Lump sum investment and Tax strategy ?
Will be receiving a lump sum pension (decision to not take the annuity: done) early next year. Once received, it will represent around 22% of our investable portfolio. ER'in4 4 Jan 2017. Plan to live off DW paycheck (more or less) until she retires in 3-4 years. Non lump sum portfolio is now invested primarily in 401Ks in Vanguard Mutuals (maybe 55% of portfolio), remainder scattered in some Roths, IRAs, brokerage accounts and cash-like.
Got the pension package/release in the mail yesterday and started reading. I guess I can roll the LS into existing IRA's and 401k(?). The firm managing my companies 401k (my wife works for them as well) will continue to manage it after I retire (pretty sure of that, will investigate).
Or I can take the LS in cash with a 20% Fed hit.
I'll stop there. Still reading, researching but thought I would post here for comments/thoughts. Taking the LS as cash doesn't seem like a good idea. I am about to take stock of all of my investment/holdings and start to "risk shed" a bit from a 60/40 closer to a 40/60, in advance of my DW retiring and the portfolio engine finally needing to be started up.