The purpose of this post is to seek the wisdom of the Bogleheads on one particular element of the hypothetical situation outlined below: The couple has a relatively large Roth IRA balance. Does that present any specific planning opportunities (beyond the usual Boglehead wisdom)?
Husband (54) is a corporate professional (W-2 earnings) who expects to retire in the next year or two. Wife (56) is self-employed (Schedule C earnings) and may continue working indefinitely. They expect to be in the 35% or 37% federal tax bracket for the balance of his career.
Financial details (round numbers to keep this simple):
Taxable: $2,000,000 mostly in equities
Traditional IRAs/401Ks: $2,500,000 tilted toward bonds
Roth IRAs: $1,000,000 all in equities
Total Investment Assets: $5,500,000
Target Asset Allocation: 70-75% equities / 25-30% bonds
No mortgage or other debt. Two kids in college (educations will be funded from other sources).
Budgeted annual spend, post retirement: $125,000 (based on historical spending patterns, tracked closely)
What do you think? Does the large Roth IRA balance open up any unique/special planning opportunities?
Husband (54) is a corporate professional (W-2 earnings) who expects to retire in the next year or two. Wife (56) is self-employed (Schedule C earnings) and may continue working indefinitely. They expect to be in the 35% or 37% federal tax bracket for the balance of his career.
Financial details (round numbers to keep this simple):
Taxable: $2,000,000 mostly in equities
Traditional IRAs/401Ks: $2,500,000 tilted toward bonds
Roth IRAs: $1,000,000 all in equities
Total Investment Assets: $5,500,000
Target Asset Allocation: 70-75% equities / 25-30% bonds
No mortgage or other debt. Two kids in college (educations will be funded from other sources).
Budgeted annual spend, post retirement: $125,000 (based on historical spending patterns, tracked closely)
What do you think? Does the large Roth IRA balance open up any unique/special planning opportunities?
Statistics: Posted by The Man with the Axe — Fri Jul 12, 2024 9:21 pm — Replies 3 — Views 563