This is pretty much what I did when I retired, and for similar reasons. It really helped desensitize me short-term market moves. I built the ladder over a couple of years, using nominal treasuries for shorter term and tips for the longer end. When selling equities in the taxable account, I aim for those with the least gains. Taxes on these gains are low or zero, but the realized income can affect ACA subsidies. At the end of the year, I use TT to game out whether I can/should sell more stock to liberate cash or wait until next year. If you liquidate the farm I would keep at least a year of that in cash/money market/Tbills in the taxable account. That will give you more flexibility in timing stock sales. Perhaps paradoxically, if stocks drop significantly, it can be the best time to sell some in your taxable account when gains are reduced, while simultaneously buying stocks in your IRA.Thanks! I think I got it now. Set up the ladder in the IRA. Every time I withdraw equity from taxable I use the ladder to buy the exact same equity in the IRA. My equity position remains unchanged, my ladder is being used as scheduled, and all the ladder taxes are still deferred in the IRA.It took me a while to grasp this too - but I think I get it now and will try to explain.
You sell stocks from taxable and use this money to fund your expenses and then you can use the TIPS ladder in your IRA to buy the identical stock in your IRA.
If you sell the stocks low from taxable account - you will be rebuying them low in the IRA and there is no SORR risk.
Does that make sense?
I could actually set up the first 4 years of that today with the bond funds in my IRA. Then I could be just a bit more patient with the farm sale to maximize proceeds.
Statistics: Posted by desiderium — Thu Oct 17, 2024 10:58 pm