Hello Everyone,
I have a question that’s a combination of rebalancing and preparing for retirement.
In the past I’ve always done rebalancing in tax-deferred accounts. Presently, my traditional IRA and 401-K are all bonds. My taxable account and Roth IRA are all stocks. My stocks are overweight. My options for rebalancing are to sell stocks and buy bonds in either my taxable account or Roth IRA. Neither option seems like a good idea.
Now here’s the preparing for retirement part. Will retire in possibly 2-3 years. From what I’ve read, I should try to have a couple of year’s worth of retirement expenses in cash when I retire. Instead of reinvesting dividends from the stock funds in my taxable account, I’ve considered redirecting those dividends into a cash fund. This will reduce my value of stocks to accomplish rebalancing and also accumulate cash for retirement. This would seem to address both of my concerns.
Does this seem reasonable ? What are my other options ?
Would appreciate any thoughts. Thanks !
I have a question that’s a combination of rebalancing and preparing for retirement.
In the past I’ve always done rebalancing in tax-deferred accounts. Presently, my traditional IRA and 401-K are all bonds. My taxable account and Roth IRA are all stocks. My stocks are overweight. My options for rebalancing are to sell stocks and buy bonds in either my taxable account or Roth IRA. Neither option seems like a good idea.
Now here’s the preparing for retirement part. Will retire in possibly 2-3 years. From what I’ve read, I should try to have a couple of year’s worth of retirement expenses in cash when I retire. Instead of reinvesting dividends from the stock funds in my taxable account, I’ve considered redirecting those dividends into a cash fund. This will reduce my value of stocks to accomplish rebalancing and also accumulate cash for retirement. This would seem to address both of my concerns.
Does this seem reasonable ? What are my other options ?
Would appreciate any thoughts. Thanks !
Statistics: Posted by phil627 — Thu May 16, 2024 11:46 am — Replies 6 — Views 364