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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: ysette9 on April 01, 2021, 04:03:07 PM

Title: Windfall asset allocation question
Post by: ysette9 on April 01, 2021, 04:03:07 PM
The proceeds from the sale of our house went through today so we have a pile-o-cash to allocate. I'd appreciate throwing some ideas off of you lot.

We have been employing a bond tend/reverse equity glidepath strategy. Our current target AA is 60/40 and we'll increase stocks slowly over time over the first ten years in retirement. Practically speaking we expect to spend down our bonds in our taxable account in when we start living off of our investments. We have chosen to keep our Roth money in stocks for growth, and put our bonds first into traditional retirement accounts. Once we ran out of room there we moved to putting bonds in our taxable account. The reasoning for that was we wanted to preserve long term growth of stocks in our Roth as we plan on spending that money last. We also don't intend to have a bunch of bonds in taxable forever since eventually we will start living off of our money.

That said, we just sold our house and have over $450k to deploy. Ordinarily we'd just stick with our current plan, which would be putting VTSAX/VTIAX/VTBLX/VTABX in taxable. I'm now considering whether we should stick some bond money instead into muni bonds. I'm waffling on that so I'd love your ideas.

Random thoughts rattling around in my head: