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!
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