I've followed the Boglehead forum for quite some time and figured it was time to leverage the collective knowledge on the forum to identify any blinds spots or possible optimization for our portfolio.
Personal Situation:
Married: (44 and 43)
Kids: (3 - ages 4, 14, 16)
Combined income: $291k (+$80-120k bonus/retention stock based on company performance - we do not factor into budget). Wife's income is vast majority as I transitioned from corporate role into teaching career about a year ago)
Location: MCOL w/ no state income tax
Retirement plan: NLT 55 (expect current income to grow slowly over the next 5-7 years and then wife may take phase out roll over last 5 years so income may reduce a bit)
Annual Savings Plan: Max out both 401k (wife gets add'l 8% match, both Roth IRAs (backdoor), HSA (we do not pull money out to cover expenses), $25-50k to Brokerage
Portfolio: (all equity investments are in low cost index funds)
Net worth: $3.98M
401k: $1.98M (60% large cap, 10% small cap, 10% Int'l, 5% emerging, 15% bond)
Roth IRA: $287k (65% large cap, 22% Int'l, 13% bond)
Deferred income: $51k (45% large cap, 15% small, 25% Int'l, 5% emerging, 10% bond)
HSA: $113k (65% large cap, 25% Int'l, 10% bond)
Brokerage: $140k (56% large cap, 7% mid cap, 6% small cap, 13% Int'l, 7% emerging, 11% REIT)
Cash/MM: $59k
Private equity real estate LLC: $250k (8% cash on cash return)
Emergency savings: $94k (CD ladder at average 4.75%)
529: $146k (varies by child, closer to college age the more tilted towards fixed income)
Home equity: $800k (no mortgage)
Cars: $71k (no loans)
Annual expenses: ~$150k (includes taxes, does not include contributions to 401k, IRA, HSA, 529, etc)
College strategy: Intend to fund all 3 children. Likely the two oldest will qualify for 75%-100% tuition scholarship so expect current 529 to cover.
Strategy: Leverage multiple accounts (i.e. brokerage, tax deferred, tax sheltered) to minimize income during pre-Medicare years to qualify for subsidies and maintain lowest tax bracket feasible.
I'm fully aware we are in an overall good position but that doesn't mean we do not have areas to optimize or risks to manage so we welcome any feedback.
Personal Situation:
Married: (44 and 43)
Kids: (3 - ages 4, 14, 16)
Combined income: $291k (+$80-120k bonus/retention stock based on company performance - we do not factor into budget). Wife's income is vast majority as I transitioned from corporate role into teaching career about a year ago)
Location: MCOL w/ no state income tax
Retirement plan: NLT 55 (expect current income to grow slowly over the next 5-7 years and then wife may take phase out roll over last 5 years so income may reduce a bit)
Annual Savings Plan: Max out both 401k (wife gets add'l 8% match, both Roth IRAs (backdoor), HSA (we do not pull money out to cover expenses), $25-50k to Brokerage
Portfolio: (all equity investments are in low cost index funds)
Net worth: $3.98M
401k: $1.98M (60% large cap, 10% small cap, 10% Int'l, 5% emerging, 15% bond)
Roth IRA: $287k (65% large cap, 22% Int'l, 13% bond)
Deferred income: $51k (45% large cap, 15% small, 25% Int'l, 5% emerging, 10% bond)
HSA: $113k (65% large cap, 25% Int'l, 10% bond)
Brokerage: $140k (56% large cap, 7% mid cap, 6% small cap, 13% Int'l, 7% emerging, 11% REIT)
Cash/MM: $59k
Private equity real estate LLC: $250k (8% cash on cash return)
Emergency savings: $94k (CD ladder at average 4.75%)
529: $146k (varies by child, closer to college age the more tilted towards fixed income)
Home equity: $800k (no mortgage)
Cars: $71k (no loans)
Annual expenses: ~$150k (includes taxes, does not include contributions to 401k, IRA, HSA, 529, etc)
College strategy: Intend to fund all 3 children. Likely the two oldest will qualify for 75%-100% tuition scholarship so expect current 529 to cover.
Strategy: Leverage multiple accounts (i.e. brokerage, tax deferred, tax sheltered) to minimize income during pre-Medicare years to qualify for subsidies and maintain lowest tax bracket feasible.
I'm fully aware we are in an overall good position but that doesn't mean we do not have areas to optimize or risks to manage so we welcome any feedback.
Statistics: Posted by Jmtheile — Fri Mar 29, 2024 8:51 am — Replies 4 — Views 236