Greetings,
For the past several years, I've been proudly adopting the Boogleheads mentality in managing my investments. However, even the keenest eyes can miss a beat or two.
I would greatly appreciate your community wisdom in reviewing my portfolio for any blind spots or overlooked opportunities.
Thanks a million,
Ben
_______________________________________________________________
Emergency funds: Yes, 6 month in High Yield Savings account.
Debt: None
Tax Filing Status: Single
Tax Rate: 24% Federal, 0% State
Annual Gross Income: around $160K
State of Residence: WA
Age: 31
Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: up to 10% of stocks / 0% bonds
_______________________________________________________________
Approximate size of total portfolio: 565K
_______________________________________________________________
Current assets:
401K (pre-tax)
28.3% | FXAIX - Fidelity 500 Index | Exp Ratio: 0.015%
7.9% | FSPSX - Fidelity International Index | Exp Ratio: 0.030%
HSA
2.5%| FSSNX- Fidelity Small Cap Index | Exp Ratio: 0.025%
1.6% | FZROX - Fidelity ZERO Total Market Index | Exp Ratio: 0.000%
Roth IRA (Fidelity)
7.6% | FSSNX- Fidelity Small Cap Index | Exp Ratio: 0.025%
3.4% | FZROX - Fidelity ZERO Total Market Index | Exp Ratio: 0.000%
Roth IRA (Vanguard)
9.1% | VSMAX - Vanguard Small-Cap Index Fund Admiral Shares) | Exp Ratio: 0.050%
529
1.4% | Vanguard 500 Index | Exp Ratio: 0.130%
Note: Invested $7.5K this year while planning to roll it over to Roth IRA in 15 years as it hits $35K. Otherwise use for education of my kid(s) - currently no kids.
Taxable
20.7% | VLCAX (Vanguard Large Cap Index)
9.5% | VTSAX (Total Market Index)
0.4% | Apple
3.3% | Tesla
1.3% | SPY (S&P 500 ETF)
Cripto
1.6% | Bitcoin
0.8% | Ethereum
_______________________________________________________________
Annual Contributions
$23,000 his 401k (frontloaded in Q1)
$7,000 his Roth IRA (frontloaded in January 2024)
$15,000 taxable (so far)
_______________________________________________________________
Questions:
1. I plan to continue contributing $50K - $75K per year for the next 12 years. Assuming an annual market return of 8-9% (adjusted for inflation), my goal is to reach $1M by age 35, $2M by age 40, and $3.5M by age 45 achieving financial independence. Do you notice any potential concerns ("yellow or red flags") in my portfolio? Should I consider a different asset allocation? I lean towards high-risk investments while recognizing importance of diversification.
2. Over the past 5 years, due to job changes and living in multiple states, I haven't purchased a primary residence. Real estate prices in the Seattle area continue to rise. Renting seems financially wise in the short term, but for the mid to long term buying might be more prudent since I plan to stay in this area. What are your thoughts on this?
3. I currently drive a 13-year-old Audi which runs like a champ. However, I enjoy the outdoors, and my Audi isn't suitable for some of the trails I want to explore. I'm considering purchasing a '10-'14 Lexus LX 570 (fancy yet more affordable Toyota Land Cruiser 200) for $18K-$24K. Based on my extensive research, this vehicle is known for its durability and capability, and I believe it could serve my needs well for another 10 years if well maintained. I'm fully aware that this isn't the most financially wise decision, but it's emotionally charged. Do you think this idea is completely irrational, or should I continue to consider it?
For the past several years, I've been proudly adopting the Boogleheads mentality in managing my investments. However, even the keenest eyes can miss a beat or two.
I would greatly appreciate your community wisdom in reviewing my portfolio for any blind spots or overlooked opportunities.
Thanks a million,
Ben
_______________________________________________________________
Emergency funds: Yes, 6 month in High Yield Savings account.
Debt: None
Tax Filing Status: Single
Tax Rate: 24% Federal, 0% State
Annual Gross Income: around $160K
State of Residence: WA
Age: 31
Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: up to 10% of stocks / 0% bonds
_______________________________________________________________
Approximate size of total portfolio: 565K
_______________________________________________________________
Current assets:
401K (pre-tax)
28.3% | FXAIX - Fidelity 500 Index | Exp Ratio: 0.015%
7.9% | FSPSX - Fidelity International Index | Exp Ratio: 0.030%
HSA
2.5%| FSSNX- Fidelity Small Cap Index | Exp Ratio: 0.025%
1.6% | FZROX - Fidelity ZERO Total Market Index | Exp Ratio: 0.000%
Roth IRA (Fidelity)
7.6% | FSSNX- Fidelity Small Cap Index | Exp Ratio: 0.025%
3.4% | FZROX - Fidelity ZERO Total Market Index | Exp Ratio: 0.000%
Roth IRA (Vanguard)
9.1% | VSMAX - Vanguard Small-Cap Index Fund Admiral Shares) | Exp Ratio: 0.050%
529
1.4% | Vanguard 500 Index | Exp Ratio: 0.130%
Note: Invested $7.5K this year while planning to roll it over to Roth IRA in 15 years as it hits $35K. Otherwise use for education of my kid(s) - currently no kids.
Taxable
20.7% | VLCAX (Vanguard Large Cap Index)
9.5% | VTSAX (Total Market Index)
0.4% | Apple
3.3% | Tesla
1.3% | SPY (S&P 500 ETF)
Cripto
1.6% | Bitcoin
0.8% | Ethereum
_______________________________________________________________
Annual Contributions
$23,000 his 401k (frontloaded in Q1)
$7,000 his Roth IRA (frontloaded in January 2024)
$15,000 taxable (so far)
_______________________________________________________________
Questions:
1. I plan to continue contributing $50K - $75K per year for the next 12 years. Assuming an annual market return of 8-9% (adjusted for inflation), my goal is to reach $1M by age 35, $2M by age 40, and $3.5M by age 45 achieving financial independence. Do you notice any potential concerns ("yellow or red flags") in my portfolio? Should I consider a different asset allocation? I lean towards high-risk investments while recognizing importance of diversification.
2. Over the past 5 years, due to job changes and living in multiple states, I haven't purchased a primary residence. Real estate prices in the Seattle area continue to rise. Renting seems financially wise in the short term, but for the mid to long term buying might be more prudent since I plan to stay in this area. What are your thoughts on this?
3. I currently drive a 13-year-old Audi which runs like a champ. However, I enjoy the outdoors, and my Audi isn't suitable for some of the trails I want to explore. I'm considering purchasing a '10-'14 Lexus LX 570 (fancy yet more affordable Toyota Land Cruiser 200) for $18K-$24K. Based on my extensive research, this vehicle is known for its durability and capability, and I believe it could serve my needs well for another 10 years if well maintained. I'm fully aware that this isn't the most financially wise decision, but it's emotionally charged. Do you think this idea is completely irrational, or should I continue to consider it?
Statistics: Posted by tin_foil_hat — Sun Jul 07, 2024 7:46 pm — Replies 2 — Views 542