Couple recently married with no real personal finance/investing knowledge. We are trying our best to be self-taught and believe this forum and its members can be an asset for us to start on the right path. No kids, but hope the cards have them in store for us.
31 y/o male
Annual salary of 89,000 (graduated from college 3 years ago, First job out of school utilizing degree.) Been with this company for 2 ½ years.
32 y/o female
Annual salary of 100,000 (been with company for 7 years. Received a big promotion end of last year.)
We rent in a middle to HCOL area. Landlord has been great to us. Monthly payment of $1,200 for 1,300 sqft home. We are happy with living situation but hope to one day own a larger home.
Emergency Fund: We’ve calculated that our 6-month emergency fund should hold $20,000. Have $5,000 sitting in checking account. I know.. cardinal sin, but unsure if this should be moved to Fidelity’s CMA account, HYSA, or bank savings. From research it needs to be easily accessible and liquid.
Debt: Started with $19,000 in student loan debt. Paid off $11,000 once Covid exempt interest period was over August of last year. Paid religiously every month (with some double payments when able). The remaining balance of final two loans are $145.51 at 4.450% and $3,244.41 at 2.750% interest.
Credit cards (start) $12,000. Remaining balance $4,000 at interest rate of 12%.
*Our 2024 goal is to eliminate all debt and begin 2025 debt free.
Tax Filing Status: This tax season will be the first for us to file anything other than single. From our research it seems best to file married jointly based on household income and limited tax breaks.
Tax Rate: 22% Federal, Marginal State Tax Rate: 5%
State of Residence: Alabama
Desired Asset allocation: 90% Stock / 10% Bonds
Desired International allocation: This is the tricky part for us. We’ve read that a traditional Boglehead portfolio contains roughly 20-40% International funds. We don’t want to be heavily biased on recent returns of US stock out pacing non-US. However, it’s hard to dismiss. On that note we are leaning towards a 20% international allocation unless steered in a different direction from more versed investors.
Size of total portfolio: $103,000
His 401k (traditional): 96% State Street Target Retirement 2060 Non-Lending Series Fund Class M (0.07%), didn’t find ticker symbol. Contributing 8% every paycheck.
Company match: Employer matches contributions up to 5%, with automatic contribution of 3%.
His HSA: 4% Vanguard Target Retirement 2060 Fund (VTTSX) (0.08), no company contribution.
I know this is low and HSA should be maxed every year since its triple tax advantage account. Forgot to designate contributions for a year and trying to make up. Wife got on my HDHP insurance policy in May, and we plan to open her own HSA account and contribute half of the max in her account rest of year. We won’t reach max this year but will plan accordingly to meet allowed maximum in 2025.
His IRA (Roth): Do not have one but would like to open IRA ASAP. Have $7,000 not including contribution to emergency fund sitting in checking account that needs to be invested.
Cash sitting in checking account: $16,000
His Available Funds:
Company 401k:
Stocks
Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) (0.03%)
Dodge & Cox Stock Fund Class X (DOXGX) (0.44%)
T. Rowe Price Large-Cap Growth Trust B (0.54%)
American Beacon Small Cap Value Fund R6 Class (AASRX) (0.77%)
Vanguard Total International Stock Index Fund Institutional Shares (VTSNX) (0.09%)
Vanguard Explorer Fund Admiral Shares (VEXRX) (0.34%)
Vanguard Extended Market Index Fund Admiral Shares (VEXAX) (0.06%)
BlackRock Mid-Cap Growth Equity Portfolio Class K (BMGKX) (0.71%)
Great Gray Trust EuroPacific Growth Trust Class CT (0.43%)
MFS Mid Cap Value Fund CT (0.53%)
Bonds
PIMCO Income Fund Institutional Class (PIMIX) (0.62%)
Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) (0.05%)
Allspring Core Bond II CIT EF1 (0.25%)
Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) (0.35%)
HSA:
Vanguard 500 Index Admiral (VFIAX) (0.04%) Large Blend
Vanguard Mid Cap Index Institutional (VMCIX) (0.04%) Mid-cap Blend
Vanguard Small Cap Index I (VSCIX) (0.04%) Small Blend
Vanguard Total Intl Stock Index I (VTSNX) (0.09%) Foreign Large Blend
*Not many great options through company appointed HSA trustee. These are the only ones I’m interested in with lowest expense ratios. This is probably getting too detailed, so I’ll skip bonds offered unless asked.
Her 401k (traditional): 74% Target Date Fund 2055 (0.08%) Contributing 8%
Company contributes up 1.5%
Her IRA (Roth): 11% Vanguard S&P 500 ETF (VOO) (0.03%)
Her Taxable Account: 15% Vanguard S&P 500 ETF (VOO) (0.03%)
Key Points:
I want to keep it simple for my wife, so going 100% VOO or TDF seems like best route for now. Once her HSA is opened, she will contribute to TDF, VOO, or VFIAX if offered. We are both green to personal finance and want to hear people’s thoughts on our current plan. However, we want to get better at budgeting and knowing where our money goes. This will also help us generate an idea of our savings rate.
Questions:
1.Best and simplest way to track finances? Quicken, personal capital, or YNAB for expenses. Excel to keep track of Net Worth. All the above would be new to us. Can anyone provide a template or link to help set up an Excel spreadsheet?
2.Would you change my 401k from target date fund to something else? I was thinking 80%(VITSX)/20%(VTSNX)
3.What would you invest in using Roth IRA? If 401k stays as target date fund then I would invest in either 90% VT and 10% BND.
4.Where should we put extra funds for savings? Emergency funds, future house, vacations
31 y/o male
Annual salary of 89,000 (graduated from college 3 years ago, First job out of school utilizing degree.) Been with this company for 2 ½ years.
32 y/o female
Annual salary of 100,000 (been with company for 7 years. Received a big promotion end of last year.)
We rent in a middle to HCOL area. Landlord has been great to us. Monthly payment of $1,200 for 1,300 sqft home. We are happy with living situation but hope to one day own a larger home.
Emergency Fund: We’ve calculated that our 6-month emergency fund should hold $20,000. Have $5,000 sitting in checking account. I know.. cardinal sin, but unsure if this should be moved to Fidelity’s CMA account, HYSA, or bank savings. From research it needs to be easily accessible and liquid.
Debt: Started with $19,000 in student loan debt. Paid off $11,000 once Covid exempt interest period was over August of last year. Paid religiously every month (with some double payments when able). The remaining balance of final two loans are $145.51 at 4.450% and $3,244.41 at 2.750% interest.
Credit cards (start) $12,000. Remaining balance $4,000 at interest rate of 12%.
*Our 2024 goal is to eliminate all debt and begin 2025 debt free.
Tax Filing Status: This tax season will be the first for us to file anything other than single. From our research it seems best to file married jointly based on household income and limited tax breaks.
Tax Rate: 22% Federal, Marginal State Tax Rate: 5%
State of Residence: Alabama
Desired Asset allocation: 90% Stock / 10% Bonds
Desired International allocation: This is the tricky part for us. We’ve read that a traditional Boglehead portfolio contains roughly 20-40% International funds. We don’t want to be heavily biased on recent returns of US stock out pacing non-US. However, it’s hard to dismiss. On that note we are leaning towards a 20% international allocation unless steered in a different direction from more versed investors.
Size of total portfolio: $103,000
His 401k (traditional): 96% State Street Target Retirement 2060 Non-Lending Series Fund Class M (0.07%), didn’t find ticker symbol. Contributing 8% every paycheck.
Company match: Employer matches contributions up to 5%, with automatic contribution of 3%.
His HSA: 4% Vanguard Target Retirement 2060 Fund (VTTSX) (0.08), no company contribution.
I know this is low and HSA should be maxed every year since its triple tax advantage account. Forgot to designate contributions for a year and trying to make up. Wife got on my HDHP insurance policy in May, and we plan to open her own HSA account and contribute half of the max in her account rest of year. We won’t reach max this year but will plan accordingly to meet allowed maximum in 2025.
His IRA (Roth): Do not have one but would like to open IRA ASAP. Have $7,000 not including contribution to emergency fund sitting in checking account that needs to be invested.
Cash sitting in checking account: $16,000
His Available Funds:
Company 401k:
Stocks
Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) (0.03%)
Dodge & Cox Stock Fund Class X (DOXGX) (0.44%)
T. Rowe Price Large-Cap Growth Trust B (0.54%)
American Beacon Small Cap Value Fund R6 Class (AASRX) (0.77%)
Vanguard Total International Stock Index Fund Institutional Shares (VTSNX) (0.09%)
Vanguard Explorer Fund Admiral Shares (VEXRX) (0.34%)
Vanguard Extended Market Index Fund Admiral Shares (VEXAX) (0.06%)
BlackRock Mid-Cap Growth Equity Portfolio Class K (BMGKX) (0.71%)
Great Gray Trust EuroPacific Growth Trust Class CT (0.43%)
MFS Mid Cap Value Fund CT (0.53%)
Bonds
PIMCO Income Fund Institutional Class (PIMIX) (0.62%)
Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) (0.05%)
Allspring Core Bond II CIT EF1 (0.25%)
Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) (0.35%)
HSA:
Vanguard 500 Index Admiral (VFIAX) (0.04%) Large Blend
Vanguard Mid Cap Index Institutional (VMCIX) (0.04%) Mid-cap Blend
Vanguard Small Cap Index I (VSCIX) (0.04%) Small Blend
Vanguard Total Intl Stock Index I (VTSNX) (0.09%) Foreign Large Blend
*Not many great options through company appointed HSA trustee. These are the only ones I’m interested in with lowest expense ratios. This is probably getting too detailed, so I’ll skip bonds offered unless asked.
Her 401k (traditional): 74% Target Date Fund 2055 (0.08%) Contributing 8%
Company contributes up 1.5%
Her IRA (Roth): 11% Vanguard S&P 500 ETF (VOO) (0.03%)
Her Taxable Account: 15% Vanguard S&P 500 ETF (VOO) (0.03%)
Key Points:
I want to keep it simple for my wife, so going 100% VOO or TDF seems like best route for now. Once her HSA is opened, she will contribute to TDF, VOO, or VFIAX if offered. We are both green to personal finance and want to hear people’s thoughts on our current plan. However, we want to get better at budgeting and knowing where our money goes. This will also help us generate an idea of our savings rate.
Questions:
1.Best and simplest way to track finances? Quicken, personal capital, or YNAB for expenses. Excel to keep track of Net Worth. All the above would be new to us. Can anyone provide a template or link to help set up an Excel spreadsheet?
2.Would you change my 401k from target date fund to something else? I was thinking 80%(VITSX)/20%(VTSNX)
3.What would you invest in using Roth IRA? If 401k stays as target date fund then I would invest in either 90% VT and 10% BND.
4.Where should we put extra funds for savings? Emergency funds, future house, vacations
Statistics: Posted by DunderMufflin — Mon Jul 22, 2024 10:22 pm — Replies 2 — Views 180