Emergency funds: Two months (I have an extremely stable government job and good free cash flow)
Debt: Mortgage $219K @ 3.5%. House value around $1.2M and exhibiting marked appreciation in central Austin
Tax Filing Status: Married Filing Jointly, 1 child (16)
Tax Rate: 12% Federal
State of Residence: TX
Age: 55 (very soon). Wife: 60
Desired Asset allocation: 100% stocks I think (see below)
Desired International allocation: about 20% I think
Portfolio currently at $585K.
Expected pension at 61: $8,000/month (no COLA)
Child has "around $85K" in a 529 from grandparents. Unsure how invested (they have a financial advisor).
Doing a 5-year check in now and accepting that I have neither the continued interest or skill to chase individual stocks or even sector ETFs. Liquidated all individual stocks this week and am currently sitting in the following set of investments after reinvestment:
My HSA (Optum)
6% Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) [US Only]
($2K not invested due to Optum Bank rules)
Wife's 401k/IRA
52% VT
38% PGIM Ultra Short Bond ETF (PULS)
My 401k/457/IRA
8% VT
My Roth
2% VT
Contributions
$9,300/year to HSA
$1,500/month to 401K that will increase for raises in coming years.
Note that my Texas state pension has 9.5 employee/10.0 percent employer contributions.
I used Grumpus' pension valuation formula and the value of the pension will be around $1.8 million at my last modeled retirement date of 2030. As a result, I plan to hold all equities in our portfolio.
I moved half of my wife's holdings in her major account and all in her smaller account to VT. The remaining amount I have in PULS for the short term. I plan to move 1/3rd of this amount to VT on 6/1, 9/1. and 1/2/25 while monitoring a 5 percent drop trigger that would fire each tranche early.
I plan to move wife's accounts to Roth by conversion up to 12/15 percent limit.
We are covered in the state retiree health plan prior to Medicare and as secondary after Medicare.
We plan to take wife's SS at 62 and mine at 70.
I've been working on this work the last three weeks and I think I'm on the right path. Curious what others think.
Debt: Mortgage $219K @ 3.5%. House value around $1.2M and exhibiting marked appreciation in central Austin
Tax Filing Status: Married Filing Jointly, 1 child (16)
Tax Rate: 12% Federal
State of Residence: TX
Age: 55 (very soon). Wife: 60
Desired Asset allocation: 100% stocks I think (see below)
Desired International allocation: about 20% I think
Portfolio currently at $585K.
Expected pension at 61: $8,000/month (no COLA)
Child has "around $85K" in a 529 from grandparents. Unsure how invested (they have a financial advisor).
Doing a 5-year check in now and accepting that I have neither the continued interest or skill to chase individual stocks or even sector ETFs. Liquidated all individual stocks this week and am currently sitting in the following set of investments after reinvestment:
My HSA (Optum)
6% Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) [US Only]
($2K not invested due to Optum Bank rules)
Wife's 401k/IRA
52% VT
38% PGIM Ultra Short Bond ETF (PULS)
My 401k/457/IRA
8% VT
My Roth
2% VT
Contributions
$9,300/year to HSA
$1,500/month to 401K that will increase for raises in coming years.
Note that my Texas state pension has 9.5 employee/10.0 percent employer contributions.
I used Grumpus' pension valuation formula and the value of the pension will be around $1.8 million at my last modeled retirement date of 2030. As a result, I plan to hold all equities in our portfolio.
I moved half of my wife's holdings in her major account and all in her smaller account to VT. The remaining amount I have in PULS for the short term. I plan to move 1/3rd of this amount to VT on 6/1, 9/1. and 1/2/25 while monitoring a 5 percent drop trigger that would fire each tranche early.
I plan to move wife's accounts to Roth by conversion up to 12/15 percent limit.
We are covered in the state retiree health plan prior to Medicare and as secondary after Medicare.
We plan to take wife's SS at 62 and mine at 70.
I've been working on this work the last three weeks and I think I'm on the right path. Curious what others think.
Statistics: Posted by blueeyes_austin — Fri Apr 12, 2024 2:21 pm — Replies 1 — Views 108