Action Plan 18 mo from Retirement

Brindle & Bay (YT) shared their recommended action plan, to start 18 months prior to retirement.

Know your real number

  • Not just your balance

Build an Income map

  • Social Security (claiming age)

  • Pension

  • Dividend

  • Withdrawal Capacity per account

  • Withdrawal order

Does this structure give me enough flexibility?

Projected RMD at age 75

  • Forced income at age 75, affects tax

  • Look at when you claim SS, with RMD can push you in IRMA penalty for Medicare

Position you accounts prior to retirement

  • If you are concerned with RMD, consider shifting to add to ROTH instead.

  • Redirect contributions.

Look for Tax Loss Harvesting opportunities

Do I have any positions sitting at a loss to claim, offsetting future gains.

Have a framework for sequence of risk/return

  • Strategy of how to respond if the market drops

Do I have company stock or concentrated holdings?

  • Best to diversify them before retiring

Social Security

  • Will delaying enable the best after-tax benefits.

Healthcare

  • Gap years until 65 for Medicare

  • If income is too high, you miss out on IRMA subsidies. (Thresholds)

  • Roth & Taxable withdrawals do not impact MAGI (modified adjusted gross income).

Structure Portfolio

  • How will it provide income, and how visible will that income be to the tax system?

  • Quality, diversified, tax efficient holdings.

  • Put most growth investments in Roth.

  • Asset Location

Brindle & Bay
Michael Wei