red5 wrote:Would it be advantageous to be able to draw enough from a traditional IRA without triggering any taxes and then the rest from my Roth IRA?
red5 wrote:I'm at the bottom of the 10% bracket ...
My goal is to retire in 35 years and have $60,000 in income every year in today's dollars. My assumption is I will receive $12,000 in social security benefits. Thus I will need $48,000 from my retirement accounts.
It seems like you are planning on spending quite a bit more during retirement than you are spending now (based on income guess from your tax bracket). Most people spend less in retirement than during their working years. To reach this goal it seems you will have to save a very significant portion of your current income.
Better to think about $ amounts than ratios for a TIRA. Your RMDs start around 4% at 70.5, so figure $4k taxable per $100k in TIRA. In addition, I would put in $50-$100k of medical/nursing/home care that you will probably be able to get out of a TIRA at 0% somewhere along the line. So for most folks, $150-300k is the minimum TIRA to shoot for, even if you only receive a 10% tax break.
But with 35+ years to retirement, things will/should change along the way. I hope you don't plan on being in the 10% bracket for another 35 years. You need to increase your income. As such, you will benefit more by doing a TIRA in the future when you can get 25-28% of immediate tax benefit and continue with the Roth-only for the time being.
Good Luck, -P
MGBGTV8 wrote: but we ARE planning many years in the future, with many opportunities for political risk to bite us!
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