Author Topic: Accounts and allocation based on time frame?  (Read 542 times)

babytuckoo

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Accounts and allocation based on time frame?
« on: April 05, 2017, 07:15:19 PM »
I think I understand the concept of keeping certain assets in tax deferred accounts (bonds and REITís to defer taxable income/dividends).  My question is what to do in FIRE if it involves withdrawing money from different buckets and If I donít plan on doing a backdoor Roth?

All of my assets are in Vanguard funds and I plan to FIRE in 4 years (age 47).  I will have a short-term bucket with 2-3 years of cash from which I can withdraw first. I can then start pulling 4% from my taxable account (essentially an intermediate bucket).  I plan to start pulling from my tax-deferred accounts after age 59.5 (long term bucket) and just avoid the whole back door Roth since my taxable account will get me through till 59.5.

So, If I want a little more stability in my intermediate term taxable account, does it seem unreasonable to have bonds and REITs as assets (because of their tax implications on income)?

Conversely, since my tax-deferred account is my long-term bucket, does it seem unreasonable to have it devoted to only stock funds?

I keep thinking Iím missing something here since it seems the opposite of the standard advice.  Any thoughts? Anyone else not doing a backdoor Roth if the taxable account will get you through until 59.5?

Thanks.