Identifying Regular Assets and Retirement Assets At Beginning Of New Year

In the first week of a new year I withdraw the cash I need for that year from my retirement assets by selling off positions thereby reducing the total value of my Retirement Assets accordingly. The cash received from those transactions I then account for as cash in my Regular Assets. Those results then is what I input into ESP and run the program to get recommended $ discretionary spend number for the year and all other related reports. Alternatively, I could just input the actual year end totals for the respective assets and create my reports on that basis.

Is there a correct or recommended way of doing this?


dan royer's picture

The amount you withdraw from retirement accounts is the amount shown in the current year for smooth withdraw (or special withdraw) correct? That is, you are withdrawing the amount shown to withdraw from retirement in the 2020 report. Right?

If so, I would not add that to the regular assets since the program views that retirement account as income not as existing assets.

I would just enter my account balances for both regular assets and retirement assets from Dec 31, 2019. Then I'd look at the withdraw amount from retirement assets and withdraw that amount in 2020, and I suppose the first week of the year is fine, though you could even do it quarterly or in Jan and June.

This way you know the accounting is right and the taxes.


Got it Dan. Thanks.

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