Personal Investments • Portfolio Review Request Please

Emergency funds: 7 month

Debt: None

Tax Filing Status: Single

Tax Rate: 24% Federal 4.7% State

State of Residence: MS

Age: 72 retired

Desired Asset allocation: 65% stocks / 35% bonds; Desired International allocation: Little to none

Investment Portfolio Total $4.8M

Home $400K

Income
Social Sec $30K ; no pension
Annual Expenses
Around $100K, including taxes

I included % profit (last figure on the right) for my taxable holdings below as some will generate significant gains. Virtually all of it is LT Cap Gains. There’s nothing left to Tax Loss Harvest.

Taxable $2.1M
4.2%APPLE INCAAPL80% profit
6.0%Home DepotHD99%
5.4%MicrosoftMSFT92%
1.5%Schwab 1000SNXFX0.05%73%
0.9%Vanguard Dividend GrowthVDIGX0.29%58%
0.9% Vanguard Dividend Appreciation VIG 0.06 45%
15.3%VAN TOTAL STOCKVTI0.03%54%
2.5%INVESCO QQQQQQ0.20%51%
1.4%Van Global Equity FundVHGEX0.42%31%
4.6%tBills(face value 220K)

tIRA $1M
11.6%Van Total Bond Market Index AdmVBTLX0.05%
9.3%Van Intermediate Inv-Grade AdmVFIDX0.10%

Roth IRA $1.7M
1.9%INVESCO QQQQQQ0.20%
2.2%Van Intermediate Investment GradeVFIDX0.10%
32.4% VAN SP 500 INDEX VOO0.03 %
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Notes:

• Individual stocks have grown to 15% of my portfolio. AA has risen to 70/30
• I estimate my MAGI to date is $100K. Year end target is to stay under $160K, maybe $190K. (a MAGI of 163K to about 190K incurs an additional $1.5K in IRMAA)
• I’ve shied away from TIPS. I don’t know that I fully understand or like them. I feel the size of my portfolio and other options already give me enough inflation protection.
• I start taking RMDs next year, about $40K in 2025
• Already created a DAF in the past. Will start QCDs next year

Questions:

1. I have to move about $250K from stocks to bonds if I’m to reach my target AA in 2025. I can sell 60K to 90K in taxable and move the balance of ($160K to $190K) in Roth from SP 500 to the Intermediate bond fund? I hate to hold that much in bonds in a Roth but guess that's the only choice? Other than a glide path over the next couple years.
2. Do I stick to selling individual stocks in my taxable or are there funds/ETFs that should be included in sales from taxable account?
3. Where do I put the cash generated selling in taxable? At 24% tax bracket I don’t think muni’s make sense. Do more tbills make sense? They’re saving on state tax but generate ordinary income taxable by the Feds
4. I estimate $13K in tbill interest this year. All of it taxed at 24% - ordinary income. Not sure if there are any other good non-stock alternatives for a lower tax rate. I guess treasuries at least keep me from paying state tax too
5. Any other comments or changes? Appreciate it all.

Statistics: Posted by jgg — Sat Nov 16, 2024 5:49 am — Replies 0 — Views 71

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