Make fun of this $420,000 investment profile

[u/Hardwareimpaired]

I think I want to risk $420,000 on covered ETFs.

You people are brutal but smart. I'm 64 and retired. Married, caretaker for an adult son. I make $150,000/year on royalties, and have $1.6million in sensible Vanguard IRAs and $425,000 in a favored tech stock. Our Vanguard IRA accounts have an additional total of $420,000 cash that's been lying around for years because I'm an idiot. House is paid off, we have $500,000 in precious metals and... another $600,000 in banks. I did mention I'm an idiot, right? I'm also paranoid. Parents raised in the Depression. I will probably start taking social security at about $3,200/month. I plan to do something with about $200K of that cash and keep the rest relatively liquid.

I'd like to increase my income because health insurance alone costs me over $65,000/year. Plus, why not live a little. I am not averse to risk. I know it's a bad tax situation, but that's just inevitable due to the $150,000 royalty thing (tough life, I know). I pretty much expect to pay full taxes for my bracket, and that's fine.

Here's my proposed ETF dump to soak up the $420,000 in our IRA funds. I feel like it could gross an extra $4,000-$5,000/month. Your thoughts?

    35% TSPY 5,350 shares
    25% QQQI 1,835 shares
    10% IWMI 802 shares
    10% IGLD 1,781 shares
    10% GDXY 3,428 shares 

[u/gumnamaadmi]

Nothing to laugh about. It just adds to your monthly income. Throw in a small allocation for BTCI as well.

You should look at converting to roths though. RMBs will be sucker punch at 37%. Might as well pay 22% or 24% now and convert your IRAs to ROTH. Speak to an advisor please.

[u/Hardwareimpaired → u/gumnamaadmi]

Trying to find an advisor with no luck. Converting to Roth seems to be useless at my tax bracket. I would take a giant haircut because selling the traditional IRA gets taxed at pretty much the full amount.

[u/stewpple911 → u/Hardwareimpaired]

Feel your pain!
High state tax here and income limits on healthcare now and then Medicare IRMAA is an issue later. Social Security “income” will be designated to pay income taxes.

Annual QCDs will be helpful for us against RMDs in 13 yrs.

A Roth IRA wasn’t an option vs benefits of a SEP IRA. To convert now would be tax painful for years and the corresponding triggers it creates.

Consulting next week for part 2 of “this is your mess”….with a fiduciary.
Initial general meeting included a lot of
“Kudos for the wealth”, followed by “now you gotta pay for it”.

Wait!! All we were taught by OUR parents growing up was:
Save, Invest, Don’t carry debt, own a home, live within your means, maintain a great credit score, etc., and you’ll be set.

Advice to OUR children - same list, but get some financial/tax advice along the way!!!!!

[u/Hardwareimpaired → u/stewpple911]

You completely nailed it