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Investment Structure Question
Old 07-19-2005, 04:08 PM   #1
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Investment Structure Question

Am semi-retired and have approx. $750K I would like to structure for both growth and income and tap next year using 72T. Any suggesitons.
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Re: Investment Structure Question
Old 07-19-2005, 04:20 PM   #2
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Re: Investment Structure Question

Give us some more info:

- How old are you?
- Any other assets or sources of income?
- What are your assets presently invested in?
- Any special tax status stuff we should know about?
- How much income do you expect to need?
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Re: Investment Structure Question
Old 07-19-2005, 05:02 PM   #3
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Re: Investment Structure Question

Quote:
Originally Posted by brewer12345
Give us some more info:

- How old are you?
54 and SO 51, own home, good cars, debt free

- Any other assets or sources of income?
Approx. $120K in misc. MFs, CDs, savings account. This is my liquid emergency reserve.

- What are your assets presently invested in?
$750K currently invested:
15% Fido Growth Co.
15% Fido Blue Chip Growth
15% Fido Mid Cap Stock
15% Vangaurd Asset Allocation
40% Bond Fund

- Any special tax status stuff we should know about?
All of the above in 401K

- How much income do you expect to need?
Approx. $40K after taxes
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Re: Investment Structure Question
Old 07-19-2005, 08:14 PM   #4
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Re: Investment Structure Question

I am no expert but I read on this site http://www.retireearlyhomepage.com/wdraw59.html on these early withdrawals from 401k. I thought I read, that you can start taking out money from your 401k at 55. Why bother with a ira. I think you have to look at fees and options for the 2. There are some other issues listed (appreciated company stock is one).
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Re: Investment Structure Question
Old 07-19-2005, 08:22 PM   #5
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Re: Investment Structure Question

Quote:
Originally Posted by maddythebeagle
I am no expert but I read on this site* http://www.retireearlyhomepage.com/wdraw59.html on these early withdrawals from 401k. I thought I read, that you can start taking out money from your 401k at 55.* Why bother with a ira. I think you have to look at fees and options for the 2. There are some other issues listed (appreciated company stock is one).
One reason to roll it over into an IRA is the withdrawal rules will vary. My 401k is in the Federal Government's TSP and the withdrawal rules are quite limiting.

I'm socking money away in after tax accounts (in addition to the TSP and Roth) and plan to live off that money until I'm past age 59.5

Maddy, good point about the age difference for withdrawal between a 401k and IRA. I really don't understand why they specify two different ages.

-helen
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Re: Investment Structure Question
Old 07-19-2005, 10:10 PM   #6
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Re: Investment Structure Question

I am a state employee and have a 457k and can start taking out at termination of service (doesnt matter on age). But your point is a good one. I have taxable investments that I plan to supplement until I am eligible for pension payments at 55. I figure to take out 15k or so out of my 457k (so that my taxes are knocked down enough with the standard deduction and exemptions) and use dividend income and capital gains from my taxable investment accounts. It is sounding so good that maybe I should up my FIRE date to 40.
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Re: Investment Structure Question
Old 07-20-2005, 02:08 AM   #7
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Re: Investment Structure Question

I will let the Americans comment on the tax situation and 72-something rules but to focus on your portfolio:
You have "about" 60/40 equity/Fixed income which seems resonable for your target of income+growth.
You are HEAVY in the US and in large(r) caps with no small caps. You use FIdo mostly but as it seems like you have access to Vanguard also, you might have a chance to reduce costs a bit there.

So in (very) short here is what I would do(all Vanguard or ETFs if access):
15% total stock market
15% small cap value
30% tot foreign (ok; I would probably split in 15% developed and 15% emerging for more growth pot.)
40% total bond

One could consider to add a touch of commodities/metals (PCRIX/VGPMX) and maybe a bit of reits.

Just my 2 (Euro) cents! Cheers!
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Re: Investment Structure Question
Old 07-20-2005, 09:05 AM   #8
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Re: Investment Structure Question

maybe a but of reits.


Me too. I have a but of REITs, an arm of mortgages, and a leg in the bond market.

--Greg
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