Hi all,
Looking to check in after 12 years of employment and one year of unemployment. I don't expect to get another job before 2024 is over (or make more than $10,000) so that may influence how I proceed with my investments. Thanks again for all your wisdom over the years - last time I posted my portfolio was high 5-figures and this forum definitely helped me along the way.
Emergency funds: 24+ months
Debt: None
Tax Filing Status: Single
Tax Rate: 10% Federal, 1% State
State of Residence: CA
Age: 35
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 20% of stocks
Portfolio size: low 7-figures
Current retirement assets
Taxable account 1
40% Vanguard Total Stock Market Index Fund Admiral VTSAX 0.04%
Taxable account 2
15% META Stock
Roth IRA
12% Vanguard Target Date Retirement 2050 VFIFX 0.09%
Rollover Traditional IRA
0.2% Vanguard Target Retirement 2050 Investor CL 0.08% (yes, it's a very small amount from years ago![:happy]( "smile")
)
Ex-company traditional 401k @ Fidelity #1
8.8% Vanguard Target Date Retirement 2050 Trust 0.04%
15% State Street U.S. Bond Index Securities Lending Series Fund Class XIV 0.02%
Ex-company traditional 401k #2
04% Vanguard Total Bond Market Index Fund Admiral Shares 0.05%
Ex-company traditional 401k #3
05% Vanguard Target Retire 2055 Trust Select 0.05%
New annual contributions
0 to 401k because of unemployment
0 to Roth IRA because likely no earned income this year
$3,600 to taxable (auto contributions so I don't lose the savings muscle)
Questions:
1. I have a few old company 401k accounts that I'd like to consolidate - they're starting to ding me with admin fees every quarter. I don't expect to work again this year, so I'm considering if I should do a backdoor Roth with the 3 401k accounts. Is this the ideal time to do it since my earned income will be less than $10,000 in 2024? I'd roll everything over to Vanguard or Fidelity.
1a. If I do a backdoor Roth, would that impact the premiums I'm paying for health insurance or any other benefits? As in come tax time I have to pay back any subsidies? (This might need a follow-up post in another sub-forum, let me know if that's the case![:happy]( "smile")
)
2. If I don't do the backdoor Roth, would it be OK to roll over #2 and #3 accounts into the Fidelity one even though I'm not employed by the sponsor anymore?
3. I'd like to divest from my position in Meta since I have long-term capital gains now and it's risky having a substantial amount of my portfolio in a single stock. I'm also assuming this is a wise time to do it since I have low income this year. I'd likely put the proceeds into Vanguard Total Stock Market Index Fund Admiral VTSAX 0.04% in my taxable brokerage account. Is there anything I'm missing here?
4. I have negligible amounts in two old HSAs (maybe a few thousand in each?) and was wondering if I should consolidate those as well - the admin fees are going to eat up the money in the accounts if I don't do anything with it. Should I wait until I'm employed again and roll it into the employer offered HSA if I'm eligible or should I roll them into another vehicle?
5. Due to employment uncertainty last year, I held off on buying a home, but I'm hoping to do that in the near future. Even though I have enough for a down payment (or even potentially buy a house outright in an MCOL or LCOL area in cash) it seems like there's no way to get a mortgage unless I have a job. Where can I read more about my options here? I'd prefer not to sell my taxable investments but that might be what needs to get done. I'm also leaning toward consulting part-time on my own in 2025 instead of going back to a full-time corporate job; however, I'm willing to bend a bit here if I need full-time employment again to get a mortgage.
Again, thank you for your guidance and wisdom!! Fantastic community here and glad I found it years ago. Your goal is to help and you certainly have done so.
Looking to check in after 12 years of employment and one year of unemployment. I don't expect to get another job before 2024 is over (or make more than $10,000) so that may influence how I proceed with my investments. Thanks again for all your wisdom over the years - last time I posted my portfolio was high 5-figures and this forum definitely helped me along the way.
Emergency funds: 24+ months
Debt: None
Tax Filing Status: Single
Tax Rate: 10% Federal, 1% State
State of Residence: CA
Age: 35
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 20% of stocks
Portfolio size: low 7-figures
Current retirement assets
Taxable account 1
40% Vanguard Total Stock Market Index Fund Admiral VTSAX 0.04%
Taxable account 2
15% META Stock
Roth IRA
12% Vanguard Target Date Retirement 2050 VFIFX 0.09%
Rollover Traditional IRA
0.2% Vanguard Target Retirement 2050 Investor CL 0.08% (yes, it's a very small amount from years ago
)Ex-company traditional 401k @ Fidelity #1
8.8% Vanguard Target Date Retirement 2050 Trust 0.04%
15% State Street U.S. Bond Index Securities Lending Series Fund Class XIV 0.02%
Ex-company traditional 401k #2
04% Vanguard Total Bond Market Index Fund Admiral Shares 0.05%
Ex-company traditional 401k #3
05% Vanguard Target Retire 2055 Trust Select 0.05%
New annual contributions
0 to 401k because of unemployment
0 to Roth IRA because likely no earned income this year
$3,600 to taxable (auto contributions so I don't lose the savings muscle)
Questions:
1. I have a few old company 401k accounts that I'd like to consolidate - they're starting to ding me with admin fees every quarter. I don't expect to work again this year, so I'm considering if I should do a backdoor Roth with the 3 401k accounts. Is this the ideal time to do it since my earned income will be less than $10,000 in 2024? I'd roll everything over to Vanguard or Fidelity.
1a. If I do a backdoor Roth, would that impact the premiums I'm paying for health insurance or any other benefits? As in come tax time I have to pay back any subsidies? (This might need a follow-up post in another sub-forum, let me know if that's the case
)2. If I don't do the backdoor Roth, would it be OK to roll over #2 and #3 accounts into the Fidelity one even though I'm not employed by the sponsor anymore?
3. I'd like to divest from my position in Meta since I have long-term capital gains now and it's risky having a substantial amount of my portfolio in a single stock. I'm also assuming this is a wise time to do it since I have low income this year. I'd likely put the proceeds into Vanguard Total Stock Market Index Fund Admiral VTSAX 0.04% in my taxable brokerage account. Is there anything I'm missing here?
4. I have negligible amounts in two old HSAs (maybe a few thousand in each?) and was wondering if I should consolidate those as well - the admin fees are going to eat up the money in the accounts if I don't do anything with it. Should I wait until I'm employed again and roll it into the employer offered HSA if I'm eligible or should I roll them into another vehicle?
5. Due to employment uncertainty last year, I held off on buying a home, but I'm hoping to do that in the near future. Even though I have enough for a down payment (or even potentially buy a house outright in an MCOL or LCOL area in cash) it seems like there's no way to get a mortgage unless I have a job. Where can I read more about my options here? I'd prefer not to sell my taxable investments but that might be what needs to get done. I'm also leaning toward consulting part-time on my own in 2025 instead of going back to a full-time corporate job; however, I'm willing to bend a bit here if I need full-time employment again to get a mortgage.
Again, thank you for your guidance and wisdom!! Fantastic community here and glad I found it years ago. Your goal is to help and you certainly have done so.
Statistics: Posted by overwatch01 — Mon May 27, 2024 4:35 pm — Replies 0 — Views 166