AA & taxable account question

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Topic Author
AlexC
Posts: 46
Joined: Mon Aug 03, 2009 3:41 pm

AA & taxable account question

Post by AlexC »

For the last 15 years I've invested most of my income in my business and in real estate, both of which have done very well. I'm now (finally!) turning my attention to investing for retirement. I currently have 100k in a 401k and 30k in IRAs. The 401k has a 65/35 AA of stocks/bonds which I want to change. The 401k is at Schwab and is a standard trading account so I have a wide range of investment choices. Because I have a Safe Harbor plan I'll be investing 49k annually in the 401k and 10k in my/spouse IRAs. I also have about 50k annually to invest in a taxable account. I'm 47 and hope to retire in 10-12 years. I've been reading Four Pillars of Investing and AA allocation books and find them extremely useful. Just wondering if anyone would care to offer their knowledgeable input as to a basic strategy. I've spent a lot of time reading posts here and am familiar with the tax advantaged= bonds, non tax advantaged=equities strategy, etc. I know this is an incomplete picture but I'm looking to end up with at least $1.5 mil for retirement in 12 years (excluding real estate). Any input would be greatly appreciated.
Chip
Posts: 3994
Joined: Wed Feb 21, 2007 3:57 am

Post by Chip »

Hi, and welcome.

Just your planned savings plus current net worth gets you to 1.4M in 12 years.

You have to decide whether to tilt to small/value/REITs or not.

We have to know your desired stock/bond split to know whether all of your bonds are going to fit (long term) into your tax advantaged accounts. That will affect whether people here recommend munis and REITs or not. Plus we need to know your tax rate.

I suggest following the sticky post on Asking Portfolio Questions. Everyone here is comfortable with that format and it gives a good common reference point.
Topic Author
AlexC
Posts: 46
Joined: Mon Aug 03, 2009 3:41 pm

Post by AlexC »

Thanks Chip, I need to do more research and read through the portfolio questions section and then come back with a more specific focus.
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