Emergency funds: 75k cash (included below)
Debt: None
Tax Filing Status: Married
Tax Rate: 24% Federal, 3.7% State
State of Residence: Pennsylvania
Ages: 68 Male & 67 Female
Needed Retirement income: $135,000/year
Desired Asset Allocation: Pulled investments out of the stock market on July 3, 2024 due to global uncertainty and because of Warren Buffet selling more than half his Apple stock. Also was influenced by Russia/Ukraine and Israel wars and high US debt. Says CNN fear index says people are operating under extreme fear.
Currently wants to hold mostly treasuries. Says he will go back into the market at 60% stocks and 40% bonds in the future. Does not like international stock because it has not performed well so would likely go back into mostly US stock.
Current Retirement Assets
Total Value: $5,896,000
Traditional IRA
11.30%Vanguard Total Bond Market Index Fund Admiral Shares
22.96%Vanguard Federal Money Market Fund
12.09%Vanguard Treasury Money Market Fund
Roth IRA
6.34%Vanguard Federal Money Market Fund
0.83%Vanguard Treasury Money Market Fund
TSP
23.74%TSP G Fund
I-Bonds
0.37%I-Bonds
Taxable
8.85%Vanguard 500 Index Fund Admiral Shares
0.17%Vanguard Mid-Cap Growth Index Fund Admiral Shares
0.19%Crypto
1.27%Cash in High Yield Savings ($75,000)
House
11.87%House
Income
Dad Pension: $2,343/month (not inflation adjusted)
Dad Social Security: Will take at age 70. Will be ~$3,500/month
Mom Pension: $2,698/month (is inflation adjusted)
Mom Social Security: $1,778/month
Total Income: $81,828/year (will increase to $123,828 in 2 years)
Questions
1) Please review my parent's asset allocation. Would you make any changes right now?
2) My dad also plans on withdrawing ~$110,000/year from Traditional IRA to either Roth or High Yield Savings to reduce RMDs at age 73. Is this a sound plan?
3) Should my dad take social security sooner than 70? He is in relatively good health.
4) is there any benefit to moving from mutual funds to ETFs?
Thanks!
Debt: None
Tax Filing Status: Married
Tax Rate: 24% Federal, 3.7% State
State of Residence: Pennsylvania
Ages: 68 Male & 67 Female
Needed Retirement income: $135,000/year
Desired Asset Allocation: Pulled investments out of the stock market on July 3, 2024 due to global uncertainty and because of Warren Buffet selling more than half his Apple stock. Also was influenced by Russia/Ukraine and Israel wars and high US debt. Says CNN fear index says people are operating under extreme fear.
Currently wants to hold mostly treasuries. Says he will go back into the market at 60% stocks and 40% bonds in the future. Does not like international stock because it has not performed well so would likely go back into mostly US stock.
Current Retirement Assets
Total Value: $5,896,000
Traditional IRA
11.30%Vanguard Total Bond Market Index Fund Admiral Shares
22.96%Vanguard Federal Money Market Fund
12.09%Vanguard Treasury Money Market Fund
Roth IRA
6.34%Vanguard Federal Money Market Fund
0.83%Vanguard Treasury Money Market Fund
TSP
23.74%TSP G Fund
I-Bonds
0.37%I-Bonds
Taxable
8.85%Vanguard 500 Index Fund Admiral Shares
0.17%Vanguard Mid-Cap Growth Index Fund Admiral Shares
0.19%Crypto
1.27%Cash in High Yield Savings ($75,000)
House
11.87%House
Income
Dad Pension: $2,343/month (not inflation adjusted)
Dad Social Security: Will take at age 70. Will be ~$3,500/month
Mom Pension: $2,698/month (is inflation adjusted)
Mom Social Security: $1,778/month
Total Income: $81,828/year (will increase to $123,828 in 2 years)
Questions
1) Please review my parent's asset allocation. Would you make any changes right now?
2) My dad also plans on withdrawing ~$110,000/year from Traditional IRA to either Roth or High Yield Savings to reduce RMDs at age 73. Is this a sound plan?
3) Should my dad take social security sooner than 70? He is in relatively good health.
4) is there any benefit to moving from mutual funds to ETFs?
Thanks!
Statistics: Posted by lexor — Tue Aug 13, 2024 9:48 pm — Replies 2 — Views 546