TJ... Above and beyond

Hi TJ - I hope you're getting some summer in.

I know this is not your job but it's what I want.. And what most of us want. 

What can you do about it?...

This video outlines a self-managed retirement strategy for a 1.5 million dollar portfolio, designed to bypass traditional financial adviser fees.

The strategy allocates 1.35 million dollars into FXAIX, which is Fidelity's S&P 500 index fund [00:09]. The fund carries an expense ratio of 0.015 percent, meaning management fees cost only a few dollars a year [00:14]. The remaining 150,000 dollars goes into Fidelity's SPAXX money market fund, which currently earns roughly three to four percent in interest [00:23].

Income generation relies on selling 0.4 percent of the S&P 500 fund each month, yielding just under 65,000 dollars annually [00:33]. Combining that with approximately 4,700 dollars in money market interest and an assumed 30,000 dollars from Social Security brings the total target annual income to roughly 100,000 dollars [00:38].

For a married couple filing jointly in 2026, keeping gross income under 98,900 dollars triggers a zero percent tax rate on long-term capital gains [00:46].

To protect the portfolio against early market downturns, the money market cash serves as a buffer [01:11]. If the stock market drops, you stop selling the index fund and live off the cash reserves instead, giving the S&P 500 fund time to recover before replenishing the money market account [01:13].

The full video is available at http://www.youtube.com/watch?v=VEmpCHOF-GA.

David

617-331-7852
David@DavidCutler.net
Growth Actions: www.DavidCutler.net 
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