ERsoonihope
Dryer sheet aficionado
Looking for some opinions regarding rebalancing a portion of the portfolio. Spouse and I will RE this year at age 61. Have pension income of about $75 K (with a 2% fixed cola) between the two of us, and want to pull another $40 K annually from investments for 5 years or so until we take social security at FRA.
Portfolio as a whole is 65% equities and 35% fixed income. I sleep just fine with that allocation. However the taxable account portion of that is at about 85% equities/15% fixed. (Tax deferred is like 57/43.)
Here's the question; Since we would prefer to take money for the next few years from the taxable accounts, should I be making the allocation of the taxable accounts quite a bit more conservative? Financial guy (who I assume would make some dollars if I jumped into doing a bunch of reallocation now) doesn't seem to think so. I guess we have a number of alternatives if the market tanks immediately when we retire...everything from cutting expenses to taking money from deferred accounts, to taking SS early, to going back to .....
I don't generally worry much about investments... But I keep coming back to this question. Would appreciate thoughts and ideas from the smart folks here.
Thanks in advance.
Portfolio as a whole is 65% equities and 35% fixed income. I sleep just fine with that allocation. However the taxable account portion of that is at about 85% equities/15% fixed. (Tax deferred is like 57/43.)
Here's the question; Since we would prefer to take money for the next few years from the taxable accounts, should I be making the allocation of the taxable accounts quite a bit more conservative? Financial guy (who I assume would make some dollars if I jumped into doing a bunch of reallocation now) doesn't seem to think so. I guess we have a number of alternatives if the market tanks immediately when we retire...everything from cutting expenses to taking money from deferred accounts, to taking SS early, to going back to .....
I don't generally worry much about investments... But I keep coming back to this question. Would appreciate thoughts and ideas from the smart folks here.
Thanks in advance.