Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
We have done very well in the accumulation phase, but having just retired, spending it now is all new to me. My questions are on managing cash, and another topic, Roth conversions.
Q1) We have about 2.5 years in taxable money market, mostly just on the sidelines, not so much planned. And we have 4-5 months in checking, just received several large checks on retirement that I left in checking to get started in retirement. I've always heard to have a chunk of cash on hand to avoid being forced to sell other assets in a down market (I've heard anything from 1 to 7 years worth). The concept makes sense, though it would seem that whenever it's time to replenish, you're still ultimately forced to sell assets at what may be a bad time.
At any rate, my plan was to keep my taxable cash between 1-2 years and my checking at 3-6 months (replenish quarterly). I have no pensions or other income if that matters.
Q1A) I have always reinvested all dividends. I am starting to wonder if it's time to let dividends go to cash?
Q2) We have 4 IRAs, both of us have TIRA's and Rollover IRA's from previous employers. I expect marginal rates to increase so I was planning to convert it all to Roth IRA's beginning next year (we have too much work income this year to begin). Thought I'd convert such that we stay in the lowest tax bracket, and expecting it to take several years to complete conversions.
This spending stuff is all new to me, so any insights or suggested reading could be most helpful.
Q1) We have about 2.5 years in taxable money market, mostly just on the sidelines, not so much planned. And we have 4-5 months in checking, just received several large checks on retirement that I left in checking to get started in retirement. I've always heard to have a chunk of cash on hand to avoid being forced to sell other assets in a down market (I've heard anything from 1 to 7 years worth). The concept makes sense, though it would seem that whenever it's time to replenish, you're still ultimately forced to sell assets at what may be a bad time.
At any rate, my plan was to keep my taxable cash between 1-2 years and my checking at 3-6 months (replenish quarterly). I have no pensions or other income if that matters.
Q1A) I have always reinvested all dividends. I am starting to wonder if it's time to let dividends go to cash?
Q2) We have 4 IRAs, both of us have TIRA's and Rollover IRA's from previous employers. I expect marginal rates to increase so I was planning to convert it all to Roth IRA's beginning next year (we have too much work income this year to begin). Thought I'd convert such that we stay in the lowest tax bracket, and expecting it to take several years to complete conversions.
This spending stuff is all new to me, so any insights or suggested reading could be most helpful.