This money is separate from our general retirement investments, emergency funds, pensions etc. Those moneys are intended for deaccumulation starting in mid 2026 for a 30 year time horizon. These investments are invested for two short and mid-term purposes:
1) Additional money to purchase a retirement house in 2026
2) Monthly to supplement income while waiting on my SS until I am 70 in 2026-2031
So these investments will be drawn upon in 4-5 years and 2026-30/31 monthly to defer my SS (5-9 years). We are currently in a high tax bracket (35% Fed, 6.37% State) and while we anticipate it to be somewhat lower after 2026 still expect to be in a high tax bracket. We have it 25% in US Stocks, 65% in National Munis of short and intermediate durations and 10% in a US Treasury MM. We currently have about $300,000 in these funds:
25%—Vanguard Total Stock Market Index Admiral Shares (VTSAX)
40%—Vanguard Limited-Term Tax Exempt Admiral Shares (VMLUX)
25%—Vanguard Intermediate-Term Tax Exempt Admiral Shares (VWIUX)
10%—Vanguard Treasury Money Market Fund (VUSXX)
I invest monthly (total of $18,000/year), each March with money from a bonus ($10,000/year) and sale of company RSUs each May (~$60,000/year) every year between now and mid 2026. So between now and our retirement, I plan on adding about another $350,000 to these investments. How I direct monthly, March and May investments are my primary means of rebalancing without tax implications. I am expecting to have about $750,000 in this account by retirement (minus taxes) with about 3/4 of it for the purchase of a new home and 1/4 to withdraw over 5 years until I reach age 70.
QUESTIONS:
1) What do you think about this asset allocation given these two investment horizons?
2) What are alternative strategies to consider?