Personal Investments • Questions about decumulation and spending down accounts

Sometimes the answer is "all of the above". If you are trying to be tax-efficient, it can also depend on where your desired spending level fits into the tax brackets, and what you might project your tax situation to be in the future.

My general mantra is: don't "waste" low-tax years between retirement and collecting SS/RMDs. You can often capture a chunk of capital gains or qualified dividends at 0% tax out of your taxable account.

First, spend dividends from your taxable account, don't auto reinvest them.

Second, take a look at a tax estimation tool (I use this one, but there are others: https://www.mortgagecalculator.org/calc ... ulator.php )
Think about taking long term cap gains in your taxable account up to the top of the 0% LTCG/Qdiv bracket. (about $95K)
Think about filling the standard deduction space with IRA withdrawals (or Roth conversions)

See how that fits into your cash flow needs for the year (remember that return of capital doesn't count in the LTCG, so you have more in hand than just the $95K).

Complicating factors - pensions, high cash flow needs like a large mortgage, ACA subsidies.

Statistics: Posted by curmudgeon — Fri May 08, 2026 11:47 am — Replies 2 — Views 93

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