4 reactions
Reducing overexposure in retirement portfolio
I (51M) was looking to retire in the next 5 years but decided to retire next month. Wife (48F) plans to work for the next 5 - 10 years because she wants to; not because she has to. We can both retire today (confirmed with a CFP) if we wanted to based on our assets and spending lifestyle.
We live in Virginia. Our net worth is $6M in equities (not including $2.5M in cash, crypto and house). Majority is in retirement accounts - 401K, IRAs and HSAs. House will be paid for in 4 years. Our 2024 MAGI was around $700K but after I retire next month, 2025 MAGI will drop to around $500K. And in 2026, will drop to $400K.
Questions:
1. We are overexposed to my company stock (volatile stock) held in taxable account - 20% of our $6M. Given our MAGI and that I’m retiring, I am seeking advice on what’s the best strategy to reduce exposure and save on taxes. I’ve held majority of that company stock for over a year.
2. CFP recommends a 65-35 portfolio so the gains from selling company stock would move into bonds. Have never invested in bonds and need to learn about them but what are your thoughts about buying bonds in this market?
Let us know what additional information you need. Thanks in advance for your replies.
#business
source
I (51M) was looking to retire in the next 5 years but decided to retire next month. Wife (48F) plans to work for the next 5 - 10 years because she wants to; not because she has to. We can both retire today (confirmed with a CFP) if we wanted to based on our assets and spending lifestyle.
We live in Virginia. Our net worth is $6M in equities (not including $2.5M in cash, crypto and house). Majority is in retirement accounts - 401K, IRAs and HSAs. House will be paid for in 4 years. Our 2024 MAGI was around $700K but after I retire next month, 2025 MAGI will drop to around $500K. And in 2026, will drop to $400K.
Questions:
1. We are overexposed to my company stock (volatile stock) held in taxable account - 20% of our $6M. Given our MAGI and that I’m retiring, I am seeking advice on what’s the best strategy to reduce exposure and save on taxes. I’ve held majority of that company stock for over a year.
2. CFP recommends a 65-35 portfolio so the gains from selling company stock would move into bonds. Have never invested in bonds and need to learn about them but what are your thoughts about buying bonds in this market?
Let us know what additional information you need. Thanks in advance for your replies.
#business
source
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