Is tax rate included in withdrawal calculation?

[Hoch577]

The program is telling me that my withdrawal to spend $144,00 is $12,000/month.
If my tax rate is 30%, then in order to spend $12,000/month I have to withdraw $17,142/month to account for taxes.
What am I missing?

Thanks for the help

[jimr]

The answer to this depends on whether the withdrawal is coming from the taxable portfolio, the tax deferred portfolio, or the tax free portfolio.

Withdrawals from the taxable portfolio don't result in any taxes due because the taxable portfolio is carried at a 100% cost basis. During the simulation, investment taxes are deducted from gains in the year they are earned.

If the withdrawal is from the tax deferred portfolio, the withdrawal will generally be higher than the amount needed for spending to cover taxes.

The detailed view tab has a year-by-year breakdown with lots of details on taxes. Click on the show more detail radio button, then right-click on a column header and select "show all columns" for the full set of data available. This data can be exported to excel by right-clicking on any table cell and selecting export.

Jim