Retiree Seeks Assist with Reallocations to Simplify Portfolio

Anitapicklelex wrote: ↑Mon Sep 02, 2024 11:23 am
What are the foundations and rules affecting shifting/transferring funds from taxable account to/from Conventional IRA’s and Roth IRA’s. I do know you are able to do a conversion from Trad. IRA to Roth and pay the taxes. However it’s a must to have earned revenue to make a contribution to Roth or Conventional IRA. I’m retired and do not need any earned revenue. Altering the quantities in my Conventional IRA would additionally have an effect on my RMD.

All the pieces you cited about earned revenue required for contributions to an IRA are true. The strategies above do NOT make any strikes between accounts; when you look fastidiously it’s best to see that the overall worth of the Trad IRA within the “present” part is precisely equal to the overall worth within the “proposed” part (similar with Taxable and with Roth IRA), so the strikes I am suggesting are inside every particular person account.

Anitapicklelex wrote: ↑Mon Sep 02, 2024 11:23 am
I’ll talk about the tax affect of promoting/shifting funds with my CPA quickly. Is it your opinion that the AGG is the one bond fund I would like? 700K looks as if a major quantity on this fund. I understand you have been making an attempt to attain 35% bonds. With you assist, I must get a greater understanding of shifting funds round.

AGG per Morningstar is a “complete” bond fund, so it holds US authorities bonds in addition to company bonds with of quite a lot of maturities (brief, intermediate, lengthy) with a median period of about 6 years. There are 11,790 bonds so the default of anybody bond is an insignificant affect on the general fund. It is seemingly very akin to the overall bond funds which can be really useful within the Bogleheads 3-Fund Portfolio corresponding to:

Vanguard Complete Bond Market Fund (VBTLX)
Schwab U.S. Mixture Bond Index Fund (SWAGX)
Constancy U.S. Bond Index Fund (FXNAX)

…and actually it is listed in that Wiki matter underneath ETF variants to compose a 3-Fund portfolio, so I might say it is superb to place $700K into this fund so long as you perceive how any bond funds works and haven’t got the false perception that it is “secure, ballast, strikes reverse of shares, and so on.” Should you want bonds, it is a appropriate fund.

Anitapicklelex wrote: ↑Mon Sep 02, 2024 11:23 am
BTW, what’s your background and place with Bogleheads?

Like most right here, I am a finance fanatic hoping to assist posters with their portfolio critiques. My B.S. is in laptop science and my M.S. is in techniques engineer, not in finance (nor do I’ve certifications for CFA, CFP, nor CPA designation). I received concerned with the predecessor to this discussion board over on Morningstar’s Vanguard Diehards again within the Nineties after my father-in-law handed and we inherited particular person shares and mutual funds, with neither me nor my spouse having a clue about investments. I discovered an awesome deal on Van Diehards, learn Eric Tyson’s Private Finance for Dummies and Jack Bogle’s Frequent Sense on Mutual Funds, and put my engineering math expertise in direction of understanding what we had and the place we wished to be. I took a protracted break from Van Diehards as my profession turned extra demanding, however now in semi-retirement I am again right here on Bogleheads.org to making an attempt to assist others with their funding & private finance questions.

I believe the one ones with a acknowledged “place with Bogleheads” could be @grabiner and @nispirius, who’re on the advisory board, in addition to Alex (this board’s founder). Emeritus members (in my view) would come with Taylor Larimore (creator of the Bogleheads’ Guide to the 3-Fund Portfolio) and Mel Lindauer (co-author of the The Bogleheads’ Guide to Investing), each of whom I’ve met again on the Diehards-II gathering at Vanguard HQ Valley Forge, PA (together with Jason Zweig and Mr. Bogle who have been audio system at that gathering).

I am undecided I’ve seen anybody ask a few “place” inside the discussion board… everybody tries their greatest to assist; like every public discussion board some responses might be extra related to a poster than others and until somebody says they maintain a particular certification, it’s best to take into account everybody’s responses in that spirit of “making an attempt to assist,” however not skilled recommendation. Should you want such certifications, then we are able to provide strategies about flat-fee or hourly-fee advice-only advisors (which hopefully steers you away from advisors that earn their hold from Property Below Administration (AUM) and/or fee for promoting particular merchandise to you, which typically is a battle of curiosity between what’s greatest for you and what’s essentially the most revenue for them).