Dear Bogleheads,
This forum has been an eyeopener for me and I hoped to achieve the financial independence in next few decades.Thank your for your time and effort to share your knowledge in this community. I read the forum policies and added as much information as possible so bare with me for a long post.
Emergency funds:
$1500 in Savings Acct
Debt:
10K Auto loan @ 2%
365k Mortgage @5.8% (3k monthly payment including Tax and Insurance)
We pay off credit cards every month.
Tax Filing Status:
Married Filing Jointly
Tax Rate:
25% Federal, 0% State (TX)
Gross Income - 310k (275 base and 35 in bonus).
Age:
His 37; Her 34
Two Kids - Age 6(1st grade) and 3(Child care).
$0 in 529 Plan
Desired Asset allocation:
80% stocks / 20% bonds
Desired International allocation:
0% of stocks
Total Portfolio 395k(62.78% in retirement, 35% in Brokerage, 2.15% in HSA)
His 401k at Fidelity - $140k
100% - Vanguard Institutional Index Fund (VIIIX) @ 0.02% Expense ratio
5% Company match
Option to add 8% of income thru mega back door with an in-plan Roth conversion.
His Traditional IRA at Vanguard - $20k
100% - Vanguard Federal Money Market (VFMMX)
Planned to move this to employer 401k now and contribute to back door Roth IRA for year 2023
His Roth IRA at TD Ameritrade - $9K
GOOG26%
TQQQ74%
His Brokerage at TD Ameritrade - $42K
CP9%
Cash91%
Her 401k at Fidelity - $66.5k
100% - Fidelity 500 Index Fund (FXAIX) @ 0.015% Expense ratio
4% Company match
Her Roth IRA at Vanguard - $12.5K
VFMMX53%
SPY 27%
TSLA 20%
Her Brokerage at TD Ameritrade - $95k
SPY 43%
VICI 16%
TSLA 8%
TQQQ 6%
GOOG 5%
MSFT 4%
COO 1%
Cash 17%
His HSA Account at Schwab - 8.5k
TSLA 75%
Cash 25%
Here is the total portfolio(395k) by Ticker percentage for all retirement and Brokerage accounts.
VIIIX 35.44%$140k
FXAIX16.84% $66k
Cash 14.68% $58k
SPY 11.19% $44k
VFMMX 6.74% $26k
TSLA 4.18% $17k
VICI 3.85% $15k
TQQQ 3.13% $12k
GOOG 1.79% $7k
MSFT 0.96% $4k
CP 0.96% $4k
COO 0.24% $1k
Contributions for 2023
45k on 401k plus employer match(His - 5%; Her - 4%)
13k on Roth IRA (thru back door conversion)
7.7k on HSA.
Future Contributions:
1. Continue to max out 401k
2. Continue to max out Roth IRA
3. Continue to max out HSA
4. Contribute to 529 plan if possible - Refer question 1
5. Contribute additional 8% in 401k( Mega backdoor) - Refer question 2
Other Information - Term Insurance
We did opt for additional coverages for small fee thru employment
His Term (Outside of Work) 550k - From 2017 (25 Years)
His GTL thru Employer 950k
His AD&D thru Employer 950k
His children Dependent Life thru Employer 20k
His Spouse Dependent Life thru Employer 100k
Her Term (Outside of Work) 550k - From 2017 (25 Years)
Her Term (Outside of Work) 1M - From 2022 (25Years)
Her GTL thru Employer 600k
Her AD&D thru Employer 720k (Covers Spouse as well)
Her Spouse Dependent Life thru Employer 25k
Questions:
1. 529 Plan - I would like to contribute to my kids higher education. Would 250k per be enough when they go to college? If so, I will start the 529 plan for 6 year old with 950 monthly contribution and 800 monthly contribution for 4 years old. With no state taxes in TX, I will look into NY or Nevada plans.
2. My 401k plan has an option to contribute additional 8% as after tax IRA on top of the 23k limit.Should I go for it?
3. How do I simplify the overall portfolio in a BHs way so that it is easy to monitor?
4. Could you also review my Term Insurance to see if we have enough coverage? Should we also take a Disability Insurance outside of work?
5. With 5.8% mortgage, should i pay if off first before I contribute to 529, 401k after tax IRA and brokerage account? What is the Funding Priority? Will my mortgage fall under the high interest dept(#3) in below link?
https://www.bogleheads.org/wiki/Priorit ... nvestments
My goal is to reach atleast 3M in the retirement savings to cover our expenses with 4% rule without a dept.
Action Items: ( I will update this list based on your recommendation)
1. Open an HYSA and save 30k as an emergency fund (4 month expense) - Any recommendation?
This forum has been an eyeopener for me and I hoped to achieve the financial independence in next few decades.Thank your for your time and effort to share your knowledge in this community. I read the forum policies and added as much information as possible so bare with me for a long post.
Emergency funds:
$1500 in Savings Acct
Debt:
10K Auto loan @ 2%
365k Mortgage @5.8% (3k monthly payment including Tax and Insurance)
We pay off credit cards every month.
Tax Filing Status:
Married Filing Jointly
Tax Rate:
25% Federal, 0% State (TX)
Gross Income - 310k (275 base and 35 in bonus).
Age:
His 37; Her 34
Two Kids - Age 6(1st grade) and 3(Child care).
$0 in 529 Plan
Desired Asset allocation:
80% stocks / 20% bonds
Desired International allocation:
0% of stocks
Total Portfolio 395k(62.78% in retirement, 35% in Brokerage, 2.15% in HSA)
His 401k at Fidelity - $140k
100% - Vanguard Institutional Index Fund (VIIIX) @ 0.02% Expense ratio
5% Company match
Option to add 8% of income thru mega back door with an in-plan Roth conversion.
His Traditional IRA at Vanguard - $20k
100% - Vanguard Federal Money Market (VFMMX)
Planned to move this to employer 401k now and contribute to back door Roth IRA for year 2023
His Roth IRA at TD Ameritrade - $9K
GOOG26%
TQQQ74%
His Brokerage at TD Ameritrade - $42K
CP9%
Cash91%
Her 401k at Fidelity - $66.5k
100% - Fidelity 500 Index Fund (FXAIX) @ 0.015% Expense ratio
4% Company match
Her Roth IRA at Vanguard - $12.5K
VFMMX53%
SPY 27%
TSLA 20%
Her Brokerage at TD Ameritrade - $95k
SPY 43%
VICI 16%
TSLA 8%
TQQQ 6%
GOOG 5%
MSFT 4%
COO 1%
Cash 17%
His HSA Account at Schwab - 8.5k
TSLA 75%
Cash 25%
Here is the total portfolio(395k) by Ticker percentage for all retirement and Brokerage accounts.
VIIIX 35.44%$140k
FXAIX16.84% $66k
Cash 14.68% $58k
SPY 11.19% $44k
VFMMX 6.74% $26k
TSLA 4.18% $17k
VICI 3.85% $15k
TQQQ 3.13% $12k
GOOG 1.79% $7k
MSFT 0.96% $4k
CP 0.96% $4k
COO 0.24% $1k
Contributions for 2023
45k on 401k plus employer match(His - 5%; Her - 4%)
13k on Roth IRA (thru back door conversion)
7.7k on HSA.
Future Contributions:
1. Continue to max out 401k
2. Continue to max out Roth IRA
3. Continue to max out HSA
4. Contribute to 529 plan if possible - Refer question 1
5. Contribute additional 8% in 401k( Mega backdoor) - Refer question 2
Other Information - Term Insurance
We did opt for additional coverages for small fee thru employment
His Term (Outside of Work) 550k - From 2017 (25 Years)
His GTL thru Employer 950k
His AD&D thru Employer 950k
His children Dependent Life thru Employer 20k
His Spouse Dependent Life thru Employer 100k
Her Term (Outside of Work) 550k - From 2017 (25 Years)
Her Term (Outside of Work) 1M - From 2022 (25Years)
Her GTL thru Employer 600k
Her AD&D thru Employer 720k (Covers Spouse as well)
Her Spouse Dependent Life thru Employer 25k
Questions:
1. 529 Plan - I would like to contribute to my kids higher education. Would 250k per be enough when they go to college? If so, I will start the 529 plan for 6 year old with 950 monthly contribution and 800 monthly contribution for 4 years old. With no state taxes in TX, I will look into NY or Nevada plans.
2. My 401k plan has an option to contribute additional 8% as after tax IRA on top of the 23k limit.Should I go for it?
3. How do I simplify the overall portfolio in a BHs way so that it is easy to monitor?
4. Could you also review my Term Insurance to see if we have enough coverage? Should we also take a Disability Insurance outside of work?
5. With 5.8% mortgage, should i pay if off first before I contribute to 529, 401k after tax IRA and brokerage account? What is the Funding Priority? Will my mortgage fall under the high interest dept(#3) in below link?
https://www.bogleheads.org/wiki/Priorit ... nvestments
My goal is to reach atleast 3M in the retirement savings to cover our expenses with 4% rule without a dept.
Action Items: ( I will update this list based on your recommendation)
1. Open an HYSA and save 30k as an emergency fund (4 month expense) - Any recommendation?
Statistics: Posted by Kentlaw — Sun Jan 28, 2024 5:52 pm — Replies 1 — Views 153