As I look at my nestegg, by my calculations, if I were 50% allocated in Vanguard's Bond funds: 1/3 of that in each of the Short term, Intermediate Term, and Long Term ( SEC yields of 1.27,2.75, and 4.19 respectively, for an overall yield of 2,74), that yield added to my SS would essentially provide the "floor" I need to survive.
the other 50% I was thinking of putting into the Vanguard Total Market Fund (VTSAX). That will provide the "gravy".
All of these funds are in IRAs. I have a chunk of after tax money, about 10% of my total holdings, that I'm not figuring into these calculations. That is my "if I goofed this all up and I need cash" money.
I'm 62, DW is 58. An overall 3.2% of my IRA pot combined with SS will give me my "gravy" retirement.
Any reasons not to fund my "floor" this way, as opposed to an annuity?
the other 50% I was thinking of putting into the Vanguard Total Market Fund (VTSAX). That will provide the "gravy".
All of these funds are in IRAs. I have a chunk of after tax money, about 10% of my total holdings, that I'm not figuring into these calculations. That is my "if I goofed this all up and I need cash" money.
I'm 62, DW is 58. An overall 3.2% of my IRA pot combined with SS will give me my "gravy" retirement.
Any reasons not to fund my "floor" this way, as opposed to an annuity?