Goal: I want to construct a bond ladder, but retirement plans will not let me buy individual bonds.
Background: I am currently employed and have a 401K and 403b through Empower. I do use the self-directed brokerage, which is through Schwab. We can buy stock funds and ETFs but not individual bonds, even through the SDB at Schwab.
I want to retire in June 2025 and had planned to roll over about $350,000 to an IRA, probably at Fidelity. Plan to use that IRA to buy a rolling forward (replenish each maturing rung) 7 year bond ladder with US Treasury notes; with plan to keep it going indefinitely. This would give me $50,000 available each year to spend if the stock market is down significantly, for a maximum of 7 years. Prefer to keep renewing the maturing rungs, but don't want to have to sell low from stock funds.
Reason for my question: I have been asked to consider continuing to work for my employer indefinitely after June 2025 at about 20% previous time and salary.
Question: I turn 59 1/2 in fall 2025 and can do one withdraw per year from each of the 401K and 403b funds while I remain employed in any capacity, so could theoretically still follow my rollover and bond ladder plan that way. But is it a viable alternative for me to buy the Black Rock iShares iBonds fixed term (fixed maturity date) Treasury ETFs via the Schwab SDB to construct a "bond ladder"?
Not interested in bond mutual funds, except possibly the iShares iBond Treasury ETFs.
thanks in advance.
Background: I am currently employed and have a 401K and 403b through Empower. I do use the self-directed brokerage, which is through Schwab. We can buy stock funds and ETFs but not individual bonds, even through the SDB at Schwab.
I want to retire in June 2025 and had planned to roll over about $350,000 to an IRA, probably at Fidelity. Plan to use that IRA to buy a rolling forward (replenish each maturing rung) 7 year bond ladder with US Treasury notes; with plan to keep it going indefinitely. This would give me $50,000 available each year to spend if the stock market is down significantly, for a maximum of 7 years. Prefer to keep renewing the maturing rungs, but don't want to have to sell low from stock funds.
Reason for my question: I have been asked to consider continuing to work for my employer indefinitely after June 2025 at about 20% previous time and salary.
Question: I turn 59 1/2 in fall 2025 and can do one withdraw per year from each of the 401K and 403b funds while I remain employed in any capacity, so could theoretically still follow my rollover and bond ladder plan that way. But is it a viable alternative for me to buy the Black Rock iShares iBonds fixed term (fixed maturity date) Treasury ETFs via the Schwab SDB to construct a "bond ladder"?
Not interested in bond mutual funds, except possibly the iShares iBond Treasury ETFs.
thanks in advance.
Statistics: Posted by Box of Rain — Sat Dec 07, 2024 9:50 am — Replies 2 — Views 94