I have been modeling withdrawals and it seems like the default is 95. That seems old especially for both of us. I think like 75&80 is more reasonable. But then again we could live to 100!
Last year at the end of the season they were practically giving them away. I planted them without knowing much about them. They have been blooming non stop since April.
I love spreadsheets and have been doing a simple retirement forecast spreadsheet that basically focuses on total withdrawals. I use a conservative rate of return on a 60-40 portfolio of 1.04 constant. It includes SS and RMDs. I can set up multiple plans and can chart total value of the portfolio and withdrawal rates over time. But it's all on a nominal basis and does nothing about total tax. I will be paying IRMAA penalties no matter what. I do track a simple value of "take home pay" by subtracting standard deductions and applying tax tables. This approach probably is not a good one to use for small nest eggs but for larger portfolios that simply want to maximize withdrawals I think it works.
Last season I brought my skiis in to REI for service in early December needing them for a trip in early Jan. They said they were backed up 6 weeks and could not help me! So fast forward to today I thought I would bring my skiis in for service now so I know I will be good to go in Jan 2027. So I carried my boots and skiis into the store only to be told ski service is close until October! I really don't trust that they will be able to do the service in a timely fashion even if I come in October 1. This was in the Oak Brook IL store. Very disappointed.
What is the actual severity will damage your retirement plan? Is it simply returns below average or is any positive returns ok? Also what is the actual frequency of SORR. i.e. historically how often does this actually happen? Is it actually rare and we allow it to play to great of a role in our retirement?
We are planning a visit to the park in late September. My wife has limited mobility. What recommendations does anyone have so that she can best enjoy the park.
Let me start by saying I have been lucky.
I have $5m nest egg 85% is traditional IRA, 7.2% Roth and the rest post tax brokerage. We are 64 & 63 and plan on collecting SS of $69K at age 67. Because we are so IRA heavy is seems we have no IRMMA or tax strategies to exploit. We must withdrawal from the IRA and get taxed. It looks like I need to withdrawal around $250k annually to do any kind of RMD management. If that is what we do I will do as much Roth conversion as possible (this will be the kids inheritance). Fortunately we are in a state that does not tax IRA or SS.
Does this sound right? Is there any other strategies I can employ.
Plan 1: modest withdrawals and FRA
Plan 2: large withdrawals and Delayed
Plan 3: large withdrawals and FRA
Assuming %5 average growth
Starting at age 64 IRA balance $4m
The worst performing was plan 2 both short and long term. The best performing was plan 3 both short and long term.
Plan 1 held higher balances the longest but once RMD start the balance declined steadily and ending balance was the lowest.
Plan 2 held lowest balances throughout and ending balance was the same as plan 1.
Plan 3 held balances between 1&2 and had the highest ending balance.
I guess plan 2 is another way to analyzed delaying SS. Because of the delay I have to draw down on the balance more aggressively in the beginning.
Given the markets performance over the last five years if you retired in 2021 do you not have to worry about SORR any more.
I am 65 with $4m in IRA funds. There really is no way to avoid IRMAA penalties right?