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Author: donsplace Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: planning help, please Date: 7/4/2000 4:17 PM
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I'm newly retired. No pensions.
My SS is about $900/mo which covers our expenses (taxes, insurances, utilities, auto). My wife's $770 SS will start coming in next year.
Our $150K house is f&c.
Assets are mostly in Vang., Janus and Price funds, as well as some in AIM and Putnam.
I also have about 60K in various 'good' equities - 'good', as in HD, Walmart, Citigroup, MSFT, HON, P&G, Dial, and a bunch of other sorry issues.
At last count (12/99 statements) everything totaled just about at $400K. Where they are now, I can't say - afraid to look!
I'll be selling my house in a year or so, and pretty much transferring that money into a new house we're planning.
Now for the questions:
When we decide to begin using our savings, how should we do that? Income from bonds?
The taxes, if we sell, will be a killer. Suppose we use the IRA and 410K equity funds to build a 'laddered' bond portfolio and draw from that? Does that make sense? Is it do-able?
It's nice enough to have $400K or so built up, but preserving the value while trying to get to a position of using the money seems to be a real ponderable.

Any and all suggestions will be appreciated.
If you want to contact me directly, I'm at
DONSPLACE @JUNO.COM
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4377 of 19483
Subject: Re: planning help, please Date: 7/4/2000 5:25 PM
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When we decide to begin using our savings, how should we do that? Income from bonds?
The taxes, if we sell, will be a killer. Suppose we use the IRA and 410K equity funds to build a 'laddered' bond portfolio
and draw from that? Does that make sense? Is it do-able?
It's nice enough to have $400K or so built up, but preserving the value while trying to get to a position of using the
money seems to be a real ponderable.


Once you determin how much you want in bonds it does make sence to have the bonds in the IRA since everythig you take out is subject to regular tax. Have stocks outside as the gain will only be taxed at 20% max when you sell.

You say taxes will be a killer when you sell. They (capital gains)are less than your regular income tax on your salary.

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