TorchtheFlyingTiger

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Liberty All-Star Equity (USA)

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Horrible advice! Closed end fund w .9% expense ratio. Price down over 8% 1yr. Pays 10%+ dividend so very inefficient to hold in taxable brokerage ??

My first reaction, "2%, why so low?" Then I remembered I havent been withdrawing and would really have to make an effort to spend even 2%. This reinforces that I really need to sit down and build an increased spending budget that wife and I will follow through on.

Should I count taxes on Roth conversion as withdrawals? That might account for most of our increase spending.

Update wills and establish trust
Start spending dividends instead of reinvesting
Begin Roth conversions
Biggest goal is to shift to a spending mindset instead of accumulation. 3 years into an early retirement and it's hard to break the good habits that got us here.

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Good catch, starting in 2025 catch up contributions are post tax. Is that for earners over $150k or all? Not finding a good IRS source.

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Those dont kick in until 73. You have plenty of years before that to convert them to Roth while in lower income retirement years. As a high earner in high bracket why lass on traditional 401k to contribute to brokerage with post tax dollars? You can tap 401k and Roth early without penalty (look into rule of 55, 72(t), etc) You make enough to max 401k and fund brokerage with remainder. HSA is triple tax advantaged so keep maxing it but pay for medical out of pocket and let the HSA continue tax free growth. Keep reciepts and use them for tax free withdrwals later (another option for tax free retirement income)

Thats a reasonable mix, 100% equities at 20 makes sense. Consider using Robinhood to get the 3% contributuon match with $5/m gold membership. Costs just $60/yr to get $435 (2025/2026 match)

Is broken jaw and this surgery typically a career ender for boxers? Does the titanium stay in or would it have to be removed before returning to ring?

RMDs dont start until 75 (earlier for those born before 1960).
Brackets are likely to increase w/ inflation. (especially lowest brackets) Even today you'd have to exceed $394k plus deductions (married joint) before next dollar is taxed at 32%. So, even if in 32% bracket, effective tax rate of withdrawals would likely be much lower.

With RMDs delayed until 75, that gives early and even regular retirees a lengthy window for Roth conversions if desired.

I've heard of cases where HS or college aged kids have committed suicide over sextortion. Had to warn my kids about over sharing online and how embarrassing predicaments are never worth offing oneself no matter how dire it seems. Somehow this seems like a more implausible reaction though less severe/tragic.

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 I may be able to draw that my first year or two and show little to no income. Could supplement out of my brokerage accounts to be low income for those years.

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Typically Roth is last thing you want to tap. Best left to grow tax free. Plus, better to draw down traditional first before SS stacked on top and taxed and before higher taxable income triggers IRMAA. May be a case for Roth first for ACA subsidies and zero LTCG rate etc but often not the optimal solution. As others have said having some of both gives you options to optimize tax strategies later but may not be worth paying high rate now.