Investment planning

[muddydog]

I have a 401k and roth at my work. Also a IRA on etrade which has done well. I mainly do index funds that track SP 500 and Nasdaq. I'm about 3-5 years from retirement hopefully! Thinking about doing a roth conversion on my etrade IRA, rolling amounts yearly. I'm also considering building liquid cash amount in this account to hold for my yearly distributions when the time comes. My logic for this is to create a buffer of cash distributions for the year to not sell shares in down markets. Hows this plan sound to guys that are already retired? Thanks for any input and advice. I know how to build it, just uncertain how to manage my distributions

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[muddydog]

96 views and no input???? Surely there's some retirees on here?

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[boy wonder]

Sounds like a good plan. I’ve been retired for a little over a year, but haven’t touched any investments. I did do Roth conversions and maxed out my 401k on Roth for quite a few years.

[hoythunter02]

I’m 5 years out as well. Last year I rolled my Thrift Savings Plan into an IRA which was really easy to do with our employee website.

I’m like 75% in stocks and 25% in bonds at the moment.

Your plan sounds like a good plan, working it to where you aren’t selling when the markets down.


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[Cullstuff]

IF your income will be less in retirement, I’d wait for the ROTH conversions and do that post-retirement.

Probably need to do some in-depth budgeting to determine how much “cash” to build up. Maybe use CDs/MM/High yield savings, instead of just “cash”.

[Huntingfool]

find a financial advisor to guide you

[Mudslinger]

Wife and I retired in Jan and May 2020. All our retirement WE saved was in mutual funds from retirement accounts with a company we both worked for. We hired a certified retirement person and are hopefully set. I would highly recommend a retirement specialist and look at what they say. We draw SS and I draw a little TRS!

[muddydog]

My plan is to use a bucket strategy. Convert my etrade ira to a roth, which will take several years for tax reasons. Sell shares when the markets good , invest the cash in high yield savings. Distribute the pretax 401k first, then use the roths last. I have both a pretax 401k and roth at work. I can see a tax benefit for doing the conversion post retirement to get into the low bracket. Man , this retirement planning is serious stuff. Might be simpler to just work til I drop. At least my wife's next husband will be set! Lol

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[RiverRat1]

I don't think financial advisors are any better at investments than knowledgeable investors... But when it comes to taxes, retiring planning etc. they surely may know more and be able to help a lot. Or find a retirement specialist as Mudslinger said.

For someone to be able to really help they'd need a lot more info and details on our situation.

[muddydog]

I tried a firm many years ago. They made more money off me than I did from them. I dont trust anyone with my future, but I am all ears when a retiree gives me advice! These guys are living it and have learned alot of wisdom which I totally respect! Thanks for everyone's input. Keep em coming.

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[hoythunter02]

I’m 5 years out as well. Last year I rolled my Thrift Savings Plan into an IRA which was really easy to do with our employee website.

I’m like 75% in stocks and 25% in bonds at the moment.

Your plan sounds like a good plan, working it to where you aren’t selling when the markets down.


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I meant rolled it into a Roth…my TSP.


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[tps7742]

I don't think financial advisors are any better at investments than knowledgeable investors... But when it comes to taxes, retiring planning etc. they surely may know more and be able to help a lot. Or find a retirement specialist as Mudslinger said.

For someone to be able to really help they'd need a lot more info and details on our situation.

Op, I think you have a good plan already from yout explanations.
RR, you are absolutely correct on a person that is a knowledgeable investor can do as well as a financial investor. But I will say the key words are knowledgeable investor. A person has to or needs to be willing to invest his/her time into getting knowledgeable. And this does take time as you all know that do it. Me, I use to but just don’t care to invest the time anymore. No one is going to look after your money better than yourself..