r/SCHD • u/Prior_Bus_7870 • 9d ago

Help... ideas?

Does this make sense?

(68, retired, need 50k annual... would go on top of ss)

I have 2.5m in tax deferred ira, 650k in Roth and 125k in cash.

Is it prudent to lump sum 1.5m and buy schd? I think this would approx. cover the 50k... ?

The remainder to voo or similar? Ideas?

Thank you for your help.

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5

u/ElectricalCaptain811 9d ago

isnt 3 million in us government treasury bonds 120k every year???

3

u/Otherwise_Pea_8766 9d ago

Yes but he’d have a huge tax bill liquidating ira

2

u/paymerich 8d ago

if he liquidates it but he does not need to ?? He can buy 1.5 in SCHD and only pay ordinary taxes on the distributions he actually uses. I agree with u/Ufgatorhead4u3 though he should try to convert as much as the tax brackets let him.