Assessing Goals, Ownership, and Seller Financing

#651: Many who reach CoastFI find themselves in a strange in-between: financially independent enough to stop saving, but not ready to fully retire. When you’re living off a taxable brokerage for decades, does the “never hold bonds in taxable” rule still apply?

This episode explores how traditional asset location advice meets real-life spending. We unpack how to balance growth, taxes, and stability when your taxable account becomes your paycheck. Then we shift to two more listener dilemmas: helping a parent retire through shared home ownership, and using covered-call strategies to earn income from a stock-heavy portfolio.

Listener Questions in This Episode

Brandon (1:28): “I’m CoastFI and will withdraw from my taxable account for the next 20 years. Should I hold bonds in taxable, or keep it all in stocks?”

Brandon’s retirement accounts can grow untouched, but his taxable brokerage will fund two decades of living expenses. The classic rule says avoid bonds in taxable, yet Paula explains why that advice isn’t universal. When your taxable account funds your life, it needs to act as a complete portfolio. We discuss how to balance risk, prioritize liquidity, and plan your glidepath into CoastFI life.

Andrew (22:07): “My spouse and I co-own a home with my mother-in-law. How can we help her retire without creating family tension?”

We explore fair, flexible ways to support an aging parent while keeping relationships healthy. Paula explains how to design a win-win deal and why seller financing can help balance cash flow and peace of mind.

Chandan (49:16): “Can covered-call ETFs help me generate income from my stock portfolio and RSUs?”

We explain how covered calls work, what “covered” really means, and the tradeoff between steady income and limited upside. For those with concentrated stock positions, Paula shares when covered calls make sense—and when simpler plans win.

Key Takeaways

• The “no bonds in taxable” rule isn’t universal. When you’re drawing solely from taxable accounts for many years, that account needs to function as its own mini-portfolio, including bonds or cash for stability.
• Asset location follows purpose, not dogma. Tax efficiency matters, but liquidity and risk management take priority when the account funds your life.
• Think in terms of buckets. Your retirement accounts can stay growth-oriented while your taxable account carries the ballast for spending.
• Plan ahead for rebalancing. When taxable balances decline, know how and when to refill your bond/cash sleeve from other sources to keep your glidepath intact.
• The transition to CoastFI is a mental shift. You’re no longer optimizing for maximum returns, you’re designing for peace of mind and steady withdrawals.

Chapters

Note: Timestamps are approximate and may differ across listening platforms due to dynamically inserted ads.

(01:28) Brandon’s CoastFI question: bonds in taxable when withdrawals start now

(03:56) Why “no bonds in taxable” is a rule of thumb, not a law

(12:42) How to treat taxable as a stand-alone portfolio

(18:31) Balancing tax efficiency with cash-flow reality

(25:26) Helping a parent retire through shared property ownership

(01:05:40) Options: Buying or selling with Options

(01:07:07) Covered calls explained simply, income with a ceiling

Resources & Links

Asset Location Cheat Sheet (free): affordanything.com/assetlocation

Guide to Double-I FIRE (free): affordanything.com/fiire

Share this episode with a friend, colleagues, your the person you buy garbage bags from: https://affordanything.com/episode651

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