FIRE is imminent for me, and I have been thinking about how to structure my 'stache for easy and tax efficient spending. I was sweating this more a few months ago, but a modest inheritance dropped on Mrs. Acastus, so we have about 25% in taxable accounts instead of 10%. Much simpler. Now I don't have to use the 401k immediately.
Are there any special considerations on how to design the asset allocation or which type account to hold which assets in for withdrawal instead of accumulation? I have taxable, 401k, tIRA, and Roth IRA holdings. I don't need to tap tax deferred accounts early. I can wait until age 60 in a few years.
My basic plan is start with a 60% stock, 30% bond, 10% cash target allocation. As interests rates rise, I will slide a little more into bonds from cash and with longer duration. For spending, have 2-3 years in cash or similar to have ready for the next market meltdown. Refill this reserve quarterly or less. That and bond reserves will allow spending to continue at least 5 years and allow the stock portion to recover. Keep riskier assets in Roth, most bonds, S&P500, and other vanilla funds in tIRA, keep 401k invested in guaranteed contracts at 3.8% until bonds look more attractive. That is all the plan I have so far.
Am I done? Overthinking?
