Wife is switching jobs from being a physician with a private company to The City of Los Angeles.
Emergency funds: 3 months
Debt: Mortgage and about 140k in student loans(paying off in the next year)
Tax Filing Status: Married & filing jointly
Tax Rate: 24% Federal, 9.3% State (thats with maximum write offs and her maxing out her 401k at her previous job)
State of Residence: CA
Age: 33, 39 (husband)
Current retirement assets:
Her 401k:
180k in her old 401k in Vanguard (will probably transfer to a traditional IRA @Vanguard)
Her Roth IRA: no longer contributing
28k in a Total world Index (vanguard)
His Individual 401k:
In Vanguard, TF2050
Her 457
None Yet but city offers a 4% match
Contributions
New annual Contributions
Unsure on 457b
About 30k/year in his I401k
Pension:
Her main retirement is through the city pension fund. Payment depends on her how she wants it distributed, ect but she is at the max contributing amount so I assume it will be decent in her retirement. She plans on working this job until she retires.
Funds Available in new 457b:
-Horizons Target Date Fund .33%
-Horizons Bond Fund .20%
-Horizons Large Cap .01%
-Horizons Mid Cap .20%
-Horizons Small Cap .42
-Horizons International .39%
Questions:
1. So obviously the funds are more expensive than Vanguard. Especially the Target Retirement Fund. But we also save a lot of money from going to a lower tax bracket when we max it out. So my inclination is to max it out but just do the Large Cap/Bond mix. Or if I want to get fancy, I can put her Bonds/International in a Vanguard Trad IRA that is converted from her old 401k and just do Large Cap and minimal bonds in the 457. We will be opening a brokerage to supplement investments once student loans are paid off next year so I can balance any asset classes there. Do any of these plans work? I'm open to any suggestions. Thanks!
2. She also can pay $50 annually for a "self-directed brokerage account" with Schwab. Would that be a substitute for a these funds or just a taxable brokerage? She wasn't sure when I asked but I feel like it's just a taxable brokerage. Maybe I'm wrong?
Emergency funds: 3 months
Debt: Mortgage and about 140k in student loans(paying off in the next year)
Tax Filing Status: Married & filing jointly
Tax Rate: 24% Federal, 9.3% State (thats with maximum write offs and her maxing out her 401k at her previous job)
State of Residence: CA
Age: 33, 39 (husband)
Current retirement assets:
Her 401k:
180k in her old 401k in Vanguard (will probably transfer to a traditional IRA @Vanguard)
Her Roth IRA: no longer contributing
28k in a Total world Index (vanguard)
His Individual 401k:
In Vanguard, TF2050
Her 457
None Yet but city offers a 4% match
Contributions
New annual Contributions
Unsure on 457b
About 30k/year in his I401k
Pension:
Her main retirement is through the city pension fund. Payment depends on her how she wants it distributed, ect but she is at the max contributing amount so I assume it will be decent in her retirement. She plans on working this job until she retires.
Funds Available in new 457b:
-Horizons Target Date Fund .33%
-Horizons Bond Fund .20%
-Horizons Large Cap .01%
-Horizons Mid Cap .20%
-Horizons Small Cap .42
-Horizons International .39%
Questions:
1. So obviously the funds are more expensive than Vanguard. Especially the Target Retirement Fund. But we also save a lot of money from going to a lower tax bracket when we max it out. So my inclination is to max it out but just do the Large Cap/Bond mix. Or if I want to get fancy, I can put her Bonds/International in a Vanguard Trad IRA that is converted from her old 401k and just do Large Cap and minimal bonds in the 457. We will be opening a brokerage to supplement investments once student loans are paid off next year so I can balance any asset classes there. Do any of these plans work? I'm open to any suggestions. Thanks!
2. She also can pay $50 annually for a "self-directed brokerage account" with Schwab. Would that be a substitute for a these funds or just a taxable brokerage? She wasn't sure when I asked but I feel like it's just a taxable brokerage. Maybe I'm wrong?
Statistics: Posted by Marketgardensb — Fri Mar 08, 2024 6:25 pm — Replies 13 — Views 1077
