Free_at_49
Recycles dryer sheets
- Joined
- May 7, 2005
- Messages
- 132
I took early retirement, now income comes only from my portfolio. Asset allocation: I decided how much of my assets I could risk not touching for years if the market was in decline, and planned to generate a base income from bonds alone if necessary. If the trick is to "stay the course", then my common sense tells me NOT to sell stocks while they're down.
Since I can't touch IRAs before 59½, I have to rely on my taxable accounts only. That means a mother load of bonds in taxable. So my formula:
Bonds: as much as I need for base income, using dividends only.
Stocks: as much as I'm willing to gamble with, about 30%.
The rest in more bonds.
Funds: all Vanguard, Total Stock Market, Total Bond Market, Short-Term Corporate,
Not very tax-efficient, but I figure that in the future it will be easier to rebalance OUT of bonds and into a tax-efficient stock index fund than the other way around, because capital gain or loss will be small.
This is my first full-time year at the beach. The sand here so damn hot my laptop is gonna melt
Whaddya think?
Since I can't touch IRAs before 59½, I have to rely on my taxable accounts only. That means a mother load of bonds in taxable. So my formula:
Bonds: as much as I need for base income, using dividends only.
Stocks: as much as I'm willing to gamble with, about 30%.
The rest in more bonds.
Funds: all Vanguard, Total Stock Market, Total Bond Market, Short-Term Corporate,
Not very tax-efficient, but I figure that in the future it will be easier to rebalance OUT of bonds and into a tax-efficient stock index fund than the other way around, because capital gain or loss will be small.
This is my first full-time year at the beach. The sand here so damn hot my laptop is gonna melt
Whaddya think?