No. of Recommendations: 1
Greetings fellow fools! I've been reading this board for about 5 weeks now and have read the past 6 months of topics. It's been extremely valuable learning for me, moreso than the SA newsletter.
So, I was layed off about 4 weeks ago and am considering making a go of it for retirement at this point. I will be 61 after this 2017 Xmas, and 98% of my retirement savings is split between my traditional IRA and my ex-employer 401K ... all pre-tax money totaling 1.2 mil.
My main question here is this ... It seems since all this money will be taxable when I make my 4% SWR withdrawals, there is no tax advantage of any one income investment strategy over another in this situation. I am trying to decide between going with option A (1 year cash reserves, 5 year bond ladder, and the remaining 50% invested in growth stocks) versus option B (all money invested in traditional, bell weather dividend paying stocks to achieve a 4+% withdrawal rate from dividend income only).
I don't think there would be any tax advantage of one option over the other since it's all trade IRA and 401K money ... is this a correct assumption?
Any thoughts about which option would end up with the most money remaining after 30+ years?
Any other low risk options I should consider?
Looking forward to your replies on this. Thanks!
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement