MissMolly
Thinks s/he gets paid by the post
- Joined
- Jun 9, 2010
- Messages
- 2,144
I was hoping I could get some input from the more knowledgeable folks on this board regarding my investment portfolio? I have a mid-six figure portfolio that I have recently consolidated at Vanguard. I am now trying to figure out the wisest/most efficient ways to invest these funds using either mutual funds or index funds. Of this portfolio, about 18% is in taxable accounts and the remaining 82% is in tax deferred accounts (IRAs, 401Ks, etc). I want to pare down all my many different funds into just a 3 or 4 fund Bogelheadish type lazy portfolio. I know that you should put the most tax efficient funds in the taxable accounts (such as Total Stock Market, Total S&P, Total International Stock Market, etc) and the least tax efficient in the tax deferred accounts (such as high yield bonds and active stock funds). But after that, I become a little lost.
Some additional information would be: I am retired from my career job and receiving a pension (state). We are both in our 60’s. No debt. I also do contracting work (1099 MISC) mostly from home but it does involve occasional travel. My pension is sufficient to meet our basic needs. My health insurance is covered by the state retirement system; my husband is currently covered under a high deductible plan. Once he is eligible for Medicare (3 years), he will move back under the state plan with me where they will supply subsidy for a Medicare supplement. We currently have no health issues and take no medications, but I realize that can change in the blink of an eye.
The 1099 work pays for all the extras in life (which right now this means a very expensive bathroom remodel), gifts to our two kids (both grown and on their own) and continuing to fund the IRAs and Individual 401K each year. The 1099 work has averaged about $75,000 for the 3 years I have been doing it. At this point, neither one of us is drawing Social Security (my husband is eligible, I am only just 60 years old, so not for another couple of years for me). At this point, we don’t need the SS, so I thought we could just wait and let it build up. My pension will reduce in 2 years (once I turn 62) and thought that, if needed, my husband could file for his at that time (I have always been the higher earner) and I would wait until I could file for ½ spousal at 66 and then take my full amount at 70. (At least, that is the plan)
So my point with all this additional information is to let you know we don’t need dividends/income from the investments at this point in our life to live on. Given that my portfolio is very heavily weighted to tax deferred accounts, what would be your recommendations regarding how to split everything up? I am looking for a 70/30 stock/bond mix with 15% - 20% of the 70 to be in international stocks. Do I just put all the taxable money in Total Stock Market/Total International Stock Market/S&P 500 and then do the same funds in my tax deferred accounts until I hit the 70% mark and then the 30% bonds in the tax deferred, or is there something better I should do in the tax deferred accounts?
Any suggestions will be appreciated.
Some additional information would be: I am retired from my career job and receiving a pension (state). We are both in our 60’s. No debt. I also do contracting work (1099 MISC) mostly from home but it does involve occasional travel. My pension is sufficient to meet our basic needs. My health insurance is covered by the state retirement system; my husband is currently covered under a high deductible plan. Once he is eligible for Medicare (3 years), he will move back under the state plan with me where they will supply subsidy for a Medicare supplement. We currently have no health issues and take no medications, but I realize that can change in the blink of an eye.
The 1099 work pays for all the extras in life (which right now this means a very expensive bathroom remodel), gifts to our two kids (both grown and on their own) and continuing to fund the IRAs and Individual 401K each year. The 1099 work has averaged about $75,000 for the 3 years I have been doing it. At this point, neither one of us is drawing Social Security (my husband is eligible, I am only just 60 years old, so not for another couple of years for me). At this point, we don’t need the SS, so I thought we could just wait and let it build up. My pension will reduce in 2 years (once I turn 62) and thought that, if needed, my husband could file for his at that time (I have always been the higher earner) and I would wait until I could file for ½ spousal at 66 and then take my full amount at 70. (At least, that is the plan)
So my point with all this additional information is to let you know we don’t need dividends/income from the investments at this point in our life to live on. Given that my portfolio is very heavily weighted to tax deferred accounts, what would be your recommendations regarding how to split everything up? I am looking for a 70/30 stock/bond mix with 15% - 20% of the 70 to be in international stocks. Do I just put all the taxable money in Total Stock Market/Total International Stock Market/S&P 500 and then do the same funds in my tax deferred accounts until I hit the 70% mark and then the 30% bonds in the tax deferred, or is there something better I should do in the tax deferred accounts?
Any suggestions will be appreciated.
