I think this is a good plan. It can certainly make rebalancing easier.As I have started modeling income in retirement, specifically looking at RMDs, I realize that I might like the Traditional IRA to grow more slowly over the next seven years, from age 65 to age 72. I can try to do that by reducing equities in the IRA. I'll be able to keep the overall 50/50 balance by increasing the proportion of equities elsewhere.One nice thing about your new plan is that it will decrease the growth of your tax-deferred account. That is helpful to some people because RMDs on a wildly growing tax-deferred account can cause too much taxable income just when you least want it.
I think your new plan is better than your current plan.
Welcome to the forum.
After messing around with a spreadsheet, I may have convinced myself to leave 10% of each account in the unfavored asset (ie. 90/10 instead of 100/0) to help deal with possible unexpected situations. Leaving 10% of Taxable invested in bonds may add some flexibility.
Statistics: Posted by retiredjg — Tue Aug 13, 2024 7:02 pm — Replies 13 — Views 972