Q2 - about 33% of your portfolio is in tax deferred. For tax efficiency, it may be best to hold 100% fixed income in your tax deferred accounts with the remainder in Taxable. Treasuries income in Taxable is state tax exempt.
Q3 - check your SS claiming strategy at opensocialsecurity.com. The recommendation is usually for the higher earner to claim at age 70 to maximize annual COLA-ed benefit and for the benefit of a lower-benefit surviving spouse.
Q4 - +1 to maximizing available Roth space as Roth accounts grow tax free. You can use Taxable dividends (turn off dividend reinvestment) and tax-efficient Taxable sale proceeds to fund living expenses, if needed. For 2025, there is a higher age 50+ catch-up contribution allowed. At some point the free mainstream Solo 401k plans should be modified to allow employER contributions to be made as Roth contributions which will increase your Roth space.
Q1 - your portfolio could be much simpler and more tax efficient. Your portfolio asset allocation could be:
- Taxable (45%) - 40% equity, 5% tax exempt fixed income
- Roth (22%) - all equities
- tax deferred (33%) - all fixed income
For Roth and tax deferred accounts, you can make the changes without tax consequences.
For your Taxable account:
1) turn off dividend reinvestment so you don’t buy more of holdings you don’t want;
2) set your account’s cost basis method to a specific-identification method. Sell tax lots with a loss or no/small gain. Then develop a tax-efficient sale plan for anything else you don’t want and to raise the cash you need to max your Roth space.
Q3 - check your SS claiming strategy at opensocialsecurity.com. The recommendation is usually for the higher earner to claim at age 70 to maximize annual COLA-ed benefit and for the benefit of a lower-benefit surviving spouse.
Q4 - +1 to maximizing available Roth space as Roth accounts grow tax free. You can use Taxable dividends (turn off dividend reinvestment) and tax-efficient Taxable sale proceeds to fund living expenses, if needed. For 2025, there is a higher age 50+ catch-up contribution allowed. At some point the free mainstream Solo 401k plans should be modified to allow employER contributions to be made as Roth contributions which will increase your Roth space.
Q1 - your portfolio could be much simpler and more tax efficient. Your portfolio asset allocation could be:
- Taxable (45%) - 40% equity, 5% tax exempt fixed income
- Roth (22%) - all equities
- tax deferred (33%) - all fixed income
For Roth and tax deferred accounts, you can make the changes without tax consequences.
For your Taxable account:
1) turn off dividend reinvestment so you don’t buy more of holdings you don’t want;
2) set your account’s cost basis method to a specific-identification method. Sell tax lots with a loss or no/small gain. Then develop a tax-efficient sale plan for anything else you don’t want and to raise the cash you need to max your Roth space.
Statistics: Posted by HomeStretch — Sat Mar 01, 2025 1:11 am