1) In general, at retirement, your withdrawal instead of contribution will keep your AA within the target range.I'll be on COBRA for the first 18mos following retirement, so ACA subsidies arent in play for this year at least. TBH, I hadnt thought about a rebalancing policy until we got this close to retirement being a "real thing". My health is failing me so I'll likely lose/leave my job this year. Right now I dont have a ton of taxable income as most of it is going into 401k and HSA accounts at work. It's another reason I thought it might be worth doing. We will have ~75K in div/interest this year based on Schwabs guess, so I dont know that I'll have a lot of 0% space.OP,
1) What is your rebalancing policy? 5/25 band based rebalancing or annual rebalancing?
2) Will you be on the ACA health insurance? If you tax gain harvest, you may lose the ACA subsidy in the process.
3) I do both 5/25 and annual rebalancing.
4) If I am not on ACA insurance, I tax gain harvest at 0% long term capital gain tax rate.
KlangFool
2) You should turn off your automatic reinvestment of your dividend/distribution at your taxable account. Spend those money first without generating additional tax burden.
KlangFool
Statistics: Posted by KlangFool — Fri Feb 09, 2024 12:35 pm — Replies 6 — Views 222