Hello everyone!
This is my first time posting.I could really use you alls advice/guidance/ opinions on my retirement future.
I am trying to learn to be a DYI-er in retirement. I would really appreciate it if you would scrutinize my assets and let me know if I’m on a good path because I honestly really don’t know what I’m doing. Im trying to educate myself on whether I’m going to run into tax trouble as I have been looking at videos on the “tax torpedo” and I’m trying to learn about how to stay in the lowest tax bracket possible but I’m not quite there yet.
About me: I am a 56 year old single F with no dependents. I do not own a home and do not plan on purchasing another home. I do stand to inherit a family home that I might live in for maybe five years and then pass it on even though I really don’t like the area. I currently pay about $1,200.00 in rent.
Once my CD matures I will most likely buy a car with cash and should only need to purchase one more car after that in my lifetime. I have no debt.
I would like to retire sooner than later but I’m willing to work until age 65 just to avoid having to figure out how to get ACA insurance at a decent price.
I do not have long term care insurance.
My monthly income needs: $5000.00 I’m estimating on the higher side (higher as I age to pay for independent/assisted living. (I have a place in mind for when the time comes)
My assets are as follows:
401k
Total $978,007.23 as of 10/25/24
Converted to Roth 401k. Currently $70,079.93 is Roth Contribution (7.24%)
Asset Allocation
Vanguard Institutional 500 Index Trust 64.16%
Vanguard Institutional Total International Stock Market Index Trust. 15.74%
Vanguard Institutional Total Bond Market Index Trust. 19.48%
--I am planning on keeping this the same except adjust to get bonds to 30% but I’m open to suggestions.
Roth IRA:
Total $236,048.83 as of 10/25/24
Asset Allocation
1-VFIIX Vanguard GNMA Investor CL $16,191.72
2-VTSAX VANGUARD TOTAL STOCK MARKET INDEX ADMIRAL CL $115,460.97
3-VTTHX Vanguard Target Retirement 2035 Fund $88,723.26
-Vanguard Total Stock Market Index Fund Institutional Plus Shares 41.6%
-Vanguard Total International Stock Index Fund Investor Shares 27.8%
-Vanguard Total Bond Market II Index Fund Investor Shares 21.5%
-Vanguard TotalInternational Bond IIIndex Fund 9.1%
4-NVDA NVIDIA CORP. shares = 110.016. Total = $15,571.66
—I was thinking of rolling VFIIX andVTSAX into VTTHX and just hold the target date fund and the few experimental NVDA stocks in the Roth IRA.
This is because I was reading a Boglehead thread where wash sales were being discussed and I think it was said VTSAX and VTI would cause a wash when tax harvesting as I’m thinking about opening a brokerage account with VTI with some of my cash as I read it’s best for a brokerage account. Do I even need to be concerned about a wash?
Cash:
Total $636,000
CD = $600,000 5.15 APY matures in 6/2025
Saving = $36,000 APY 4.0%
(Plus a Checking and savings with about $4,500 I use for everyday and bill pay)
—From what I’ve been reading, I’m too heavy in cash. From what I’ve been figuring, if I stay heavy in cash, the interest I earn on it will be counted as unearned income and taxed accordingly. But, if I invest in a brokerage account it will be taxed at the lower capital gains rate if I can figure out how to keep my income low enough using the different accounts. If I can get over my fear of losing the money, I will open a brokerage account and put $400,000 in VTI and keep $250,000 or so dollars in a regular account in CDs and savings.
Social Security:
As of 9/2024
@Age 62 = $2,070.00
@Age 65 = $2,548.00
@Age 67 = $2,947.00
—if I claim social security at the above ages my SS will be as noted.
I am thinking I will be able to possibly hold off taking it until age 67 but, if not, I will take it at 65. SS throws in another income source to juggle in figuring out how to keep taxes down along with worrying about RMDs and sequence of returns…oh boy! I don’t think IRMAA will be an issue for me…but I’m still learning.
I hope this makes sense to you all. Thank you in advance for taking the time to look it over and hopefully give your advice/guidance/opinion.
This is my first time posting.I could really use you alls advice/guidance/ opinions on my retirement future.
I am trying to learn to be a DYI-er in retirement. I would really appreciate it if you would scrutinize my assets and let me know if I’m on a good path because I honestly really don’t know what I’m doing. Im trying to educate myself on whether I’m going to run into tax trouble as I have been looking at videos on the “tax torpedo” and I’m trying to learn about how to stay in the lowest tax bracket possible but I’m not quite there yet.
About me: I am a 56 year old single F with no dependents. I do not own a home and do not plan on purchasing another home. I do stand to inherit a family home that I might live in for maybe five years and then pass it on even though I really don’t like the area. I currently pay about $1,200.00 in rent.
Once my CD matures I will most likely buy a car with cash and should only need to purchase one more car after that in my lifetime. I have no debt.
I would like to retire sooner than later but I’m willing to work until age 65 just to avoid having to figure out how to get ACA insurance at a decent price.
I do not have long term care insurance.
My monthly income needs: $5000.00 I’m estimating on the higher side (higher as I age to pay for independent/assisted living. (I have a place in mind for when the time comes)
My assets are as follows:
401k
Total $978,007.23 as of 10/25/24
Converted to Roth 401k. Currently $70,079.93 is Roth Contribution (7.24%)
Asset Allocation
Vanguard Institutional 500 Index Trust 64.16%
Vanguard Institutional Total International Stock Market Index Trust. 15.74%
Vanguard Institutional Total Bond Market Index Trust. 19.48%
--I am planning on keeping this the same except adjust to get bonds to 30% but I’m open to suggestions.
Roth IRA:
Total $236,048.83 as of 10/25/24
Asset Allocation
1-VFIIX Vanguard GNMA Investor CL $16,191.72
2-VTSAX VANGUARD TOTAL STOCK MARKET INDEX ADMIRAL CL $115,460.97
3-VTTHX Vanguard Target Retirement 2035 Fund $88,723.26
-Vanguard Total Stock Market Index Fund Institutional Plus Shares 41.6%
-Vanguard Total International Stock Index Fund Investor Shares 27.8%
-Vanguard Total Bond Market II Index Fund Investor Shares 21.5%
-Vanguard TotalInternational Bond IIIndex Fund 9.1%
4-NVDA NVIDIA CORP. shares = 110.016. Total = $15,571.66
—I was thinking of rolling VFIIX andVTSAX into VTTHX and just hold the target date fund and the few experimental NVDA stocks in the Roth IRA.
This is because I was reading a Boglehead thread where wash sales were being discussed and I think it was said VTSAX and VTI would cause a wash when tax harvesting as I’m thinking about opening a brokerage account with VTI with some of my cash as I read it’s best for a brokerage account. Do I even need to be concerned about a wash?
Cash:
Total $636,000
CD = $600,000 5.15 APY matures in 6/2025
Saving = $36,000 APY 4.0%
(Plus a Checking and savings with about $4,500 I use for everyday and bill pay)
—From what I’ve been reading, I’m too heavy in cash. From what I’ve been figuring, if I stay heavy in cash, the interest I earn on it will be counted as unearned income and taxed accordingly. But, if I invest in a brokerage account it will be taxed at the lower capital gains rate if I can figure out how to keep my income low enough using the different accounts. If I can get over my fear of losing the money, I will open a brokerage account and put $400,000 in VTI and keep $250,000 or so dollars in a regular account in CDs and savings.
Social Security:
As of 9/2024
@Age 62 = $2,070.00
@Age 65 = $2,548.00
@Age 67 = $2,947.00
—if I claim social security at the above ages my SS will be as noted.
I am thinking I will be able to possibly hold off taking it until age 67 but, if not, I will take it at 65. SS throws in another income source to juggle in figuring out how to keep taxes down along with worrying about RMDs and sequence of returns…oh boy! I don’t think IRMAA will be an issue for me…but I’m still learning.
I hope this makes sense to you all. Thank you in advance for taking the time to look it over and hopefully give your advice/guidance/opinion.
Statistics: Posted by Grateful01 — Sat Oct 26, 2024 8:46 pm — Replies 3 — Views 286