I'll retire at the end of the year, and my husband and I will live off my federal pension, plus SS when he's eligible. (I'm 55, he's 60.) We're moving to a different state when I retire, and figure it will take us the first year to figure out exactly what our expenses/lifestyle wil be, so we don't want to make any major changes in our investment portfolio for that first year. I'm also thinking that I'll have more time then to do research (which is good, because I'm finding switching from accumulation to withdrawal very confusing!). We have cash set aside to cushion the first 5 years in case we turn out to have miscalculated anything so shouldn't need to take anything from the portfolio during that time. (After that, I'm planning on no more than a 2% withdrawal rate, and preferably not even that, to let it -- hopefully -- continue to grow for a while.)
Because I don't plan to make any investing changes right away, I'd really appreciate it if anyone would look at how our portfolio is set up right now, and help me think about if there is anything I have to do before I retire (that is, because I'm retiring), or if there are any inherent dangers in the way it's set up now that I should be thinking of. I plan to leave my Thrift Savings Plan money in the TSP.
Here's what we have and how it's invested. The total is just under $1 million. (This doesn't include the cash.) It's kind of a mess because I stopped paying attention to it a few years ago (though kept contributing).
Tax Filing Status: Married Filing Jointly
Expected federal tax bracket in retirement: 25%
Expected state tax (GA) in retirement: 6% (will be able to exclude $35,000 of most types of retirement income when reaching 62, $65,000 at 65)
Stocks vs. bonds allocation: Stocks 50.4% / Bonds 49.6%
23.4% VG Tax-Managed Growth & Income Admiral (VTGLX)
16.7% VG Tax-Managed Small-Cap Fund Admiral (VTMSX)
Tax-advantaged (of various flavors): 59.9%
Her Roth IRA 7.0%
7.0% VG Target Retirement 2015 (VTXVX)
Her Traditional IRA 0.5% (old one, just never got around to rolling it over)
0.5% VG Small-Cap Value Index (VISVX)
His Traditional IRA 10.0%
9.0% VG Target Retirement 2015 (VTXVX)
1.0% VG Prime Money Market (VMMXX)
Her Thrift Savings Plan (TSP) 27%
25.7% G Fund Government Securities
1.3% L 2020 (Target Retirement-like fund)
15.4% I-Bonds (most paying 4.79-5.19%)
Is there anything obvious that's overly risky right now and can't wait a year to be changed? Anything I have to do before I retire to avoid tax consequences, etc? Also, anything that jumps out at you that would help me in doing my adjusting later on would be appreciated. I know I'm low in international...just a minor exposure through the target retirement funds.