Hi all,
Looking for general advice on portfolio construction. Current situation: soon-to-grad resident, was able to get by with minimal educational loans (~$75,000), but little/rounding error in terms of retirement savings at this point (~$5,000 in my current residency 401k, plan to convert this to a Roth upon graduating). Bigger shovel to come next year, with a $420,000 starting salary with potential to produce more. Plan to save $110,000 of that for retirement purposes (~26%), will luckily be living in a state without income tax as well. Anticipate in most years will hit the 35% or 39.6% federal tax bracket.
Tax-deferred space:
My 401k ($27,000 with employer match added in)
Wife's 401k ($19,200 with employer match added in)
$6,650 HSA (employer contributes $1,500 free)
$11,000 Backdoor Roth's for myself and my wife
Total tax-deferred space: $63,850
Taxable account (plan to open at Vanguard):Total to taxable account: $46,150
Employer has a pretty solid line-up of Vanguard funds available in 401k, so here is my tentative initial investing plan:
85% stocks
42.5% Vanguard Institutional (0.04% ER)
10% Vanguard Mid Cap (0.08%)
10% Vanguard Small Cap (0.08%)
15% Vanguard Total International Stock (0.12%)
7.5% Vanguard REIT Index (0.26%)
15% bonds
15% Vanguard High-Yield Tax Exempt (0.20%, down to 0.12% once >$50k here)
Would plan on putting the Bonds in taxable (thus the tax exempt fund), the REIT's in Roth's, and then fill up 401ks/Roth's with stocks. The leftover stocks that "don't fit" will have to go in taxable as well.
This is my first crack at coming up with a portfolio, none of it is "real" until August/September, so now is the time to tap into your collective wisdom and get any words of wisdom you all have. Can't wait to hear your thoughts because I am sure there are things I am missing/overlooking!
Thanks in advance - this website and community are incredible resources!
Looking for general advice on portfolio construction. Current situation: soon-to-grad resident, was able to get by with minimal educational loans (~$75,000), but little/rounding error in terms of retirement savings at this point (~$5,000 in my current residency 401k, plan to convert this to a Roth upon graduating). Bigger shovel to come next year, with a $420,000 starting salary with potential to produce more. Plan to save $110,000 of that for retirement purposes (~26%), will luckily be living in a state without income tax as well. Anticipate in most years will hit the 35% or 39.6% federal tax bracket.
Tax-deferred space:
My 401k ($27,000 with employer match added in)
Wife's 401k ($19,200 with employer match added in)
$6,650 HSA (employer contributes $1,500 free)
$11,000 Backdoor Roth's for myself and my wife
Total tax-deferred space: $63,850
Taxable account (plan to open at Vanguard):Total to taxable account: $46,150
Employer has a pretty solid line-up of Vanguard funds available in 401k, so here is my tentative initial investing plan:
85% stocks
42.5% Vanguard Institutional (0.04% ER)
10% Vanguard Mid Cap (0.08%)
10% Vanguard Small Cap (0.08%)
15% Vanguard Total International Stock (0.12%)
7.5% Vanguard REIT Index (0.26%)
15% bonds
15% Vanguard High-Yield Tax Exempt (0.20%, down to 0.12% once >$50k here)
Would plan on putting the Bonds in taxable (thus the tax exempt fund), the REIT's in Roth's, and then fill up 401ks/Roth's with stocks. The leftover stocks that "don't fit" will have to go in taxable as well.
This is my first crack at coming up with a portfolio, none of it is "real" until August/September, so now is the time to tap into your collective wisdom and get any words of wisdom you all have. Can't wait to hear your thoughts because I am sure there are things I am missing/overlooking!
Thanks in advance - this website and community are incredible resources!
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