56 year old hoping to retire next year. Overall Asset Allocation around 70/30 split about 50/50 between taxable and pre-tax. Kids' college is paid/funded and mortgage soon to be paid off. According to all the popular requirement planning software models we currently have enough assets in 60/40 taxable accounts to make it to 70 using conservative assumptions on returns and reasonable inflation assumptions and considering only 70% of my equities, and without touching Pre-Tax accounts (unless Roth conversions make sense considering the need to keep our MAGI below ACA limits until 65). No one knows what the future holds but for planning purposes, right now, plan to start Social Security when I reach 70 and should receive about the maximum benefit. Spouse is a year younger and will collect the spousal benefit at whatever age we deem appropriate when we get closer. My Fidelity 401K has recently added the Brokerage Link feature which allows me to transfer up 50% of my holdings to investments beyond those offered by my employer. Pretax accounts are 80/20 and I am contemplating purchasing a TIPS ladder (using tipsladder.com) in my 401K that would start when I turn 70 (in 13 years) with the last rung being in 2054 (when I am 86; sounds a long way off). The purpose of this would be to supplement our SS once it starts to a level that would provide a predictable income stream to fund our basic retirement expenses plus a bit more. To fund this ladder, it would require about 15% of our Pre-Tax assets (7.5% of total). Currently hold VBTIX & DODIX so percentages of those would be reduced. Withdrawal rate for the plan is around 3.3%. Curious on thoughts on this approach.
Statistics: Posted by MD1828 — Sat Apr 27, 2024 12:45 pm — Replies 0 — Views 80