Big news (for me): I got Morgan Stanley to remove the last 3 accounts from AUM at 90bp. That is, they are now mine to manage (without fee).
One is a cash balance account (my wife and her partner), another is my wife's 401K, and the last is her partner's 401K (they are all onboard with my management -- and won't do a single thing without their prior approval).
These are all tax-deferred.
Cash Balance: $900k
Wife 401K: $140k
Partner 401K: $60k
These will increase substantially with 2024's (tax-deferred) contribution.
I sure could use some help with my thinking on this.
At this time, almost all of the rest of mine and my wife's holdings are in stocks and stock funds, and not in fixed income.
So, I am thinking that fixed income might be an appropraite type of investment for much of the funds in these accounts (towards a more balanced AA).
Unfortunately, my understanding does not go much farther than that.
I understand the very basics of tax-efficiency, and I've (basically only) heard of TIPS, ladders, bond funds, notes/bills, etc.
My wife is only a year or 2 from retirement. I have a portfolio of (actively managed by me) real estate (which I know factors in to the AA allocation, but I do not have a deep understanding of how), so the term retirement doesn't fit well for me.
The more I read here the more I understand that fixed income would likely reliably provide somewhere in the 5-6% annual growth with quite low risk and volitility.
There is also the idea that at sometime in the relatively near term (within 1-4 years) it might make sense to start converting these tax-deferred (and a large tIRA) assets to a Roth IRA (I know this is the topic of endless and complex debate, but bottom line for my basic understanding is that this might make sense if we see a few years with income that puts us in a low tax bracket -- lower bracket than expected in later years). I don't know what the impact of having these funds in various fixed-income holdings would be if we chose to convert.
I could go on and on with snippets of topics (said snippets being the totality of my understanding of those topics), but this post has already gone on too long.
What would you smart and experienced people do with these funds?
BTW, the asset managers have the funds in these 3 accounts invested in dozens of positions. The top positions are:
Berkshire-B
IVV
VO
VB
IEFA
RSP
PONPX
JSOSX
USFR
DBLTX
Thank you.
One is a cash balance account (my wife and her partner), another is my wife's 401K, and the last is her partner's 401K (they are all onboard with my management -- and won't do a single thing without their prior approval).
These are all tax-deferred.
Cash Balance: $900k
Wife 401K: $140k
Partner 401K: $60k
These will increase substantially with 2024's (tax-deferred) contribution.
I sure could use some help with my thinking on this.
At this time, almost all of the rest of mine and my wife's holdings are in stocks and stock funds, and not in fixed income.
So, I am thinking that fixed income might be an appropraite type of investment for much of the funds in these accounts (towards a more balanced AA).
Unfortunately, my understanding does not go much farther than that.
I understand the very basics of tax-efficiency, and I've (basically only) heard of TIPS, ladders, bond funds, notes/bills, etc.
My wife is only a year or 2 from retirement. I have a portfolio of (actively managed by me) real estate (which I know factors in to the AA allocation, but I do not have a deep understanding of how), so the term retirement doesn't fit well for me.
The more I read here the more I understand that fixed income would likely reliably provide somewhere in the 5-6% annual growth with quite low risk and volitility.
There is also the idea that at sometime in the relatively near term (within 1-4 years) it might make sense to start converting these tax-deferred (and a large tIRA) assets to a Roth IRA (I know this is the topic of endless and complex debate, but bottom line for my basic understanding is that this might make sense if we see a few years with income that puts us in a low tax bracket -- lower bracket than expected in later years). I don't know what the impact of having these funds in various fixed-income holdings would be if we chose to convert.
I could go on and on with snippets of topics (said snippets being the totality of my understanding of those topics), but this post has already gone on too long.
What would you smart and experienced people do with these funds?
BTW, the asset managers have the funds in these 3 accounts invested in dozens of positions. The top positions are:
Berkshire-B
IVV
VO
VB
IEFA
RSP
PONPX
JSOSX
USFR
DBLTX
Thank you.
Statistics: Posted by josephny — Thu Aug 01, 2024 6:31 am — Replies 5 — Views 236