If you retired today, your pension and SS should cover expenses. Your portfolio is $3 million (and still contributing) with ~50% in Taxable and ~50% in Tax Deferred accounts.Accounts are set up and most of the assets have been sold. My plan (upthread) was to go with total stock and municipal fund in taxable, and total bond and TSP G fund in tax-sheltered for my bond allocation. The Fidelity municipal fund looks to be a lifetime loser though. Any feedback would be appreciated.Once you get your Fidelity account set up, transfers are made and you sell what you can, post back if you need feedback on what to buy.
Your desired asset allocation (AA) is 40/60 with a question mark. Have you considered an AA of 50/50 which will allow you to hold equity in Taxable and skip municipal bonds?
Aside from perhaps drawing 1%, what is your plan for the $3 million portfolio - spend it, leave it to heirs, donate or bequeath it to charities?
Your current marginal tax rate is 24% Federal and 5.75% state. Will your marginal tax rates increase when RMDs start? Will Medicare IRMAA be an issue? If yes, do you plan to do any Roth conversions?
Spouse and I have a similar low portfolio draw (no pension, we oversaved). Initially we wanted to lower our portfolio equity %. But holding tax-exempt bonds in our large Taxable account seemed a waste. We also realized we will likely never spend down our portfolio. So we have allowed our equity % to rise with market returns which will likely increase the amount in our estate for heirs. We have increased our personal spending and also our gifting with a warm hand.
Statistics: Posted by HomeStretch — Sat Jun 08, 2024 5:30 am