This post was prompted after a discussion I had with a wealth/money manager yesterday. I had approached a family friend who is a CFA/CMT as I wanted someone to look over my current finances and tell me if I was doing everything 'right' to possibly retire in 8 years (house paid, kids out of college). She referred me to her wealth manager and the pitch wasn't great (85-150 custom chosen stocks; quoted 25-32% returns...). So if anyone can comment on the below and/or tell me if it is worthwhile to find a CFP (and how to get a good one), I would greatly appreciate it!
Investments:
401k - $1.1m in Hancock 500 index fund (previously had that split 50:50 between the SP500 and their Fed High Yield Bond but became confused about bonds in terms of role and where to hold them)
Brokerage:
VTSAX - $1.7m (417k cap gains)
VTIAX - 232k (35k cap gains)
AAPL - 152k (123k cap gains)
IRA (Me):
VTSAX - $172k
IRA (Wife):
VTSAX - $153k
SEP-IRA (side business):
VTSAX - $49k
403b:
FXAIX - $228k (Wife's old job)
CREF Growth R1 - $16k (Wife's new job)
Cash: $150k
Total Portfolio: $3.7m (all saved in past 10 years)
Mortgage: $254k
House: $1.2m
529 for each kid (19 and 17) that will fully pay for college
Earn 600k per year. Savings rate is 40-50% per year per Mint and now Monarch Money
State of Residence: MA; Married filing jointly
Questions:
1. My CPA (also a CFP) has guided the above and I have received comments on Reddit in the past telling me I should not have an IRA (can't tell you exactly why now - I'm a physician and my brain isn't wired for this stuff)
2. I have gone back and forth on doing a backdoor Roth IRA conversion and came here in part by following links from Q3 Advisors/Craig Wear that led to a Boglehead discussion.
3. I have zero bonds right now. I was 80:20 doing the COVID recession/sell off and never touched stocks or bonds (I think of the latter as 'dry powder'). I don't know if bonds should be in the 401k (easiest to d) or if I should start accumulating in the brokerage account. And if I should think of bonds as a pool to draw from during retirement years when the market is in a downturn.
Greatly appreciate your looking at the above and offering any/all advice.
Thanks!
E
Investments:
401k - $1.1m in Hancock 500 index fund (previously had that split 50:50 between the SP500 and their Fed High Yield Bond but became confused about bonds in terms of role and where to hold them)
Brokerage:
VTSAX - $1.7m (417k cap gains)
VTIAX - 232k (35k cap gains)
AAPL - 152k (123k cap gains)
IRA (Me):
VTSAX - $172k
IRA (Wife):
VTSAX - $153k
SEP-IRA (side business):
VTSAX - $49k
403b:
FXAIX - $228k (Wife's old job)
CREF Growth R1 - $16k (Wife's new job)
Cash: $150k
Total Portfolio: $3.7m (all saved in past 10 years)
Mortgage: $254k
House: $1.2m
529 for each kid (19 and 17) that will fully pay for college
Earn 600k per year. Savings rate is 40-50% per year per Mint and now Monarch Money
State of Residence: MA; Married filing jointly
Questions:
1. My CPA (also a CFP) has guided the above and I have received comments on Reddit in the past telling me I should not have an IRA (can't tell you exactly why now - I'm a physician and my brain isn't wired for this stuff)
2. I have gone back and forth on doing a backdoor Roth IRA conversion and came here in part by following links from Q3 Advisors/Craig Wear that led to a Boglehead discussion.
3. I have zero bonds right now. I was 80:20 doing the COVID recession/sell off and never touched stocks or bonds (I think of the latter as 'dry powder'). I don't know if bonds should be in the 401k (easiest to d) or if I should start accumulating in the brokerage account. And if I should think of bonds as a pool to draw from during retirement years when the market is in a downturn.
Greatly appreciate your looking at the above and offering any/all advice.
Thanks!
E
Statistics: Posted by eoren1 — Thu Sep 12, 2024 2:12 pm — Replies 17 — Views 763