Here is my scenario:
1) 59 years old and and plan to work for about two more years
2) Planning to sell my big house and move into my rental house for at least two years to avoid capital gains on the rental house in case we want to sell that.
3) May have about $1million from the sale of my house after debts are paid off.
4) All other money is in the 401k
5) I am in a high tax bracket
6) Target allocation for all investable money is 80/20 Total market index/ total bond index long term
Question: What to do with the $1mil?
My Ideas: $400k would need to be in other than equities to maintain 80/20 overall. I'm thinking quality dividend stocks like JNJ for the $400 k by dollar cost averaging over a year or so. The remainder would be in CDs and dollar cost averaged into the total stock market index fund over a few years. I figure dividends would be taxed at a lower rate. Diversify entry points by dollar cost averaging over ? period of time.
1) 59 years old and and plan to work for about two more years
2) Planning to sell my big house and move into my rental house for at least two years to avoid capital gains on the rental house in case we want to sell that.
3) May have about $1million from the sale of my house after debts are paid off.
4) All other money is in the 401k
5) I am in a high tax bracket
6) Target allocation for all investable money is 80/20 Total market index/ total bond index long term
Question: What to do with the $1mil?
My Ideas: $400k would need to be in other than equities to maintain 80/20 overall. I'm thinking quality dividend stocks like JNJ for the $400 k by dollar cost averaging over a year or so. The remainder would be in CDs and dollar cost averaged into the total stock market index fund over a few years. I figure dividends would be taxed at a lower rate. Diversify entry points by dollar cost averaging over ? period of time.