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Early Retirement Income Strategy - MVP
5-Year Projection with SEPP Calculation (Age 45, Single Life Amortization)
Brokerage Account (Year 1)
$
Roth Basis Distribution (Year 1)
$
IRA Balance for SEPP
$
Annual SEPP:
$0
Using 4.86% rate assumption
HELOC Amount
$
HELOC Interest Rate (%)
Annual Interest:
$0
Annual Growth Rate (%)
Applied to Brokerage only
Year
Brokerage
Roth Basis
SEPP
HELOC
Monthly
Total Income
MAGI
Taxable Income
Tax Liability
Notes
Notes:
• SEPP calculated using Single Life Amortization method for age 45 (38.8 year life expectancy)
• MAGI excludes HELOC proceeds (borrowed funds, not taxable income)
• Roth basis withdrawals are tax-free and included in total income but may affect MAGI for ACA subsidies
• SEPP payments remain constant throughout the 5-year period
• Annual growth rate applies to Brokerage distributions only (Roth basis remains constant)
• Monthly income is calculated as Total Annual Income ÷ 12
• Tax calculations assume MFJ status, 2025 brackets, $29,200 standard deduction, and $8,000 child tax credit (4 dependents)
• Brokerage income treated as LTCG (0% rate up to $94,050 for MFJ), SEPP as ordinary income
Strategy Tips:
• Want to maximize ACA subsidies? Favor HELOC draws.
• Want to harvest LTCGs or qualify for tax-free capital gains? Favor brokerage.
• Need to optimize for lender income? Blend both to hit target MAGI.