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Six Global Balanced Funds That Make Sense for This Market
The following funds are mentioned: FPA Crescent GMO Dynamic Allocation GMO Global Asset Allocation III iShares Core 60/40 Balanced Allocation Vanguard Global Wellesley Income Vanguard Global Wellington Victory Pioneer Multi-Asset Income
I happened to buy a slice of PMAIX earlier this week as mentioned in the BSW? thread. It's yearly returns aren't always as high as the funds mentioned above, but it does lead on the yearly Ulcer Index number going back eight years--the age of the two Vanguard funds. PMFYX, it's cheaper sibling, is an MFO P "Great Owl" over it's 13 year life span.
It's currently about half the size of my position in PRWCX, and will likely go higher before MRD's start by 4/1/2030 at the latest.
RMDs, I'm sure you intended. Those are gonna hurt, but the $$$ can be reinvested in taxable. 2 more years to age 73. Born in '54. No escaping it. Death, taxes, winter. Well, not much winter here. Sometimes, however....
RMDs, I'm sure you intended. Those are gonna hurt, but the $$$ can be reinvested in taxable. 2 more years to age 73. Born in '54. No escaping it. Death, taxes, winter. Well, not much winter here. Sometimes, however....
Have you attempted to ease the RMDs with backdoor Roth conversions?
Backdoor Roth is only for $7K / $8k new contributions in 2025, $7.5K / $8.6K in 2026. That too requires clean T-IRA (i.e. without deductible/pretax contributions).
But to reduce future RMDs, consider QCDs from T-IRA and regular Roth Conversions from T-IRA and/or 401k/403b.
Hardly anyone uses MRD now. The standard usage now is RMD.
Global Balanced Funds certainly come in many permutations. So many variables that you are sure to find something unacceptable in each one. And if you pick the best fit actively managed fund it may change before the dust settles on your buy order. One could pick a pair, pick a generic fund of indexes or slice and dice from four or so ETF’s. And which would my widow be most likely to stick with? I will never know.
Have you attempted to ease the RMDs with backdoor Roth conversions? ********************* Backdoor Roth is only for $7K / $8k new contributions in 2025, $7.5K / $8.6K in 2026. That too requires clean T-IRA (i.e. without deductible/pretax contributions).
But to reduce future RMDs, consider QCDs from T-IRA and regular Roth Conversions from T-IRA and/or 401k/403b.
Hardly anyone uses MRD now. The standard usage now is RMD. ************************* ************************* I have been reducing future RMDs in a back-handed way, withdrawing X amount from the T-IRA in January each year, for several years--- depending on portfolio performance and need.
I have investigated and tried to implement a Deferred Charitable Annuity (under my wife's name) at the local church where I attend; but the Business Manager confesses ignorance about the Deferred part. She recommended I call the "God Box" in NYC where several denominations have offices, and talk to our Foundation people.
...I did so, and had a pleasant conversation. The employee in NYC promised to send me some tables, charts, statistics, options, information. And she did.
But they were the wrong ones. No one is making this easy. So... I'll just do what I want to do in my own way. Reducing 1040 tax is not a concern in our case. I'll simply write checks in a few tranches as donations and label each one as "legacy giving" items, each time. That'll "git 'er done."
I DO appreciate your thoughtfulness. I'm still a member, officially, of the (other) denomination I retired from, but they're not going to get any of my money. Period.
@Crash, there is QLAC from T-IRAs. There are no RMDs on the amount used for QLAC, but there are limitations on the total amount.
Also, from taxable accounts, there are CRATs - Charitable Remainder Annuity Trusts. You get some tax deduction upfront, a stream of income for you or your spouse, and any remainder goes to the charity (unlike in regular annuities where the remainder goes to the insurance company).
RMDs, I'm sure you intended. Those are gonna hurt, but the $$$ can be reinvested in taxable. 2 more years to age 73. Born in '54. No escaping it. Death, taxes, winter. Well, not much winter here. Sometimes, however....
Yeah. Minimum required distributions.
Whatever they're called, it won't be a giant event for us.
Backdoor Roth is only for $7K / $8k new contributions in 2025, $7.5K / $8.6K in 2026. That too requires clean T-IRA (i.e. without deductible/pretax contributions).
But to reduce future RMDs, consider QCDs from T-IRA and regular Roth Conversions from T-IRA and/or 401k/403b.
Hardly anyone uses MRD now. The standard usage now is RMD.
@Crash, there is QLAC from T-IRAs. There are no RMDs on the amount used for QLAC, but there are limitations on the total amount.
Also, from taxable accounts, there are CRATs - Charitable Remainder Annuity Trusts. You get some tax deduction upfront, a stream of income for you or your spouse, and any remainder goes to the charity (unlike in regular annuities where the remainder goes to the insurance company).
i must look into that stuff. You are a star! Thank you.
While we are (sort of) on the subject. Is there any reason not to do a Roth conversion if pulling excess funds from a TIRA/401K? By "excess funds", I mean anything above what you need for annual living expenses. If you are paying the tax anyhow...
Comments
Global Balanced, on my own watchlist: GAL. A fund of funds.
https://www.barrons.com/market-data/funds/gal?mod=searchresults_companyquotes&mod=searchbar&search_keywords=GAL&search_statement_type=suggested
It's currently about half the size of my position in PRWCX, and will likely go higher before MRD's start by 4/1/2030 at the latest.
But to reduce future RMDs, consider QCDs from T-IRA and regular Roth Conversions from T-IRA and/or 401k/403b.
Hardly anyone uses MRD now. The standard usage now is RMD.
*********************
Backdoor Roth is only for $7K / $8k new contributions in 2025, $7.5K / $8.6K in 2026. That too requires clean T-IRA (i.e. without deductible/pretax contributions).
But to reduce future RMDs, consider QCDs from T-IRA and regular Roth Conversions from T-IRA and/or 401k/403b.
Hardly anyone uses MRD now. The standard usage now is RMD.
*************************
*************************
I have been reducing future RMDs in a back-handed way, withdrawing X amount from the T-IRA in January each year, for several years--- depending on portfolio performance and need.
I have investigated and tried to implement a Deferred Charitable Annuity (under my wife's name) at the local church where I attend; but the Business Manager confesses ignorance about the Deferred part. She recommended I call the "God Box" in NYC where several denominations have offices, and talk to our Foundation people.
...I did so, and had a pleasant conversation. The employee in NYC promised to send me some tables, charts, statistics, options, information. And she did.
But they were the wrong ones. No one is making this easy. So...
I'll just do what I want to do in my own way.
Reducing 1040 tax is not a concern in our case. I'll simply write checks in a few tranches as donations and label each one as "legacy giving" items, each time. That'll "git 'er done."
I DO appreciate your thoughtfulness. I'm still a member, officially, of the (other) denomination I retired from, but they're not going to get any of my money. Period.
Also, from taxable accounts, there are CRATs - Charitable Remainder Annuity Trusts. You get some tax deduction upfront, a stream of income for you or your spouse, and any remainder goes to the charity (unlike in regular annuities where the remainder goes to the insurance company).
I would love to get it for that expense ratio. But I did duck the load at Fido. It's also NTF, and one could get in for $2500.
Whatever they're called, it won't be a giant event for us.
i must look into that stuff. You are a star! Thank you.
https://www.investopedia.com/terms/q/qualified-longevity-annuity-contract-qlac.asp