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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: MVal on March 22, 2016, 09:56:29 PM

Title: Basic 'stache question about 5 year living expenses and Roth Pipeline
Post by: MVal on March 22, 2016, 09:56:29 PM
With all this 4% rule idea of finding your 'stache goal to have a SWR forever, I need some help jiving this with the Roth pipeline plan. If I plan to build up my savings in pre-tax accounts while simultaneously making an after-tax fund to live on while I "migrate" pre-tax funds to a Roth, should I be including or excluding that 5-year fund from my final net worth to make sure I've got enough?

For instance, say I determine with the 4% rule that I'll need $450K to retire. Is the 5-year after-tax stache part of that $450 net worth, or should I exclude it from my retirement goal?
Title: Re: Basic 'stache question about 5 year living expenses and Roth Pipeline
Post by: seattlecyclone on March 22, 2016, 10:11:41 PM
All of your invested assets count.
Title: Re: Basic 'stache question about 5 year living expenses and Roth Pipeline
Post by: MVal on March 23, 2016, 06:40:56 PM
Thanks, Seattlecyclone, I can always count on you! This is great news.