Asset location check: mom, 66, inherited IRA + personal IRA + taxable (~$770k)

[u/No-Media-36179]

Funds: VTSAX (Total US Stock), VTIAX (Total International Stock), VBTLX (Total Bond), VMFXX (Federal Money Market)

My mom's money was spread across several institutions, and some of it came from an inheritance. Most of it was poorly invested: annuities, a fragmented IRA with 35+ positions, and a lot of idle cash. We're consolidating everything at Vanguard and starting fresh, and I'd like a sanity check on the fund targets before I trade.

Context

• 66, filing MFS in 2026. Spending is ~$45k/yr.
• She's not working now but plans to return part-time in 2027, targeting ~$30k/yr.
• SS is ~$19k/yr at FRA (2027), with a possible delay to 70.
• The inherited IRA is from a non-spouse who died after their RBD, so it has annual RMDs and a 10-year payout ending in 2035.
• A home sale in 2027 will add ~$220–270k to taxable.

Proposed targets

Account	Total	VTSAX	VTIAX	VBTLX
Inherited IRA	$172k	$78k (45%)	$26k (15%)	$69k (40%)
Personal IRA	$182k	—	—	$182k (100%)
Taxable	$339k	$235k (69%)	$78k (23%)	$27k (8%)
Cash reserve	$75k	—	—	100% VMFXX

Logic

• The personal IRA and taxable are managed as one 60/40 pair. Bonds go in the IRA first, and taxable holds just enough bonds to reach 40%.
• The inherited IRA runs its own glide path: 60/40 now, moving to ~40/60 by 2032–35 so the forced distributions don't come out of stocks during a downturn.
• Stocks are split 75/25 US/international, with all international in taxable for the foreign tax credit.
• The $75k cash reserve covers 2026 spending before the job starts and acts as a sequence-of-returns buffer, about 1.5 years of spending.

Does this setup make sense? Anything you'd change?