Withdrawal Planning

The $1M is divided as:
$100,000 Roth
$400,000 Taxable
$500,000 401K accounts

From what a number of FA’s told us, those ratios are out of ordinary. They said that the ratio is typically more like $100K Roth, $200K taxable, $700K 401K/IRA.

To address your question, search on “best order of withdrawal from accounts”.

“Most investment advice suggests that retirees should spend down their taxable assets first (meaning stocks, bank accounts, etc.), tax-deferred assets second (401(k)s, traditional IRAs, etc.), and tax-free accounts last (Roth IRAs, etc.).”

There’s no need to create a spreadsheet.

Also, my income has a stable piece and then some unstable stuff as well.

It’s not too hard to get an unplanned-for capital gain of $20,000 to $50,000. Some mutual funds have sprung that surprise on people. Usually in late December, so you don’t have any time to change your plans.

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