Have you considered doing Roth conversions before RMDs start? That's what many Bogleheads do since the value of their tax-deferred accounts can easily double or quadruple during retirement because of The Rule of 72. If your early retirement years put you in a lower tax bracket, that is a great time to convert. If you wait until age 75, a much larger balance in tax-deferred will make your RMDs be much larger too, which could push you up into higher tax brackets. There won't be many things you can do then to change the taxes compared to what you can do now.Hi All,
I'm struggling on how to put together my retirement portfolio. Right now, I have a PAS with Vanguard, and want to venture out on my own. My AA is 65/35, and I'm 60 yrs old. When my wife retires in 2 years, we'll have 2 pensions, and SS to cover 90% of our expenses, and will only need a 1% withdraw rate for our portfolio. Our tIRA, and 401k are well north of 1m.
If you weren't aware, it is also better to hold stock funds in Roth accounts to maximize future tax-free growth. Leave the bond funds in tax-deferred to slow down the growth there.
What others do should be irrelevant to you as each family's circumstances are different.I'm curious as to what Bogleheads do for their retirement portfolio. . .
Statistics: Posted by celia — Thu Sep 19, 2024 2:40 am