Music! I will check your other posts too.Planning, planning, planning, planning, and even more planning. I knew these municipals would come in handy later on after I had finished working, I just didn’t realize how much so until I was five years out from my projected early retirement date and formed the transition plan. You can go through my posts searching for keyword ‘hybrid’ as I found out that a hybrid withdrawal plan would be the way to go.Thank you for explaining your method of getting out money at the lowest taxation. This is actually one of the things I have wanted to play with once I retire
It is not a plan for everyone, but I found it rather fun to find a way to have all my cashflow needs met, have my QD/LTCGs taxed at the zero percent federal rate, chip away at tax-deferred to reduce eventual RMDs, get some ACA PTC funds, and squeeze in a small Roth IRA conversion next year simultaneously while paying less than 5% in combined federal and CA taxes this year and next.
Say I have 1m in treasury mf (5%?) in the taxable account. This will generate 50k income that will be taxed federal. MFJ tax payer pays 12% fed tax between 22k and 89k income. So tax paid is 6k leaving 44k net
Same 1m in vcadx will generate 27k income that is not taxable
If one needs to lower the income for aca and other withdrawals, taking the vcadx route seems attractive but there is a cost for the route. I wonder if there is a calculator for finding out net income with different QD/interest /other income already
Effective return is 3.8%. Seems to be 1% more than the vcadx yield. But after retirement, if that 3.8% return pushes
Statistics: Posted by av111 — Tue Oct 08, 2024 11:38 pm