My wife and I are in our seventies and I have been taking RMDs for several years. Most of our money is in my Roth and my IRA. My kids are the beneficiaries for the Roth and it is invested entirely in one world stock fund. The IRA was invested in the Vanguard Target Retirement fund which gave us a 60/40 asset allocation. In January of this year, I changed my IRA investment to an intermediate bond fund. This does two things; changes our asset allocation to about 50/50, and allows me to generate RMDs entirely from dividends generated by the bond fund. I don't like to have to sell stock funds.
With respect to question #3, 0% return on stocks would be no problem for me or my wife. My kids would inherit less. All my stocks are in my roth and my trust and my plans are to only spend my IRA. By the way Jonathan, I have changed my plan based on something you did. If I die before my wife, my 2 kids will immediately receive my roth. Hopefully, this will give them more options for retirement.
Hey Ken, I'm just curious. I have been accumulating I-bonds for years also and have been thinking about beginning to cash them in over time. How was the federal tax hit when you emptied your account? Tim
My father taught me much about money, but it was mostly how not to do it. There was no planning and every large bill was a surprise. I remember every year when he got the tax bill for the house it was panic. I used to say "Doesn't this bill come every year at this time?" Why not plan for it and save? The experience made me appreciate planning and saving for the future. Bogleheads and Humble Dollar helped a lot too.
I too enjoyed your words about Jack Bogle. He was my investing hero and all my investments follow his council. Jack was obviously a great leader as well as an investing genius. During my career, I was fortunate to have a great leader and mentor to follow, and his example was priceless. Thank you for writing and please keep telling your Jack stories.
A friend lost her 62 year old husband suddenly and had never been involved in their investments. I offered to help her understand and simplify. As an example, her Roth account had about $50K in it and was invested in 19 different and expensive mutual funds. She was paying about $35K in fees, between the AUM fee and mutual fund expense ratios. By consolidating and simplifying the John Bogle way, her fees are under $1K and she knows where to get money.
My daughter received shares of 3 stocks after her mother-in-law's passing. Knowing the date of death, could she use the "adjusted close" values of those stocks from historical information and calculate cost basis?
Comments
My wife and I are in our seventies and I have been taking RMDs for several years. Most of our money is in my Roth and my IRA. My kids are the beneficiaries for the Roth and it is invested entirely in one world stock fund. The IRA was invested in the Vanguard Target Retirement fund which gave us a 60/40 asset allocation. In January of this year, I changed my IRA investment to an intermediate bond fund. This does two things; changes our asset allocation to about 50/50, and allows me to generate RMDs entirely from dividends generated by the bond fund. I don't like to have to sell stock funds.
Post: Ch-Ch-Changes?
Link to comment from May 10, 2025
With respect to question #3, 0% return on stocks would be no problem for me or my wife. My kids would inherit less. All my stocks are in my roth and my trust and my plans are to only spend my IRA. By the way Jonathan, I have changed my plan based on something you did. If I die before my wife, my 2 kids will immediately receive my roth. Hopefully, this will give them more options for retirement.
Post: Ask Me a Tough One by Jonathan Clements
Link to comment from April 19, 2025
Hey Ken, I'm just curious. I have been accumulating I-bonds for years also and have been thinking about beginning to cash them in over time. How was the federal tax hit when you emptied your account? Tim
Post: Retirement Realignment by Ken Cutler
Link to comment from January 18, 2025
My father taught me much about money, but it was mostly how not to do it. There was no planning and every large bill was a surprise. I remember every year when he got the tax bill for the house it was panic. I used to say "Doesn't this bill come every year at this time?" Why not plan for it and save? The experience made me appreciate planning and saving for the future. Bogleheads and Humble Dollar helped a lot too.
Post: Taking Stock by Jonathan Clements
Link to comment from November 23, 2024
I too enjoyed your words about Jack Bogle. He was my investing hero and all my investments follow his council. Jack was obviously a great leader as well as an investing genius. During my career, I was fortunate to have a great leader and mentor to follow, and his example was priceless. Thank you for writing and please keep telling your Jack stories.
Post: The Apprentice
Link to comment from June 29, 2024
A friend lost her 62 year old husband suddenly and had never been involved in their investments. I offered to help her understand and simplify. As an example, her Roth account had about $50K in it and was invested in 19 different and expensive mutual funds. She was paying about $35K in fees, between the AUM fee and mutual fund expense ratios. By consolidating and simplifying the John Bogle way, her fees are under $1K and she knows where to get money.
Post: Elder Care—Not
Link to comment from April 24, 2024
As Charlie Munger said to Warren Buffett when they were discussing a company, "You're smart and I'm right so you will figure it out."
Post: Pick Your Fights
Link to comment from December 10, 2023
Great article. I agree with everything you wrote and you life path is very similar to mine. I guess that makes me a curmudgeon too.
Post: Four Score Wisdom
Link to comment from November 8, 2023
My daughter received shares of 3 stocks after her mother-in-law's passing. Knowing the date of death, could she use the "adjusted close" values of those stocks from historical information and calculate cost basis?
Post: What Did We Pay?
Link to comment from July 15, 2023
Your portfolio is like a bar of soap - the more you handle it, the smaller it gets.
Post: What’s your favorite financial quote?
Link to comment from April 15, 2023