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Too much tax deferred savings?

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  • #16
    Originally posted by VentAlarm View Post
    I’d spend a couple thousand bucks with a financial planner modeling out a Roth conversion strategy as well as a continued pretax vs. a combination strategy. With figures as big as yours, id want more than back of the napkin.
    Agree, with goal to minimize total lifetime income taxed above 24% after retirement.

    OP, we "solved" this problem in two ways. First, we save a lot less pretax than you because that's all the space we have (about $75k per year). Second, most of our fixed income is in pretax. Most of our equities are in taxable and Roths/HSA. This keeps growth of pretax as well as future RMDs manageable. We project $3-5 million pretax in real dollars in our mid-late 50s.

    Then we plan to convert as much as possible to the top of the 24% bracket, after retirement but before SS starts at age 70, which should allow us to convert about half of the total in question. That gets our RMDs down into the sub $100k range, which when added to SS income plus investment income should keep us in the 24% bracket.

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