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tax-sensitive retirement withdrawal calculator

davidrmorandavidrmoran
in Off-Topic
Decided this should have its own posting and possible thread.

This really thorough tax-sensitive retirement withdrawal calculator struggles mightily to keep you in the lowest possible tax bracket year by retirement year, meaning you wind up taking from Roth more and earlier (a bit) than if you blindly follow the usual aftertax, tax-def, then taxfree sequence commonly advised.

https://www.i-orp.com/ORPparms.html

And the devo, James S Welch Jr, answers email and will inspect your inputs and results and comment. Amazing and woohoo.

Comments

  • davidrmorandavidrmoran
    more smarts

    https://www.i-orp.com/3-PEAT/3-PEAT.pdf
  • PRESSmUPPRESSmUP
    David...while the calculator in your post was first discussed in a thread started by Bee back in January, here:

    http://www.mutualfundobserver.com/discuss/discussion/31111/making-sell-decisions-for-income-managing-the-distribution-of-your-accumulation/p1

    Your most recent post includes the elongated version with more instructional tabs and ability to modify the baseline assumptions.

    In the "more smarts" link you provided, the author goes into something very interesting he calls "3-Peat". If I'm interpreting this correctly, it answers a lingering question I had about the original calculator and the schedule it maps out from current year until age 95...what if the economy and/or your investments significantly change?

    The "3-peat" calls for you to run the calculator annually for that current year's distribution amount. In that way, you account for economic changes or other changes in baseline assumptions, and guarantees you will never run out of money.

    The resources tab also has a wealth of links and blogs...good find.

    Lastly, I like his comment about planning out to age 95..."Many people say they don’t want to live to be 95, but none of them are 94."
  • davidrmorandavidrmoran
    Thanks and sorry, yes, I thought it must've been mentioned, but did not see it on a search.

    Yeah, this is the whole deal, looks like. He is looking for feedback, btw.
  • beebee
    I am caring for my mom who is now 94 and has financially been experiencing "too much life at the end of the portfolio"...a more serious situation than "too much month at the end of the paycheck".

    She raised 8 kids (full time job with no benefits). She collects a survivor benefit from social security on my dad's SS record of about $800. Her age has finally overwhelmed her remaining personal assets (real estate and some savings).

    Over the last five years I have worked a part time job trying to shore up her health and wellness. Family and friends and community now play a much larger role in keeping my mom at home. It will be interesting to see how our present administration addresses retirement safety nets going forward. I will give the government credit for supporting programs that have maintained an elderly person's desire for a higher quality of life.

    I see a viable job's program run by colleges (training centers) and industry (internships and job placement) as a key part of getting the younger underemployed population off assistance, but I'm not sure we'd get much bang for the buck with the elderly.

    Maybe mandatory military service for anyone over the age of 85. Might as well go out with a bang rather than a whimper.
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