SecondAttempt
Thinks s/he gets paid by the post
I am just a few weeks over 1.5 years from my retirement day.
I plan to have 1 year of expenses in cash on that day and a 60/40 (stock/bonds) asset allocation.
For the cash, let's say we were talking about $100,000. Where would you keep it? I have never kept much in banks, usually just having a checking account and maybe a fairly small savings account. My tentative plan is to keep about $10000 in checking, $25,000 in savings/CD at a bank, largely to take advantage of a higher tier checking account that waives fees and offers some additional benefits useful to me. The remaining $65,000 would be in my brokerage money market and a short term bond fund to get a marginally better return. Does that sound reasonable? Would it make sense to have some in my IRA? I can't think of a reason it would except to add that I have ~$40,000 "stranded" in a money market in an old 403(b) account that i will be able to roll into my IRA when I retire. So it would be conveninet to take that route...(long and uninteresting story about why it is stranded!)
I will turn 59 a few days after I retire and will be able to take penalty free IRA withdrawals before the end of the year (2024) if that matters.
For my asset allocation, I am already at 70/30 so getting to 60/40 will not take much. I plan to reallocate when I roll over to my IRA.
I understand that rollovers are not always the best choice. In my case my 403(b) accounts are with TIAA-CREF and you cannot even imagine how sick of them I am! My investments are Vanguard funds but TIAA is such a nuissance to deal with that I will roll over the first day I can!
I plan to have 1 year of expenses in cash on that day and a 60/40 (stock/bonds) asset allocation.
For the cash, let's say we were talking about $100,000. Where would you keep it? I have never kept much in banks, usually just having a checking account and maybe a fairly small savings account. My tentative plan is to keep about $10000 in checking, $25,000 in savings/CD at a bank, largely to take advantage of a higher tier checking account that waives fees and offers some additional benefits useful to me. The remaining $65,000 would be in my brokerage money market and a short term bond fund to get a marginally better return. Does that sound reasonable? Would it make sense to have some in my IRA? I can't think of a reason it would except to add that I have ~$40,000 "stranded" in a money market in an old 403(b) account that i will be able to roll into my IRA when I retire. So it would be conveninet to take that route...(long and uninteresting story about why it is stranded!)
I will turn 59 a few days after I retire and will be able to take penalty free IRA withdrawals before the end of the year (2024) if that matters.
For my asset allocation, I am already at 70/30 so getting to 60/40 will not take much. I plan to reallocate when I roll over to my IRA.
I understand that rollovers are not always the best choice. In my case my 403(b) accounts are with TIAA-CREF and you cannot even imagine how sick of them I am! My investments are Vanguard funds but TIAA is such a nuissance to deal with that I will roll over the first day I can!