EddieG
Dryer sheet aficionado
The more people I talk with, the more confusing it gets, so maybe some specific plans from you all may help clear things up.
I'll try to make this as simple as possible:
1.2 Mil, no debts, mortgage, etc.
Married. ER now at 42/54 y.o.
Goals: Live off the money taking 3-4% (40-50k) a year, adjusting for inflation as years go by.
Have a decent balance to leave upon our deaths, but by no means are we wanting to deprive ourselves just to keep building a huge estate. Principal preservation adjusted for inflation would be fine.
Risk tolerance: Not big risk takers. Looking to keep stock exposure to minimum. Thinking 30-35% in various funds should do the job. We would like the other 65% in safer investments. Bonds, cd's, bond funds, income funds, whatever.
Thinking of going primarily with Vanguard. We will have some help from their advisers about re balancing along the way.
What specific allocations would you recommend when initially setting up a portfolio to meet these goals. Specific funds, especially Vanguard funds to satisfy the allocations would be helpful. Specific strategies on setting up the fixed income would be great. Laddering, Bond funds vs individual bonds? We have an opportunity right now to pick up about 150k of unrated munis through the estate. Underwritten by Ziegler, who has a great reputation in our area. Average rate is 5.0-6.25% federal tax free. Maturities between 1 yr and 17 years. Spread out between about 11 different bonds. Should I bother with these, or just take cash and invest it along with the rest of the strategy?
Any detailed answers would be GREATLY appreciated! I know it's a big question, but I figure there's probably some people out there who would like to help someone set up a great portfolio from the very start.
Thanks,
Eddie
I'll try to make this as simple as possible:
1.2 Mil, no debts, mortgage, etc.
Married. ER now at 42/54 y.o.
Goals: Live off the money taking 3-4% (40-50k) a year, adjusting for inflation as years go by.
Have a decent balance to leave upon our deaths, but by no means are we wanting to deprive ourselves just to keep building a huge estate. Principal preservation adjusted for inflation would be fine.
Risk tolerance: Not big risk takers. Looking to keep stock exposure to minimum. Thinking 30-35% in various funds should do the job. We would like the other 65% in safer investments. Bonds, cd's, bond funds, income funds, whatever.
Thinking of going primarily with Vanguard. We will have some help from their advisers about re balancing along the way.
What specific allocations would you recommend when initially setting up a portfolio to meet these goals. Specific funds, especially Vanguard funds to satisfy the allocations would be helpful. Specific strategies on setting up the fixed income would be great. Laddering, Bond funds vs individual bonds? We have an opportunity right now to pick up about 150k of unrated munis through the estate. Underwritten by Ziegler, who has a great reputation in our area. Average rate is 5.0-6.25% federal tax free. Maturities between 1 yr and 17 years. Spread out between about 11 different bonds. Should I bother with these, or just take cash and invest it along with the rest of the strategy?
Any detailed answers would be GREATLY appreciated! I know it's a big question, but I figure there's probably some people out there who would like to help someone set up a great portfolio from the very start.
Thanks,
Eddie