This is what I am afraid off that regardless what are we do I think we are going to end up paying taxes 🙁
How the hell are we supposed to retire?
- Thread starter Red Mosquito
- Start date
its almost like they are one of two certainties in life,
Only watched about 1/2 of this but does she ever mention how these hypothetical people are paying to live for the 14 years she is talking about? If they do large taxable Roth conversions every year and are not taking SS and only have $1.5 million dollars total, how do they pay to live and still stay in the lower tax bracket?
Ian F
Well-Known Member
Like I said - simplified. The main point is more about the when and how much you're paying in taxes and being in control. I $X is the amount you can withdraw and stay within a chosen tax bracket and one can live on some amount below $X, the idea is to withdraw an amount to get closer to that bracket level and move it to a Roth where it can continue to grow tax-free and reduce the tax deferred accounts to the point when RMDs are required, the amount won't be very much and thus the tax bill should be lower.
The vast majority of these videos fail to account for one major piece of the puzzle.
Just random thought for those of us not ready to retire but not too far out. Convert some nominal amount to a Roth IRA sooner than later as there’s a 5 year waiting period on when you can take money out. The 59.5 thing kicks in for me but you can’t just start pulling out the minute you turn 59.5 unless you’ve had the Roth for 5 years.
I’m talking like $1000. This is of importance to those of us looking to retire in their 50s then start converting.
Also you’ll want that taxable brokerage pile of money to get you to 59.5 or 62 or 65 or whatever which I think is the gap in the video above.
But then you need 1-2 years of non variable (HYSA?) in the event the taxable brokerage eats shit with a market decline. Layers. Like an onion. Like Shrek.
By RMD age if I am crying wolf about taxes being too much then shit is probably going pretty well.
de00304
Well-Known Member
Projection Lab is a really good retirement planning tool, and they just did a major release where they included an Optimizer that calculates various scenarios that include Tax Strategies, Roth Conversion, Drawdown Order, Gain Harvesting etc.
projectionlab.com
ProjectionLab - Modern Financial & Retirement Planning Tools
Simulate your financial future. Modern financial, retirement, and estate planning tools to plan for early retirement, financial independence, and more.
projectionlab.com
olegbabich
Well-Known Member
Projection Lab is a really good retirement planning tool, and they just did a major release where they included an Optimizer that calculates various scenarios that include Tax Strategies, Roth Conversion, Drawdown Order, Gain Harvesting etc.
ProjectionLab - Modern Financial & Retirement Planning Tools
Simulate your financial future. Modern financial, retirement, and estate planning tools to plan for early retirement, financial independence, and more.
Did you get a chance to use it yet?
Been meaning to purchase one of the big 3 retirement / finance planning software
for the uniformed amongst us, what are the other two(or three?)
Have you compared it to any other tools? Is it easy to use? I really just want to use something to make sure our CFP doesn't do anything stupid. Too many moving pieces with taxes and attempting to get some sort of ACA subsidies for the next few years.Projection Lab is a really good retirement planning tool, and they just did a major release where they included an Optimizer that calculates various scenarios that include Tax Strategies, Roth Conversion, Drawdown Order, Gain Harvesting etc.
ProjectionLab - Modern Financial & Retirement Planning Tools
Simulate your financial future. Modern financial, retirement, and estate planning tools to plan for early retirement, financial independence, and more.
de00304
Well-Known Member
I am using it, yes. I also have Boldin and some others (Right Capital, IncomeLab) but I find ProjectionLab the best for me. The recent 4.6.0 release makes it very robust and I think on a par with, or a step above, the others. As with all these tools it takes a bit to get them set up but I find it intuitive, and you can pretty much model anything with it. Recommendo...
Also it has a free trial, and there are several of the YouTube commentators with discount codes - I think this one will work if you join his free newsletter:
Projection Lab – ROB BERGER
Projection Lab is a financial planning tool that uses monte carlo simulations to estimate the chance of success of a comprehensive plan.
robberger.com
olegbabich
Well-Known Member
Pralana and Boldin
I thought the 5 year rule did not apply after 59 1/2 for initial conversion but it only applies to earnings.
I tried it but most of the features are behind paywall. Going to take a look at Bolton also.
I am looking through. the ProjectionLab and did not see any integration with other financial institutes. Did ver4.6.0 add that feature?
de00304
Well-Known Member
Not directly. I think there is some sort of add in to do that through another platform but I didn’t look into it. As a retirement planning tool I don’t think it is necessary and I actually like periodically doing a manual update of account values to compare points in time progress. I use other tools (Tiller in particular) to do real time transaction-level tracking.
MMuller
Well-Known Member
Is owning guitars a good investment tool? If so, I should be ok. If not......uh oh.
Ian F
Well-Known Member
As someone with a rather silly collection of guitars (around 30) - generally no. I think the only one I have that has gone up appreciably in value is a 1984 Explorer I have. This is only based on what I paid for it and what the owner of D-Town Guitars apparently offered for it when my friend who has the guitar on loan took it there for some set-up work. More than double what I paid for the guitar off Reverb back in Feb 2021.
As I am starting to feel seriously overwhelmed by the ridiculous amount of stuff in my life, I am considering seeing if that offer stands to some extent. However, that is one piece of gear out of dozens that have mostly decreased in value.
My 80s JCM800 might be worth a bit more since unmodified originals have some value. But probably about the same as I paid for it.
For a few years I went on a vintage rack gear buying spree and now I'm not sure WTF I'm going to do with it all... most of it I didn't pay a ton for, so maybe I could get what I paid for it if I wanted to sell, but probably not. I still have my original ADA MP-2 and MicroTube 200 amp setup from the early 90s, so that maybe the only things I would really want to keep.
I doubt my recently purchased Friedman Jose will increase in value unless it goes out of production for some reason. Especially since it looks like they have caught up with those on the waiting list and you can buy the amp from Sweetwater now.
I have collected a ton of effects pedals over the decades. I've never sold a pedal, but I have an original Ibanez MT-10 Mostortion that can apparently sell for quite a bit and I have never actually used it. I honestly don't remember when/where/why I even bought it. Probably bought back when it was still new, although I'm sure I purchased it used.