What is the most significant financial concern? Running Out of Money.
The spend-down is a plan to minimize taxes and
ensure you don’t outlive your assets.
“10% market return taxed at maximum federal capital gain tax of 23.8% nets 7.62%
market return after tax.”
The most important decision a retiree makes is to determine from which retirement
assets to withdraw funds to meet everyday living expenses. These are the decision
- Size of Accounts
- Size of RMDs to Cash Flow
- Investment Mix/Performance
- Marginal Income Tax Bracket
- Time Horizon
- Estate Planning Goals