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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 share of bonds ought to I hold in my Portfolio. Contemplating that Bonds can 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% as of late. 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 share of bonds ought to I hold in my Portfolio. Contemplating that Bonds can 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% as of late. Any assist appreciated.
In all probability you need no less than sufficient fastened revenue in order that you do not have to promote shares throughout a crash, to get cash to dwell.
Aside from that, it is onerous to counsel an AA with out realizing all of your info. Should you present that utilizing the format from this wiki hyperlink https://www.bogleheads.org/wiki/Asking_ … _questions I am positive that individuals 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 share of bonds ought to I hold in my Portfolio. Contemplating that Bonds can 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% as of late. Any assist appreciated.
A 90/10 portfolio doesn’t appear affordable for a 70 yr previous except you might be investing for heirs (have extra money than you’ll be able to 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 abnormal 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
Post
by BitTooAggressive »
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 share of bonds ought to I hold in my Portfolio. Contemplating that Bonds can 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% as of late. Any assist appreciated.
Use a great allocation on your wants. Taxes are a secondary concern.