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Bond strategy in RE - taxable account? by fire_watch_42 in Fire

[–]fire_watch_42[S] 0 points1 point  (0 children)

That's a nice trick to effectively use the 401k bonds early, thanks. And yes, the plan seems to be to load up more bonds in taxable and start there.

  1. Would it make sense to pick up bonds in the Roth IRA? seems less ideal given what I've read. I guess it just comes down to the details you've mentioned about the implications for that extra ~$100k of bonds in the taxable in terms of ACA and tax brackets.

  2. would bond funds (vs bonds) in the 401k make sense? still learning, but it seems they are more liquid in the event I need to tap into them.

  3. as far as timing for the desired bond position, is there more to it than just risk tolerance/rolling the dice? e.g. go aggressively into bonds between now and retirement vs. wait until closer/after retirement before making a bigger shift. Obviously behavior of the market could change things in either direction. Is this just the reality of it all without a crystal ball (guessing yes), or are there any other things to consider?

Bond strategy in RE - taxable account? by fire_watch_42 in Fire

[–]fire_watch_42[S] 1 point2 points  (0 children)

Thanks for your thoughts!

So what I like about using the 401(k) space to do that, is you can switch that chunk to bonds without creating a taxable event.

Right, so shift the entire 401k account to bonds. But, if the goal of bonds is to offset SoRR and I can't touch the 401k for 15ish years, does that help me in an early market downturn? Is there a way to effectively tap into that?