Lifetime Planner utilisation of taxable vs. tax free income after retirement/ 59 1/2
Lifetime Planner appears to treat tax free the same as tax differed income to cover negative cash flow requirements after retirement.
Is their anyway to control the use of asset types after the age of 59 1/2 (Taxable - Earned income, long and short term capital gains, interest, Social Security, Pension, distribution from an Regular IRA or 401K...) vs (Tax Free income - HSA, Roth IRA, interest from Government Bonds,...)
Is their anyway to control the use of asset types after the age of 59 1/2 (Taxable - Earned income, long and short term capital gains, interest, Social Security, Pension, distribution from an Regular IRA or 401K...) vs (Tax Free income - HSA, Roth IRA, interest from Government Bonds,...)
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But, Quicken takes too much from tax-deferred accounts, resulting in early depletion of your tax -deferred funds.
It has been posted here that an update to fix this is coming soon for the latest Quicken version. You'll have to be patient.
my comment was about taxable retirement funds, versus tax-deferred retirement funds.
You make an interesting point about Roth's though. I don't have one so I can't comment with any knowledge about how Roths are handled in the LTP. It's not clear from the Help files in Quicken how Lifetime Planner uses Roth assets in the withdrawal hierarchy. Maybe someone with a Roth can help out.
What I am trying to do is have the Lifetime Planner simulate how I am most likely to utilize assets to cover my current and future cash flow requirements. Both my wife and I are over 59 1/2 so we can withdraw from our IRAs and 401K without tax penalties. However, the tax differed one (401ks and Traditional IRAs) go directly to our income. I am going to be 65 next year and will be managing my income to avoid hitting the income levels that increase my costs for Medicare and other services that are income dependent.
I believe that currently the Lifetime Planner does not provide me with the ability to develop and test out the best strategy for managing my income to not trigger higher cost for Medicare as well as reduce taxes (Short and longer term)
Adding- at the income levels that would raise your Medicare premium, this exercise is one more akin to a hobby than a necessity. You might consider adding a municipal bond fund to the bond portion of your taxable portfolio as a MAGI reducing strategy. Tax Planner is the better tool for managing income and taxes.
Adding- You might also want to review this thread where user Scott did some testing to sort out some of the questions you are raising. https://getsatisfaction.com/quickencommunity/topics/lifetime-planner-bug-and-idea-list-make-yourself...
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