Folks,
41(M). Want to retire at 50. Current NW is $2.6m. Target FIRE is $7m. Currently holding $1.2m in taxable account. ~14% of NW is currently in Money Market, the rest is VTI + VXUS. Over the next 9 years, I expect to save $230k/yr, over half of which will go to taxable account. Hoping market appreciation + the $230k/yr x9 gets me to the target $7m at age 50. If I don't, well life is short, I will cut my expenses/keep spouse business running for longer and make the most of early retirement.
The questions I have are:
- Considering age 50-59.5 (round up to 60) I need to rely on taxable account, I probably need to move a chunk of the balance in taxable to bonds. Is a 75/25 split too aggressive or is the right amount of balance?
--- For additional context, spouse owns a business that generates ~$120k/yr profit, so I will only need to pull $130k (2% SWR) from age 50-55. I believe the 25% in bonds should last me till age 60 if we have a bad decade for equities.
- Age 50-60 I cannot access 401k, Roth IRA and Roth 401k. I can tap into the principal, but prefer not to. From age 41 to 50, I plan to go 100% VTI + VXUS in these accounts and then gradually rebalance to bonds age 50-60 as I withdraw from my taxable accounts, always aiming for the 75/25 split. Is this a sound strategy?
-- As I ramp up my bond allocation in taxable account, I am worried that the dividends will generate a lot of taxable income that may "eat" into my yearly savings goal. Debating if I should have some bond allocation in my 401k/roth IRA and roth 401k account
- All of my "bond" allocation today is actually Money Market. With Fed dropping rates, I will need to move to bonds. I don't really understand bonds. Theres BND, the US T-bill for varying durations. What bonds (tickers) do you recommend to hold in taxable account, as I increase my current allocation of bonds from 14% to 25% over the next 9 years? Is there a maturity/hold period for the T-bills that I need to account for since I will need access to these funds during age 50-60.
- If you believe my particular situation needs a CFP to make a tailored plan, where can I find a fixed fee fiduciary CFP?
Thank you!
41(M). Want to retire at 50. Current NW is $2.6m. Target FIRE is $7m. Currently holding $1.2m in taxable account. ~14% of NW is currently in Money Market, the rest is VTI + VXUS. Over the next 9 years, I expect to save $230k/yr, over half of which will go to taxable account. Hoping market appreciation + the $230k/yr x9 gets me to the target $7m at age 50. If I don't, well life is short, I will cut my expenses/keep spouse business running for longer and make the most of early retirement.
The questions I have are:
- Considering age 50-59.5 (round up to 60) I need to rely on taxable account, I probably need to move a chunk of the balance in taxable to bonds. Is a 75/25 split too aggressive or is the right amount of balance?
--- For additional context, spouse owns a business that generates ~$120k/yr profit, so I will only need to pull $130k (2% SWR) from age 50-55. I believe the 25% in bonds should last me till age 60 if we have a bad decade for equities.
- Age 50-60 I cannot access 401k, Roth IRA and Roth 401k. I can tap into the principal, but prefer not to. From age 41 to 50, I plan to go 100% VTI + VXUS in these accounts and then gradually rebalance to bonds age 50-60 as I withdraw from my taxable accounts, always aiming for the 75/25 split. Is this a sound strategy?
-- As I ramp up my bond allocation in taxable account, I am worried that the dividends will generate a lot of taxable income that may "eat" into my yearly savings goal. Debating if I should have some bond allocation in my 401k/roth IRA and roth 401k account
- All of my "bond" allocation today is actually Money Market. With Fed dropping rates, I will need to move to bonds. I don't really understand bonds. Theres BND, the US T-bill for varying durations. What bonds (tickers) do you recommend to hold in taxable account, as I increase my current allocation of bonds from 14% to 25% over the next 9 years? Is there a maturity/hold period for the T-bills that I need to account for since I will need access to these funds during age 50-60.
- If you believe my particular situation needs a CFP to make a tailored plan, where can I find a fixed fee fiduciary CFP?
Thank you!
Statistics: Posted by pappupager — Tue Aug 27, 2024 11:27 am — Replies 3 — Views 242
