Figuring out what money to spend at which point in retirement
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Anonymous
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My partner and I are in our mid-30s and are are on track for retiring at 57/58 in terms of overall dollar amounts. However, I get overwhelmed thinking about needing to navigate what money will be accessible at what point between our 401k equivalents, IRAs, SS, a brokerage account, and a pension. I see chatter about some retirees having issues with mandatory minimum withdraws and don't understand when those come into play, with what accounts, and how to plan ahead so that they aren't an issue. I have a long time ago, but it seems like it is best to strategize now and develop a basic understanding.
How does one get started figuring this part of the puzzle out? Is it worth a sit down with a fee only financial planner? We don't otherwise use a financial planner and I suspect I could figure this out myself if I can get pointed in the right direction. |
Anonymous
| Go ask on Bogleheads or read their wikis. |
Anonymous
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Agree with PP. Go to bogleheads .org and start reading topics and their wikis. Eventually you'll start understanding the questions to ask. And you're smart to start now!
As to RMDs, that doesn't have to start until you're 72. Plenty of time to get your ducks in a row. |
Anonymous
^^I didn't mean that to be flippant. I've learned a ton reading there for a year or two, and if you get to the point of specific questions, they are very helpful. Or you can have other posters do a portfolio review and comment on your risks and considerations based on your situation. |
Anonymous
| In all seriousness focus now on savings and don’t waste your time at 30 worrying about optimal withdrawal strategies. A lot can happen in 20 years. |
Anonymous
This. No mandatory Ira withdrawals until 72 (unless it’s an inherited ira.) My partner and I are in our mid-30s and are are on track for retiring at 57/58 in terms of overall dollar amounts. However, I get overwhelmed thinking about needing to navigate what money will be accessible at what point between our 401k equivalents, IRAs, SS, a brokerage account, and a pension. I see chatter about some retirees having issues with mandatory minimum withdraws and don't understand when those come into play, with what accounts, and how to plan ahead so that they aren't an issue. I have a long time ago, but it seems like it is best to strategize now and develop a basic understanding. How does one get started figuring this part of the puzzle out? Is it worth a sit down with a fee only financial planner? We don't otherwise use a financial planner and I suspect I could figure this out myself if I can get pointed in the right direction. You can withdraw from your 401k and Ira at 59.5 (if you want), but have to starting at 72. Pension will be sometime between 55-65, depending on the plan. You can start withdrawing ss at 62, but don’t have to until 70, and the longer you wait, the better UNLESS you die. |
Anonymous
| OP, you can google this topic. it's one of the topics discussed pretty frequently. A lot of factors involved - timing, tax implication...etc |
Anonymous
+1 To include tax law changes that are impossible to foresee. Personally, I max out my 401k, then max out Roth, and anything left over goes into a taxable account. Don't obsess over making a perfect plan because it doesn't exist. I do think that having money in different types of accounts gives you more flexibility when it comes to withdrawal strategies further down the road. |