What are examples of bond funds you'd recommend to create the diversified bond fund portfolio? Would the OP take equal withdrawals from all three?Just create your own annuity. Your list of investments and the value of your portfolio would allow you to invest a percentage of your port in 3 bond funds of your choice. Diversify them in investment terms and duration. Set up an automatic monthly withdrawal for the amount you need for your expenses. Instant annuity, without commission or surrender cost.Just had another meeting with my Fidelity rep last week. I'm getting ready to retire in about 6 months, so his focus in our meeting is to ensure that my portfolio will generate an income stream to support essential expenses, while discretionary expenses would come from selling investments. Currently, I have no income streams in my portfolio, so he is suggesting purchasing a fixed income annuity to cover my estimated $5K/month of essential expenses. I understand the logic of this thinking, but am uncomfortable moving a relatively large chunk of my portfolio to an insurance company to get a steady flow of checks every month.
What do others think of this advice?
Are there better ways to cover expenses during retirement?
My specifics -
Emergency Funds: Yes - CD's and savings - ~100K
Debt: None
Tax Filing: Married Filing Jointly
Tax Rate: 22% Federal, no state income tax
State: WA
Age: 66, wife is 64
Desired Asset Allocation: 60 stock/ 40 bond/fixed
Desired International Allocation: 20%
Portfolio size: ~3M
Taxable:
3.8% Fidelity Money Mkt (FZDXX)
9.8% Vang Total Stock Mkt Index (VTSAX) (.04)
3.5% 3 yr Annuity started 8/2023, 4.85%, MassMutual
0.2% Cash
His Rollover IRA:
10.0% Fidelity Infl-Prot Bond Index (FIPDX) (.05)
8.9% Fidelity Zero Large Cap Index (FNILX) (0)
3.3% Fidelity US Bond Index(FXNAX) (.03)
4.9% Vanguard Total Int Bond Index (VTABX) (.11)
13.7% 5 yr Annuity started 1/2024, 4.4%, USAA
His Roth IRA:
2.0% Fidelity Zero Large Cap Index (FNILX) (0)
0.9% Fidelity MidCap Index (FSMDX) (.03)
5.5% Fidelity Real Estate Index (FSRNX) (.07)
9.6% Fidelity Zero Int Index (FZILX) (0)
Her Roth IRA:
1.3% Fidelity Zero Large Cap Index (FNILX) (0)
5.2% Fidelity Zero Int Index (FZILX) (0)
His Roth 401K:
13.4% SSgA S&P 500 Index (SSSYX) (.01)
4.0% SSgA Russell Sm/Mid Cap Index (SSMKX) (.04)
Contributions:
$8000 His Roth IRA
$8000 Her Roth IRA
$30,500 His Roth 401K
$4,700 - His 401K Company Match
Statistics: Posted by catchinup — Wed Sep 18, 2024 12:02 am — Replies 32 — Views 1837