7Circle the Wagons,
Specific question (a little late) about "accurately predicting retirement expenses" and sizing the LMP. Projected taxes are highly variable depending on assumed equity returns. One approach is to project expenses assuming 0% real equity returns and size the LMP accordingly. Thought being that an upside scenario can cover itself, and I'd rather not put more into TIPS than needed.
Curious if any thoughts on this from folks managing taxable accounts and trying to project expenses.
I often think about that myself when reading these threads. How much are people putting into TIPS to fund annual projected expenses? 5 figures? 6 figures?
That's an awful lot of savings to lock up to maturity if the goal is 10-20 years out just because one is worried about inflation.
Not allergic to a large LMP if spending needs justify it. But I'm not sure about planning to safely cover future tax expenses that will only arise if the market does well. I think this is specifically relevant when forecasting taxable accounts (and an LMP) out to a long time horizon.
Statistics: Posted by Circle the Wagons — Tue Apr 16, 2024 12:28 am — Replies 80 — Views 7364