Forum newbie here so will do my best to provide context for the question I have... Which essentially is how to make the pivot or shift in our portfolio strategy away from Growth/Balanced to a strategy of current income and capital preservation.
Me (63) and the Mrs. (70) are both retired. Completely debt free (including house) and both are collecting SS, combined about $50k/year.
Currently have around 2 years of funding for expenses in Checking account.
We have a taxable brokerage account at Vanguard with $100k, 50/50 split between VWIUX & VWSUX (~$3500/yr in Tax-exempt interest).
We each have a Traditional and a Roth IRA. Traditional IRAs combined value is $450k and combined Roth value is $345k.
IRA asset allocation is currently VTSAX - 28%, VBTLX - 27% and VWIAX - 45%.
Last 12 months of dividends and CGs with above allocation totaled just under $21k.
For now, we are thinking that we will leave the taxable brokerage account as is...
For the (4) IRAs, we are considering a significant shift in our AA, something more like the following:
- VBTLX 45%
- VWIAX 40%
- VTSAX 15%
The new AA would increase our monthly income from VBTLX, VWIAX would remain relatively unchanged, and the quarterly income from VTSAX would drop according to the reduced holdings. We are OK with that last point as we're looking to maintain just enough exposure to equities to provide moderate capital growth over our planning timeline (28 years).
Other than a change to the AA, are there other approaches or strategies we might consider to address the dual objectives of current income and capital preservation?
Thanks!!
BuckiLTD79
Me (63) and the Mrs. (70) are both retired. Completely debt free (including house) and both are collecting SS, combined about $50k/year.
Currently have around 2 years of funding for expenses in Checking account.
We have a taxable brokerage account at Vanguard with $100k, 50/50 split between VWIUX & VWSUX (~$3500/yr in Tax-exempt interest).
We each have a Traditional and a Roth IRA. Traditional IRAs combined value is $450k and combined Roth value is $345k.
IRA asset allocation is currently VTSAX - 28%, VBTLX - 27% and VWIAX - 45%.
Last 12 months of dividends and CGs with above allocation totaled just under $21k.
For now, we are thinking that we will leave the taxable brokerage account as is...
For the (4) IRAs, we are considering a significant shift in our AA, something more like the following:
- VBTLX 45%
- VWIAX 40%
- VTSAX 15%
The new AA would increase our monthly income from VBTLX, VWIAX would remain relatively unchanged, and the quarterly income from VTSAX would drop according to the reduced holdings. We are OK with that last point as we're looking to maintain just enough exposure to equities to provide moderate capital growth over our planning timeline (28 years).
Other than a change to the AA, are there other approaches or strategies we might consider to address the dual objectives of current income and capital preservation?
Thanks!!
BuckiLTD79
Statistics: Posted by BuckiLTD79 — Tue Sep 10, 2024 11:31 am — Replies 0 — Views 47