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Old 08-23-2013, 08:36 AM   #21
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I wish I knew more too. This is the only thing I am really concerned about. We have too much in tIRA with only 4 years to 70 1/2. We are presently in 15% tax bracket and will be jumping into a higher tax bracket (or 2). I'm not sure what we should be looking for as the best creditials (in a CPA or tax lawyer ) for tax advice optimization or even the best way to find a qualified person in our area.

It looks like there are at least 3 of us here that could use some direction.

Cheers!
FWIW, iORP can be helpful, but it's "an axe, not a scalpel" as expected with anything free.

The most confounding aspect for me is realizing future changes in US tax codes (and Soc Sec possibly) could change what seemingly makes sense today. Much of what was written in the past is obsolete already, the great book Retirement Income Redesigned for example...
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Old 08-23-2013, 10:52 AM   #22
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Interesting. I don't own either, but FWIW I asked her if they ever recommend Wellington and Wellesley, just because I know the latter is so popular here. She said they don't because they recommend based on their belief that most investors are best served by trying to match the broad market for stocks and bonds using a passive (index funds), low cost funds. I believe that's been pretty well established as true for most investors, see Bogle, Bernstein, Burns, Schultheis, etc.

She said W & W are active funds (true) that overweight large cap stocks and intermediate bonds. Relying on them largely misses other asset classes, and they don't ordinarily recommend active funds. She said they don't try to talk people out of W & W and they just recommend other index funds to cover other asset classes. Seemed like a reasonable explanation to me ***.
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It didn't bother me that she didn't recommend Wellesley. What bothered me was that I told her that we were going to buy X amount nonetheless so, given that, how much should I buy of the things she did recommend in order to keep our Asset allocation.
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Old 08-23-2013, 11:00 AM   #23
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"Retirement Income Redesigned" is largely obsolete at this point? That's good to know, because I was planning to buy that as a next step.

So as not to hijack this thread, I've started another on the topic:

Now what? How to plan for drawdown
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Old 08-23-2013, 12:31 PM   #24
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Believe it or not, they actually asked me if I would be interested in Wellington after speaking with me for 15 or 20 minutes.......
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Old 08-23-2013, 12:55 PM   #25
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"Retirement Income Redesigned" is largely obsolete at this point? That's good to know, because I was planning to buy that as a next step.

So as not to hijack this thread, I've started another on the topic:

Now what? How to plan for drawdown
RIR is the still the best book I know of, but a lot has changed (but not everything) since it was published in 2006, and most if not all the sections were written before then - the book is a compilation from many author/experts. You might be able to get it at your local library, or buy it used from half.com or amazon (what I often do).

I meant much of what's been written is largely obsolete, less so with RIR. Thanks for the prompt...
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Old 08-23-2013, 01:03 PM   #26
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It didn't bother me that she didn't recommend Wellesley. What bothered me was that I told her that we were going to buy X amount nonetheless so, given that, how much should I buy of the things she did recommend in order to keep our Asset allocation.
I only meant to share what the CFP I talked with said about Wellington & Wellesley as (coincidentally) I asked her. She acknowledged how popular they are, and how well they have served many Vanguard clients.

Beyond that, I probably went overboard with my reply (unnecessary commentary, as sometimes prone to do), sorry.
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Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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Old 08-23-2013, 04:09 PM   #27
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Midpack -- do they only address funds held at Vanguard or do they draw up a plan that accommodates other funds?
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Old 08-23-2013, 09:54 PM   #28
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For everyone else's benefit - bottom line $500K for free
I assume that the $500K must be directly invested with Vanguard, and my 401k investments, which are all in Vanguard funds, don't count toward this.
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Old 08-24-2013, 07:03 AM   #29
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Midpack -- do they only address funds held at Vanguard or do they draw up a plan that accommodates other funds?
They will look at anything and everything you hold, other funds, individual stocks, even obscure 401k "house funds", whatever. But again, as their well known mission is to steer investors to a low expense, passive/index portfolio broad market weighted portfolio, as you can imagine their recommendation suggests selling any assets that don't fit their well known model. For example, in 2005 I had Dodge & Cox stock and MSFT and they recommended I sell both (and showed the resulting cap gains).

But, I know exactly why I've have a small, value, emerging market tilt to my stock allocation, and shorter duration tilt to my bond allocation. I read and listen to their ideas, and make up my own mind.

I found the phone call where I got to ask whatever I wanted, and did, to be more valuable than the written plan. FWIW...
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Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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Old 08-24-2013, 07:50 AM   #30
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What did you decide on an international bond allocation?
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