This is correct. In the US, currently if you are making no other income (AGI), your LTCG will be 0% for the first $40K. Bonds or other tax-inefficient (STCG generating) vehicles should be rebalanced into tax-deferred accounts (if the OP has been working in tech, unless they've been completely reckless, they should have a healthy 401k to work with) - it's very possible that an individual retiring on $1M and aiming for a SWR would pay $0 in federal income tax.