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Earlier this month I was able to retire at 54. I would like to thank all of you on this board for your invaluable guidance and insight which really assisted me in reaching this goal. Though I don't post much I do read everything that is posted.

I have a after tax account with Vanguard that I created back in 2008 after my wife and I paid off our house. We took the monthly mortgage and started to drip it in five different index funds. Once a year I would add more money to get them back to their original percentages which was 20% in each fund. This has worked out just fine since my wife and I were maxing out our 401Ks and this gave us an opportunity to continue to invest. Over the twelve years these funds have grown quite nicely.

My question is now that I am retired and my wife continues to work for another few years since she is a bit younger than I we are no longer able to drip into these funds. Due to the correction earlier this year the percentages have gotten a bit out of whack. So much so and due to their size it would cost tens of thousands of dollars to get them back to their original twenty percent each. So I see I have a few options here. I either let them ride for the next few years until we start to draw down the accounts. I can then use that draw down to rebalance. Another option would be to go ahead and rebalance now and take the tax hit. I am going to have to pay it sooner or later but would think it would be better to wait until we are in a lower tax bracket. The third option would be to got into our IRAs and tweak those to make up the difference in rebalancing. Since these funds are in an after tax account and obviously the IRAs are pretax I like to keep them separate but I do have that option as well.

Here are the funds and their current percentages:


Vanguard Total International Stock Index ETF 20.78%
Vanguard Total Bond Market Index Fund Admiral Shares 20.73%
Vanguard Real Estate Index Fund Admiral Shares 18.80%
Vanguard Inflation-Protected Securities Fund Admiral Shares 17.86%
Vanguard Total Stock Market Index ETF 21.83%

Any input would be greatly appreciated and thank you in advance.

Gary
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