We invested in the three fund portfolio (or similar) and treasuries. 39 years and still going strong.
https://www.bogleheads.org/wiki/Three-fund_portfolio
Search found 7025 matches
- Thu Mar 28, 2024 7:04 am
- Forum: Personal Investments
- Topic: Thoughts on Dave Ramsey's Investments
- Replies: 32
- Views: 2527
- Wed Mar 27, 2024 1:25 pm
- Forum: Personal Investments
- Topic: How do YOU integrate cognitive decline with investment policy?
- Replies: 35
- Views: 2371
Re: How do YOU integrate cognitive decline with investment policy?
We simplified our portfolio and reduced the number of accounts we have opened. We keep our financial documents up-to-date. We trained our sons to manage their own brokerage account. We are in the process of educating our sons on our finances.
I agree with retired that Retired@50 that a one-fund portfolio, a balanced index fund or a retirement income fund. is a good solution for many people.
I agree with retired that Retired@50 that a one-fund portfolio, a balanced index fund or a retirement income fund. is a good solution for many people.
- Wed Mar 27, 2024 11:04 am
- Forum: Personal Investments
- Topic: [Wait for new Dept. of Labor Financial Advisor Protections?]
- Replies: 13
- Views: 872
Re: WAIT FOR NEW DEPT. OF LABOR FINANCIAL ADVISER PROTECTIONS
We hold the three fund portfolio and treasuries. It’s very easy to manage. We are buy and hold investors. The best way to protect your family from poor advisor recommendations, is to educate your spouse, and have them make changes. As an alternative, consider an all-in-one fund. It’s hard to imagine that a law would passed to protect the consumer against “bad” advice. Even when one hires an advisor, it is up to the account owner to review statements, understand taxes, etc.
- Tue Mar 26, 2024 11:07 am
- Forum: Personal Investments
- Topic: Automatic investments - How to keep balanced?
- Replies: 6
- Views: 404
Re: Automatic investments - How to keep balanced?
Going out on a limb here, but we stopped worrying about rebalancing in retirement. We set our AA down to 65/35 and now our equities have room to fly. It is possible to rebalance too often or do so in a manner that is tax inefficient.
- Tue Mar 26, 2024 11:00 am
- Forum: Personal Investments
- Topic: Advice for 29 year old daughter
- Replies: 32
- Views: 2813
Re: Advice for 29 year old daughter
Our oldest contributes to the S&P 500 in his 401k and VTSAX in a Roth IRA. No plans on having a rental.
- Mon Mar 25, 2024 9:31 pm
- Forum: Personal Investments
- Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
- Replies: 17
- Views: 1432
Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Perhaps a downside of the Fidelity go program in a taxable account would be IF the Fidelity flex funds cannot be help outside of the Fidelity Go program. The FAQs says, “Fidelity Flex® funds are a lineup of Fidelity mutual funds that have zero expense ratios, and include proprietary active and passive funds. Flex funds are currently available only to certain fee-based accounts offered by Fidelity, like Fidelity Go”
- Mon Mar 25, 2024 8:23 pm
- Forum: Personal Investments
- Topic: Those complimentary dinners for retirees by investment advisors
- Replies: 143
- Views: 10535
Re: Those complimentary dinners for retirees by investment advisors
Back in the day, people would call your Florida hotel room and offer you a free bag of oranges but you had to listen to a sales pitch for discount tickets of whatnot when you retrieved your gift. I guess the hotel gave out my info.
We subscribe to the same that there’s no such thing as a free lunch. We also don’t do business with people who show up unannounced at our door or cold call us. It’s safer that way.
We subscribe to the same that there’s no such thing as a free lunch. We also don’t do business with people who show up unannounced at our door or cold call us. It’s safer that way.
- Sun Mar 24, 2024 11:15 am
- Forum: Personal Investments
- Topic: House 2027
- Replies: 36
- Views: 3217
Re: House 2027
I would invest the savings in a MM or treasuries. Why are you waiting three years to move?
- Sun Mar 24, 2024 9:37 am
- Forum: Personal Investments
- Topic: Fiduciary advisors vs not - how important do you think it is
- Replies: 33
- Views: 2274
Re: Fiduciary advisors vs not - how important do you think it is
Just because you higher someone to manage your money, that does not eliminate your responsibility to provide oversight by reviewing statements, and changes to your account are suitable for you.
- Sat Mar 23, 2024 4:10 pm
- Forum: Personal Investments
- Topic: Downside to 401k allocation churn?
- Replies: 8
- Views: 772
Re: Downside to 401k allocation churn?
Rebalancing too often can sometimes do more harm than good. I would focus on moving the funds to your preferred location, and then rebalance once the movie is completed.
- Sat Mar 23, 2024 7:35 am
- Forum: Personal Investments
- Topic: Portfolio Review in Retirement
- Replies: 30
- Views: 2729
Re: Portfolio Review in Retirement
We are 10 years younger and our AA is 65/35. We hold the three fund portfolio plus treasuries.
You have $86,000 pension plus SS. Not sure of your expense.
Your current AA is reasonable as is. If your goal is to invest for your heirs, you can add more equities, but 80/20 seems high to me. As an alternative, you can adopt a reverse glide path and invest at your current AA and not rebalance in the future.
You have $86,000 pension plus SS. Not sure of your expense.
Your current AA is reasonable as is. If your goal is to invest for your heirs, you can add more equities, but 80/20 seems high to me. As an alternative, you can adopt a reverse glide path and invest at your current AA and not rebalance in the future.
- Fri Mar 22, 2024 10:28 pm
- Forum: Personal Investments
- Topic: Roth conversion in Fidelity. Can you convert CDs from a tIRA to Roth?
- Replies: 4
- Views: 405
Re: Roth conversion in Fidelity. Can you convert CDs from a tIRA to Roth?
Yes, Fidelity CD's and TNotes can be moved from Trad IRA to Roth IRA without selling them.
- Fri Mar 22, 2024 10:24 pm
- Forum: Personal Investments
- Topic: retirement income - reinvesting dividends
- Replies: 4
- Views: 875
Re: retirement income - reinvesting dividends
We reinvest dividends in our retirement accounts.
- Fri Mar 22, 2024 8:06 am
- Forum: Personal Investments
- Topic: VWIAX [Vanguard Wellesley Admiral Shares] for 80+ inlaws?
- Replies: 16
- Views: 1446
Re: VWIAX [Vanguard Wellesley Admiral Shares] for 80+ inlaws?
My mother is 94 years old. She has that fund and she is happy with it. The expense ratio is not high.galabar wrote: ↑Thu Mar 21, 2024 9:41 pm I was planning on advising that my inlaws (80+) invest in VWIAX (https://investor.vanguard.com/investmen ... file/vwiax).
However, with an expense ration of 0.16%, would there be a combination of funds (eg. VFIAX, etc.) that would accomplish the same thing, but have a lower expense ration overall?
Thanks for any info.
VWIAX - Vanguard Wellesley Income Fund Admiral Shares
- Fri Mar 22, 2024 7:13 am
- Forum: Personal Investments
- Topic: 23 years old, question about investments in taxable acct
- Replies: 25
- Views: 1949
Re: 23 years old, question about investments in taxable acct
Our 24 year old son redirects his paycheck to his 401k (S&P 500), Roth IRA (VTSAX), and some dollars to a MM for future goals. He doesn’t see the need for bonds since he is just getting started.
- Fri Mar 22, 2024 6:59 am
- Forum: Personal Investments
- Topic: When one is ready to retire and pull out of the market.
- Replies: 44
- Views: 4883
Re: When one is ready to retire and pull out of the market.
We retired at 56 and lowered our AA to 65/35. We started off retirement with 2-3 years of expenses in cash. We have a long tine in retirement, so we never considered getting out of the market. We added treasuries to our three fund portfolio as interest rates improved. When the pandemic associated market crash happened, we Roth converted a larger amount and started to buy more stock while stuck at home.
- Wed Mar 20, 2024 8:00 pm
- Forum: Investing - Theory, News & General
- Topic: Purchasing MYGAs (multi year guaranteed annuities) - mega thread
- Replies: 2255
- Views: 293125
Re: MYGA as bond substitute?
For cash that you are sure you won’t need, it’s nice to lock in that interest rate. We have gone out 3 years and we will use this money to cover future lumpy expenses. Our AA is 65/35 using the three fund portfolio. So we still have a bunch in intermediate bonds too.
- Wed Mar 20, 2024 7:47 pm
- Forum: Personal Finance (Not Investing)
- Topic: What kind of unexpected expenses come up late in life?
- Replies: 18
- Views: 2077
Re: What kind of unexpected expenses come up late in life?
For context, are you retiring early?
There are many things that can happen in life. I think it’s a given that your medical expenses will rise as you get older. We only retired once our kids had enough to complete college and that ended their allowance. Yes, we would help them in an emergency.
Inflation is a concern since we have a long retirement.
I know during the rapid appreciation of houses, many seniors complained about the high property taxes.
We are considering the cost of a move versus aging in place where we would consider adding an elevator to the existing structure.
There are many things that can happen in life. I think it’s a given that your medical expenses will rise as you get older. We only retired once our kids had enough to complete college and that ended their allowance. Yes, we would help them in an emergency.
Inflation is a concern since we have a long retirement.
I know during the rapid appreciation of houses, many seniors complained about the high property taxes.
We are considering the cost of a move versus aging in place where we would consider adding an elevator to the existing structure.
- Wed Mar 20, 2024 6:28 pm
- Forum: Personal Investments
- Topic: Crummey Trust - Who Reports the Income?
- Replies: 6
- Views: 672
Re: Crummey Trust - Who Reports the Income?
Depending on how the trust is drafted, the trust may need to obtain its own tax ID number. Does your have it’s own tax payer ID number?
- Wed Mar 20, 2024 8:11 am
- Forum: Personal Investments
- Topic: Dividend shock: Help me reduce dividends
- Replies: 30
- Views: 4032
Re: Dividend shock: Help me reduce dividends
Berkshire Hathaway Inc Class B
NYSE: BRK.B
- Tue Mar 19, 2024 5:49 pm
- Forum: Personal Investments
- Topic: Rebalancing Yearly in Taxable - how to LTCG?
- Replies: 15
- Views: 1344
Re: Rebalancing Yearly in Taxable - how to LTCG?
You should not sell anything in taxable at a gain to rebalance your portfolio unless that is your only option. And only then if you are outside a reasonable band centered around your target percentage. For example if your target is 50% and you have 53%, no rebalancing is needed yet. Rebalancing should be done in tax-deferred accounts, not taxable, unless this is not possible. If it is not possible, see if you can rearrange your portfolio to make it possible. If you must rebalance in taxable, you should do that with your contributions if you can, not by selling something and buying something else. The same thing can be done in withdrawal mode by withdrawing from the asset you have too much of. If you must rebalance in taxable, do not reinve...
- Tue Mar 19, 2024 9:39 am
- Forum: Personal Investments
- Topic: Nervous about giving out information
- Replies: 36
- Views: 3517
Re: Nervous about giving out information
For people who use the same alias on social media platforms, we probably already know you are.
- Tue Mar 19, 2024 8:56 am
- Forum: Personal Investments
- Topic: How Much to Convert to Roth?
- Replies: 53
- Views: 4440
Re: How Much to Convert to Roth?
We focus on the various brackets — federal tax bracket, NIIT, IRMAA etc. We convert to the IRMAA where we want to be. We will delay SS to allow for larger conversions today. We do this same evaluation each year where we determine how much to convert.
One reason we are doing Roth conversions is to control the size of RMDs which get larger over time. You can use a free calculator to project the first RMD. If you were 73 today, your required minimum distribution would be $109,433.96 for 2024. Obviously, the IRA balance will be higher by the time they reach RMD age.
You can use your favorite tax software to do some of the math for you.
One reason we are doing Roth conversions is to control the size of RMDs which get larger over time. You can use a free calculator to project the first RMD. If you were 73 today, your required minimum distribution would be $109,433.96 for 2024. Obviously, the IRA balance will be higher by the time they reach RMD age.
You can use your favorite tax software to do some of the math for you.
- Tue Mar 19, 2024 5:09 am
- Forum: Personal Investments
- Topic: Nervous about giving out information
- Replies: 36
- Views: 3517
Re: Nervous about giving out information
If you don't feel comfortable, then don't share online. But we do give really good financial advice to those who use the forum.cheryly279 wrote: ↑Sun Mar 17, 2024 7:23 pm Hello! I am working hard at planning for retirement, and I'm considering posting my portfolio information using the provided template. But, how do you get past the thought of giving out so much information? I do want advice, but I'm a pretty fearful person. Am I the only one who feels this way?
- Mon Mar 18, 2024 5:10 pm
- Forum: Personal Investments
- Topic: 529 Excess Conversion to Child's Roth IRA
- Replies: 3
- Views: 299
Re: 529 Excess Conversion to Child's Roth IRA
Housing and then retirement funding was our top priority .
You certainly can use the 529 up to the Roth max and a UTMA up to the child’s rate if you have the energy. I think most people would use a 529 for the tax free growth.
You certainly can use the 529 up to the Roth max and a UTMA up to the child’s rate if you have the energy. I think most people would use a 529 for the tax free growth.
- Mon Mar 18, 2024 2:41 pm
- Forum: Personal Investments
- Topic: Need to replenish Emergency Fund
- Replies: 24
- Views: 2148
Re: Need to replenish Emergency Fund
We are retired. We pull from our Roth as a last resort unless we need tax free money. Why? Because we want our Roth to grow tax free as long as possible.
We spent down our emergency fund down to zero once. We then used our cash flow to slowly rebuild our emergency fund balance. We maintain a list of lumpy expenses 2-3 years out so that we move money in a tax efficient manner.
We spent down our emergency fund down to zero once. We then used our cash flow to slowly rebuild our emergency fund balance. We maintain a list of lumpy expenses 2-3 years out so that we move money in a tax efficient manner.
- Mon Mar 18, 2024 9:38 am
- Forum: Personal Investments
- Topic: Can I retire with $1.75M at age 43?
- Replies: 169
- Views: 12572
Re: Can I retire with $1.75M at age 43?
At the end of the day, you have to do what is right for you. The risk that I see is a long time in retirement. Assuming that you don’t run into a bad sequence of returns, you will be fine. Happy retirement!
- Mon Mar 18, 2024 9:29 am
- Forum: Personal Investments
- Topic: Reported bond fund return inconsistancy
- Replies: 8
- Views: 450
Re: Reported bond fund return inconsistancy
Unless you are looking for a loss to offset 2024 gains, I would stick with VBTLX. If you were going to sell, and we sold some municipal bonds last year, we bought 5% treasuries instead of a short term bond fund that had a lower return at that time.
- Mon Mar 18, 2024 8:11 am
- Forum: Personal Investments
- Topic: Portfolio Review Request
- Replies: 11
- Views: 1498
Re: Portfolio Review Request
We are retired and hold the three fund portfolio plus treasuries. Our AA is 65/35.
We started retirement with 2-3 years in cash and about the same-size portfolio. We eliminated our emergency fund. Instead, we track our lumpy expenses on a sheet of paper to better manage cash flow and investment duration.
You have so many small positions (less than 5%) which will not move the needle much even if they’re winners. I would recommend that you simplify your portfolio by selling small positions and moving the proceeds into the three fund portfolio.
We started retirement with 2-3 years in cash and about the same-size portfolio. We eliminated our emergency fund. Instead, we track our lumpy expenses on a sheet of paper to better manage cash flow and investment duration.
You have so many small positions (less than 5%) which will not move the needle much even if they’re winners. I would recommend that you simplify your portfolio by selling small positions and moving the proceeds into the three fund portfolio.
- Sat Mar 16, 2024 5:59 pm
- Forum: Investing - Theory, News & General
- Topic: Anybody heard stories of well "prepared" retirees running out of money?
- Replies: 210
- Views: 23862
Re: Anybody heard stories of well "prepared" retirees running out of money?
My parents-in-law came very close to being homeless. They sold their house, moved to Florida, and spent the house money over a twenty year period. They had their money invested in CDs and low interest accounts. When they came back to a HCOL area to be near family, the most they could afford was a subsidized rental home from a family member. Things turned around for them when an Aunt left them a mortgage free condo and $80,000 in cash.
Inflation and depreciating asset purchases added up over-time. They lost money holding only cash like investments
Inflation and depreciating asset purchases added up over-time. They lost money holding only cash like investments
- Fri Mar 15, 2024 5:20 pm
- Forum: Personal Investments
- Topic: Fees for selling Mutual Funds?
- Replies: 18
- Views: 1610
Re: Fees for selling Mutual Funds?
CSFAX has a Max Deferred Sales Load of 1.24% and an expense ratio of 1.19% to go with the front-end load of 4.5%Chuckles960 wrote: ↑Fri Mar 15, 2024 5:07 pm Just looked up the first fund listed by the OP, MDNLX. It seems to have no back-end load, but a front-end load of 4.25%. So the financial advisor profited hugely from the "advice".
edited to add:
SASMX front-end load 5.5%
CSFAX front-end load 4.5%
- Fri Mar 15, 2024 8:49 am
- Forum: Personal Investments
- Topic: Do I need to do anymore Roth conversions?
- Replies: 14
- Views: 1555
Re: Do I need to do anymore Roth conversions?
One last Roth conversation before the tax rates revert sounds good to me.
- Thu Mar 14, 2024 2:44 pm
- Forum: Personal Investments
- Topic: Roth Conversion - Source for Paying Taxes
- Replies: 31
- Views: 2744
Re: Roth Conversion - Source for Paying Taxes
We share this point of view.retired@50 wrote: ↑Wed Mar 13, 2024 5:43 pm
If you have the ability to pay taxes from "other" savings, then the idea is that's considered better than paying from the converted amount. This helps you shrink your taxable account, and pumps up the Roth balance. Shrinking the taxable account may not sound attractive, but if you do, you reduce your annual tax drag on the dividends and interest that the taxable account is creating.
- Thu Mar 14, 2024 8:04 am
- Forum: Personal Investments
- Topic: Fidelity Portfolio Manager Tools
- Replies: 10
- Views: 1274
Re: Fidelity Portfolio Manager Tools
Check out their Planning and guidance tool. (Requires a Fidelity logon)
https://myguidance.fidelity.com/ftgw/pn ... retirement
https://myguidance.fidelity.com/ftgw/pn ... retirement
- Wed Mar 13, 2024 9:18 am
- Forum: Personal Investments
- Topic: Can I sell part of a lot when using spec id?
- Replies: 8
- Views: 589
- Wed Mar 13, 2024 8:59 am
- Forum: Personal Investments
- Topic: 401k allocation/rebalance
- Replies: 15
- Views: 1002
Re: 401k allocation/rebalance
We rebalance once a year.
- Tue Mar 12, 2024 11:45 am
- Forum: Personal Investments
- Topic: What Platforms are DIY Investors Using to Manage Portfolio
- Replies: 26
- Views: 2668
Re: What Platforms are DIY Investors Using to Manage Portfolio
We hold the three fund portfolio plus treasuries at Vanguard and Fidelity. Very easy to manage. In fact, my DW purchased a t-bill on the secondary market this morning without any assistance from me.
For people that don’t want to directly manage their portfolio, Vanguard has the balance index and Lifestrategy funds. Fidelity has the freedom index target date funds.
For people that don’t want to directly manage their portfolio, Vanguard has the balance index and Lifestrategy funds. Fidelity has the freedom index target date funds.
- Sun Mar 10, 2024 6:42 pm
- Forum: Personal Investments
- Topic: TRowe Challenge with Unauthorized Fund Change
- Replies: 5
- Views: 615
Re: TRowe Challenge with Unauthorized Fund Change
The last quote I see for that fund (TRPHX) is February 16
- Sun Mar 10, 2024 5:12 pm
- Forum: Personal Investments
- Topic: Sharing why we went with Vanguard PAS
- Replies: 69
- Views: 6950
Re: Sharing why we went with Vanguard PAS
We further reduced the number of accounts that we had in early retirement. I have also talked with folks on here who switched to an all-in-one fund. Having a low-cost option for your spouse sounds like it was a good fit for your family. Congratulations!
- Sun Mar 10, 2024 4:29 pm
- Forum: Personal Finance (Not Investing)
- Topic: How Much Cash Do You Keep In Your Home?
- Replies: 207
- Views: 15486
Re: How Much Cash Do You Keep In Your Home?
My MILs Aunt passed away. While administering her will, we found $80,000 in cash stored in the pantry. Yikes.
- Sun Mar 10, 2024 8:55 am
- Forum: Personal Investments
- Topic: Asset allocation and location when approaching (early) retirement
- Replies: 10
- Views: 1288
Re: Asset allocation and location when approaching (early) retirement
With your 2.875M, you only have a $20K buffer in a good economy. How much of your portfolio is pretax? How will you access your retirement assets prior yo 59.5? Have you priced healthcare for your family? We are spending more money in retirement - travel, Roth conversions, home maintenance, etc. A sixty year retirement with a young child is challenging.
- Sat Mar 09, 2024 11:14 am
- Forum: Personal Investments
- Topic: Tax Managed accounts
- Replies: 21
- Views: 1577
Re: Tax Managed accounts
VTMFX - Vanguard Tax-Managed Balanced Fund Admiral Shares ER=.09%
- Fri Mar 08, 2024 2:49 pm
- Forum: Personal Investments
- Topic: Time to convert mutual funds to ETF?
- Replies: 28
- Views: 2421
Re: Time to convert mutual funds to ETF?
No real drawbacks but it is a one way tax free conversion.
- Fri Mar 08, 2024 11:04 am
- Forum: Personal Investments
- Topic: Finally ready to improve, consolidate and own my plan to retirement!
- Replies: 50
- Views: 4756
Re: Finally ready to improve, consolidate and own my plan to retirement!
Asset allocation: 60/40 with 1-2 years in cash would be a nice place to start. I suggest this amount of cash for Roth conversions if most of your money is pre-tax. Also, cash came in handy for us when we ran into a pandemic induced market crash.
You have way too many funds. Retired@50’s recommendations are good. We hold the three fund portfolio and treasuries. Easy to manage. Easy to teach our son’s to manage the portfolio in the future. Percentage wise, a lot of these funds make up a very small percent of your overall portfolio. You should not be afraid to sell and switch to low-cost index funds.
You have way too many funds. Retired@50’s recommendations are good. We hold the three fund portfolio and treasuries. Easy to manage. Easy to teach our son’s to manage the portfolio in the future. Percentage wise, a lot of these funds make up a very small percent of your overall portfolio. You should not be afraid to sell and switch to low-cost index funds.
- Fri Mar 08, 2024 10:51 am
- Forum: Personal Investments
- Topic: One big charitable contribution to DAF
- Replies: 7
- Views: 626
Re: One big charitable contribution to DAF
We took a similar approach. It worked out well.
- Fri Mar 08, 2024 9:34 am
- Forum: Personal Investments
- Topic: Help find Fidelity low Expense funds to: FFFIX, PABGX, ISTIX
- Replies: 28
- Views: 2062
Re: Help find Fidelity low Expense funds to: FFFIX, PABGX, ISTIX
+1retired@50 wrote: ↑Fri Mar 08, 2024 9:29 amI think you mean Fidelity Freedom INDEX Funds.
They can be hard to find on the Fidelity website, but if you go to the link below, then click on the Asset Allocation tab, then scroll DOWN the page, you'll see the INDEX version(s) of the Fidelity Freedom funds.
https://www.fidelity.com/mutual-funds/f ... s/overview
Regards,
- Fri Mar 08, 2024 7:55 am
- Forum: Personal Investments
- Topic: 16 yr old - how can I best take on high risk?
- Replies: 65
- Views: 5612
Re: 16 yr old - how can I best take on high risk?
Our children have a Roth IRA with Vanguard Total Stock Market. Their 401k has S&P 500. Lastly, they are building a saving account and emergency fund (5.36%) for short term goals.
Your savings rate and time in the market is all that matters.
Your savings rate and time in the market is all that matters.
- Thu Mar 07, 2024 3:23 pm
- Forum: Personal Investments
- Topic: Newly Retired: Start Roth Conversions For IRA or Not?
- Replies: 39
- Views: 5483
Re: Newly Retired: Start Roth Conversions For IRA or Not?
Your first RMD will be approximately $110,000 at age 73. Your RMD will get bigger with age.
We consider IRMAA, NIIT, RMDs, and growth of the IRA. Let’s say you Roth convert $140,000. You have to remember that your IRA is also growing each year too. Paying your expenses from a mixture of taxable and your IRA is likely to be better than only using taxable to save taxes today. You don’t want to tax bomb later.
We strike a balance between the medicare premium and the future RMD. Paying a little more for Medicare today is better for us than a larger RMD 10 years from now.
Here is a simple RMD calculator
https://www.aarp.org/retirement/require ... alculator/
We consider IRMAA, NIIT, RMDs, and growth of the IRA. Let’s say you Roth convert $140,000. You have to remember that your IRA is also growing each year too. Paying your expenses from a mixture of taxable and your IRA is likely to be better than only using taxable to save taxes today. You don’t want to tax bomb later.
We strike a balance between the medicare premium and the future RMD. Paying a little more for Medicare today is better for us than a larger RMD 10 years from now.
Here is a simple RMD calculator
https://www.aarp.org/retirement/require ... alculator/
- Thu Mar 07, 2024 8:08 am
- Forum: Personal Investments
- Topic: Career ending, getting fired. Can we FIRE ?
- Replies: 161
- Views: 26642
Re: Career ending, getting fired. Can we FIRE ?
Your budget is $121,000 and you can pull $96,000 from your 2.4M leaving a $25,000 shortfall. Your budget does not include taxes, but not sure how much tax you expect to pay in retirement.
- Thu Mar 07, 2024 7:02 am
- Forum: Personal Investments
- Topic: Retirement Planning - Target Date Funds
- Replies: 18
- Views: 1928
Re: Retirement Planning - Target Date Funds
We retired at 56 and slowly moved down to 65/35. A 60/40 might be a good starting point for your TDF. You will definitely pay less fees which is money in your pocket versus the fees you pay now. We left our 401k after retirement to get lower fees. We also started retirement with 2-3 years cash. Some people have recommended that 1 year is good enough. We rsn into the pandemic so the cash was partially used on Roth conversions and buying more stock during the market crash.