Hello Boglehead community. This is the 3rd year I've provided an investment update to the forum. This post is coming a few months later than I expected. A few things have come up at work and personal life that have caused the days/weeks/months to cruise by. I have a few thoughts & questions for the group below. Hope everyone is enjoying the better weather!
Income:
Salary: $96,000
Bonus: (25-30% of base)
Bank Assets:
HYSA: $22,000 earning 5.15%
Investable Assets
401k: $128,000 (Bi-weekly contributions to IRS max) ($59,000 Roth/$69,000 Pre-tax)
Blackrock Equity Index Fund GG: $54,000
Blackrock MSCI ex US: $35,000
Blackrock Mid-Cap: $13,000
Blackrock Russell 2000: $9,500
TIAA Real Estate: $7,300
CREF Global Equities: $3,400
CREF Stock: $2,300
TIAA Traditional: $3,000
Roth IRA: $38,000 (Lump sum max on 1/1, dollar cost averaging into market)
VTI: $16,500
VOO: $18,000
Cash: $3,700 ($250/week goes into VTI)
Retirement Healthcare Savings Plan (RHSP): $8,600 ($1,500 contribution on 1/1 each year)
S&P 500 Index Fund: $8,600
HSA: $315 ($50 contribution biweekly)
100% Cash until balance reaches $1,000
Brokerage: $58,500 ($1,500 contribution per month, $500 invested into VTI weekly)
Cash: $28,700
VTI: 28,100
Indv Stock: $1,600 (APPL, AMZN, ARKK, DKNG, NKE)
Crypto: $8,500 (100% Bitcoin, no additions)
I currently rent w/ a roommate. $1,800 per month w/ utilities. No other loans/debt at this time. No car, I bike to work.
Intermediate term goals:
1) Be ready to move on a property in 2 years. Homes/condos in my area are pricey. Most are around 700-1M, so I'd like to have around $150-
200k to put down. That being said I love renting right now. It gives me the flexibility to move around, my apartment is in a good location
and I'm not ready to commit to my current city yet.
I encourage you all to poke holes in my strategy here. I've listed a few of my thoughts below.
1) I'm a big fan of simplicity. I've been meaning to clean up the indv stock within brokerage. It's at a net ~-$200 loss at the moment. Won't
cause any tax implications. APPL and AMZN keep cranking, the other 3 are down 30-40% each.
2) The cash in the Roth should've been invested as a lump sum on 1/1 (in hindsight) but I'm comfortable with the $250 weekly DCA purchases
going forward.
3) I'm holding onto a lot of cash in my brokerage. It's earning 5% like my HYSA but I do see some of this cash as part of a down payment for
property in the future.
4) There's a lot of overlap with VTI and VOO. Very concentrated in big tech/mag 7, as are most portfolios However I have international
exposure in my 401k.
5) My 401k allocation does not follow the 3 fund portfolio. Investment advice is generated by Morningstar based off my plan's menu. The
Blackrock funds are sub .05% exp ratios, the CREF funds are very close. International lags the US market historically, but I do see
Morningstar's rationale for ex US funds.
6) I should probably be maxing out my HSA
7) I take a good chunk of my annual bonus and defer it into 401k so it avoids 45% taxes. For the rest fo the year i do Roth. I know rates will
sunset in 2026 and taking the full tax hit now might be a better play in the long run.
Thank you all. Stay happy & healthy!
Income:
Salary: $96,000
Bonus: (25-30% of base)
Bank Assets:
HYSA: $22,000 earning 5.15%
Investable Assets
401k: $128,000 (Bi-weekly contributions to IRS max) ($59,000 Roth/$69,000 Pre-tax)
Blackrock Equity Index Fund GG: $54,000
Blackrock MSCI ex US: $35,000
Blackrock Mid-Cap: $13,000
Blackrock Russell 2000: $9,500
TIAA Real Estate: $7,300
CREF Global Equities: $3,400
CREF Stock: $2,300
TIAA Traditional: $3,000
Roth IRA: $38,000 (Lump sum max on 1/1, dollar cost averaging into market)
VTI: $16,500
VOO: $18,000
Cash: $3,700 ($250/week goes into VTI)
Retirement Healthcare Savings Plan (RHSP): $8,600 ($1,500 contribution on 1/1 each year)
S&P 500 Index Fund: $8,600
HSA: $315 ($50 contribution biweekly)
100% Cash until balance reaches $1,000
Brokerage: $58,500 ($1,500 contribution per month, $500 invested into VTI weekly)
Cash: $28,700
VTI: 28,100
Indv Stock: $1,600 (APPL, AMZN, ARKK, DKNG, NKE)
Crypto: $8,500 (100% Bitcoin, no additions)
I currently rent w/ a roommate. $1,800 per month w/ utilities. No other loans/debt at this time. No car, I bike to work.
Intermediate term goals:
1) Be ready to move on a property in 2 years. Homes/condos in my area are pricey. Most are around 700-1M, so I'd like to have around $150-
200k to put down. That being said I love renting right now. It gives me the flexibility to move around, my apartment is in a good location
and I'm not ready to commit to my current city yet.
I encourage you all to poke holes in my strategy here. I've listed a few of my thoughts below.
1) I'm a big fan of simplicity. I've been meaning to clean up the indv stock within brokerage. It's at a net ~-$200 loss at the moment. Won't
cause any tax implications. APPL and AMZN keep cranking, the other 3 are down 30-40% each.
2) The cash in the Roth should've been invested as a lump sum on 1/1 (in hindsight) but I'm comfortable with the $250 weekly DCA purchases
going forward.
3) I'm holding onto a lot of cash in my brokerage. It's earning 5% like my HYSA but I do see some of this cash as part of a down payment for
property in the future.
4) There's a lot of overlap with VTI and VOO. Very concentrated in big tech/mag 7, as are most portfolios However I have international
exposure in my 401k.
5) My 401k allocation does not follow the 3 fund portfolio. Investment advice is generated by Morningstar based off my plan's menu. The
Blackrock funds are sub .05% exp ratios, the CREF funds are very close. International lags the US market historically, but I do see
Morningstar's rationale for ex US funds.
6) I should probably be maxing out my HSA
7) I take a good chunk of my annual bonus and defer it into 401k so it avoids 45% taxes. For the rest fo the year i do Roth. I know rates will
sunset in 2026 and taking the full tax hit now might be a better play in the long run.
Thank you all. Stay happy & healthy!
Statistics: Posted by anoninvestor1313 — Sun May 26, 2024 2:40 pm — Replies 3 — Views 247