000s of $$ down the road.

[Micah]

Sounds like a good approach.. I would run the numbers on taking SS earlier and investing in brokerage acct.

I like the idea of having control of that $$ to pass down to my loved ones..

if you die before collecting, it’s a lifetime of paying for no enjoyment.

[Matt]

Keep in mind no-go years could still be expensive. Good senior care isn’t cheap.

My folks haven’t slowed down in their retirement.

I think your plan is solid though just don’t count on certain years being a bargain

[Kenneth]

Do some calculations on what your ss would be at 60 vs 70 or any years in between to make sure it makes sense for you.

SS may not be there when you’re 70 and you can let your other accounts double by the time you’re 70.

Also consider putting most of your cash in tbonds or savings accounts when you’re not using

[Ely]

Do you listen to “The retirement and IRA show” podcast? I learned about the “no-go” and “go-go years” with them.

Sounds like you have a solid plan in place.

Best of wishes and congrats!

[Author]

Posts