I'm new here - asked a few questions a few weeks ago and have made big changes to follow suit. Thank you for the advice so far!
I recently stopped using a financial advisor to save the 1.5% fees. I'm 40, married, with two kids (5, 6 weeks) in Colorado. I'm a software engineer with a solid salary (~$200k) and good benefits. My wife is self-employed and makes about $45k with a very flexible schedule.
Our older son was in a private pre-school until recently, and we just had a new baby. With my wife not working for a while (she couldn't do her job while pregnant), we were spending more than we were bringing in and drained our cash savings quite a bit, but are building that back up now that he's in public school.
My goals here:
1. Get emergency fund back to ~50k ($30k would be minimum). This is currently living in Discovery HYSA at 4.5%
2. Save better for retirement, hopefully before 65 but I think something big would have to happen (like my company going public for a lot) to hit that.
3. Not stress about hitting these goals
4. Live a comfortable life
Beyond "please look at this and tell me where I'm stupid", I'd also like to figure out a way to automate the weekly Roth investment so I don't have to log in every week to make purchases.
Please ask any clarifying questions, too!
Here's a full rundown of everything we have.
Schwab
Our main investments are with Schwab. We have 6 total accounts:
1. Individual Investing
Taxable account with direct investments I’ve made over the years.
About $25k. I’ve moved things into more index funds over the years out of my one-off bets.
No current regular input or output.
About $6k of this is in low cost index funds. About $14k is in individual stocks (AAPl, AMZN, GOOG, TSLA).
The rest is in a smattering of smaller bets.
2. TD Transfer account
Nothing in it currently. Has options trading enabled. No plans to use it, listing for completeness.
3.My Roth
~17k in 75% VTI, 20% VXUS, 5% BND. Remaining cash is in SWVXX.
Currently $75/week auto deposited from checking, and then either put into SWVXX or into the three funds. While the deposit is automatic, I don’t love having to purchase weekly, and would like to find some sort of automatic process here.
4. Wife’s Roth
~74k. Same portfolio, same amount per week auto deposit, same frustrations, etc.
5. My Rollover IRA
~48k, same portfolio, no deposits
6. Wife’s Rollover IRA
~42k, same portfolio, no deposits
Betterment
0.25% annual fee
I should probably move all of this to something without the fees. I like the tax-loss harvesting, but I'm not sure it’s worth the fees.
Account 1
Taxable account with ~78k with $50/week auto-deposit. Was $150/week, will get back to that.
Currently holds 95% stocks / 5% bonds in a Broad Impact portfolio at 0.18% expense ratio
Goal: Long term / retirement
Account 2
Taxable account with ~3k, $50/month (was $50/week, will get back to that) in 100% stocks in an Innovative Technology portfolio at 0.08% expense ratio
Goal: short term / medium term
Wife’s SEP IRA
~$1500 in Goldman Sachs Smart Beta 0.17% exp, no recurring, $4/mo fee
Empower
Work Roth 401k. No match. ~68k currently. 5%(~10k) contribution (was 13% (maxed out), will get back to that).
Just switched to:
70% Fidelity 500 Index Fund (FXAIX - 0.015% exp)
20% Vanguard Small-Cap Index Fund Admiral Shares (VSMAX - 0.05% exp)
10% Vanguard Mid-Cap Index Fund Admiral Shares (VIMAX - 0.050% exp)
Prosper
~$6,500, $50/week, ~10.3% return
Discover
HYSA
Emergency Fund. Recently drained, building back up. ~6k currently, 4.25% interest rate. Want this at $30-50k. Can lean on betterment as needed. $150/week auto deposit.
CD
$5,500 in 6mo CD at 4.25%, matures in October.
Goal: short-medium term gains with some liquidity
I-Bond
$8,400 in a Series I Savings Bond at 2.96% (was like 9% when I signed up with $7,500)
Mortgage
Owe $545k at 10/1 ARM with 8 years left in the 10. Current rate is 3.375%, ceiling is 8.375%. Home value ~900k. Monthly payments ~2500 (not incl tax or insurance)
HELOC
Access to 165k at 8.75%
Northwest Mutual
Me
Policy: Adjustable Complife
Net Death Benefit: $77k
Annualized Premium: $1,200
Net Accumulated Value: $8.5k
Policy: 65 Life
Net Death Benefit: $131k
Annualized Premium: $1,600
Net Accumulated Value: $18k
Policy: Term 80
Net Death Benefit: $500k
Annualized Premium: $390
Net Accumulated Value: $26k
Wife
Policy: Term 80
Net Death Benefit: $375k
Annualized Premium: $314
Net Accumulated Value: $0
Policy: 65 Life
Net Death Benefit: $137k
Annualized Premium: $1,850
Net Accumulated Value: $14k
Policy: Disability
Benefit: $1,300/mo
Annualized Premium: $736
Net Accumulated Value: $0
529
5yo
$18k - Aggressive Age-Based Portfolio, 0.29% exp, 87.5/12.5, $225/mo +$25 each Feb
$16.5k - Aggressive Age-Based Portfolio, 0.29% exp, 87.5/12.5, Family contributions
6wk old
$100 - Aggressive Age-Based Portfolio, 0.29% exp, 100/0, $100/mo +$25 each July
I recently stopped using a financial advisor to save the 1.5% fees. I'm 40, married, with two kids (5, 6 weeks) in Colorado. I'm a software engineer with a solid salary (~$200k) and good benefits. My wife is self-employed and makes about $45k with a very flexible schedule.
Our older son was in a private pre-school until recently, and we just had a new baby. With my wife not working for a while (she couldn't do her job while pregnant), we were spending more than we were bringing in and drained our cash savings quite a bit, but are building that back up now that he's in public school.
My goals here:
1. Get emergency fund back to ~50k ($30k would be minimum). This is currently living in Discovery HYSA at 4.5%
2. Save better for retirement, hopefully before 65 but I think something big would have to happen (like my company going public for a lot) to hit that.
3. Not stress about hitting these goals
4. Live a comfortable life
Beyond "please look at this and tell me where I'm stupid", I'd also like to figure out a way to automate the weekly Roth investment so I don't have to log in every week to make purchases.
Please ask any clarifying questions, too!
Here's a full rundown of everything we have.
Schwab
Our main investments are with Schwab. We have 6 total accounts:
1. Individual Investing
Taxable account with direct investments I’ve made over the years.
About $25k. I’ve moved things into more index funds over the years out of my one-off bets.
No current regular input or output.
About $6k of this is in low cost index funds. About $14k is in individual stocks (AAPl, AMZN, GOOG, TSLA).
The rest is in a smattering of smaller bets.
2. TD Transfer account
Nothing in it currently. Has options trading enabled. No plans to use it, listing for completeness.
3.My Roth
~17k in 75% VTI, 20% VXUS, 5% BND. Remaining cash is in SWVXX.
Currently $75/week auto deposited from checking, and then either put into SWVXX or into the three funds. While the deposit is automatic, I don’t love having to purchase weekly, and would like to find some sort of automatic process here.
4. Wife’s Roth
~74k. Same portfolio, same amount per week auto deposit, same frustrations, etc.
5. My Rollover IRA
~48k, same portfolio, no deposits
6. Wife’s Rollover IRA
~42k, same portfolio, no deposits
Betterment
0.25% annual fee
I should probably move all of this to something without the fees. I like the tax-loss harvesting, but I'm not sure it’s worth the fees.
Account 1
Taxable account with ~78k with $50/week auto-deposit. Was $150/week, will get back to that.
Currently holds 95% stocks / 5% bonds in a Broad Impact portfolio at 0.18% expense ratio
Goal: Long term / retirement
Account 2
Taxable account with ~3k, $50/month (was $50/week, will get back to that) in 100% stocks in an Innovative Technology portfolio at 0.08% expense ratio
Goal: short term / medium term
Wife’s SEP IRA
~$1500 in Goldman Sachs Smart Beta 0.17% exp, no recurring, $4/mo fee
Empower
Work Roth 401k. No match. ~68k currently. 5%(~10k) contribution (was 13% (maxed out), will get back to that).
Just switched to:
70% Fidelity 500 Index Fund (FXAIX - 0.015% exp)
20% Vanguard Small-Cap Index Fund Admiral Shares (VSMAX - 0.05% exp)
10% Vanguard Mid-Cap Index Fund Admiral Shares (VIMAX - 0.050% exp)
Prosper
~$6,500, $50/week, ~10.3% return
Discover
HYSA
Emergency Fund. Recently drained, building back up. ~6k currently, 4.25% interest rate. Want this at $30-50k. Can lean on betterment as needed. $150/week auto deposit.
CD
$5,500 in 6mo CD at 4.25%, matures in October.
Goal: short-medium term gains with some liquidity
I-Bond
$8,400 in a Series I Savings Bond at 2.96% (was like 9% when I signed up with $7,500)
Mortgage
Owe $545k at 10/1 ARM with 8 years left in the 10. Current rate is 3.375%, ceiling is 8.375%. Home value ~900k. Monthly payments ~2500 (not incl tax or insurance)
HELOC
Access to 165k at 8.75%
Northwest Mutual
Me
Policy: Adjustable Complife
Net Death Benefit: $77k
Annualized Premium: $1,200
Net Accumulated Value: $8.5k
Policy: 65 Life
Net Death Benefit: $131k
Annualized Premium: $1,600
Net Accumulated Value: $18k
Policy: Term 80
Net Death Benefit: $500k
Annualized Premium: $390
Net Accumulated Value: $26k
Wife
Policy: Term 80
Net Death Benefit: $375k
Annualized Premium: $314
Net Accumulated Value: $0
Policy: 65 Life
Net Death Benefit: $137k
Annualized Premium: $1,850
Net Accumulated Value: $14k
Policy: Disability
Benefit: $1,300/mo
Annualized Premium: $736
Net Accumulated Value: $0
529
5yo
$18k - Aggressive Age-Based Portfolio, 0.29% exp, 87.5/12.5, $225/mo +$25 each Feb
$16.5k - Aggressive Age-Based Portfolio, 0.29% exp, 87.5/12.5, Family contributions
6wk old
$100 - Aggressive Age-Based Portfolio, 0.29% exp, 100/0, $100/mo +$25 each July
Statistics: Posted by pj_ — Thu Aug 22, 2024 11:25 am — Replies 2 — Views 187