Can you share your withdrawal numbers from each account? My rough guess is that you are withdrawing about 150k-200k. Do you need all the cash flow if not then I would change the AA to 35/65 by converting the cash/MM fund from taxable into the high divided ETF e.g. VYM
Let us say if you change about 300k then it will reduce cash flow before tax by (5 -2.86)% of 300k = 6420. Assuming 5% for MM/cash and 2.86 is the dividend yield of VYM.
but the tax saving on RMDs will be about $754 per year based on the tax rate of 22% + 4.75% (fed+state) - 15% capital gain.
Increasing to 35/65 is not unreasonable. If you look at the vanguard retirement income fund.
The Target Retirement Income Fund is designed for investors already in retirement.
Let us say if you change about 300k then it will reduce cash flow before tax by (5 -2.86)% of 300k = 6420. Assuming 5% for MM/cash and 2.86 is the dividend yield of VYM.
but the tax saving on RMDs will be about $754 per year based on the tax rate of 22% + 4.75% (fed+state) - 15% capital gain.
Increasing to 35/65 is not unreasonable. If you look at the vanguard retirement income fund.
The Target Retirement Income Fund is designed for investors already in retirement.
Statistics: Posted by babystep — Sun May 19, 2024 11:31 pm — Replies 3 — Views 964