Author Topic: Basic 'stache question about 5 year living expenses and Roth Pipeline  (Read 1573 times)

MVal

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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?

seattlecyclone

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Re: Basic 'stache question about 5 year living expenses and Roth Pipeline
« Reply #1 on: March 22, 2016, 10:11:41 PM »
All of your invested assets count.

MVal

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Re: Basic 'stache question about 5 year living expenses and Roth Pipeline
« Reply #2 on: March 23, 2016, 06:40:56 PM »
Thanks, Seattlecyclone, I can always count on you! This is great news.