Hi @sktglacier ,
You make a very good point about the impact of taxes on retirement planning. The tax impact can be very important and may affect how you do things.
When we started to build the new Retirement Planner sheet, we thought we might include a way to manage different Retirement Assets that have different tax treatments. But there were just too many different scenarios.
Some assets can be withdrawn with no taxable income. Others might quality for a capital gains rate which will vary, and others might use ordinary income rates which will also vary. And the rates depend on other income. The tax rates are graduated and will likely change in the future.
So, we decided to keep taxes and their effect out of the sheet.
You might want to make your own sheet showing which assets you want to withdraw and at what times and in what amounts. From that, you might be able to make a calculation for what the tax expense might be. You could then use the Life Events feature on the Cash Flow forecast sheet to capture the tax impact.
I wish there was a simple way to do it. And if anyone has a suggestion, please share. But it seems to be a very complicated problem to build a solution that will work for everyone’s or even most people’s situation.
There are some commercial products out there that use higher-level programming than just spreadsheets to make some of these calculations based on each of your asset’s tax type and your other taxable income. Many of them have a large price tag attached to them as well.
Jon