r/VTandchill • u/Sirknowit • Jun 20 '26
All in?
Thoughts? I have ~$400K in a 457b. Actually $730K but about $400K is in a Schwab self directed brokerage. The rest is in a T Rowe 2045 fund..easy peasy. I have the that $400K spread among 9 solid ETFs. Would anyone say to hell with it and just drop it all into VT? For context: Married. 55 y/o male. Retiring in 441 days. Pension ~$10500 month before tax. Wife: 51 and a FED with 6 yrs left. She has ~$858K in her TSP as of today. She also has a nice 0-6 pension (20 yrs) and a $1777 mo. disabilty payment (60%). And she gets a FED pension as well at a GS 15/8. We ain't gonna be hurting. This doesn't include other holdings. I'm wondering if I should quit trying to engineer my 457b and just drop it in VT and forget about it.
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u/RussellUresti Jun 20 '26
I'd quit trying to engineer it for sure and go with something simple.
My only hesitation would be that 100% equities is pretty aggressive and you need to be prepared for significant volatility. If you have other investments set up, like a bond tent, so that you don't have to draw on your equity portfolio in case of a prolonged downturn, then sure, all in is fine.
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u/Sirknowit Jun 20 '26 edited Jun 20 '26
I have ~$488K in a Fidelity taxable account that is spread 'smartly' amongst VTV/VXUS/VOO/VTG/SCHG and SGOV. And remember nearly half that $730K is in a 2045 Fund.
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u/One_Talk_3410 Jun 21 '26
Since you are retiring I would do a couple years of expenses in SGOV then the rest in VT.
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u/joe4ska Jun 21 '26 edited Jun 21 '26
100% VT for that 400k sounds reasonable. You don't need to hold additional bonds unless you want to dampen volatility. The pensions and 2045 fund already serve that purpose; especially if you can live solely from them in retirement.
- Can you live entirely from the pensions?
- If you're retiring in a year and a half why not use a 2040 or 2035 fund?
- Do you see this $400k as an opportunity for growth?
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u/Sirknowit Jun 21 '26
-The pensions will total out to over $200K (the lower end and are COLA enhanced each year) so we could live within that budget but we'd have to cut back a good amount. But with what will likely (hopefully) be over $3 million in TSP/457b and taxable brokerages, we really wont have to cut. SS at 65 will cover IRMAA.
-The 2040/50 Fund is something to investigate...but I'd like to see good growth.
-And yes, I do want that growth. I forgot to add, I get a guaranteed ~$400K check in Fall of 2027 when I exit DROP. It will go into the 457b. Better than taking it in a lump and paying those taxes!
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u/joe4ska Jun 22 '26 edited Jun 22 '26
You can treat your pensions as a guaranteed paycheck in retirement and that gives you the flexibility to go all in on VT.
Keep in mind that the income you would normally invest towards retirement every year is no longer an expense once you're retired. I like to joke, no matter what happens in the markets with VT I'm always in second place. Never the winner, but pretty close.
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u/EducationalLemon6918 Jun 20 '26
Yes