AlabaMalaysia
Dryer sheet aficionado
- Joined
- Jan 25, 2022
- Messages
- 42
Looking to FIRE in 2 years at the age of 39 for me and 36 for my wife. Targeting a 3.25%-3.5% SWR for the first decade with $1.4M in financial investments/assets, two homes, and no debts.
Currently we have $1.2M invested in a 100% stock index portfolio spread across ROTH IRAs, traditional 401ks, traditional IRAs, and taxable accounts. Around $60k is in the taxable accounts with the rest in the tax sheltered accounts.
My question is about accumulating some bonds over the next two years if this is a good idea in the current rate environment and how much people would think is appropriate. I was thinking around 10% or so into bonds ~$150k.
My thinking was if the interest payments from that plus the quarterly dividend payments = close to our expense needs then if a bad market year and downturn occurs this would provide enough cash flow to not have to sell much stock shares when the markets are down. I'm thinking my remaining taxable account contributions in the next 2 years to buy municipal bonds and then round out within my tax sheltered accounts bond funds to total the $150k these next two years.
Currently we have $1.2M invested in a 100% stock index portfolio spread across ROTH IRAs, traditional 401ks, traditional IRAs, and taxable accounts. Around $60k is in the taxable accounts with the rest in the tax sheltered accounts.
My question is about accumulating some bonds over the next two years if this is a good idea in the current rate environment and how much people would think is appropriate. I was thinking around 10% or so into bonds ~$150k.
My thinking was if the interest payments from that plus the quarterly dividend payments = close to our expense needs then if a bad market year and downturn occurs this would provide enough cash flow to not have to sell much stock shares when the markets are down. I'm thinking my remaining taxable account contributions in the next 2 years to buy municipal bonds and then round out within my tax sheltered accounts bond funds to total the $150k these next two years.