One of the more important questions I try to answer via the financial planning process is, “How much can I withdraw from my portfolio each year and not run out of money?” Or the inverse of that, which is, “How much do I need to have saved in order to retire and sustain my current lifestyle without running out of money?”
To answer the question specifically for your unique circumstances we would need to prepare custom financial projections, however, there are some general rules of thumb that can serve as a starting point. Continue reading “What is a Safe Portfolio Withdrawal Rate To Ensure Your Money Lasts?”
If you have a large retirement account balance (e.g. IRA, 401k, 403b) a Roth conversion may make a lot of sense in retirement. For some people, a Roth conversion can drastically reduce income taxes over their lifetime (and their children’s lifetimes).
Many people, upon retirement, suddenly find themselves in a low tax bracket. For example, assume you retire at age 65. You no longer have any earned income. Additionally, you have over five years before you’re required to begin withdrawing money from your pre-tax retirement accounts like IRAs, 401ks, and 403bs, etc…
This creates a great planning opportunity!
Continue reading “Do you have a large retirement account balance? A Roth IRA conversion may make sense for you.”