I plan to retire in 1.5 years. I also turn 59.5 in 2025 and have the ability to rollover all or part of my 401K into IRA. I was thinking it may be a good idea to rollover part of my trad'l 401K into a trad'l IRA and set up a TIPS ladder to fund the RMDs starting at age 75 (2041). If all goes well, that would be the only withdrawals from my 401K (at least, that's all that I would want to put into the ladder). I have seen some of the threads with links to websites about setting up the ladder given you have a known real annual amount you want. Some issues/questions I see:
1. What if I don't have a hard real annual amount for the ladder. I can estimate the nominal RMDs. Ballpark - they will start around $95K and go up approx $3K-4K a year.
2. Currently, next year I can only get TIPS up to 2055. So that means 15 years on the ladder. I will be age 90 at that point. I guess I can add a rung a year after I set this up next year or maybe I just go out to 90 and stop.
Some other simple estimates I made have me needing about $70K real/yr and that would mean I need about $800K to fund the ladder. Just curious how others use a TIPS ladder for RMDs? Does what I'm planning for part of my 401K make sense? Do my approximate numbers seem about right?
1. What if I don't have a hard real annual amount for the ladder. I can estimate the nominal RMDs. Ballpark - they will start around $95K and go up approx $3K-4K a year.
2. Currently, next year I can only get TIPS up to 2055. So that means 15 years on the ladder. I will be age 90 at that point. I guess I can add a rung a year after I set this up next year or maybe I just go out to 90 and stop.
Some other simple estimates I made have me needing about $70K real/yr and that would mean I need about $800K to fund the ladder. Just curious how others use a TIPS ladder for RMDs? Does what I'm planning for part of my 401K make sense? Do my approximate numbers seem about right?
Statistics: Posted by privateID — Mon Dec 09, 2024 8:09 am — Replies 5 — Views 234