I have a Question for you folks on short term investments for the years between ER and 59.5.
I currently have a small amount in taxable accounts – less than $60K, but plan to add a lot to that over the next 3 years, and will have $150-200K in taxable accounts before ER. This will be enough to fund the ER years of 55---59.5 if I choose to stop work entirely.
I have several IRAs also, enough to fund full retirement from 59.5 on, and understand I can do a 72T/SEPP from one or more of the IRAs if needed at 55, but I would prefer to keep maximum flexibility, and just draw down a taxable account instead (I may choose to do part time work, and If I did I would gross $72K/year, and wouldn’t want to draw any income from investments).
What investments do you recommend for this short term bridge period? I’m not interested in Real Estate or Landlording. I was thinking of putting my 5 year bridge Taxable account into I Series Treasury Bonds and TIPS or a low fee Vanguard TIPS based fund, and leaving the all the IRAs in total market and global market index funds. Overall I would have a decent portfolio balance of Bonds/Stocks, and I would be getting a break on state tax at least when drawing from the taxable account.
Who has a better idea?