New member. First time to post. Long time reader. I recently retired (age 50 wife 45) and would like some opinions on AA. Most of my nest egg is in cash at this point due to closing 401K, consolidating accounts and selling a primary residence. We feel comfortable with 2.5-3 % withdrawal rate (65,000) per year. Firecal gives us a 95% plus chance of success. Doing conversions suggested by Iorp gives us even better numbers.
We have 1.6mill. in tax advantage and 1.mill in taxable. We plan on 60/40 allocation in Total stock market / Total Bond market. I have read to treat tax advantaged and taxable as one and to allocate Bonds to tax advantaged.
Just wondering if it would be better to allocate 60/40 in both areas to reduce volatility in taxable due to the fact that I will be using those funds to live on until 59 1/2?
Thanks for any opinions you could give me
We have 1.6mill. in tax advantage and 1.mill in taxable. We plan on 60/40 allocation in Total stock market / Total Bond market. I have read to treat tax advantaged and taxable as one and to allocate Bonds to tax advantaged.
Just wondering if it would be better to allocate 60/40 in both areas to reduce volatility in taxable due to the fact that I will be using those funds to live on until 59 1/2?
Thanks for any opinions you could give me