NameTaken2
Recycles dryer sheets
- Joined
- Jan 15, 2014
- Messages
- 182
Age 56, recently retired and developing a financial plan with a Vanguard Flagship CFP. Just over 2/3 of asset allocation is tax deferred, with 1/3 in my 401k (plan to rollover to VG IRA). The CFP plan allocates taxable assets to stocks with not quite 2yr expenses to cash. Portfolio total yield plus small retirement employment income approx equals our budget, and advice was to set all yield to go the money mkt fund, then withdraw expenses from there. Sounded good.
Post video conference, realized the plan doesn't seem to address the next 3.5 years (pre-age 59 1/2), when withdrawals should only be from taxable assets. Current taxable assets can fund well beyond the 3.5 years, but the 100% stock allocation is my concern.
The CFP also agreed that TIRA to Roth conversions to fill the 15% bracket are a good idea, therefore taxable assets will have to fund that tax and our budget to 59 1/2. Questions:
Any recommendations other than what's listed above are welcome!
Thanks for your time-
Post video conference, realized the plan doesn't seem to address the next 3.5 years (pre-age 59 1/2), when withdrawals should only be from taxable assets. Current taxable assets can fund well beyond the 3.5 years, but the 100% stock allocation is my concern.
The CFP also agreed that TIRA to Roth conversions to fill the 15% bracket are a good idea, therefore taxable assets will have to fund that tax and our budget to 59 1/2. Questions:
- Does taxable assets 100% stock with <2yr expenses in cash leave too much exposure to withdrawals in a down stock market before age 59 1/2 in 3.5 years?
- If I leave 2yrs' expenses in the 401k, allocated to the stable fund (2% yld) or PIMCO Total Return Fund, this would provide flexibility in down markets with income tax on any withdraws. Is this the best option? If yes: should taxable assets then remain 100% stock, and plan to withdraw from taxable assets unless this generates a loss > income tax on a withdraw from the 401k?
- A full 401k rollover, then planning to do 72T withdraws if needed for expenses doesn't seem like the best option(?)
- Recommendations I've seen for cash allocation are anywhere from 1-5 years' expenses(?) How do I determine what is right?
Any recommendations other than what's listed above are welcome!
Thanks for your time-