Strategy Phases For Retiring at 59

  • Avoid drawing from retirement accounts to keep reported taxable income low, target to keep health insurance premiums low and reduce RMDs

  • Phase 1 should be financially conservative until SS and Medicare kick in

  • Whatever your asset allocation (e.g. 60/40 or 70/30)–the fixed income should be easily accessible

  • Watch for your IRMAA

  • Roth conversions may shrink

  • Target 12% or 22% tax brackets

  • Watch for Capital Gains Tax Bracket (from 0% to 15%)

  • Withdrawal strategy: asset allocation with less time we can safely increase risk in equities

  • QCD—Qualified Charitable Distribution

  • Gifting while alive (“Die with Zero”)

Michael WeiRetirement, Strategy, rmd, qcd, 59, Camp