chinaco
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- Joined
- Feb 14, 2007
- Messages
- 5,072
I know that have been a number of posts on the subject. Here goes again.
We are a little over 4 years off from ER. I recently rebalanced our portfolio to 70/30. I intend to move 2.5%/year into int bonds (and cash) to fund ER 60/40 target.
When we ER, I will have approx 4 years before 59.5. So I need to fund that 4 years.
Here is where the money resides:
38% - After tax account (all in stock)
2% - After tax account cash (intend to grow this with wage contributions over the next 4 years)
6% - Intermed Bonds in 2 VA DW and I(I know I know bought along time ago)
8% - Int Intermed Bonds in 2 Trad IRA DW and I
1% - Int Bonds in 2 Roth IRA
15% - Stock in 401ks
14% - Intermed Bond in Profit Sharing Trust Account (DW version of Pension)
16% - Stock Mutual Fund in Profit Sharing Trust Account (DW version of Pension)
I will have a pension (non-cola) that covers 12.5% of our expected annual expenses. We need to cover the other 87.5%.
I currently have the bonds in tax deferred accounts.
I suppose that 2.5%/year (total of 10% of total portfolio) should be moved to cash. I am thinking that I should do that in the after tax account. That would give us about 12% of the portfolio in an after tax account to spend. That covers almost 3 years of expenses (with the Pension).
How should we cover the remaining year of expenses (the draw-down could be spread over all 4 years)?
We could use 72t and annuitize the TRAD IRAs to cover some of the expense. I am thinking we should be able to get to our 401k money. I am thinking the same for DW and her 401k and Equivalent of pension.
Does this make sense?
Should I be rejuggling the money (tax deferred & taxable) in a different ways over the next 4.x years?
Please provide your comments and advice.
We are a little over 4 years off from ER. I recently rebalanced our portfolio to 70/30. I intend to move 2.5%/year into int bonds (and cash) to fund ER 60/40 target.
When we ER, I will have approx 4 years before 59.5. So I need to fund that 4 years.
Here is where the money resides:
38% - After tax account (all in stock)
2% - After tax account cash (intend to grow this with wage contributions over the next 4 years)
6% - Intermed Bonds in 2 VA DW and I(I know I know bought along time ago)
8% - Int Intermed Bonds in 2 Trad IRA DW and I
1% - Int Bonds in 2 Roth IRA
15% - Stock in 401ks
14% - Intermed Bond in Profit Sharing Trust Account (DW version of Pension)
16% - Stock Mutual Fund in Profit Sharing Trust Account (DW version of Pension)
I will have a pension (non-cola) that covers 12.5% of our expected annual expenses. We need to cover the other 87.5%.
I currently have the bonds in tax deferred accounts.
I suppose that 2.5%/year (total of 10% of total portfolio) should be moved to cash. I am thinking that I should do that in the after tax account. That would give us about 12% of the portfolio in an after tax account to spend. That covers almost 3 years of expenses (with the Pension).
How should we cover the remaining year of expenses (the draw-down could be spread over all 4 years)?
We could use 72t and annuitize the TRAD IRAs to cover some of the expense. I am thinking we should be able to get to our 401k money. I am thinking the same for DW and her 401k and Equivalent of pension.
Does this make sense?
Should I be rejuggling the money (tax deferred & taxable) in a different ways over the next 4.x years?
Please provide your comments and advice.