7 comments

  1. Ali,
    Great post. Always minimize distributions to your silent partner. Using a multiyear approach is very valuable and you nailed one of the best middle income strategies.

    All this reminds me of the Beatles song “Taxman” from the 60’s when tax rates were truly outrageous (highest USA marginal rates were 91%)

    There’s one for you, nineteen for me
    ‘Cause I’m the taxman

    Liked by 2 people

  2. Having recently been laid off from my job, I’m trying to figure out a plan to coast FI and our annual budget is much lower than the above example. I’ve certainly felt comfortable with the accumulating wealth aspects but the draw down is much more complicated. It feels really overwhelming. I’m sure there are so many different strategies and I’ll have to dig in at some point. This is something I’m going to have to keep coming back to. Thanks for the great post.

    Liked by 2 people

    • Sorry to hear you’ve been laid off. That’s not at all fun. And there are lots of ways to do this puzzle. But once you figure out the kinds of accounts you have and their projected growth, the picture can become a bit more clear. Pfau’s book is a great reference when you have questions about this stuff. And you can always bounce ideas off of us as well. We aren’t going anywhere!

      Liked by 1 person

  3. Thanks for raising this important aspect of FIRE planning. People are often so focused on paying the least taxes now that they forget that a better goal might be to lower their taxes overall over the course of their lifetime. Stephanie and I have been discussing the timing to start drawing down our retirement accounts so this post is highly relevant for us right now.

    Liked by 2 people

    • Thanks for the comment Gillian! We know people aren’t as interested in these topics relating to tax planning now and the process of drawing down on our portfolio as time goes on. For some reason most people don’t think this is the fun stuff?! Haha. But for those of us in retirement now these topics relate back to everything else we’re doing, so we’re very glad to hear this post is of interest to you!

      Ps – that video clip of you getting whacked on the head with a bouquet of herbs in Cuenca was hilarious!! We wish you both very happy travels and a fabulous new year!

      Like

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