Hi, as far as I can tell, there is no way to put in scheduled withdrawals from Taxable, while using TD for all other withdrawals to cover expenses. My optimal withdrawal strategy is TD first then Taxable to avoid excessive RMDs. But I want to model spending the taxable dividends from my taxable account while getting all other withdrawals from TD.
So my withdrawal strategy is Taxable Dividends, TD, Taxable
Am I missing the way to do this?
Tom,
There's no way to do this in the current model because dividends are always reinvested and there's no mechanism for scheduled withdrawals from regular investment accounts. It sounds like the feature you really need is to have your dividends treated like income and not reinvested. That will not be implemented in the 2021 model but I've added to the candidate list for 2022.
@smatthews51 Thanks, that is exactly right, I want to treat dividends and interest in taxable accounts as income and spend them.
I just wanted to add my vote in support of the desirability of this prospective enhancement, i.e. treating taxable dividends as income and not automatically reinvesting them. Like the OP, I also spend dividends from my taxable account first before pulling from any other source and would find it very helpful to have them treated as taxable income rather than reinvested since I want to get my grimy palms on the cash ASAP.
Alternately, having the ability to schedule a withdrawal from the taxable account would be just as beneficial, and possibly even more so. I cannot find any other way to make the annual contribution to my HSA since I have no Employment Income to specify on the Income tab where the HSA contribution is intended to be entered. (I am retired but pre-Medicare, with an ACA HSA-eligible policy, and have been using my taxable dividends to make the annual HSA deposit.)
Having said all that, however, I am a brand new customer to PRC Gold - and duly gobsmacked by its sophistication and comprehensiveness! - so I very well may be missing something obvious as I am just now making my first journey through all the input tabs, reading the manual and this forum as I go.
@ilovemybeagles Hi, David, thanks for your inputs. Actually, you can specify HSA contributions on the Employment Income section of the Income despite having no income. In this case, those contributions will be treated as negative income and, therefore, just another expense (but the HSA will be funded).
... (but the HSA will be funded).
Ah, that's great! Based on your reassurance I tried re-specifying my HSA contribution in the Employment Income section but still wasn't seeing it show up under Tabular Projections>Contributions>Personal Contributions to HSA. Then I peered at things a little closer and realized I had made a classic rookie mistake - forgot to enter Start and Stop dates for the Employment Income Stream. Ack, all better now. (It must bedevil you having to deal with such silly newbie carelessness.)
I would still like for you to consider, however, the option of treating taxable dividends as realized income rather than forcibly reinvesting them. There are probably multiple implications for implementing this in your code - and maybe even in theory. But it is indeed my standard mode of operation and would seem to make the model more realistic for my (and the OP's) situation, especially since there is no available option to schedule manual withdrawal of those dividends from the Taxable account for spending.
