Hi,
My wife and I are in the process of selling our home and looking to invest the net proceeds of about $700,000 in income producing investments to pay our rent and possibly other expenses. Between us, in addition to the home we have approximately 2 million in brokerage accounts mostly tax deferred but some in taxable and non taxable accounts (see details below). I employ a 3 bucket strategy and am taking about 3 percent of assets for living expenses.
The assets are currently invested in a few ETF's/funds and allocation is determined by order of withdrawal Roth IRA's being the most aggressive allocation and will be the last to use if necessary. I'm happy with my stock/bond investing strategy. But I've never invested for income.
I'm looking to invest the bulk of the proceeds in 1 to 3 year corporate bonds, CD's and treasuries. To increase yields I'm considering covered call ETF's and preferred stock ETF's. I'd like to get an average of 6+ percent for income. I'm willing to take on a bit more risk for higher yield.
Eventually we'll buy a new home but we're not sure where we want to live and I believe the housing prices are likely to correct down and that is also a factor (see price to earnings ratio at over 7 percent - https://www.longtermtrends.net/home-pri ... come-ratio.
I'm interested in hearing other ideas for investing for income and others experience in similar situations.
Emergency funds: Was a home equity line. Plan on leaving part of proceeds Fidelity Cash account
Debt: No debt
Tax Filing Status: Married Filing Jointly
Tax Rate: Federal, 12%, Eff 5%, State - 0% - All taxes (SS, Cap gains, etc..) expected to rise with addition income
State of Residence: New Jersey
Age: 63/70
Current allocations:
My accounts:
Taxable - 204k 6o/40
IRA - 363k - 75/20
401k - 1.16m - 65/35
Roth - 82k - 80/20
Wife
IRA - 184k - 60/40
Roth - 90k - 80/20
My wife and I are in the process of selling our home and looking to invest the net proceeds of about $700,000 in income producing investments to pay our rent and possibly other expenses. Between us, in addition to the home we have approximately 2 million in brokerage accounts mostly tax deferred but some in taxable and non taxable accounts (see details below). I employ a 3 bucket strategy and am taking about 3 percent of assets for living expenses.
The assets are currently invested in a few ETF's/funds and allocation is determined by order of withdrawal Roth IRA's being the most aggressive allocation and will be the last to use if necessary. I'm happy with my stock/bond investing strategy. But I've never invested for income.
I'm looking to invest the bulk of the proceeds in 1 to 3 year corporate bonds, CD's and treasuries. To increase yields I'm considering covered call ETF's and preferred stock ETF's. I'd like to get an average of 6+ percent for income. I'm willing to take on a bit more risk for higher yield.
Eventually we'll buy a new home but we're not sure where we want to live and I believe the housing prices are likely to correct down and that is also a factor (see price to earnings ratio at over 7 percent - https://www.longtermtrends.net/home-pri ... come-ratio.
I'm interested in hearing other ideas for investing for income and others experience in similar situations.
Emergency funds: Was a home equity line. Plan on leaving part of proceeds Fidelity Cash account
Debt: No debt
Tax Filing Status: Married Filing Jointly
Tax Rate: Federal, 12%, Eff 5%, State - 0% - All taxes (SS, Cap gains, etc..) expected to rise with addition income
State of Residence: New Jersey
Age: 63/70
Current allocations:
My accounts:
Taxable - 204k 6o/40
IRA - 363k - 75/20
401k - 1.16m - 65/35
Roth - 82k - 80/20
Wife
IRA - 184k - 60/40
Roth - 90k - 80/20
Statistics: Posted by Ddouble — Sat Aug 17, 2024 9:51 am — Replies 0 — Views 60