Hi,
Reaching out to this community for perspective as I would like to target being ready to retire in 7-10 years. I have been looking at asset re-allocation and balancing and trying to figure out a glide path to retirement. I want to smooth out my lifestyle and spending so that I am doing things I enjoy now, rather than just postponing for retirement that may or may not actually arrive.
Can you please share any feedback on my plan?
1. Rebalance HSA & Roth IRA/401k into Index funds to enable growth (plan to draw last from them).
2. Rebalance taxable accounts so that my overall portfolio is 70/30 equities to bonds. The rebalance will be to move funds from equities into bonds.
3. Question: The retirement accounts (401k) are mainly in target retirement age funds. I appreciate the diversification, but my own allocation would be different from the target retirement age funds. I am not sure if I should move funds out of these target funds and instead invest directly into S&P 500 Index and a portion into bond funds? Any advice on the tradeoffs? I am considering the complications of adequate diversification if I move away from Target Retirement funds but I want higher returns ideally, and the target age funds seem a little more conservative than what I would prefer.
4. Stay the course on overall savings. Max out 401k. Buy iBonds annually. Additional savings go to taxable brokerage account and will do an annual rebalance as needed.
5. As long as I am on track with my savings, I want to intentionally spend some more on experiences, skills, and activities in the present: health, wellness, travel, hobbies, time with family, etc. In the past, I would just try to save more, but the value of time is coming more sharply into focus. I don't want to risk retirement but I also don't want to regret not getting out there and doing things when we are still healthy and our family is still here.
Any feedback on other items I should be considering or doing as I prepare to retire in the next 7-10 years?
Thanks
Reaching out to this community for perspective as I would like to target being ready to retire in 7-10 years. I have been looking at asset re-allocation and balancing and trying to figure out a glide path to retirement. I want to smooth out my lifestyle and spending so that I am doing things I enjoy now, rather than just postponing for retirement that may or may not actually arrive.
Can you please share any feedback on my plan?
1. Rebalance HSA & Roth IRA/401k into Index funds to enable growth (plan to draw last from them).
2. Rebalance taxable accounts so that my overall portfolio is 70/30 equities to bonds. The rebalance will be to move funds from equities into bonds.
3. Question: The retirement accounts (401k) are mainly in target retirement age funds. I appreciate the diversification, but my own allocation would be different from the target retirement age funds. I am not sure if I should move funds out of these target funds and instead invest directly into S&P 500 Index and a portion into bond funds? Any advice on the tradeoffs? I am considering the complications of adequate diversification if I move away from Target Retirement funds but I want higher returns ideally, and the target age funds seem a little more conservative than what I would prefer.
4. Stay the course on overall savings. Max out 401k. Buy iBonds annually. Additional savings go to taxable brokerage account and will do an annual rebalance as needed.
5. As long as I am on track with my savings, I want to intentionally spend some more on experiences, skills, and activities in the present: health, wellness, travel, hobbies, time with family, etc. In the past, I would just try to save more, but the value of time is coming more sharply into focus. I don't want to risk retirement but I also don't want to regret not getting out there and doing things when we are still healthy and our family is still here.
Any feedback on other items I should be considering or doing as I prepare to retire in the next 7-10 years?
Thanks
Statistics: Posted by Hubub — Tue May 07, 2024 11:57 pm — Replies 1 — Views 196