Thanks for all the feedback.
I'm glad I'm not the only one who is still playing around to find the withdrawal method that works for each of us.
I'm pulling out 10K at a time, which should sustain us (with lots of slack) for 2+ months. I may pull out more at a time in the future.
Future stock withdrawals will go into a money market (VMMXX) or bond fund (not sure which yet) instead of the current savings account, which pays nothing.
Since it pays nothing, no taxes :-)
Dividends are every quarter, so that is about a months worth right there.
New But Related Question--------------
Does anyone have a preferred way of transferring money to pay a nephew's college education? Values per year less than the gift tax threshold ($15K)*. However, comments on larger gifts are welcome also.
A) Withdraw from taxable stock to cash then write check to college on behalf of nephew?
I get taxed (at low rates due to lower income), but it is a not an administrative burden for me.
--since my Vanguard account is in my name (wife has "custodian rights") might be iffy to combine our exclusions, even though it would be routed through our joint checking account.
B) Transfer in kind to nephew (one has a Vanguard account already) for him/his mom to sell and use
-- this might need some timing to avoid some financial aid reporting
--- this seems kinda complicated for them.
---- since my Vanguard account is in my name (wife has "custodian rights") might be iffy to combine our exclusions.
C) Am I just overthinking this?
* Reference gift tax threshold and exclusions including tuition gifts
https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxesI notice only tuition is covered as tax excluded, not books, supplies, room and board.
So as I get it, since my wife and I are making these future gifts jointly we could give 2*15K = $30K, totally excluded.
OR $30K + tuition for a total larger sum.