Have a few questions for retirement planning.
Emergency funds: We have this
Debt: No debt, own house
Tax Filing Status: Married Filing Jointly, no children
Tax Rate: 12% Federal, 4.25% State
State of Residence: MI
Age: 55 (56 this Dec)
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation:20% of stocks
Please provide an approximate size of your total portfolio: $1.56 million
Taxable at Vanguard
7%Vanguard Total Stock Market Index Fund(VTSAX)(0.04)
2%Vanguard Total International Stock Index Fund (VTIAX)(0.12)
11%VANGUARD FEDERAL MONEY MARKET FUND (VMFXX) (0.11)
His Trad IRA at Vanguard
17%Vanguard Total International Stock Index Fund(VTIAX)(0.12)
26%Vanguard Intermediate-Term Treasury Index Fund Admiral Shares (VSIGX)(0.07)
4%Vanguard Total Stock Market Index Fund(VTSAX)(0.04)
His Roth IRA at Vanguard (we max this out each year)
17%Vanguard Total Stock Market Index Fund(VTSAX)(0.04)
His 457 at Fidelity (this is being distributed over 5 years, started Jan 2024)
3% Vanguard Treasury Money Market (VUSXX) (0.09)
His HSA at Fidelity
2% Fidelity Total Market Index (FSKAX) (0.015)
His TSP at TSP - only contributing $78/paycheck w/5% match
0%Lifecycle 2030 (L2030) (0.05)
Her Trad IRA at Vanguard
10%Vanguard Total Stock Market Index Fund (VTSAX)(0.04)
Her Roth IRA at Vanguard (we max this out each year)
1%Vanguard Total Stock Market Index Fund(VTSAX)(0.04)
Her pension: ~$1000/month after taxes
We have full medical coverage thru her retirement plan
Questions:
Starting in Nov 2024, I plan on doing $50k/yr IRA conversions (staying in the 12% tax bracket) until I'm 60. At 60, I hope to retire and then do $50k/yr distributions from my Trad IRA until I turn 67 and will then collect Social Security. SS + our pensions will be more than $50k/yr which should meet most\all of our annual expenses.
1. Since I plan to start doing IRA conversions this year, should I change my Trad IRA investments to lower volatility? Maybe 100% VSIGX or (gulp) a TIPS ladder (very very new to that)?
2. My concerns are what am I missing to factor in for retirement. What are some gaping holes in my very simple plan?
Any suggestions are greatly appreciated!
Emergency funds: We have this
Debt: No debt, own house
Tax Filing Status: Married Filing Jointly, no children
Tax Rate: 12% Federal, 4.25% State
State of Residence: MI
Age: 55 (56 this Dec)
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation:20% of stocks
Please provide an approximate size of your total portfolio: $1.56 million
Taxable at Vanguard
7%Vanguard Total Stock Market Index Fund(VTSAX)(0.04)
2%Vanguard Total International Stock Index Fund (VTIAX)(0.12)
11%VANGUARD FEDERAL MONEY MARKET FUND (VMFXX) (0.11)
His Trad IRA at Vanguard
17%Vanguard Total International Stock Index Fund(VTIAX)(0.12)
26%Vanguard Intermediate-Term Treasury Index Fund Admiral Shares (VSIGX)(0.07)
4%Vanguard Total Stock Market Index Fund(VTSAX)(0.04)
His Roth IRA at Vanguard (we max this out each year)
17%Vanguard Total Stock Market Index Fund(VTSAX)(0.04)
His 457 at Fidelity (this is being distributed over 5 years, started Jan 2024)
3% Vanguard Treasury Money Market (VUSXX) (0.09)
His HSA at Fidelity
2% Fidelity Total Market Index (FSKAX) (0.015)
His TSP at TSP - only contributing $78/paycheck w/5% match
0%Lifecycle 2030 (L2030) (0.05)
Her Trad IRA at Vanguard
10%Vanguard Total Stock Market Index Fund (VTSAX)(0.04)
Her Roth IRA at Vanguard (we max this out each year)
1%Vanguard Total Stock Market Index Fund(VTSAX)(0.04)
Her pension: ~$1000/month after taxes
We have full medical coverage thru her retirement plan
Questions:
Starting in Nov 2024, I plan on doing $50k/yr IRA conversions (staying in the 12% tax bracket) until I'm 60. At 60, I hope to retire and then do $50k/yr distributions from my Trad IRA until I turn 67 and will then collect Social Security. SS + our pensions will be more than $50k/yr which should meet most\all of our annual expenses.
1. Since I plan to start doing IRA conversions this year, should I change my Trad IRA investments to lower volatility? Maybe 100% VSIGX or (gulp) a TIPS ladder (very very new to that)?
2. My concerns are what am I missing to factor in for retirement. What are some gaping holes in my very simple plan?
Any suggestions are greatly appreciated!
Statistics: Posted by Bootjack906 — Sat Sep 14, 2024 10:41 am — Replies 4 — Views 463