Allocation advice and adding taxable investment

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Topic Author
Bellamag66
Posts: 2
Joined: Sun Feb 26, 2017 2:16 pm

Allocation advice and adding taxable investment

Post by Bellamag66 »

Hi, we are first time posters here and hoping to gain some feedback regarding a couple of issues we have been considering with our portfolio. We have been reading through a variety of threads, wikis, a couple of books, and posted guides here (great info!) but still looking for input.

Emergency fund- yes
Debt- mortgage @ 5% with 4.5 years remaining
Tax status- married filing jointly
Tax rate- 28%
State tax rate 5.1%
State-MA
Age him- 60
Age her- 62

Current Assets

Taxable
16% Cash

Her Rollover IRA held at Vanguard
15% Life Strategy Moderate Growth Fund (VSMGX) (ER .14)

His Rollover IRA held at Vanguard
38% Life Strategy Moderate Growth Fund (VSMGX) (ER .14)
31% Balanced Index Admiral Fund (VBIAX) (ER .08)

We originally moved our combined hodgepodge of 403b funds from multiple employers to rollover IRA's at Vanguard and at that time we did not have much understanding or focus on AA and were for some time invested 87/13 which we began to get nervous about. We are now reviewing if our portfolio allocations make sense given our overall financial and retirement situation and would appreciate any comment.

Both of us were able to retire early with defined benefit pension incomes that allow us a good deal of flexibility financially to meet all our current needs, travel extensively and still have some savings of approximately 30%+ annually of current net pension income. He is eligible for social security (impacted significantly by WEP) and will likely wait until maximum age before accessing. Our pension increase is capped at $300 each annually. We currently hope to delay withdrawals from the IRA's until RMD kicks in.

We currently have been sitting on an amount of cash that far exceeds our emergency fund needs. Those funds are currently invested in a local bank's money market at .8%. We are considering investing a portion of that that into a taxable account and we are uncertain about how to structure that into a diversified AA.

Thank you for any suggestions.
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Allocation advice and adding taxable investment

Post by PFInterest »

you dont mention what AA you want.....
in general, you add more fixed income to your protected accounts, and trade out for stocks in the taxable account.
however you didnt mention your tax brackets, so this in o can change based on that as well.
Topic Author
Bellamag66
Posts: 2
Joined: Sun Feb 26, 2017 2:16 pm

Re: Allocation advice and adding taxable investment

Post by Bellamag66 »

Dear PFInterest

Thank you for the reply.
Have moved towards idea of 60/40 thinking we can make things work of the next decade without touching investments. Put IRA's into those balanced funds to attempt that with greater ease.

In 28% bracket.
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