EddieG
Dryer sheet aficionado
We're early retirees. At least for a while, unless we get the urge to work again.
145k of Inflation Protected Securities fund in IRA's.
About 900k-1.1m in taxable acct at VG. All Adm shares. Taxable is mix of 15% Total Stock fund, 65%Total Bond fund, 15% Total Intl Stock fund, 5% Money Market. Re- balancing quarterly after everything is long.
15% tax bracket so far. Very low living expenses. Need about 37k/year after taxes. Income now from other sources is 5k/yr, so we would need about another 32k from the taxable acct. All dividends/ cap gains being reinvested into the same fund shares right now. More $ coming down the road from an inheritance. 5-10 yrs max.
Looking for the most tax efficient/growth efficient way to take income from the taxable acct to live off. Will be working with an accountant looking quarterly for TLH opportunities.
VG advisor said to sell shares of whatever is doing best at re balancing time. Take whatever income we think we'll need for a year. Put it in MM and use the rest to re balance. Does that sound right, or is there a better way to receive income, such as having the dividends/cap gains paid to our MM, or selling a certain dollar amount of each fund each month?
Would taking some out, whether by selling shares monthly or having divs/cap gains paid out every month reduce the compounding effect? Thanks.
145k of Inflation Protected Securities fund in IRA's.
About 900k-1.1m in taxable acct at VG. All Adm shares. Taxable is mix of 15% Total Stock fund, 65%Total Bond fund, 15% Total Intl Stock fund, 5% Money Market. Re- balancing quarterly after everything is long.
15% tax bracket so far. Very low living expenses. Need about 37k/year after taxes. Income now from other sources is 5k/yr, so we would need about another 32k from the taxable acct. All dividends/ cap gains being reinvested into the same fund shares right now. More $ coming down the road from an inheritance. 5-10 yrs max.
Looking for the most tax efficient/growth efficient way to take income from the taxable acct to live off. Will be working with an accountant looking quarterly for TLH opportunities.
VG advisor said to sell shares of whatever is doing best at re balancing time. Take whatever income we think we'll need for a year. Put it in MM and use the rest to re balance. Does that sound right, or is there a better way to receive income, such as having the dividends/cap gains paid to our MM, or selling a certain dollar amount of each fund each month?
Would taking some out, whether by selling shares monthly or having divs/cap gains paid out every month reduce the compounding effect? Thanks.