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Asset allocation for 70 year old with no IRA or 401K
I’m a type of self employed people, and after a divorce, solely have a taxable account. In my case what proportion of bonds ought to I hold in my Portfolio. Contemplating that Bonds could be not be tax favored, would you go along with a Muni index fund for bonds. Or go along with a 90/10 inventory to Bond Portfolio. Muni Bond tax free index funds are solely paying 1.9% nowadays. Any assist appreciated.
Re: Asset allocation for 70 year old with no IRA or 401K
Tatala wrote: ↑Thu Sep 12, 2024 8:37 am
I’m a type of self employed people, and after a divorce, solely have a taxable account. In my case what proportion of bonds ought to I hold in my Portfolio. Contemplating that Bonds could be not be tax favored, would you go along with a Muni index fund for bonds. Or go along with a 90/10 inventory to Bond Portfolio. Muni Bond tax free index funds are solely paying 1.9% nowadays. Any assist appreciated.
In all probability you need a minimum of sufficient fastened earnings in order that you do not have to promote shares throughout a crash, to get cash to reside.
Other than that, it is onerous to counsel an AA with out figuring out all of your info. If you happen to present that utilizing the format from this wiki hyperlink https://www.bogleheads.org/wiki/Asking_ … _questions I am positive that folks on the discussion board will chime in.
Retired 12/31/2015, age 58 years 77 days (however who’s counting?)
Re: Asset allocation for 70 year old with no IRA or 401K
Tatala wrote: ↑Thu Sep 12, 2024 8:37 am
I’m a type of self employed people, and after a divorce, solely have a taxable account. In my case what proportion of bonds ought to I hold in my Portfolio. Contemplating that Bonds could be not be tax favored, would you go along with a Muni index fund for bonds. Or go along with a 90/10 inventory to Bond Portfolio. Muni Bond tax free index funds are solely paying 1.9% nowadays. Any assist appreciated.
A 90/10 portfolio doesn’t appear affordable for a 70 yr previous until you’re investing for heirs (have extra money than you possibly can ever spend).
The kind of bonds you set into taxable relies upon largely in your tax bracket. Increased bracket individuals ought to use munis. Decrease bracket individuals ought to use extraordinary taxable bonds or CDs or cash market.
What’s your tax bracket? Are you in a excessive tax state?
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Re: Asset allocation for 70 year old with no IRA or 401K
Tatala wrote: ↑Thu Sep 12, 2024 8:37 am
I’m a type of self employed people, and after a divorce, solely have a taxable account. In my case what proportion of bonds ought to I hold in my Portfolio. Contemplating that Bonds could be not be tax favored, would you go along with a Muni index fund for bonds. Or go along with a 90/10 inventory to Bond Portfolio. Muni Bond tax free index funds are solely paying 1.9% nowadays. Any assist appreciated.
Use a very good allocation to your wants. Taxes are a secondary concern.
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Re: Asset allocation for 70 year old with no IRA or 401K
Tatala wrote: ↑Thu Sep 12, 2024 8:37 am
I’m a type of self employed people, and after a divorce, solely have a taxable account. In my case what proportion of bonds ought to I hold in my Portfolio. Contemplating that Bonds could be not be tax favored, would you go along with a Muni index fund for bonds. Or go along with a 90/10 inventory to Bond Portfolio. Muni Bond tax free index funds are solely paying 1.9% nowadays. Any assist appreciated.
to op:
Some strategies at Constancy (present fee charts for fastened).
https://fixedincome.fidelity.com/ftgw/f … hest-yield
CD ladders (new problem), Treasury ladders (new problem, not funds), and many others.
As a proportion of your fastened allocation.
Revisit your AA decisions with these instruments:
Partaking Information portfolio visualizer and projections:
https://engaging-data.com/early-retirem … and-tools/
j
Bogleheads Wiki: All the pieces You Must Know
Re: Asset allocation for 70 year old with no IRA or 401K
Call_Me_Op wrote: ↑Fri Sep 13, 2024 6:04 am
I might watch out about letting the tax tail wag the investing canine. Focusing on a 90/10 portfolio as a result of you are attempting to attenuate taxes will not be the fitting strategy.
Agreed.
As others have mentioned, decide an general allocation between shares and bonds that is smart for you.
Then resolve which sort of bonds (or bond funds) to carry.
You don’t wish to find yourself with a portfolio that’s too aggressive to your state of affairs simply to keep away from taxes.
Have you learnt what your marginal federal bracket is?
One factor that humbles me deeply is to see that human genius has its limits whereas human stupidity doesn’t. – Alexandre Dumas, fils
