If you feel that for example the 2020 is too risky and Fidelity is your only target vchoice just invest in the 2015 or 2010.

Just trying to be clear on things here ...
- You're planning to take money from your traditional IRA in 2019 to pay taxes on your 2018 Roth conversion. (I guess this from your saying you'd use RMD money, and there's usually no RMD on a Roth.) So far, so good.
- You're planning to take 4% (of what, the traditional IRA?) in 2019.
-- The "usual" 4% rule of thumb is for how much you can safely spend in a year (including "spending" on taxes); it's not an amount you must spend, or even move from investments to cash. Don't confuse RMDs, which are amounts that must be withdrawn from traditional IRAs - that's a tax event - with financial planning - how much money you have available to live on in retirement.
-- The first RMD is usually 1/27.4 = 3.65% (if your 70th birthday is the same year you turn 70.5) or 1/26.5 = 3.77% (if your 71st birthday is the same year you turn 70.5). You don't have to withdraw more than that from your IRAs, and you don't even have to sell any investments (you can just move that amount of securities from your traditional IRA to your taxable account).
- You'll owe taxes in April 2020 for whatever you withdraw from your traditional IRA in 2019.
- You'll be able to withdraw from your Roth tax-free, anytime, tax-free the money your converted in 2018 to your Roth tax-free at any time. But if you dip into the Roth earnings (which happens only after you withdraw all the converted moneys), you'll owe taxes on them unless you wait until Jan 1, 2023 (the beginning of the fifth year after conversion).
- Going forward, you're planning to convert more money each year. That will work if you take your RMD for the year before you do the Roth conversion.

Wondering about the status of SPHD, which seems to be getting pummeled YTD (-6.5%) because of its holdings in Utilities, Real Estate and other interest-sensitive stocks. I have built up pretty large cap gains since I bought it a few years ago. It's definitely in the wrong sectors right now, especially compared to something similar like SCHD. Opinions about SPHD?

@johnN

Elizabeth Warren Operah is next president/ vp duo 2020!

Learn how to spell Oprah. Crazier things have happen, ala 2016.

It's also good if we only have one healthcare system so everyone is happy and every one is covered.

You said something smart! Was that a slip?

Probably best for the country then they can manage our money, raise our taxes.

Isn't that better than lower taxes on rich corporations and increased spending, ala Trump? Talk about deficits - oh wait, not until the next election when a Democrat is elected.

let more people in with open border in this country to live free

, hmm, I'm going out on a limb here and guessing you were an immigrant, correct? Now its time to close the borders?

Probably best to buy lots of knives and learn judo too since guns will be limited probably best to learn new hands-hands combat

. Great idea. Maybe kids and the rest of us might be safer ala Australia, Japan and just about everyother democratic society?. Won't happen, good thought though.

...4-5y worth. Taxable, alas.

@davidrmoran, what do you mean by that? My 4 year bucket #1, MM and CDs, would remain tax deferred if that was what you referred to.

My nearterm bucket, bonds and cash, is in rollover IRAs, and a brokerage account (with big losses in it, so no prob there); and when I take money from the former it is all taxable. (Same with the latter if I ever ever have capital gains again before I die, which looks unlikely.) Oh, and also a checking-savings account, of course.
Not positive I am getting your query; sorry. Distracted with averting my eyes from the EWarren insulting.

Great post Ted- She thinks she ll run for Prez in 2020- Im from Massachusetts-lots of people like her-but I sure dont!!!

FYI: U.S. stocks declined on Tuesday after Federal Reserve Chairman Jerome Powell gave an upbeat view on the U.S. economy and said data has strengthened his confidence on inflation.
Regards,
Ted
Bloomberg:
https://www.bloomberg.com/news/articles/2018-02-26/asia-stocks-to-rise-as-u-s-gains-before-powell-markets-wrap
Reuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-falls-as-powells-comments-fuel-rate-worries-idUSKCN1GB1JE?il=0
MarketWatch:
https://www.marketwatch.com/story/us-stock-futures-point-to-a-loss-as-jitters-grow-ahead-of-powell-testimony-2018-02-27/print
IBD:
https://www.investors.com/market-trend/stock-market-today/stocks-fall-powell-rate-hikes/
CNBC:
https://www.cnbc.com/2018/02/27/us-stock-futures-dow-data-earnings-and-politics-on-the-agenda.html
Bloomberg Evening Briefing:
https://www.bloomberg.com//news/articles/2018-02-27/your-evening-briefing
AP:
http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT
Bonds:
https://www.cnbc.com/2018/02/27/bonds-and-fixed-income-data-fed-speeches-on-the-agenda-for-investors.html
Gold:
https://www.reuters.com/article/global-precious/precious-gold-slides-1-pct-after-feds-powell-confirms-gradual-rate-hikes-idUSL4N1QH3NI
Oil:
https://www.cnbc.com/2018/02/26/oil-markets-opec-led-production-curbs-and-us-production-in-focus.html
WSJ: MarketS At A Glance:
http://markets.wsj.com/us
SPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-tracker
SPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectors
Current Futures: Negative
https://finviz.com/futures.ashx
Quote

My unconventional Bucket #1 in retirement would utilize target date funds.
Bucket #1 would arrive in 5 year increments using target date funds that are spread out over retirement. If I were retiring in 2020...Bucket #1 would be (Bucket 2020) and would be funded with 5 years of retirement spending (any growth could be looked at as additonal discretionary spending) to be spent between 2020 -2025.
A second Bucket #1 (Bucket 2025) would be funded with a 2025 target date fund and would have 7 years (2018-2025) to "grow". It would be funded to anticipate expenses during those 5 years (2025-2030). The third bucket #1 (Bucket 2030) target date fund would have 12 years to grow...and so on.
This approach glides a portion of your portfolio from growth to income...from stocks to bonds...in a professionally diversified and professionally managed way. I might add it's affordable and easy to understand. Anyone from you to your wife can stay the course.
Six target dated funds would cover your retirement for 30 -35 years of retirement "bucket #1" needs.
The rest of your available portfolio can be dedicated to long term growth and the occasional re-balancing with your buckets.
I also see Bucket #1 being paired with an additional 1-3 years of spending in the event markets fall into an extended bear. The would very very liquid and very safe.
Not sure how one would deal with the possibility of a "lost decade" (extended under performance of the market), especially during the spend down of assets in retirement.
Any thoughts?

Interesting. I thought the whole point of target date funds was that they were a one stop shop...

My unconventional Bucket #1 in retirement would utilize target date funds.
Bucket #1 would arrive in 5 year increments using target date funds that are spread out over retirement. If I were retiring in 2020...Bucket #1 would be renamed (Bucket 2020 using a 2020 target date fund)) and would be funded with 5 years of retirement spending (any growth could be looked at as additional discretionary spending) to be spent between (2020 -2025).
A second Bucket #1 (Bucket 2025) would be funded with a 2025 target date fund and would have 7 years (2018-2025) to "grow". It would be funded to anticipate expenses during those 5 years (2025-2030). The third bucket #1 (Bucket 2030) target date fund would have 12 years to grow...and so on.
This approach glides a portion of your portfolio from growth to income...from stocks to bonds...in a professionally diversified and professionally managed way. I might add it's affordable and easy to understand. Anyone from you to your wife can stay the course.
Six target dated funds would cover your retirement for 30 -35 years of retirement "bucket #1" needs.
The rest of your available portfolio can be dedicated to long term growth and the occasional re-balancing with your buckets.
I also see Bucket #1 being paired with an additional 1-3 years of spending in the event markets fall into an extended bear. The would very very liquid and very safe.
Not sure how one would deal with the possibility of a "lost decade" (extended under performance of the market), especially during the spend down of assets in retirement.
Any thoughts?

Hi @bee,
Actually, no I have not given much thought to buying stocks in the companies the fund holds. The turnover for the fund is listed at about 30%. So, in holding an average of 32 positions means they sell on average about ten positions per year and buy about ten more. This, thus far has created a good income stream in the form of fund distributions from their profits. In another year or so with the payouts I have received and anticipate receiving if the fund share price went to zero I would not have lost capital as I will have received in payouts a sum equal to what I have invested. That amounts to a distribution roll of eight to ten years. You want find that in real estate.
For me, based on my cost basis and distribution roll for Income Fund of America was 12 years to recoop my capital and for Franklin Income Fund it was about thirteen years. Folks, for what these funds have paid out if their value went to zero I'd be well ahead based upon the number of years I have owned them.
So ... How can I go wrong with that?

Hi @Mark,
Actually my annual payout including dividends, interest and capital gains distributions has averaged since I have owned the fund 12.9% based upon my cost basis. My total return per share has an averaged annual return of 15.4%. In addition, I am finding that the pent up unrealized capital gains within the fund are just under 20%. So if you buy now you'll be buying your distribution, so-to-speak.
That's one of the reasons I have been building cash for the past couple years. Stock are currently richly priced by my standards. And, if you pay too much your returns will be thin. That's one of the reasons I like to buy the downdrafts. While the weak investors are selling I'm putting my buying britches on as I did when I purchased this fund.
Thus far my buying strategy has worked well for me.

Hi @Mark,
Apparently you are not a yield seeker?
One of the things that attracted me to LPEFX is its ability to generate income along with some capital appreciation. With this, it is part of my well diverisfied income generating portfolio. Through the past six years that I have owned LPEFX my average annual return has been better than 15%. So with a current yield of about 9% it, for me, has been better than most income funds. Now what is the yield on the S&P 500 Index? I finding it currently to be back of 2%. Hey, that is a pretty big dividend to yield spread of 1.7% vs. 8.9%. Compared to S&P 500 Index through my years of ownership I probally gave up some total return capacity but gained much more income over what I otherwise would have over holding the 500 Index. Don't get me wrong ... from time-to-time ... I've owned the Index too.
Form my perspective it has been worth it because of its ability to generate income. For others, like yourself, it might not have been.

The funds Larry mentions in this article are not available to the public. Does anyone know how to access them?

Not only are they not available to the public but they have hedge fund-like restrictions on your ability to withdraw capital and a limit on their obligation to grant your withdrawal depending on what other investors want to do. Maybe advisors have negotiated different rules for themselves or they manage inflows and outflows against each other before making any transactions with the funds themselves, but somehow equity-like returns with bond-like volatility as an expectation Swedroe would be willing to put in writing sounds too good to be true.

FYI: Technology and health care companies helped drive U.S. stocks broadly higher Friday, placing the market on course to finish a volatile week with a slight gain. Hewlett Packard Enterprise and HP led the gainers among technology stocks. Energy companies also rose along with crude oil prices. Bond yields receded from the four-year highs they reached earlier this week.
Regards,
Ted
Bloomberg:
https://www.bloomberg.com/news/articles/2018-02-22/asian-stocks-set-to-edge-higher-dollar-slides-markets-wrap
Reuters:
https://www.reuters.com/article/us-usa-stocks/tech-stocks-fed-view-help-wall-street-climb-idUSKCN1G71HI
MarketWatch:
https://www.marketwatch.com/story/dow-futures-climb-as-investors-wait-for-interest-rate-clues-from-fed-speakers-2018-02-23/print
IBD:
https://www.investors.com/market-trend/stock-market-today/stocks-rally-into-close-2/
CNBC:
https://www.cnbc.com/2018/02/23/us-stock-futures-dow-data-earnings-and-politics-on-the-agenda.html
AP:
http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2018-02-23/your-evening-briefing
WSJ: Markets At A Glance:
http://markets.wsj.com/us
Bonds: Reuters:
https://www.reuters.com/article/usa-bonds/treasuries-yields-fall-on-stock-market-jitters-month-end-demand-idUSL2N1QD1J7
Gold: MarketWatch:
https://www.marketwatch.com/story/gold-closes-lower-for-the-session-to-post-weekly-loss-of-17-2018-02-23/print
Oil: CNBC:
https://www.cnbc.com/2018/02/22/oil-focuses-on-drop-in-us-inventories-but-surge-in-exports-caps-gains.html
SPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-tracker
SPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectors
Current Futures: Positive
https://finviz.com/futures.ashx

Old_Skeet use to own this fund. In reducing the amount and number of funds held in the growth area of my portfolio, a couple of years back, this is a fund that I let go in the reduction process. However, I did keep it's sister fund HWIAX (Capital Income) which is held in the growth & income area of my portfolio. Although, David Green is not listed as one of its managers it follows much the same strategy on the equity side as HWAAX.

Cash may be King for short periods of time; but, held for longer periods of time it will become trash as purchasing power deminishes (over time) due to inflation. Folks, my strategy has been a simple one. I (and my family) have invested in appreciating assets through our years. Thus, we have bettered inflation. Plus, we banged a few bucks out of some short term (spiff) strategies. But, our big gains have come by being invested through the years.
My principal residence is worth more than 30 times what it cost my family in the mid 60's. My investments as measured by a stock and bond fund (bought in the mid 60's.) has grown by more than 80 times by what was first invested. As a measure of inflation creep a gallon of gas that cost 20 cents to 30 cents per gallon back in the 60's now cost around $2.50 per gallon and at times about doubble that.
So, hold cash if you wish believing that it is King. For me, it is not. However, I feel it reasonable to hold a certain amount of cash ... say 8% to 12% of net worth. With this, it seems reasonable for a mutual fund to hold 8% to 12% of it's assets in cash as well. After all, cash is an asset class.
I wish all ... "Good Investing."
Old_Skeet

Howdy Bobpa,
I think 3-5% of one's wealth is completely reasonable and have been preaching such around here for longer than I care to think.
Ted mentioned CEF and that's probably the easiest way to cover this square. Unless it's a tax deferred or exempt acct, you want to avoid the bullion ETF's like the plague. Their gains are taxed as collectibles at 28%. CEF is not.
There are also those that recommend that for one's bullion holdings you use the real thing. Not that hard, really. A roll of American Gold Eagles is about 2" tall by 1" square and can be hidden in the oatmeal box. At $1400 per oz., that's about 28K. Silver? Buy a 100 oz. bar and paint it black and use it as a door stop. Or start collecting some nice bling that's not designer label (i.e. plain vanilla gold jewelry bought by gram weight).
just some thoughts,
and so it goes,
peace,
rono

Hello,
I sold three of my bond funds yesterday ... FMTNX ... LALDX ... and, THIFX. And, redeployed most of the capital into BAICX ... CTFAX ... and, PMAIX along with sending some to my cash sleeve for perhaps another spiff.
This leaves my income sleeve holding the following funds: BAICX, CTFAX, GIFAX, LBNDX, NEFZX & TSIAX. Interestingly, a little better than 80% of the sleeve remains invested in bonds from a review of the ticker symbols and their weightings inputed into Instant Xray for analysis. These changes, by my thinking, should help better position the sleeve for a rising interest rate environment. Some noteworthy features of the sleeve are a yield of 3.75%, average duration of 2.6 years and average maturity of 5.35 years along with the prior 12 month total return found to be 4.75%. Currently, PMAIX is held in my global hybrid sleeve found in the growth & income area of the portfolio. This sleeve also holds CAIBX and TIBAX.

Good article. Maybe I think that because this approach is what I do. 1/2 my tax deffered retirement money is in a stable index investing robo-portfolio and the other 1/2 I self manage.
Definition I found for smart beta:

Smart beta strategies attempt to deliver a better risk and return trade-off than conventional market cap weighted indices by using alternative weighting schemes based on measures such as volatility or dividends.

are long-term in nature and by no means tactical.

This appears to be your opinion. I don't see any definitions using this caveat in my short check of Google.
And the author says:

A core-satellite approach is a great way to focus on long-term capital growth, while still allowing for the opportunity to juice returns through active portfolio management.

I don't know, seems like a similar approach to me.

@willmat72, you may have much less EM in your portfolio than the 15% you stated. None of the 3 funds you listed are full-in EM funds like an index EM fund would be. There is a lot of developed, bonds and cash in that 3-some total.
For example, it looks like the TRP fund has about 6% of it's assets in EM equities. SFGIX about 51% and MIOPX about 27%. If you hold all those funds at about the same weight of that 15% you are calling EM funds in the total portfolio, that's only about 28% EM equities in those 3 funds.
15% (what you call EM funds in your portfolio) x 28% (actual EM equities in your 3 funds) comes out to about 4% EM equities in your total portfolio.
I may not have explained it well, but you may only have about 4% EM equities in your total portfolio (if I did the math right). I don't know if that's a good thing or a bad thing. Appears you are closer to the conservative % Ted points out.
Edit: do a M* instant xray of all your funds to find out for sure if you think you need to be exact.

HI Mike,
Thanks for the detail and insight. I had my portfolio screened through Personal Capital, the online/robo advisor. Their software determined that my international holdings consist of about 15% EM. Of that, most was derived from SFGIX with lesser amounts from MIOPX and PRGTX. Bear in mind that I'm increasing my exposure to the latter two funds during 2018 so that number may increase a bit. If you compare EM with my entire portfolio, it's probably less than 5%. So, your numbers seems to make sense with regard to my total portfolio.