- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Retirement discussion that I never thought I’d have.
Posted on 6/22/26 at 8:29 am to notsince98
Posted on 6/22/26 at 8:29 am to notsince98
when people give assumptions on what they can withdraw each year on 2 or 3 million, is taxes a factor in this if everything is in a traditional 401k?
are they considering the automatic 20% govt takes out on the withdrawal or assuming take out 100k and then just deal with taxes?
are they considering the automatic 20% govt takes out on the withdrawal or assuming take out 100k and then just deal with taxes?
2
Posted on 6/22/26 at 9:10 am to FMtTXtiger
This used to confuse me, too, years ago.
You should plan for nest egg and income (pension, SS) to cover gross withdrawals (retirement expenses + taxes). The % should cover the gross, including taxes.
For example, just retired. This year we will withdraw 3.8%, including taxes.
You should plan for nest egg and income (pension, SS) to cover gross withdrawals (retirement expenses + taxes). The % should cover the gross, including taxes.
For example, just retired. This year we will withdraw 3.8%, including taxes.
Posted on 6/22/26 at 10:37 am to Rize
No. Don’t trust AI to plan your life. It’s often wrong.
Posted on 6/22/26 at 10:40 am to tigerbacon
Correct. RMD concerns are overblown. It’s a way for advisors to show their “worth” and discuss Roth conversions etc.
Posted on 6/22/26 at 10:58 am to LSU alum wannabe
One thing to discuss is asset location not just asset allocation. Your Roth IRA should be your most aggressive account as it grows tax free. Your Traditional IRA should have more bonds as bonds are taxed at ordinary income and this will avoid that. Any taxable accounts should have more equities as you can tax loss harvest and capital gains tax is usually lower than ordinary income.
Posted on 6/22/26 at 11:00 am to TX_Tiger23
The government did a great job. Let’s avoid 401ks due to RMD so they can tax the money now
Posted on 6/22/26 at 11:13 am to LSUSports247
quote:
You also need to plan for Health Insurance if you retire before you’re eligible for Medicare.
This is where a Roth and/or superhero account is great. Withdrawals add little to nothing to your agi which allows you to get huge discounts on marketplace insurance, perhaps even getting it for free.
Posted on 6/22/26 at 11:20 am to Everyday Is Saturday
quote:
I’m retired with a 2.8% mortgage. Have multiple funds that could pay it off tomorrow, but giving up 9-12% after tax returns and positive spread over mortgage rate goes against my financial DNA. I will have that mortgage until I am a ghost.
Using other people’s money for positive spread is a big reason why retiring early was possible.
Peace of mind of financial freedom >
Peace of mind of ‘no debt of any kind’.
This. Turned 50 this year and planning to retire in a few years. I've got 25 years left on a 400k mortgage at 2.25%. I could pay this off now as well but why would I. When I retire, I have already accounted for the mortgage payment as part of my basic expenses I will have.
I already consider the mortgage payment cheap and it's just getting relatively cheaper every year due to inflation. In 10+ years, I will be laughing at how crazy cheap that mortgage payment is.
Posted on 6/22/26 at 11:26 am to BhamTigah
"superhero account" that's a new term for me. Apparently just cheesy slang for taxable brokerage? I'm bracing for the Baader-Meinhof effect. I follow a lot of finance blogs and podcasts and don't recall ever hearing this now it's gonna be everywhere.
Posted on 6/22/26 at 11:29 am to TorchtheFlyingTiger
quote:
"superhero account," that's a new term for me. Apparently just cheesy slang for taxable brokerage?
Yeah, I just heard it recently. Definitely cheesy but it stuck in my mind.
Posted on 6/22/26 at 11:45 am to tigerbacon
Exactly and most people are in a lower bracket in retirement.
Posted on 6/22/26 at 11:51 am to LSU alum wannabe
Fidelity has a damn good Retirement Planner and it would be very valuable for you to generate a plan yourself. I’d do it independently to give you a second opinion. I retired in 2017 at 55 and I ran my plan for 2 years, tweaking, making more accurate before I pulled the trigger. It’s extremely detailed, but also very user friendly.
“Aggressive” is not a term I’ve used in investing since I retired lol. Mostly corporate and municipal bonds, buying SP index funds in dips has done fine for me and allowed me to sleep well. Best of luck.
“Aggressive” is not a term I’ve used in investing since I retired lol. Mostly corporate and municipal bonds, buying SP index funds in dips has done fine for me and allowed me to sleep well. Best of luck.
Posted on 6/22/26 at 11:57 am to TX_Tiger23
My RMD concern is related to widow penalty and IRMAA. Definitely a bigger issue for those of us with pensions. Even so, I'm begining to realize if I tax optimize for future I will have to live leaner now in best early retirement years. At some point better to enjoy the $$$ instead of tax optimizing just for benefit of elderly self or heirs that will already be ok or much better.
Posted on 6/22/26 at 12:03 pm to PlaySomeHonk
quote:Recently heard a compelling case for going conservative earlier in retirement then ramping up risk transitioning back to an aggressive portfolio once worst of sequence of returns risk has been weathered and spending needs begin to recede with age.
“Aggressive” is not a term I’ve used in investing since I retired
Posted on 6/22/26 at 12:08 pm to TorchtheFlyingTiger
And if charitably inclined make sure to understand QCD’s. And IRMAA is not the end of the world. Of course at the higher amounts it’s fairly significant but tax rates are still relatively low right now.
Posted on 6/22/26 at 12:25 pm to TorchtheFlyingTiger
quote:
"superhero account" that's a new term for me. Apparently just cheesy slang for taxable brokerage?
Yeah I've seen that term used by some of the financial bloggers I've watched on YT the past year.
I think it's because many people don't realize how powerful a taxable brokerage account can be (i.e. 0% LT capital gains rate) especially if retiring before 59.5.
The few friends that i discuss finances/investing with have sizable trad 401k/ira, roth ira and hsa. However I don't believe any of them have built up a sizable taxable account. About 20% my portfolio is in my taxable account.
Posted on 6/22/26 at 12:38 pm to TX_Tiger23
True, the dreaded IRMAA isn't so bad once put into context. Was going over this with elderly Mom this weekend and it finally popped out at me that IRMAA of aprox $2k doesn't hit until single over something like $105 or 109k MAGI. Not a huge price to pay if living that well retired. Best to minimize, sure. But not at all costs and not if it means sacrificing lifestyle in few remaining good years.
Posted on 6/22/26 at 12:54 pm to TorchtheFlyingTiger
quote:
“superhero account" that's a new term for me.
Ari Taublieb (CFP, YouTuber) uses this term.
ie, Taxable account is path to early retirement (no age based withdrawal penalties, tax loss harvesting, etc).
I am encouraging my early adult kids to give their taxable accounts some focus in early working years, to build option of very / early retirement. An option they may or may not exercise but…
Posted on 6/22/26 at 12:58 pm to gpburdell
quote:
I could pay this off now as well but why would I. When I retire, I have already accounted for the mortgage payment as part of my basic expenses I will have.
Exactly how we planned it!
Inflation protection, cheap debt / net positive wealth building, etc.
Nest egg cash flow well covers essential expenses (including housing), in addition to having funds available to pay mortgage off (even though that is highly unlikely).
And, not or, you always have the option to pay it off at will (if ‘peace of mind’ value from being debt free ever shifts to become THE most important).
Suspect you and I are not on the Dave Ramsey Christmas card list (re use of cheap mortgage debt).
Well done!
This post was edited on 6/22/26 at 1:11 pm
Posted on 6/22/26 at 1:06 pm to Everyday Is Saturday
My favorite thing about taxable brokerage is ability to gift appreciated shares and recipient pays zero LTCG if in low income tax brackets. Probably going to use this to seed my kids' accounts when they are young adults starting careers and not yet high earning.
Page 3 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News