Optimal Withdrawal Strategy Tool

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BlueNote
Posts: 501
Joined: Sat Jun 08, 2013 6:26 pm
Location: Toronto, Canada

Optimal Withdrawal Strategy Tool

Post by BlueNote »

Does anyone know of a tool that provides guidance on the optimal withdrawal strategy for a portfolio?

Most early retirees have several different types of investment accounts that have different rules and constraints on them (think 401K, IRA, government pension, TFSA, RRSP, taxable brokerage etc.). It would be very useful to have a tool that provides guidance on which accounts should be drawn first, second , third etc. Does anyone know of a free (or maybe not free) tool that does something like this?

I've been working on my own custom solution, however I don't want to reinvent the wheel. There are a lot of inputs and trade offs one has to make when designing and building a tool like this.

Scott 2
Posts: 2849
Joined: Sun Feb 12, 2012 10:34 pm

Re: Optimal Withdrawal Strategy Tool

Post by Scott 2 »

I'd like this as well.

Although, in the US at least, if you are low income, it matters much less. Right now my plan is to use a roth conversion ladder to get at my 401k / IRA money, balancing withdrawals between minimum taxes and aca subsidy qualification.

It seems like something you have to revisit yearly, as tax regulations and your financial picture change.

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