Beginners Forum Guidelines (Read B4 posting!)

[The White Coat Investor]

Welcome to the forum! We hope you will not be intimidated either to ask questions or help others. Nobody knows everything and we've all made mistakes. This is a judgement-free zone.

We have asked all the gurus, bloggers, authors, millionaires, and financial pros who can be so helpful in the other forums to step back a bit and resist their urge to respond immediately to threads posted in this forum. We hope that will encourage those who might be a little more likely to lurk to step out of the shadows and help their colleagues in similar situations.

You are expected to be particularly kind, understanding, and civil in this forum and that behavior will be enforced by the moderators.

You are welcome to ask anything you like. There truly are no stupid questions.

However, in order to help you as best we can, we ask that you share certain information (anonymously) with us. Share as little or as much as you like, but realize the more you volunteer the more we can help you. Also, just researching and compiling this information will be helpful to you as you make your own financial plans. Here is the information that is often helpful in answering your questions.

Stage of Life:

Social Situation:

Annual Income:

Net Worth:

Tax Bracket:

State of residence:

Insurance Policies:

Debts:

Assets:

Then list your questions in numbered format. If your questions involve your investments, it would be best to list all available funds and their expense ratios in your retirement accounts, note the approximate portfolio size, give your desired asset allocation (if known), and then list the accounts in this format:

• His 401(k) 30%
  
  
  
  • Investment A: 20%
  
  
  • Investment B: 10%
  
  
  
  


• Her 403(b): 25%
  
  
  
  • Investment A: 20%
  
  
  • Investment B: 5%
  
  
  
  


• Her 457: 15%
  
  
  
  • Investment A: 10%
  
  
  • Investment B: 5%
  
  
  
  


• His Roth IRA: 5%
  
  
  
  • Investment A: 5%
  
  
  
  


• Her Roth IRA: 5%
  
  
  
  • Investment A: 5%
  
  
  
  


• Taxable account: 20%
  
  
  
  • Investment A: 18%
  
  
  • Investment B: 1%
  
  
  • Investment C: 1%
  
  
  
  

Here's an example of a completed form:

Stage of Life: Young attendings

Social Situation: Both working, two kids, 2 and 4

Annual Income: ~$400K

Net Worth: - $200K

Tax Bracket: 38% (33% Federal, 5% state)

State of residence: Utah

Insurance Policies:

30 year term life $1M each

$10K disability each, his is Guardian, hers is Principal

High deductible health plan

Adequate auto and home insurance

$1 M umbrella policy

Malpractice policies are occurrence provided by our employers

Debts:

• Mortgage: $550K at 3.5%


• His student loans: Federal $180K at 6.8%, Private $45K at 8%


• Her student loans: Federal $172K at 6.8%, Private $70K at 8%


• His car loan: $8K at 2%


• Her car loan: $20K at 4%


• Credit card 1: $8K at 15%


• Credit card 2: $2K at 19%


• Total debt: $940K

Assets:

• House: Zillow value $600K


• His 401(k): $35K


• Her 403(b) $30K


• Her 457: $10K


• Taxable: $20K


• Emergency Fund: 1 month's expenses

Portfolio Size: $95K

• His 401(k) 37%
  
  
  
  • Vanguard Total Stock Market Fund: 20%
  
  
  • Vanguard Total Bond Market Fund: 17%
  
  
  
  


• Her 403(b): 32%
  
  
  
  • PIMCO Total Return Fund: 20%
  
  
  • Medallus Obscurely Diversified Winners Fund: 12%
  
  
  
  


• Her 457: 11%
  
  
  
  • Joe's Crab Shack Fund: 11%
  
  
  
  


• Taxable account: 21%
  
  
  
  • Brother's Car Wash: 18%
  
  
  • Apple Stock: 2%
  
  
  • Microsoft Stock: 1%
  
  
  
  

Questions:

1) What do you think of Joe's Crab Shack Fund? Is it good? Should I keep it?

2) I'm not sure what my overall asset allocation should be? What do you think?

3) My financial advisor wants me to buy whole life insurance? Is that a good idea/

4) I'm worried about the market crashing. Should I be?

5) I expect a $25K inheritance next month. What should we put it toward?

6) Anything I'm missing that I should be doing differently?