Welcome to the forum.
You may get more useful recommendations if you review the “Asking Portfolio Questions” guideline post viewtopic.php?t=6212 and edit your question to provide any missing information.
I find it useful to include what your plans are for the next three years before retirement as it pertains to what additional retirement savings you project during this interval. Most financial planning computer models with which I am familiar also ask you to project your yearly retirement spending target. Once you can project your net worth at retirement, any post retirement income outside your portfolio (social security, etc), and anticipated retirement essential and desired discretionary spending, it becomes easier to identify some boundary conditions for your asset allocation and asset location.
Your projected tax brackets may bear on whether it makes sense to include making Roth conversions from your IRA, and when to do so.
Depending upon what Edward Jones charges in IRA fees, you might want to consider moving this to one of the discount brokerages at Vanguard, Fidelity, or Schwab.
If we are to assume no other assets besides the $1.2M IRA parked in cash, and $1.3M in a taxable account in laddered CDs, then a common asset allocation of 40-60% equities and the balance in fixed/cash might temporarily be achieved by investing the IRA assets in index stock funds, often the majority in a domestic fund and a smaller portion in an international fund. As the taxable account CDs mature, you may wish to make fungible exchanges to relocate your fixed/cash position into a more tax-efficient location in your tax-advantaged IRA account(s), and your stock position into more tax-efficient location in your taxable account as described here https://www.bogleheads.org/wiki/Tax-eff ... _placement. You may find it simpler to purchase mutual funds in your IRA, and when you later make fungible exchanges to bring your stock position into your taxable account, use similar VTI (domestic) / VXUS (foreign) Vanguard ETFs for their improved tax-efficiency. This also helps avoid the possibility of triggering undesired wash sales when relocating assets.
You may get more useful recommendations if you review the “Asking Portfolio Questions” guideline post viewtopic.php?t=6212 and edit your question to provide any missing information.
I find it useful to include what your plans are for the next three years before retirement as it pertains to what additional retirement savings you project during this interval. Most financial planning computer models with which I am familiar also ask you to project your yearly retirement spending target. Once you can project your net worth at retirement, any post retirement income outside your portfolio (social security, etc), and anticipated retirement essential and desired discretionary spending, it becomes easier to identify some boundary conditions for your asset allocation and asset location.
Your projected tax brackets may bear on whether it makes sense to include making Roth conversions from your IRA, and when to do so.
Depending upon what Edward Jones charges in IRA fees, you might want to consider moving this to one of the discount brokerages at Vanguard, Fidelity, or Schwab.
If we are to assume no other assets besides the $1.2M IRA parked in cash, and $1.3M in a taxable account in laddered CDs, then a common asset allocation of 40-60% equities and the balance in fixed/cash might temporarily be achieved by investing the IRA assets in index stock funds, often the majority in a domestic fund and a smaller portion in an international fund. As the taxable account CDs mature, you may wish to make fungible exchanges to relocate your fixed/cash position into a more tax-efficient location in your tax-advantaged IRA account(s), and your stock position into more tax-efficient location in your taxable account as described here https://www.bogleheads.org/wiki/Tax-eff ... _placement. You may find it simpler to purchase mutual funds in your IRA, and when you later make fungible exchanges to bring your stock position into your taxable account, use similar VTI (domestic) / VXUS (foreign) Vanguard ETFs for their improved tax-efficiency. This also helps avoid the possibility of triggering undesired wash sales when relocating assets.
Statistics: Posted by ThriftyInvestor — Tue Aug 13, 2024 5:09 am