How does my retirement plan look?

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blackburnian
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How does my retirement plan look?

Post by blackburnian »

I am planning to retire in about a year (at age 65) and would appreciate any suggestions regarding my retirement plan. I am single and have no children. I live in a paid-off condo.

I expect my portfolio at retirement to look approximately like this:
Vanguard brokerage: $1.5 million (AA 50/50, with bonds made up of 2/3 munis, 1/3 treasuries)
Vanguard Roth: $190,000 (AA 66/33)
TIAA mutual fund: $106,000 (AA 90/10) (has large cap gains)
TIAA 403b all in TIAA traditional (4 separate accounts): $360,000
cash: $80,000
I estimate (generously) my expenses at about $80,000/year.

My current plan is:
1. Annuitize entire TIAA 403b holdings upon retirement, which should yield an income of about $20,000/yr.
2. Withdraw $60,000/yr from Vanguard brokerage from age 65 to 70. Consider moving $$ out of munis into other bonds.
3. Begin Social Security at age 70, which should yield about $24,000/yr (for a total of $44,000 with the TIAA annuity).
4. From age 70 to ?? withdraw $36,000/yr from Vg brokerage.
5. Leave TIAA mutual fund and Vg Roth as backup to withdraw from in case of high cost for medical care in old age (or other emergencies). Sale of condo would provide another source of funds if necessary.

Thoughts/suggestions welcome!
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David Jay
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Re: How does my retirement plan look?

Post by David Jay »

Seems reasonable. I am self-funding our retirement until the start of SS - and no annuity.

Your numbers are conservative. With a $60,000 withdrawal for 5 years with no gains whatsoever you will still have about 1.1M at age 70. $36,000 is only a 3.2% withdrawal rate which means that you are likely to see very little reduction in your account balances after the start of SS.

Of course over time the purchasing power of the annuity will decline, but you are still in great shape under almost any circumstance
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
chassis
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Re: How does my retirement plan look?

Post by chassis »

What about claiming SS now and withdrawing from all accounts in proportion to the expenses not covered by SS?

I don’t see annuities being in the best interest of an investor.
billfromct
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Re: How does my retirement plan look?

Post by billfromct »

chassis, can you explain why you “don’t see annuities being in the best interest of an investor”.

bill
L84SUPR
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Re: How does my retirement plan look?

Post by L84SUPR »

I'm working with similar numbers. I have less than you in accounts but more in present worth of SS and a small pension. I figure we can spend 76,000 a year plus taxes (inflation adjusted) and buy into a CCRC at age 80, if needed.

I ran my numbers through the RPM model which you could do if so inclined.

https://www.bogleheads.org/wiki/Retiree_Portfolio_Model
1/3rd VTWAX, 1/3rd Wellington, 1/3rd G Fund | All models are wrong. Some are useful.
Zeno
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Re: How does my retirement plan look?

Post by Zeno »

David Jay wrote: Wed Sep 22, 2021 6:46 pm Seems reasonable. I am self-funding our retirement until the start of SS - and no annuity.

Your numbers are conservative. With a $60,000 withdrawal for 5 years with no gains whatsoever you will still have about 1.1M at age 70. $36,000 is only a 3.2% withdrawal rate which means that you are likely to see very little reduction in your account balances after the start of SS.

Of course over time the purchasing power of the annuity will decline, but you are still in great shape under almost any circumstance
+1

If it is good enough for Mr. Jay, it is good enough for me (caveat: all retirement screw ups are mine alone; I don't come here for investment advice)

OP, you are a testament to BH approaches, including wise retirement planning.
chassis
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Re: How does my retirement plan look?

Post by chassis »

billfromct wrote: Wed Sep 22, 2021 7:10 pm chassis, can you explain why you “don’t see annuities being in the best interest of an investor”.

bill
The issuer takes their cut. Money is better left in investments managed by the investor.

Annuities are a form of insurance. Insurance benefits the issuer, always.
vas
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Re: How does my retirement plan look?

Post by vas »

Congrats on your upcoming retirement.

You don't mention your overall AA only the AA of individual accounts. You might take a look at the WiKi page about optimal tax placement. That might influence how you adjust the AA of the pretax and after tax accounts.

Are you confident of your retirement budget? Medical costs over and above Medicare? Changes in spending post retirement (e.g. travel). I'm sure you've given that all thought but its worth close examination.

White Coat Investor has some good material on Annuities. Assuming you've considered the pros and cons, inflation risk, etc. Why annuitize upon retirement vs, say, at 70 concurrent with SS. That would let you have more confidence in your base line spend and allow you to establish a monthly income to cover all the basics, protect form inflation a bit, etc.

Looks like you are in great shape regardless of the details. I hope you have a wonderful retirement.
“For every complex problem, there is a solution that is clear, simple, and wrong.” - H. L. Mencken
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blackburnian
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Re: How does my retirement plan look?

Post by blackburnian »

Thanks, all, for the responses. My overall AA, including the 403b funds, is around 50/50. I've been keeping track of expenses, so I have a pretty good idea what my budget will be.

As for when to annuitize the TIAA traditional, I don't really know how to decide. As annuities go, I think TIAA is pretty good, and I like the idea of having some guaranteed income. If I wait until later, then I will need to draw more money from the brokerage account. Meanwhile the TIAA funds would be growing at 3% (annual). I could, of course, annuitize part now and part later. What considerations come into play in making this decision?
vas
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Re: How does my retirement plan look?

Post by vas »

https://www.whitecoatinvestor.com/spia- ... d-annuity/

This provides a nice overview of the considerations
“For every complex problem, there is a solution that is clear, simple, and wrong.” - H. L. Mencken
hoops777
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Re: How does my retirement plan look?

Post by hoops777 »

chassis wrote: Wed Sep 22, 2021 9:09 pm
billfromct wrote: Wed Sep 22, 2021 7:10 pm chassis, can you explain why you “don’t see annuities being in the best interest of an investor”.

bill
The issuer takes their cut. Money is better left in investments managed by the investor.

Annuities are a form of insurance. Insurance benefits the issuer, always.
Always? Car insurance,health insurance,LTC,homeowner,umbrella…always?

In terms of an annuity, if we have a ten year bear market at the start of the op’s retirement, who benefits more?
K.I.S.S........so easy to say so difficult to do.
aristotelian
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Re: How does my retirement plan look?

Post by aristotelian »

Is $60k your annual spending? Is "TIAA mutual fund" in taxable?

One thing I don't see in your plan is Roth conversions. I'm not sure if that is something you can do if you annuitize the TIAA 403b. I think I would do Roth conversions up to the 12% bracket ($52k) either instead of or in addition to annuitizing the 403b.

I also have a TIAA plan with the majority invested in TIAA Traditional. I haven't studied the annuity options in great detail yet but I am inclined to keep it as is and then pull the trigger on the 10 year withdrawal plan shortly after I retire and then do Roth conversions on the distributions.
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David Jay
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Re: How does my retirement plan look?

Post by David Jay »

hoops777 wrote: Thu Sep 23, 2021 2:06 pm
chassis wrote: Wed Sep 22, 2021 9:09 pmInsurance benefits the issuer, always.
Always? Car insurance,health insurance,LTC,homeowner,umbrella…always?
I would suggest that insurnace companies never issue an instrument with the anticipatation that it will not create earnings for the company. I'm sure there are occasional lapses, but industry actuaries are pretty good at their jobs.

That does not mean that the consumer never benefits. Risk pooling is one thing that insurance can do that is almost impossible to do individually. I like fire insurance as the good example. Each homeowner pays a few hundred dollars a year, one in 10,000 (guess) gets their $500,000 (or whatever) home rebuilt after a fire. There is simply no way to individually pool that kind of risk.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
hoops777
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Re: How does my retirement plan look?

Post by hoops777 »

David Jay wrote: Thu Sep 23, 2021 5:57 pm
hoops777 wrote: Thu Sep 23, 2021 2:06 pm
chassis wrote: Wed Sep 22, 2021 9:09 pmInsurance benefits the issuer, always.
Always? Car insurance,health insurance,LTC,homeowner,umbrella…always?
I would suggest that insurnace companies never issue an instrument with the anticipatation that it will not create earnings for the company. I'm sure there are occasional lapses, but industry actuaries are pretty good at their jobs.

That does not mean that the consumer never benefits. Risk pooling is one thing that insurance can do that is almost impossible to do individually. I like fire insurance as the good example. Each homeowner pays a few hundred dollars a year, one in 10,000 (guess) gets their $500,000 (or whatever) home rebuilt after a fire. There is simply no way to individually pool that kind of risk.
I understand that.
That does not mean as an individual that I will not receive payments well beyond my premiums or that buying an annuity is not a good decision for an individual.
The previous comment made it sound like all insurance is a bad deal because insurance companies make money.
K.I.S.S........so easy to say so difficult to do.
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David Jay
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Re: How does my retirement plan look?

Post by David Jay »

hoops777 wrote: Thu Sep 23, 2021 6:31 pm
David Jay wrote: Thu Sep 23, 2021 5:57 pm
hoops777 wrote: Thu Sep 23, 2021 2:06 pm
chassis wrote: Wed Sep 22, 2021 9:09 pmInsurance benefits the issuer, always.
Always? Car insurance,health insurance,LTC,homeowner,umbrella…always?
I would suggest that insurnace companies never issue an instrument with the anticipatation that it will not create earnings for the company. I'm sure there are occasional lapses, but industry actuaries are pretty good at their jobs.

That does not mean that the consumer never benefits. Risk pooling is one thing that insurance can do that is almost impossible to do individually. I like fire insurance as the good example. Each homeowner pays a few hundred dollars a year, one in 10,000 (guess) gets their $500,000 (or whatever) home rebuilt after a fire. There is simply no way to individually pool that kind of risk.
I understand that.
That does not mean as an individual that I will not receive payments well beyond my premiums or that buying an annuity is not a good decision for an individual.
The previous comment made it sound like all insurance is a bad deal because insurance companies make money.
In "hoops" defense, insurance products that do not feature substantial risk pooling are almost never a good product for the consumer. The insurance company makes money by taking it from the customer, not by re-allocating funds across a pool.

For the OP, note regarding annuities: risk-pooling comes from mortality credits and the mortality credits increase with age at time of annuitization, which is why some are recommending annuitizing later.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
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blackburnian
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Re: How does my retirement plan look?

Post by blackburnian »

aristotelian wrote: Thu Sep 23, 2021 2:27 pm Is $60k your annual spending? Is "TIAA mutual fund" in taxable?

One thing I don't see in your plan is Roth conversions. I'm not sure if that is something you can do if you annuitize the TIAA 403b. I think I would do Roth conversions up to the 12% bracket ($52k) either instead of or in addition to annuitizing the 403b.

I also have a TIAA plan with the majority invested in TIAA Traditional. I haven't studied the annuity options in great detail yet but I am inclined to keep it as is and then pull the trigger on the 10 year withdrawal plan shortly after I retire and then do Roth conversions on the distributions.
My annual spending is about $80,000; $60,000 is the difference I would need if I was getting $20,000 from the annuity.
TIAA mutual fund is taxable.
I hadn't thought about doing Roth conversions; I had thought that that was mostly a technique for people who were anticipating large RMDs (which I wouldn't have). I suppose it would be possible to convert some of the 403b to a Roth, though I'm not sure what the benefit would be. I am going to meet with a TIAA advisor and will see if they have any suggestions.
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Watty
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Re: How does my retirement plan look?

Post by Watty »

blackburnian wrote: Wed Sep 22, 2021 6:34 pm I estimate (generously) my expenses at about $80,000/year.
Did you include income taxes as one of your expenses?

If not an you want to be able to spend $80K a year after taxes then you may need something like $100K in income before taxes.
blackburnian wrote: Wed Sep 22, 2021 6:34 pm 3. Begin Social Security at age 70, which should yield about $24,000/yr
It would be good to double check that number. It could be right but it sounds on the low side for someone that has a net worth of over $2.5 million dollars.
blackburnian wrote: Wed Sep 22, 2021 6:34 pm 5. Leave TIAA mutual fund and Vg Roth as backup to withdraw from in case of high cost for medical care in old age (or other emergencies). Sale of condo would provide another source of funds if necessary.
If at some point you have high medical expenses then you would also have a lot of medical expenses that you could itemize which could put you in a low tax bracket.

At least for medical expenses it might make more sense to keep a traditional IRA in reserve so you could make use of the itemized medical expense deductions.

blackburnian wrote: Wed Sep 22, 2021 6:34 pm TIAA 403b all in TIAA traditional (4 separate accounts): $360,000
.
.
1. Annuitize entire TIAA 403b holdings upon retirement, which should yield an income of about $20,000/yr.
So if you put that $360K under the proverbial mattress and took out $20K a year then it would take 18 years to use it all up when you are 83.

I didn't do the math but I would guess that if you just put it into CD's that are earning just 1% then it would likely last over 20 years until you are 85.

Either way after 18 or 20 years of inflation the value of $20K a year will likely be greatly reduced by inflation and it could easily just be worth a couple of hundred dollars then so it may not be a real life changing amount then.

I have nothing against a carefully selected single premium immediate annuity as part of a retirement plan but you also have to consider at what age you should buy one and if you should buy a series of them.

Buying a SPIA is end effect buying insurance that you will not outlive you money. This does not seem to do a really good job of that.

I would play with the numbers to see how it might work if you held off and bought one for maybe $150K or $200K when you are 70 and then you could buy another $50K one every five years when until the 403b money is all used up. There are lots of different ways that you could time the buying of a series of annuities.

It is impossible to predict the future but the current low interest rates and the prospect of future inflation make this a pretty attractive time to get a 30 year mortgage. The flip side of this is that it is a risky time to buy a large SPIA.

Buying several smaller SPIAs over a number of years would help give you more diversification.

Delaying the purchase of the SPIA would also give you more time to do Roth conversions in a low tax bracket before you start Social Security.
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Watty
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Re: How does my retirement plan look?

Post by Watty »

blackburnian wrote: Thu Sep 23, 2021 7:47 pm I hadn't thought about doing Roth conversions; I had thought that that was mostly a technique for people who were anticipating large RMDs (which I wouldn't have). I suppose it would be possible to convert some of the 403b to a Roth, though I'm not sure what the benefit would be. I am going to meet with a TIAA advisor and will see if they have any suggestions.
Single people get into the higher tax brackets real quick and you also need to look at the complicated way that Social Security is taxed. If you end up in the income range were each extra dollar of income causes more of your Social Security to be taxed then you can end up in a surprisingly high effective tax bracket.

https://www.bogleheads.org/wiki/Taxatio ... y_benefits

Doing Roth conversions before you start SS can help avoid that.
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Watty
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Re: How does my retirement plan look?

Post by Watty »

blackburnian wrote: Thu Sep 23, 2021 7:47 pm I am going to meet with a TIAA advisor and will see if they have any suggestions.
Be sure to find out if they get paid a commission for selling annuities. If so then you cannot trust what they say because they have a conflict of interest.
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blackburnian
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Re: How does my retirement plan look?

Post by blackburnian »

David Jay wrote: Thu Sep 23, 2021 6:55 pm For the OP, note regarding annuities: risk-pooling comes from mortality credits and the mortality credits increase with age at time of annuitization, which is why some are recommending annuitizing later.
Thank you for this and your other replies. Since I have 4 different TIAA funds, I might consider annuitizing some now and some later. I will see if I can get any information from the TIAA advisor on how the income amounts would differ depending on when I annuitized.
chassis
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Re: How does my retirement plan look?

Post by chassis »

hoops777 wrote: Thu Sep 23, 2021 2:06 pm
chassis wrote: Wed Sep 22, 2021 9:09 pm
billfromct wrote: Wed Sep 22, 2021 7:10 pm chassis, can you explain why you “don’t see annuities being in the best interest of an investor”.

bill
The issuer takes their cut. Money is better left in investments managed by the investor.

Annuities are a form of insurance. Insurance benefits the issuer, always.
Always? Car insurance,health insurance,LTC,homeowner,umbrella…always?

In terms of an annuity, if we have a ten year bear market at the start of the op’s retirement, who benefits more?
Yes, always.
aristotelian
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Re: How does my retirement plan look?

Post by aristotelian »

Watty wrote: Thu Sep 23, 2021 8:07 pm
blackburnian wrote: Thu Sep 23, 2021 7:47 pm I am going to meet with a TIAA advisor and will see if they have any suggestions.
Be sure to find out if they get paid a commission for selling annuities. If so then you cannot trust what they say because they have a conflict of interest.
Agreed. I would get a third party opinion if seeking professional advice. Not only do they have conflicts of interest, they have a known history of aggressive sales tactics. https://www.yahoo.com/now/investment-fi ... 00599.html
nix4me
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Re: How does my retirement plan look?

Post by nix4me »

No chance i would open an annuity. Just invest all money in a balanced portfolio and pull what you need from the total portfolio.
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blackburnian
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Re: How does my retirement plan look?

Post by blackburnian »

Watty wrote: Thu Sep 23, 2021 7:51 pm
blackburnian wrote: Wed Sep 22, 2021 6:34 pm I estimate (generously) my expenses at about $80,000/year.
Did you include income taxes as one of your expenses?

If not an you want to be able to spend $80K a year after taxes then you may need something like $100K in income before taxes.
Yes, that includes taxes.
blackburnian wrote: Wed Sep 22, 2021 6:34 pm 3. Begin Social Security at age 70, which should yield about $24,000/yr
Watty wrote: Thu Sep 23, 2021 7:51 pm It would be good to double check that number. It could be right but it sounds on the low side for someone that has a net worth of over $2.5 million dollars.
Thank you; I did just check and it is a bit low--should be $26,000
blackburnian wrote: Wed Sep 22, 2021 6:34 pm 5. Leave TIAA mutual fund and Vg Roth as backup to withdraw from in case of high cost for medical care in old age (or other emergencies). Sale of condo would provide another source of funds if necessary.
Watty wrote: Thu Sep 23, 2021 7:51 pm If at some point you have high medical expenses then you would also have a lot of medical expenses that you could itemize which could put you in a low tax bracket.

At least for medical expenses it might make more sense to keep a traditional IRA in reserve so you could make use of the itemized medical expense deductions.
I'm sorry, I don't understand. Why would having a traditional IRA allow you to itemize medical expenses?
blackburnian wrote: Wed Sep 22, 2021 6:34 pm TIAA 403b all in TIAA traditional (4 separate accounts): $360,000
.
.
1. Annuitize entire TIAA 403b holdings upon retirement, which should yield an income of about $20,000/yr.
Watty wrote: Thu Sep 23, 2021 7:51 pm So if you put that $360K under the proverbial mattress and took out $20K a year then it would take 18 years to use it all up when you are 83.

I didn't do the math but I would guess that if you just put it into CD's that are earning just 1% then it would likely last over 20 years until you are 85.

Either way after 18 or 20 years of inflation the value of $20K a year will likely be greatly reduced by inflation and it could easily just be worth a couple of hundred dollars then so it may not be a real life changing amount then.

I have nothing against a carefully selected single premium immediate annuity as part of a retirement plan but you also have to consider at what age you should buy one and if you should buy a series of them.

Buying a SPIA is end effect buying insurance that you will not outlive you money. This does not seem to do a really good job of that.

I would play with the numbers to see how it might work if you held off and bought one for maybe $150K or $200K when you are 70 and then you could buy another $50K one every five years when until the 403b money is all used up. There are lots of different ways that you could time the buying of a series of annuities.

It is impossible to predict the future but the current low interest rates and the prospect of future inflation make this a pretty attractive time to get a 30 year mortgage. The flip side of this is that it is a risky time to buy a large SPIA.

Buying several smaller SPIAs over a number of years would help give you more diversification.

Delaying the purchase of the SPIA would also give you more time to do Roth conversions in a low tax bracket before you start Social Security.
A lot to consider here. I wasn't thinking that annuitizing my TIAA traditional accounts was the same thing as buying an SPIA, but perhaps it is. One difference is that TIAA has various withdrawal rules--you can't just take out a lump sum. I could annuitize all or some, or none (and wait for RMDs), or withdraw over 10 years. There is also a "graded" option where the amounts are lower at first but then increase (to help keep up with inflation). I will have to sit down and work out some options.
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blackburnian
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Re: How does my retirement plan look?

Post by blackburnian »

removed duplicate
suemarkp
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Re: How does my retirement plan look?

Post by suemarkp »

Consider waiting on the annuities and cash out your taxable accounts to get as much Capital Gain as possible at 0% tax. Once you have income streams, you're going to be in the 15% capital gains bracket. Getting some capital gains at 0% is your largest savings (a 15 point spread). If maximizing the 0% bracket gives you more money than you need, just tax gain harvest it (put back the excess in your taxable account which resets the basis). I don't see Roth conversions as a major thing to do -- you don't have that much in tax deferred. But it could be a 10 point savings of converting at 12% instead of paying 22%. Having your cost basis method of Spec ID in your taxable accounts make it easier to pick which lots to sell so you can balance already taxed basis versus capital gain to get you the income you need and the tax rate you want when selling shares.

Once you've realized most of your Capital gains, then consider Roth conversions, the annuity, begin SS, or both annuity and SS.

What others meant regarding having some tax deferred to offset medical costs is that if you have medical costs that are over 7.5% of your AGI, they are tax deductable. You want to pull from taxable money if you have a large deduction, otherwise the deduction is wasted. Through most of our life, medical costs of that magnitude are rare or never. But when you're retired, your AGI will be lower, and the odds of needing in home care, long term care, or nursing home are greater (which are large medical expenses that will most likely go over the 7.5% AGI threshold).
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Watty
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Re: How does my retirement plan look?

Post by Watty »

blackburnian wrote: Thu Sep 23, 2021 10:09 pm
Watty wrote: Thu Sep 23, 2021 7:51 pm If at some point you have high medical expenses then you would also have a lot of medical expenses that you could itemize which could put you in a low tax bracket.

At least for medical expenses it might make more sense to keep a traditional IRA in reserve so you could make use of the itemized medical expense deductions.
I'm sorry, I don't understand. Why would having a traditional IRA allow you to itemize medical expenses?
If something happens like you go into long term care a lot of those costs can be itemized and deducted on your taxes. For example if you have $30K in itemized deductions and you have to make a $30K withdrawl from a taxable IRA then those would offset each other on your tax return so you would not need to pay taxes on that.

Since you would not have to pay taxes on it in that situation it would be better to use a taxable IRA then instead of a Roth.
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blackburnian
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Re: How does my retirement plan look?

Post by blackburnian »

suemarkp wrote: Thu Sep 23, 2021 10:38 pm Consider waiting on the annuities and cash out your taxable accounts to get as much Capital Gain as possible at 0% tax. Once you have income streams, you're going to be in the 15% capital gains bracket. Getting some capital gains at 0% is your largest savings (a 15 point spread). If maximizing the 0% bracket gives you more money than you need, just tax gain harvest it (put back the excess in your taxable account which resets the basis). I don't see Roth conversions as a major thing to do -- you don't have that much in tax deferred. But it could be a 10 point savings of converting at 12% instead of paying 22%. Having your cost basis method of Spec ID in your taxable accounts make it easier to pick which lots to sell so you can balance already taxed basis versus capital gain to get you the income you need and the tax rate you want when selling shares.

Once you've realized most of your Capital gains, then consider Roth conversions, the annuity, begin SS, or both annuity and SS.

What others meant regarding having some tax deferred to offset medical costs is that if you have medical costs that are over 7.5% of your AGI, they are tax deductable. You want to pull from taxable money if you have a large deduction, otherwise the deduction is wasted. Through most of our life, medical costs of that magnitude are rare or never. But when you're retired, your AGI will be lower, and the odds of needing in home care, long term care, or nursing home are greater (which are large medical expenses that will most likely go over the 7.5% AGI threshold).
Watty wrote: Thu Sep 23, 2021 11:17 pm
blackburnian wrote: Thu Sep 23, 2021 10:09 pm
Watty wrote: Thu Sep 23, 2021 7:51 pm If at some point you have high medical expenses then you would also have a lot of medical expenses that you could itemize which could put you in a low tax bracket.

At least for medical expenses it might make more sense to keep a traditional IRA in reserve so you could make use of the itemized medical expense deductions.
I'm sorry, I don't understand. Why would having a traditional IRA allow you to itemize medical expenses?
If something happens like you go into long term care a lot of those costs can be itemized and deducted on your taxes. For example if you have $30K in itemized deductions and you have to make a $30K withdrawl from a taxable IRA then those would offset each other on your tax return so you would not need to pay taxes on that.

Since you would not have to pay taxes on it in that situation it would be better to use a taxable IRA then instead of a Roth.
Thank you, Watty and suemarkp. I understand now about the medical deduction angle. I don't have the time or financial acumen to come up with a very complex plan taking all of these things into consideration, but the comments here have convinced me that 1. I shouldn't annuitize TIAA right away, and should consider doing it in stages; 2. I should sell some high cost-basis assets after retirement when I am in 0% cap gains bracket (I will get rid of the TIAA mutual fund, which I have had for decades). 3. I will look into the graded (semi-inflation protected) option from TIAA.

Thanks again to everyone for your advice.
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