Dear WCI community, I am hoping to get a portfolio and financial trajectory checkup. Thank you in advance!! (for anyone perusing Bogleheads, sorry for the 'duplicate' post).
Emergency funds: ~12 months living expenses (please see question #2 below)
Debt:
$169k med school debt consolidated at 1.870% (I know that by the numbers I should be in no hurry to pay this off, however I determined I don’t want to carry it into retirement with me so I decided to treat it like a 15 year loan, along with our mortgage, so I am making increased payments to have it paid off in 2030, at the same time that our mortgage will be paid off).
$288k mortgage at 2.875% (purchased with 20% down, 15 yr loan, to be paid off in 2030). We will be in this house for the next 15 years or so, barring an unforeseen event.
No additional debt.
Tax Filing Status: Married filing jointly. +kids.
Tax Rate: 33% Federal, 5.75% State
State of Residence: NC
Age: 37
Desired Asset allocation: 80% stocks / 20% bonds, CDs
Desired International allocation: 10% of stocks
Current retirement assets (current portfolio mid six-figures)
Taxable
20% Vanguard Total Stock Market Admiral Shares (VTSAX) (0.05)
4% Vanguard Total International Stock Admiral Shares (VTIAX) (0.11)
His Roth IRA at Vanguard
15% Vanguard Total Stock Market Admiral Shares (VTSAX) (0.05)
4% Vanguard Total Bond Market Admiral Shares (VBTLX) (0.06)
Her Roth IRA at Vanguard
11% Vanguard Small Cap Value Admiral Shares (VSIAX) (0.08)
4% Vanguard Total International Admiral Shares (VTIAX) (0.11)
His HSA (using as ‘stealth’ IRA)
8% Vanguard Total Stock Market Investor Shares (VTSMX) (0.17)
His 401k
32% Vanguard 500 Index Admiral Shares (VFIAX) (0.05)
2% Vanguard Total International Stock Admiral Shares (VTIAX) (0.14)
Contributions
Annual Contributions
$5,500 his Roth IRA (backdoor)
$5,500 her Roth IRA (backdoor)
$6,650 his HSA
$18,000 his 401k (+ 4% company match and year end profit sharing to max)
$36,000 his taxable Vanguard account
$36,000 cash/CDs
Beginning in July I anticipate an additional ~8k/month (after tax) available for savings which I plan to put into the taxable accounts above (please see question #3).
Misc
I have the usual homeowners, life, auto, own occupation disability, and umbrella ($3M) insurance.
Questions:
1. Does my portfolio plan/financial trajectory seem reasonable? Any recommendations or criticisms?
2. Since buying our home I have been building our cash reserves back up. Our cash (in an online savings account at 0.95%) is ~12 months living expenses. I am planning on putting the excess into an Ally 5 yr CD (2.25%). Any other recommendations? I know one recommendation would be to invest the difference but I am comfortable with a little extra in cash/CDs, and going forward the bulk of all excess funds (see question 3) will be put into the market.
3. In July I anticipate a significant increase in my after tax funds available for savings/investment, as outlined above. I plan to put these excess funds into my taxable accounts (and 529s). Other than paying down loans (which I don’t think I’ll be doing at this point), any other recommendations for the additional funds that will be available in July?
Thank you. This is a fantastic community. Between Bogleheads and WCI I have learned some great stuff.
Emergency funds: ~12 months living expenses (please see question #2 below)
Debt:
$169k med school debt consolidated at 1.870% (I know that by the numbers I should be in no hurry to pay this off, however I determined I don’t want to carry it into retirement with me so I decided to treat it like a 15 year loan, along with our mortgage, so I am making increased payments to have it paid off in 2030, at the same time that our mortgage will be paid off).
$288k mortgage at 2.875% (purchased with 20% down, 15 yr loan, to be paid off in 2030). We will be in this house for the next 15 years or so, barring an unforeseen event.
No additional debt.
Tax Filing Status: Married filing jointly. +kids.
Tax Rate: 33% Federal, 5.75% State
State of Residence: NC
Age: 37
Desired Asset allocation: 80% stocks / 20% bonds, CDs
Desired International allocation: 10% of stocks
Current retirement assets (current portfolio mid six-figures)
Taxable
20% Vanguard Total Stock Market Admiral Shares (VTSAX) (0.05)
4% Vanguard Total International Stock Admiral Shares (VTIAX) (0.11)
His Roth IRA at Vanguard
15% Vanguard Total Stock Market Admiral Shares (VTSAX) (0.05)
4% Vanguard Total Bond Market Admiral Shares (VBTLX) (0.06)
Her Roth IRA at Vanguard
11% Vanguard Small Cap Value Admiral Shares (VSIAX) (0.08)
4% Vanguard Total International Admiral Shares (VTIAX) (0.11)
His HSA (using as ‘stealth’ IRA)
8% Vanguard Total Stock Market Investor Shares (VTSMX) (0.17)
His 401k
32% Vanguard 500 Index Admiral Shares (VFIAX) (0.05)
2% Vanguard Total International Stock Admiral Shares (VTIAX) (0.14)
Contributions
Annual Contributions
$5,500 his Roth IRA (backdoor)
$5,500 her Roth IRA (backdoor)
$6,650 his HSA
$18,000 his 401k (+ 4% company match and year end profit sharing to max)
$36,000 his taxable Vanguard account
$36,000 cash/CDs
Beginning in July I anticipate an additional ~8k/month (after tax) available for savings which I plan to put into the taxable accounts above (please see question #3).
Misc
I have the usual homeowners, life, auto, own occupation disability, and umbrella ($3M) insurance.
Questions:
1. Does my portfolio plan/financial trajectory seem reasonable? Any recommendations or criticisms?
2. Since buying our home I have been building our cash reserves back up. Our cash (in an online savings account at 0.95%) is ~12 months living expenses. I am planning on putting the excess into an Ally 5 yr CD (2.25%). Any other recommendations? I know one recommendation would be to invest the difference but I am comfortable with a little extra in cash/CDs, and going forward the bulk of all excess funds (see question 3) will be put into the market.
3. In July I anticipate a significant increase in my after tax funds available for savings/investment, as outlined above. I plan to put these excess funds into my taxable accounts (and 529s). Other than paying down loans (which I don’t think I’ll be doing at this point), any other recommendations for the additional funds that will be available in July?
Thank you. This is a fantastic community. Between Bogleheads and WCI I have learned some great stuff.
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