Puppy Belly
Dryer sheet aficionado
- Joined
- Jan 20, 2008
- Messages
- 46
CFB,
Nice curveball, had not seen one like that since Juan Marichal.
Those funds look very interesting. It would fit very well because I could easily set up the "switch" request in my Trust document with instructions to the executor.
As you noted you have TR funds which is something that crossed my mind last evening after some of the cautions to this plan. Are your holding those rather than the new "managed payouts" for the reason you mentioned, maybe the new funds being "too new"
Also, reading up a bit for the last few minutes, it appears that rate is only a target. Am I interpreting that correctly?
I have started a Word document of the suggestions and the cautions in these posts and it's an amazing read. A real eye opener as to how many ways things can be viewed and the proverbial "more than one way to skin a xxxxx).
Especially interesting is the experiences posters have encountered using various CD holdings in the portfolio.
Thanks for the new idea. Really like having that option.
Nice curveball, had not seen one like that since Juan Marichal.
Those funds look very interesting. It would fit very well because I could easily set up the "switch" request in my Trust document with instructions to the executor.
As you noted you have TR funds which is something that crossed my mind last evening after some of the cautions to this plan. Are your holding those rather than the new "managed payouts" for the reason you mentioned, maybe the new funds being "too new"
Also, reading up a bit for the last few minutes, it appears that rate is only a target. Am I interpreting that correctly?
I have started a Word document of the suggestions and the cautions in these posts and it's an amazing read. A real eye opener as to how many ways things can be viewed and the proverbial "more than one way to skin a xxxxx).
Especially interesting is the experiences posters have encountered using various CD holdings in the portfolio.
Thanks for the new idea. Really like having that option.
Well see, and I wasnt naming any names
PB - You have a reasonable chance of any of those things happening. Which is why its advisable to have more than one leg on your investing chair.
Here's a curveball.
Vanguard is launching a new set of funds called "managed payout". They're diversified funds intended to pay a percentage of principal out while maintaining or growing the principal to fight off inflation. The funds pay out a percentage based on the past 3 years results/performance and try their best to meet the specified payouts.
There is a 3%, 5% and 7% fund expected to be launched on 1/24. The 3% fund is invested very aggressively and should produce the highest long term capital gains. The 7% fund is very conservative and will probably consume some principal to make the big payment, but still should have enough diversity to hold off at least part of inflation.
They're sort of a self-annuity, except you keep your principal and lose the benefit of spreading the lifespan and volatility risk among a large insurance company's customer base. Thats a bad trade if you live a very long time and/or we suffer through a severe and prolonged bear market. Its a very good trade if you live an average life span and market conditions over the next 30 years arent much worse than they've been for the last 30.
You could lump your taxable assets into the 5% fund, which would pay you 50,000 a year out of the gate, and one of you apply for early social security to fill in the remainder of your immediate income needs. See one of the many social security threads for all the cool ways to game the system with spousal benefits, early/delay and payback schemes.
Put the IRA account into the same 5% managed payout fund, but with the dividend being reinvested.
When the first bucket runs out, or you reach RMD status, the only change that needs to be made is to have the IRA fund pay out its dividend and any other principal needed to meet RMD requirements. Your vanguard flagship rep can do all this for you or your wife over the phone and set up any RMD schedule needed.
If the new funds are just too new and/or concerning, I'd do the same strategy with a target retirement income fund paying out ~45,000 a year starting today, and a TR 2015 fund in the IRA, same as above...dividends reinvested in the IRA until you need the money, then flip one switch and you're done.
You get the benefit of some diversification, still a large portion in fixed income, enough equities and/or other asset classes to fight inflation, full access to your principal if you need it, and a fighting chance for a long term retirement.
I'm thinking that some combination of a strong dividend paying balanced fund and a flagship advisor at vanguard would be simple enough, get the job done, and not require much input, if any, from you or your spouse.