Couple Retired With $10 Million Gets Advisers' Blessing to Keep Investing Aggressively

A 72-year-old couple with a net worth of roughly $10 million wrote to Kiplinger's "Wealth Wise" column asking whether their aggressive, stock-heavy portfolio was too risky, given their stated goal of investing for their heirs rather than their own spending needs.

Their assets include $3.8 million in IRAs, $850,000 in Roth accounts, $900,000 in a Generation-Skipping Trust, and $3 million in real estate, including a rental home with an $180,000 mortgage that nets $1,500 a month. Guaranteed income from Social Security, a pension and annuities totals about $9,600 a month.

Phillip E. Battin of Ambassador Wealth Management said the couple's guaranteed income covers their needs, so their stock allocation isn't inherently too risky, though he cautioned that "aggressive" should mean asset allocation, not speculation.

Brandon M. Cox of Coastline Complete Wealth recommended the couple consider Roth conversions now, while tax brackets are favorable, since heirs who inherit traditional IRAs must empty them within 10 years and could face distributions taxed at higher rates during their own peak earning years.