duckcalldan
Dryer sheet aficionado
- Joined
- Jan 18, 2016
- Messages
- 41
Hey y'all!
So I'm one year out from early retirement. I'm 52, wife 49. College expenses for our 2 daughters are set and not included in the below assets. Asset allocation is an aggressive 85/15 but looking for 70/30 (with 1 year expenses in savings) this time next year. Here's my current setup:
800K Vanguard taxable. 630K equity slice & dice, 170K bonds incl 60K in tax exempt. Tax rate now 15% so no longer need t/e bonds in this account.
550K Fidelity taxable. 350K indiv stocks, 40K each VTI and VHT, 120K cash ready to invest.
750K 401k. 90% equity (S&P and American Funds), 10% bond. Will rollover to IRA next year and will convert 50K or so each year to Roth.
110K my Roth. Mainly bonds with some VYM (Vanguard High Div ETF).
180K her Roth. 1/3 NKE, 2/3 BND and VNQ (REIT).
So more than 50% taxable, plenty to last til SS and RMDs. My question:
To get to 70/30, that equates to almost 700K of bonds. I'm at 350K now. Easiest way to do this is to add 350K when I rollover my 401K. This will obviously keep my taxes lower than to have bonds in taxable. But since I hope to convert most of this rollover to Roth before age 70 (and won't need to touch these assets for about 17 years), I'm tempted to keep this more equity heavy than this proposed 50/50. Thoughts?
Or I can keep my rollover equity heavy, maybe 75/25, and use my Vanguard account to do some tax gain harvesting by selling some equity and simplify things by changing from slice and dice to a 3-4 fund portfolio. I like the idea of fewer funds. But I'd obviously increase my tax bill by adding 250K or so of bonds in taxable. The monthly bond dividends would aid my cash flow and would mean fewer equity sales for my expenses. I'd love some advice on selling bonds vs stocks for my expenses as well.
I am looking to sell some of my individual stocks in ER to live on, but I will probably contribute some to a donor advised fund to minimize my taxable gains. I am satisfied with our current Roths but am open to some changes as well.
Thanks in advance.
So I'm one year out from early retirement. I'm 52, wife 49. College expenses for our 2 daughters are set and not included in the below assets. Asset allocation is an aggressive 85/15 but looking for 70/30 (with 1 year expenses in savings) this time next year. Here's my current setup:
800K Vanguard taxable. 630K equity slice & dice, 170K bonds incl 60K in tax exempt. Tax rate now 15% so no longer need t/e bonds in this account.
550K Fidelity taxable. 350K indiv stocks, 40K each VTI and VHT, 120K cash ready to invest.
750K 401k. 90% equity (S&P and American Funds), 10% bond. Will rollover to IRA next year and will convert 50K or so each year to Roth.
110K my Roth. Mainly bonds with some VYM (Vanguard High Div ETF).
180K her Roth. 1/3 NKE, 2/3 BND and VNQ (REIT).
So more than 50% taxable, plenty to last til SS and RMDs. My question:
To get to 70/30, that equates to almost 700K of bonds. I'm at 350K now. Easiest way to do this is to add 350K when I rollover my 401K. This will obviously keep my taxes lower than to have bonds in taxable. But since I hope to convert most of this rollover to Roth before age 70 (and won't need to touch these assets for about 17 years), I'm tempted to keep this more equity heavy than this proposed 50/50. Thoughts?
Or I can keep my rollover equity heavy, maybe 75/25, and use my Vanguard account to do some tax gain harvesting by selling some equity and simplify things by changing from slice and dice to a 3-4 fund portfolio. I like the idea of fewer funds. But I'd obviously increase my tax bill by adding 250K or so of bonds in taxable. The monthly bond dividends would aid my cash flow and would mean fewer equity sales for my expenses. I'd love some advice on selling bonds vs stocks for my expenses as well.
I am looking to sell some of my individual stocks in ER to live on, but I will probably contribute some to a donor advised fund to minimize my taxable gains. I am satisfied with our current Roths but am open to some changes as well.
Thanks in advance.