Hi all. Kindly request a portfolio review in light of a recent unanticipated house purchase. I was lucky enough to be able to assume the seller's low VA loan rate. This (plus an upcoming engagement) puts me in a new financial situation.
About me:
- Debt: $650k mortgage debt at 2.25%
- Tax status: single
- Tax rate: 32% federal, 9.3% state (California)
- Age: 44
- Annual income: $225k
Assets:
- $150k in cash
- $360k TSP: approx. $70k of that is Roth, and I now contribute evenly to Roth and Traditional. I max out my contributions every year.
- $152k Roth IRA. I also max my contributions to this every year.
- $20k in I-bonds
Holdings:
- The TSP is all in Lifecycle 2050
- The IRA is all in VTI
Other:
- I expect I’ll receive approx. $100k in pension (in today’s dollars - it will adjust for inflation) from the civil service and military reserves. The military portion (approx. 40k) will vest in my late-50s, and the civilian portion (approx. $60k) will vest in my early-60s.
- My girlfriend (soon-to-be fiancée) earns about $180k. She’s moving in, so she’ll contribute a TBD amount to the monthly housing costs. She stands to earn a much higher income than me in the years to come. She maxes her own 401k.
- The home purchase price was $1M. I paid $360k down (including closing costs) to acquire the note. My monthly carrying costs will be about $4500 (inclusive of utilities, HOAs, etc.).
Questions:
- Thoughts on what to do with the cash? We do plan on having one or two children, but we’re not really too worried about college savings – we plan on taking advantage of CalVet’s free tuition for veteran dependents, plus I can transfer my GI bill to my dependents. Admittedly, cash gives me some psychological security, but because I work for the govt and I’m relatively safe from a layoff, I don’t think I need too much of a rainy day fund.
- Thoughts on the Roth-vs-Traditional weighting in both my TSP and IRA?
Looking for crowdsourced wisdom here. Any and all suggestions are very welcome!
About me:
- Debt: $650k mortgage debt at 2.25%
- Tax status: single
- Tax rate: 32% federal, 9.3% state (California)
- Age: 44
- Annual income: $225k
Assets:
- $150k in cash
- $360k TSP: approx. $70k of that is Roth, and I now contribute evenly to Roth and Traditional. I max out my contributions every year.
- $152k Roth IRA. I also max my contributions to this every year.
- $20k in I-bonds
Holdings:
- The TSP is all in Lifecycle 2050
- The IRA is all in VTI
Other:
- I expect I’ll receive approx. $100k in pension (in today’s dollars - it will adjust for inflation) from the civil service and military reserves. The military portion (approx. 40k) will vest in my late-50s, and the civilian portion (approx. $60k) will vest in my early-60s.
- My girlfriend (soon-to-be fiancée) earns about $180k. She’s moving in, so she’ll contribute a TBD amount to the monthly housing costs. She stands to earn a much higher income than me in the years to come. She maxes her own 401k.
- The home purchase price was $1M. I paid $360k down (including closing costs) to acquire the note. My monthly carrying costs will be about $4500 (inclusive of utilities, HOAs, etc.).
Questions:
- Thoughts on what to do with the cash? We do plan on having one or two children, but we’re not really too worried about college savings – we plan on taking advantage of CalVet’s free tuition for veteran dependents, plus I can transfer my GI bill to my dependents. Admittedly, cash gives me some psychological security, but because I work for the govt and I’m relatively safe from a layoff, I don’t think I need too much of a rainy day fund.
- Thoughts on the Roth-vs-Traditional weighting in both my TSP and IRA?
Looking for crowdsourced wisdom here. Any and all suggestions are very welcome!
Statistics: Posted by pesa1012 — Fri May 10, 2024 2:46 pm — Replies 0 — Views 142