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synergy

As you approach the time you need to make RMDs you may consider having several years of distributions in cash or cash like accounts. In that way if the market tanks for several years you do not not need to access funds when the market is low. I set this up a few years before I reached 71 and I take ...

synergy

Many folks on this forum feel that VWIAX lack sufficient diversity especially in the low number of stocks and bonds included in the fund. It also is actively managed so that is a potential drawback. That said, my portfolio is 45% VWIAX, 24% Stable Value and 22% long term muni fund. We are rapidly cl...

synergy

I think you are doing many things right. If you have an asset allocation that you are comfortable with, if you are maxing your savings and if you are living below your means (which you indicate you are doing) then you are doing what you can. Your final number is a goal and not a determinate of succe...

synergy

The new linked access company showed up in my account last week. I entered the information for the out side account and the account instantly showed up and I was pleasantly surprised because the previous company was not picking up all of the outside accounts. Yesterday, the section with the outside ...

synergy

Emergency Funds: None, Heloc and Muni Fund available if necessary Debt: Home Mortgage, $140K, 3.25%, 15 years left, Zillow value $325K Married Filing Jointly Tax Rate: just sneaks into 25% Connecticut Both 66 AA: 30/70 bond/stock International:40% of stocks Current Retirement Assets ( in Thousands) ...

synergy

As I try to move toward retiring, I am of two minds. I love being productive and solving problems and building organizations. On the other hand, the stress of making deals and managing employees and developing strategies is a young person's game. I am 66 and would love to find a small niche where I ...

synergy

If were you, I might be tempted to defer SS for as long as comfortable, withdraw tax deferred up to the $74,900 AGI limit and live on the taxable accounts. At least you can divert some of the RMDs to lower tax bracket, maybe. This is the strategy that I am trying to implement but the specifics are c...

synergy

I am a few years older and an issue that I am dealing with is the RMD from tax deferred accounts when I reach 70.If there is a time when you retire that you have limited taxable income, maybe you can withdraw from tax deferred accounts up the most advantageous limits, tax wise. At 70, if you are rec...

synergy

I am about 30 or 35% equities and have no plans to change in the near future. In several years, I may decide to consolidate everything to one fund for simplicity. The percentage of equities feels right for me at 66.

synergy

nisiprius, You got me wondering so I looked back for the last 3 years and the quarterly dividends are remarkably consistent ( a few hundred dollar deviation each quarter). The end of year long term capital gain is then a multiple between 1.75 and 3 of the quarterly dividend. I knew I liked this fund...

synergy

I am also trying to figure out the best way for me to withdraw funds in retirement. My two major considerations are current tax consequences and the tax consequences for my kids after spouse and I pass. Leaving them with all tax advantaged accounts will cost them a bunch. So I am trying to share the...

synergy

Welcome to the forum, Ripple. I don't know if Wellesley is the "best" investment but it is compatible with my risk tolerance. I am nearly retired and the 60/40 bond/equity allocation seems proper for me. I have used Wellesley for several of my accounts for several years. As you point out,i...

synergy

I have some of my fixed income allocation in LT Tax-Exempt (VWLUX). The SEC yield is listed as 2.34%. On the distribution page the Distribution Yield is listed as 3.73%. While I greatly enjoy the additional 1.4% distribution, can anyone help me to understand why there are such different numbers for ...

synergy

With retirement looming in a few months, I am more comfortable with a 40/60 allocations. With SS but no pension, I feel it is more prudent to be a bit cautious. I am not sure that 40/60 is all that much safer than 60/40 but living in the comfort of Wellesley I sleep well.

synergy

I have about 40% of my portfolio in Wellesley and have been quite satisfied. Without knowing your exact reason for contemplating making a move, you could allocate a certain portion of the trust to Wellesley and leave the rest in the 3 fund portfolio. In this way you may (or may not) increase your ma...

synergy

Wellesley at 45%. Pleased with the simplicity and ready to retire any year now.

synergy

As I begin to plan for retirement (65 y.o.) I have been using and considering increasing the amount of money that I hold in the long term muni bond fund (VWLTX). Vanguard says the 10 year performance is 4.84% including reinvested monthly dividends. It is true that muni bonds are sensitive to inflati...

synergy

Hi Cat, I did not add to my taxable account in 2008. The main reason is that by the time we both maxed out our catch-up 401ks and maxed out our Roths, we did not have that much more to invest. If did have the cash, we would have put it somewhere though trying to remember exactly what I was thinking ...

synergy

cat5, It sounds to me that you are moving at a pace that is comfortable for you. I believe that establishing a comfortable and realistic (for you) AA is the key to alleviating some of your anxiety. In 2005, my wife and I received a 6 figure inheritance and at the same time we moved our retirement an...

synergy

This discussion has been very helpful in giving me several ways to think about the risk in the bond section of Wellesley. As usual the thoughtful and knowledgeable responses have served to further my investing education. Thank you.

synergy

As I begin to approach retirement, I am attempting to assess level of risk in my portfolio. I understand the concept that a drop of 50% in the value of equities is a possibility that must be considered. I have seen many references to the notion that equity risk is preferable to be isolated in equiti...

synergy

I have a much smaller Northwestern Life policy. I bought it when I really did not know what i was doing. It is paid up and I am just letting it ride until i start retirement. It is paying about 4.2% with no risk so at this point, no sense in cashing it out. Just part of my bond allocation.

synergy

Spouse and i are 65 and we are discussing setting up our 40 yo and 36 yo children how to access our accounts and how to help either one of us if necessary. They are both gainfully employed and we have not felt any need to discuss our finances with them. They are both level headed and industrious and...

synergy

I have worked at non-profits for about 15 years mostly in the role of CFO. While I made some early mistakes in setting up retirement accounts, I have learned that it is possible for even small groups to have reasonable plans. Currently, the organization that I work for has 18 full time employees and...

synergy

I agree with the suggestion that the portfolio is too complicated. I am a big fan of Wellesley and all my tax deferred retirement accounts are in the fund. My wife does not have that choice in her plan so we use a combination of Target Retirement and a stable value fund. We round out our taxable acc...

synergy

I consider my HELOC to be my emergency fund however I am beginning to build my first year retirement withdrawal in Long-Term Tax Exempt in taxable. Given what i understand of your situation, I think that this muni fund is relatively safe and pays a reasonable dividend. I do like Wellesley a lot but ...

synergy

My rate is just north of 2.5%. For me, this rate has been steady for a decade or so. Of course, this is because we are empty nesters and a two wage unit. When we were younger we saved much less and had no idea what our goal should be. Steady work and decreasing expenses and compounding have been the...

synergy

Unless the electric grid goes down, I can't think of how I would need cash more immediately than drawing it down electronically into my checking account and having it available in 24 hours (HELOC). If the grid goes down, all bets are off and I scrounge for loose change in the couch.

synergy

Spouse and I are about 1 year from FRA of 66. I have run several different scenarios trying to analyze the difference between waiting 4 years to collect SS, how to minimize taxes, where to make the early withdrawals, etc. After 20 years, the differences in the various schemes don't seem to amount o ...

synergy

Due to a head cold, I am awake at this silly hour. This enabled me to see a post at 1:21 about this very topic. Reassuring that some things are so constant.

synergy

I don't know what the composition of your American Fund investment was - the name implies 100% stocks. You are reducing your risk by shifting to 40% bonds (20% international bonds?). You are reducing your risk but you still sound worried about the allocation. Maybe you need to reduce your risk more?...

synergy

In retirement, I will need a withdrawal rate of between 3% and 5%. If annual returns matched my withdrawal rate, I would be very happy. That would provide a comfortable life and preserve capital for the kids.

synergy

I think it depends on your need or desire for risk. If you are concerned that you do not have enough saved and the only way that you can increase your portfolio is by assuming additional risk in order to, perhaps, gain additional reward, then your choice makes sense. Or, if you are set for retiremen...

synergy

In a year and a quarter, I will be 66 and able to collect "full" SS. For the last several years, I have been tracking our expenses and have a reasonable handle on what we need to maintain our current comfortable lifestyle. I am mentally ready to retire and start the next chapter but spouse...

synergy

I am in the process of reading The Rise and Fall of the Third Reich and the idea that gold will have a value in hard times is not so true. Gold would not have been helpful in Poland or Austria or France at the time. It would have been confiscated and shipped back to Berlin. Of course, stocks of many...

synergy

Agree that 1.75% is a burden on your portfolio performance. If you are satisfied with the AA that your advisor has chosen, figure out what Vanguard funds will duplicate or if a Target fund is close enough. Figure out where you are going before you start moving stuff.

synergy

This question piqued my interest so I did a quick computation. While I consider myself an adherent of the boglehead investing philosophy, I am now worried that I will be summarily drummed out of the club. Wellesley (active) 42%, TIPS (active) 8%, Stable Value (non index) 12%, misc (cash and equivale...

synergy

Not too long ago, I had an opportunity to change jobs mostly to try something a little different. The salaries were comparable, the working conditions were comparable and each was a nonprofit with worthy mission. In the end, I decided to stay where I was, in good part, because the difference in the ...

synergy

cobill, If you have gotten to this stage in life, you are surely able to manage your accounts as well or better than the "advisor" you describe. Figure out a comfortable AA that meets your needs and then have your choice of Fidelity or Vanguard move the funds. It took me a while to get out...

synergy

Spouse and I are 64 and anticipate gliding into retirement in about 2 years. We have a little more than twice what you have in retirement savings. At this point, we are anticipating a 2.7% annual return in addition to our SS. As to volatility, the only way to try to control is by establishing an AA ...

synergy

I am not a tax expert. The amounts that you are talking about seem to fall below the level that would provoke inheritance tax. Check with a tax advisor if this is a taxable event.

synergy

While each insurance company and each product has their own specific conditions, I can tell you my experience. My wife's mom left us a similar annuity with Sun Life. We were able to cash it out and split the proceeds between her and her brother. We moved the cash to Vanguard as part of our taxable p...

synergy

I believe that the TIAA Traditional annuity will only allow 10% of the balance to be withdrawn each year. It is a good fund but not so easy to withdraw funds. Check the details before you invest.

synergy

Mid thirties is not so late. You will probably find that many of us who read this board started much later. TIAA CREF and Vanguard are excellent options. Don't get involved with insurance companies or annuities unless you are sure you know what you are getting into because they may be difficult to g...

synergy

I believe that changes in the Roth account shouldn't trigger any taxable event.

With only $20K in the taxable account, making a change now shouldn't result in too much of a tax payment but changing accounts without a plan or AA seems likely to produce other taxable events in the future.

synergy

Hi ORatz, From reading this thread,I am assuming that your main worry is moving your taxable accounts to Vanguard without incurring significant taxes. Do some of your investments have losses? If so, it would be relatively simple to match the amount of loses with a like amount of gains and sell those...

synergy

Thank you for the replies very helpful.

Somehow, I do manage to have losses in the funds I mentioned. Must be my unique investing ability.

synergy

I am trying to reduce the number of funds that I own and I want to sell Developed Markets (VDMAX) and Emerging markets (VEMAX) and buy Total International (VTIAX). I read the wiki on Wash Sales and IRS Publication 550 but could not understand if the transactions I want to make amount to a wash sale....

synergy

I had AXA a few decades ago. As I recall, the 3% has to do with a specific fund that one can choose to invest in. I believe that AXA has penalties that are reduced as time goes on. At the end of a seven years, or some such timeframe, the penalties go away. Until then, they charge you to get out. In ...

synergy

I leave a minimal amount, my goal is about $1k. Less than that and I get nervous. We deposit paychecks and pay bills until late in the month and then either pay down HELOC, which we used for CC bill or send surplus over to Vanguard in taxable account. Just used taxable account to purchase 2013 Roths...

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