* You can take 1/3 of the money or $4M and put it into stock index fund like VTI or VOO. Don't re-invest the dividends...take them. That's $50k a year in income. Low tax rates. Let this investment money ride for the next 10 years.
* Take a 1/3 of the money and put it into Tax Free Munis if you live in a high tax state. That's $160k a year in income...low / no tax rates.
* Take 1/3 of the money and build a CD Ladder...so the principle never changes and its a lock this money is safe (do FDIC call protected CDs). That's another $160k a year. Normal tax rate.
You make $370k a year...2/3 of your investments are very safe, and the 1/3 in stocks will most likely double in 8-10 years.
Just spit balling for a few minutes but this is one way to approach....Muni bonds could be a good option too. I like the above breakdowns, thank you. I would be foregoing potential growth, but the risk is certainly lowered.If I had $10M in taxable, I would be:
30% muni bonds
50% VTI
20% IXUS
I would enjoy my dividends, find a “job” that was a fulfilling use of my time, and enjoy my life
Is this just really a question of how much risk I am willing to take? Or is it not that risky to put most or all of it in equities given I can ride out most bad situations and still pull out living expenses + enough to put toward retirement every year?
Any others with thoughts on how to approach this? Is putting it all or 80%+ in equities too risky for a 30 year timeline and immediate income needs?
It’s up to you.
Personally I would not feel at all bad about withdrawing 300k annually from a 10M portfolio
Statistics: Posted by muffins14 — Wed Aug 21, 2024 4:42 pm