Hi:
I have about 50 percent of my investment portfolio in taxable accounts, 30 percent is on my 401k and 20 percent is in Roth accounts. I have a 60 percent stock 40 percent bond allocation. I am 43 and hope to retire within 2 years. Since I have a long time between retirement and when I can receive social security and a small government pension, I will need to withdraw a considerable amount from my investment portfolio. If I want to minimize taxes when I enter retirement, does it make sense for me to keep my bond allocation in my 401k and Roth, so I can use long term capital gains and qualified dividends as a source of income from my taxable accounts early in my retirement? Any other ideas for someone who is potentially going to retire rather early? Thanks.
I have about 50 percent of my investment portfolio in taxable accounts, 30 percent is on my 401k and 20 percent is in Roth accounts. I have a 60 percent stock 40 percent bond allocation. I am 43 and hope to retire within 2 years. Since I have a long time between retirement and when I can receive social security and a small government pension, I will need to withdraw a considerable amount from my investment portfolio. If I want to minimize taxes when I enter retirement, does it make sense for me to keep my bond allocation in my 401k and Roth, so I can use long term capital gains and qualified dividends as a source of income from my taxable accounts early in my retirement? Any other ideas for someone who is potentially going to retire rather early? Thanks.