Afford Anything 44 Years Old, $2 Million Saved – Why They're Still Hesitant to Downshift
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Dec 16, 2025 Slade contemplates a career downshift while managing a $685K brokerage account. He's looking for guidance on asset allocation and withdrawals for a smooth transition. Meanwhile, David grapples with the best strategy for funding his son's college education, debating between a $60K 529 plan and a $200K 457(b). Graham introduces a savvy asset-swap strategy to avoid capital gains while rebalancing investments. The hosts dive deep into tax implications and behavioral aspects of financial planning, highlighting the importance of strategic flexibility.
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Prioritize Taxable Withdrawals Over 72(t)
- Avoid relying on a 72(t) as your first option when you have a large taxable brokerage and several years before you downshift.
- Use taxable withdrawals first for flexibility and only consider 72(t) for targeted tax planning or to reduce future traditional IRA size.
Segregate Accounts For Targeted 72(t) Use
- You can segregate retirement accounts when using 72(t) so only part becomes a forced pension stream.
- That lets you take a small, planned required distribution while leaving other retirement assets to grow.
Child Leaving Cuts Household Expenses
- Paula notes that six years from now their child will mostly leave the household, likely reducing household expenses.
- That timing often coincides with reduced annual spending exactly when downshifting begins.