Viewing a single comment thread. View all comments

Cautious_Second7321 OP t1_j2b9ihv wrote

Dumb question, but when you say remember to plan for things like SS, pensions and healthcare, i’m assuming SS/pensions as income and healthcare as an expense?

1

UMfan11244 t1_j2bm9c9 wrote

Yup, usually. Although, pension plans have healthcare that is greatly reduced in cost. So you just need to know what you are eligible for specifically.

2

Cautious_Second7321 OP t1_j2bv00y wrote

When you withdraw that 2.5-3.5% doesn’t it complicated depending on if you withdraw from pretax or after tax accounts?

So, let’s say year 1 of retirement I withdraw 3.5% of $1,000,000 ($35,000) wouldn’t I be hit with taxes at the 22% rate on the 35K?

I know everyone says it’s easy, but am I thinking about this the right way?

1

UMfan11244 t1_j2bw0fw wrote

Yes, you are. Taxes would have to be included in your annual expense estimate. Keep in mind, if your income is low Social Security will not be taxed.

2

Rxpert83 t1_j2c34a9 wrote

Remember taxes are progressive. You aren't changed 22% on the entire amount. Only on the amount above the previous tax bracket.

1