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Originally Posted by ron244 Makes sense. We think of the land as a cushion that we can use if needed. I'm kind of thinking that we should have the same balance in taxable and non taxable accounts also. I am 47 and DW is 44. I am planing to use the 72(t) rule to withdraw money from our ira's. Right now, we have 2 non roth ira's, 3 simple ira's and 1 401k. I need figure out how many accounts to consolidate in order to withdraw about 20k per year, which adds to the question of AA in these accounts. I do have quit a few dividend paying stocks and I could add to them to boost the yield. I assume that we will be in a low enough tax bracket that we won't get hurt when dividends are taxed at a higher rate in a couple years. However I am also concerned about things getting too complicated for my DW to handle if something happens to me. Currently we own 23 individual stocks, 3 mutual funds and 1 etf. I need simplify our investments. We should be in etf's or mutual funds with maybe a little left over to "Play" with. ronc

If I read this right and you need ONLY 20k from the assets, the solution is simple:

1) invest 600k in ONLY dividend paying stocks (buy/sell as needed). The dividend stream should be constant. 3% yield on 600k is 18k.

2) send one IRA to an account where you can 72t the balance to 2k-5k per year.

3) let Roths and other IRAs grow tax deferred in other accounts.

Details:

1)
a)20-40 stocks, IMO, should provide income needed. The goal is a stream of income... even if market tanks 10% (so 600k becomes 540k) the dividend amount of 18k is not going to shrink 10%... so this is "stable" stream of income.
b)300k in 10 stocks of DOW companies (use Dogs of Dow strategy is my suggestion). DOGs strategy usually yields around 3.5%.
c) 150k in 5-10 stocks of utilities and REITs. Again these yield around 2-4%.
d) 150k in 10-20 stocks of small and mid size companies. These may yield less (1-2%) buy can also grow the portfolio more.

2) You have to 72t for 12 years (59-47-12). Make sure the 72t is in your name... if in wife's name, the 72t lasts longer (59-44=15). 12 years*2k=~25k needed in an IRA to meet 20k income needed.

3) make the Roths temper the risk of above.

1 is aggressive (100% equity), and 2) might be a good place for bonds. Then have Roths be same mix as 1 and 2 combined.