Withdrawing Money After FIRE

Status Update: Overhauling the FIRE Withdrawal Strategy Algorithms Page

Well I’ll admit this is a bit of a disappointing post for me, because I had really hoped to complete a major overhaul of the FIRE Withdrawal Strategy Algorithms Page I’ve been working on all week, as I mentioned at the bottom of my last post. But that’s how it goes sometimes – I’d rather have a decent product than rush to “ship” a super rough / sloppy product. Especially for THIS product – I expect this page will serve as an important reference for much additional analysis I’m planning.

The graphical diagrams on that algorithms page also need a big overhaul, to reflect the current version of the methods.

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Reducing Standard Income & Increasing Long Term Cap Gains to Generate More Cash – Not Worth It

Last week I implemented an idea I’ve had for quite a while to further enhance the Tax and Penalty Minimization (TPM) withdrawal method. However, I couldn’t seem to get improved results for any scenario I tried. 

This week I dove a bit deeper to better understand why this method is not working out (at least so far).

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20% Withholding Problem Solved (Mostly) and More Withdrawals Stress Testing

This week I’ve got some (mostly) good news regarding the “20% withholding from retirement accounts” challenge I mentioned in the previous post.

I also have a bit more stress testing analysis results of the Tax and Penalty Minimization (TPM) withdrawal method and the Traditional withdrawal method, this time looking at how each method does if expenses increase each year. 

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Stress Testing Analysis Initial Results

Well after a great deal of work, I have finally extended the Tax and Penalty Minimization (TPM) method to be able to go down to $0! Which I’ve been working on for several weeks.

Unfortunately I ran out of time to do much of any stress testing analysis, but I did run it for a couple scenarios and compared the results to the Traditional method for those scenarios – and the results are very promising!

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Stress Testing Analysis Update

Well I’ve gotten a bunch done this week, but unfortunately I don’t have much in the way of results to show for it.

This week I’ve focused a few different things: 

  • A correction to the tax calculation of long term cap gains – which fortunately did not significantly affect any results I’ve published previously 
  • Extending the traditional withdrawal method to allow it to go down to $0, as part of the upcoming stress testing analysis
  • A major refactor of the Tax and Penalty Minimization (TPM) method code
  • Starting the process of extending the TPM method to go down to zero, as part of the upcoming stress testing analysis

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