Hello Bogleheads,
I am looking for Bogleheads’ expert eyes to take a look at my current portfolio to recommend any optimizations. I found the Boglehead forum last year and have enjoyed reading all the knowledgeable information and posts, thank you.
We are a family of 4 living in a VHCOL area with DW working part time, one DS launched, and other DS a freshman in college. Targeting to retire @ 57 when DW is 65. After 16 more months at work, my lump sum pension payout doubles. I appreciate your time. Thank you!
Emergency funds: Yes, three months of expenses.
Debt: Mortgage debt: ($344k @ 2.375%). Home valued @ 2M, not included in total portfolio below. No other debt.
Tax Filing Status: Married Filing Jointly.
Tax Rate: 22% Federal, 9.3% State
State of Residence: California
Current Combined Income: 215,000k
Current Living Expenses + Taxes: 122,000k + 40,000k = 162,000k
Approximate Retired Living Expenses Including Taxes: 130,000k in 2027
Age: His-53Her 61
DS 1 – 23 - launched, Software Engineer at Big Tech and totally off payroll.
DS 2 – 19 - freshman in college. College expenses covered in CDs and duration matched inside of joint taxable account, but not included in total portfolio.
Desired Asset allocation: Now 70% stocks / 30% bonds. In retirement 65% stocks / 35% bonds
Desired International allocation: 0% of stocks
Approximate size of your total portfolio: 2.5M
Current retirement assets:
Joint Taxable at Fidelity – 135,000
4.4% FSKAX – Fidelity Total Market Index – 0.015%. Unrealized gains approx 20k
1% FDVLX – Fidelity Mid Cap Value Fund – 0.83%. Using to fund DAF. Unrealized gains approx 13k
His 401k – at Fidelity 1.567M
36% S&P 500 Index – 0.02%
11% Small/Mid Cap Stock Index – 0.01%
9% Fixed Income US Intermediate Bond – 0.03%
6.7% Mega Corp Stock – Currently selling company matching with intent to sell all.
Company match- 80% on first 6%
His Roth IRA at Fidelity - 7,500
0.3% FSKAX – Fidelity Total Market Index – 0.015%. 2023 first year funding Roth.
His Rollover IRA at Fidelity – 60,000
2.4% FXAIX Fidelity S&P 500 Index Fund – 0.02%
His HSA at Fidelity – 55,000
0.7% FXAIX Fidelity S&P 500 Index Fund – 0.02%
0.7% FDRXX Fidelity® Government Cash Reserves 0.38%
0.8% Mega Corp Stock - I know I know-lol
His Mega Corp pension at Fidelity – Taking as a lump sum – 275,000
11% –if I left Mega Corp today. Treating as Bond allocation.
Her Rollover IRA at Fidelity – 400,000
12% FXAIX Fidelity S&P 500 Index Fund – 0.02%
4% FXNAX Fidelity U.S. Bond Index Fund – 0.03%
New Annual Contributions-
$38,300 his 401k + Catch up 401k + employer matching contributions.
$8300 his HSA + Company match
$8000 his Roth IRA
$8000 her IRA-DW works part time, no 401k.
Social Security Plan – Used opensecurity to develop plan.
Him $71,900 per year. Start receiving at 70. Current age 53.
Her $18,000 per year. Start receiving at 62. Current age 61.
Questions:
1. DW will start collecting Social Security at 62 this July 2024. DW will continue working part time while collecting Social Security and not exceeding earnings limit of $22,320. I believe no Social Security benefits will be withheld, am I missing anything?
2. I have been modeling with the Retiree Portfolio Tool (Thank you BigFoot48) and current plan is for medical coverage for me (prob DS2) with ACA from age 57 to 65, while DW is on Traditional Medicare. Then Roth conversion from age 65 to 75. Should I switch and invest Roth 401k vs reg 401k to build up Roth account? Invest more in our joint taxable account vs reg 401k to prepare for ACA?
3. I realize I have duplicate funds in some accounts, which could impact my ability to TLH. Are we missing anything else? Looking for any gaps and blind spots with our plan.
I am looking for Bogleheads’ expert eyes to take a look at my current portfolio to recommend any optimizations. I found the Boglehead forum last year and have enjoyed reading all the knowledgeable information and posts, thank you.
We are a family of 4 living in a VHCOL area with DW working part time, one DS launched, and other DS a freshman in college. Targeting to retire @ 57 when DW is 65. After 16 more months at work, my lump sum pension payout doubles. I appreciate your time. Thank you!
Emergency funds: Yes, three months of expenses.
Debt: Mortgage debt: ($344k @ 2.375%). Home valued @ 2M, not included in total portfolio below. No other debt.
Tax Filing Status: Married Filing Jointly.
Tax Rate: 22% Federal, 9.3% State
State of Residence: California
Current Combined Income: 215,000k
Current Living Expenses + Taxes: 122,000k + 40,000k = 162,000k
Approximate Retired Living Expenses Including Taxes: 130,000k in 2027
Age: His-53Her 61
DS 1 – 23 - launched, Software Engineer at Big Tech and totally off payroll.
DS 2 – 19 - freshman in college. College expenses covered in CDs and duration matched inside of joint taxable account, but not included in total portfolio.
Desired Asset allocation: Now 70% stocks / 30% bonds. In retirement 65% stocks / 35% bonds
Desired International allocation: 0% of stocks
Approximate size of your total portfolio: 2.5M
Current retirement assets:
Joint Taxable at Fidelity – 135,000
4.4% FSKAX – Fidelity Total Market Index – 0.015%. Unrealized gains approx 20k
1% FDVLX – Fidelity Mid Cap Value Fund – 0.83%. Using to fund DAF. Unrealized gains approx 13k
His 401k – at Fidelity 1.567M
36% S&P 500 Index – 0.02%
11% Small/Mid Cap Stock Index – 0.01%
9% Fixed Income US Intermediate Bond – 0.03%
6.7% Mega Corp Stock – Currently selling company matching with intent to sell all.
Company match- 80% on first 6%
His Roth IRA at Fidelity - 7,500
0.3% FSKAX – Fidelity Total Market Index – 0.015%. 2023 first year funding Roth.
His Rollover IRA at Fidelity – 60,000
2.4% FXAIX Fidelity S&P 500 Index Fund – 0.02%
His HSA at Fidelity – 55,000
0.7% FXAIX Fidelity S&P 500 Index Fund – 0.02%
0.7% FDRXX Fidelity® Government Cash Reserves 0.38%
0.8% Mega Corp Stock - I know I know-lol
His Mega Corp pension at Fidelity – Taking as a lump sum – 275,000
11% –if I left Mega Corp today. Treating as Bond allocation.
Her Rollover IRA at Fidelity – 400,000
12% FXAIX Fidelity S&P 500 Index Fund – 0.02%
4% FXNAX Fidelity U.S. Bond Index Fund – 0.03%
New Annual Contributions-
$38,300 his 401k + Catch up 401k + employer matching contributions.
$8300 his HSA + Company match
$8000 his Roth IRA
$8000 her IRA-DW works part time, no 401k.
Social Security Plan – Used opensecurity to develop plan.
Him $71,900 per year. Start receiving at 70. Current age 53.
Her $18,000 per year. Start receiving at 62. Current age 61.
Questions:
1. DW will start collecting Social Security at 62 this July 2024. DW will continue working part time while collecting Social Security and not exceeding earnings limit of $22,320. I believe no Social Security benefits will be withheld, am I missing anything?
2. I have been modeling with the Retiree Portfolio Tool (Thank you BigFoot48) and current plan is for medical coverage for me (prob DS2) with ACA from age 57 to 65, while DW is on Traditional Medicare. Then Roth conversion from age 65 to 75. Should I switch and invest Roth 401k vs reg 401k to build up Roth account? Invest more in our joint taxable account vs reg 401k to prepare for ACA?
3. I realize I have duplicate funds in some accounts, which could impact my ability to TLH. Are we missing anything else? Looking for any gaps and blind spots with our plan.
Statistics: Posted by BigDundee — Sun Mar 31, 2024 11:41 am — Replies 0 — Views 38