Spouse and I are 74/73 y.o., with 8.5M, currently allocated 72% stock, 16% bond, and 12% money markets with some T-bills for SWAN purposes. The 8.5M includes 2.85M in taxable, 0.75M in Roth, and 4.9M in tax-deferred accounts. All investments are in Vanguard index funds with an aggregate expense ratio of 0.06%.
My question concerns the best placement of the 12% SWAN cash. It includes about 2 years worth of RMDs in the tax-deferred accounts, with another 480k in taxable accounts. Pension and SS cover over 90% of our expenses (including taxes), and our RMDs put us about 30k under the 32% bracket. We plan ongoing Roth conversions to bring us a bit into the 32% bracket.
1.Would it be better to invest most of the 480k taxable cash into an S&P 500-type index fund, and simultaneously move an equal amount out of VINIX (Vanguard Institutional Index Fund Institutional Shares) in my Fidelity 403b into FZCXX (Fid. Gov’t MMkt)? This would swap 5+% federally taxable money market interest for about 1.3% of mostly qualified dividends between the taxable and tax-deferred accounts, allowing just a bit more room for Roth conversion.
2.Would VV (Vanguard Large-Cap ETF) be a good place to invest the taxable cash to offset the sale of VINIX in the 403b, while allowing for potential TLH’ing? Are there recommended alternatives to VV?
My question concerns the best placement of the 12% SWAN cash. It includes about 2 years worth of RMDs in the tax-deferred accounts, with another 480k in taxable accounts. Pension and SS cover over 90% of our expenses (including taxes), and our RMDs put us about 30k under the 32% bracket. We plan ongoing Roth conversions to bring us a bit into the 32% bracket.
1.Would it be better to invest most of the 480k taxable cash into an S&P 500-type index fund, and simultaneously move an equal amount out of VINIX (Vanguard Institutional Index Fund Institutional Shares) in my Fidelity 403b into FZCXX (Fid. Gov’t MMkt)? This would swap 5+% federally taxable money market interest for about 1.3% of mostly qualified dividends between the taxable and tax-deferred accounts, allowing just a bit more room for Roth conversion.
2.Would VV (Vanguard Large-Cap ETF) be a good place to invest the taxable cash to offset the sale of VINIX in the 403b, while allowing for potential TLH’ing? Are there recommended alternatives to VV?
Statistics: Posted by Rocinante Rider — Mon Apr 15, 2024 1:16 pm — Replies 1 — Views 202
