Investing an Inherited IRA with a 10 year required drawdown - what would a Boglehead do?
Resume IA
Un utilisateur demande conseil sur la manière d'investir un IRA hérité de 475 000$ avec un délai de 10 ans pour le liquider, en suivant la méthode Boglehead
Conseil cle
Considérer une allocation avec des obligations pour protéger contre les fluctuations du marché et prendre en compte les impôts lors de la distribution
- Montant max
- 268k€
30M, inherited $475,000 in a Traditional IRA that needs to be emptied in 10 years. I intend to withdraw annually. I’m confident in my plan for how much to determine my annual withdrawal, and what to do with the money once it’s withdrawn, but I am seeking advice on how to invest the IRA funds during the 10 years. I follow the Boglehead method but don’t currently hold many bonds. I’d like to protect this money from major market fluctuation and with the shortened investment timeline and need to withdraw I’d assume I should treat this as I would my portfolio in retirement, but my familiarity with bond funds is limited and I’m interested in the community’s recommended approach. My current plan to start: 50%: VT 20%: SGOV 30%: BND or similar What are your thoughts on this allocation? What other bond funds should I consider? Should i just chuck it all in VT instead and skip withdrawals if there’s a down year? If it matters, current financial info (excluding inherited IRA): Current combined income: $268K Net Worth: $413,000 401k: $110K Wife 401a: $56K Spouse 457b: $68K Roth IRA’s: $67K HSAs: $37K HYSA: $50K Brokerage: $25K
“One thing to keep in mind with respect to RMDs is that if you are planning to invest them rather than spend them, market behavior/crashes don’t really matter. Yes, you sell shares when they are down, but then you take that cash and immediately buy shares when they are down, so nothing changes other than the share location and a bit more tax drag by having shares in a brokerage rather than IRA. The taxes are a different matter though. I keep three years worth of anticipated taxes in bonds in my inherited IRA. Everything else is in equities.”