With her permission, posting some portfolio details for the board's input. She is entirely hands off aside from receiving distributions so her portfolio has been constructed with that approach in mind.
Emergency funds: None
Debt: none
Tax Filing Status: Widowed
Tax Rate: I believe 22% (due to single status, SS taxation and 12k in RMDs), will have better visibility after this upcoming tax year.
State of Residence: FL
Age: 80
Expenses: $90k/year
Income: $1661/mo Social Security ($19,842/yr)
Portfolio need: $70,158/yr
Desired Asset allocation:
Portfolio Size: $750k
Current Retirement Assets:
Taxable 66% of total
1% Cash (VUSXX)
22.6% Vanguard Total Bond (VBTLX)
33.3% Vanguard Total Stock Market Index Fund (VTSAX)
9.1% Vanguard Total International Stock Index Fund (VTIAX)
401k 13.7% of total
13.7% Vanguard Total Bond (VBTLX)
IRAs 20% of total
20% Assorted managed investment portfolio, assuming stock based or mixed. Not much visibility here aside from statements, family friend and no options to manage investments for AUM at well known Asset Management Firm.
Looks like we are worst case 60/40 from a risk perspective. No way to further de-risk given the LT gains on the taxable account and lack of ability to ruffle feathers at the IRA. Most likely sitting 50/50 given family friend probably knows better.
Have been using monthly distributions from taxable account (around 600/mo), RMDs (7600 + 5000 this year), and then selling lots of VBTLX at very small capital gains (purchased after the majority of the rate rise due to home sale), for the remainder of the monthly income. Last two years have seen $140k or so in distributions, with the account balance remaining fairly steady, so feeling pretty good as we plan to 90.
Any input on the above with regard to tax planning strategies or one time (hands off) changes we can make to the above? Any big concern with a 9.3% withdrawal rate at 80YO? She is living well, in a $2500/mo apt, and enjoying life fairly unencumbered and as I have been tracking things, haven't seen a reason to shift course yet.
Emergency funds: None
Debt: none
Tax Filing Status: Widowed
Tax Rate: I believe 22% (due to single status, SS taxation and 12k in RMDs), will have better visibility after this upcoming tax year.
State of Residence: FL
Age: 80
Expenses: $90k/year
Income: $1661/mo Social Security ($19,842/yr)
Portfolio need: $70,158/yr
Desired Asset allocation:
Portfolio Size: $750k
Current Retirement Assets:
Taxable 66% of total
1% Cash (VUSXX)
22.6% Vanguard Total Bond (VBTLX)
33.3% Vanguard Total Stock Market Index Fund (VTSAX)
9.1% Vanguard Total International Stock Index Fund (VTIAX)
401k 13.7% of total
13.7% Vanguard Total Bond (VBTLX)
IRAs 20% of total
20% Assorted managed investment portfolio, assuming stock based or mixed. Not much visibility here aside from statements, family friend and no options to manage investments for AUM at well known Asset Management Firm.
Looks like we are worst case 60/40 from a risk perspective. No way to further de-risk given the LT gains on the taxable account and lack of ability to ruffle feathers at the IRA. Most likely sitting 50/50 given family friend probably knows better.
Have been using monthly distributions from taxable account (around 600/mo), RMDs (7600 + 5000 this year), and then selling lots of VBTLX at very small capital gains (purchased after the majority of the rate rise due to home sale), for the remainder of the monthly income. Last two years have seen $140k or so in distributions, with the account balance remaining fairly steady, so feeling pretty good as we plan to 90.
Any input on the above with regard to tax planning strategies or one time (hands off) changes we can make to the above? Any big concern with a 9.3% withdrawal rate at 80YO? She is living well, in a $2500/mo apt, and enjoying life fairly unencumbered and as I have been tracking things, haven't seen a reason to shift course yet.
Statistics: Posted by Olemiss540 — Thu Dec 21, 2023 9:32 am — Replies 0 — Views 86