Hi all,
I've held on to NVIDIA but I strongly believe it's time to reduce risk and use the capital gains to secure my family's financial future. If down the road, FIRE is an option for ourselves, we'll look into that too once we have taken steps towards meaningful financial security by reducing risk. The following questions are with this goal in mind:
1. I want to start selling NVDA without crossing the 15% + 3.8% Cap Gains tax bracket. I am ok to pay LTCG. Do I just channel the proceeds into my taxable 3 fund portfolio? I don't think there's any way to reduce LTCG further but please enlighten me if there are ways I am not looking into.
2. Also with such an amount, what do we do? Lumpsum? DCA?![:confused]( "confused")
3. Do we use proceeds to build a 529, or just save for education via taxable investment account?
4.What do we do for life insurance? Is it necessary in our situation? More details later.
5. We do want to move to a larger home in the next 5 years (rough cost 1.5M). It would be unfortunate that interest rates will be higher than what we have now but I don't see any other way. What's the best way to save for this goal? Do I pay off current house using Cap gains and then roll over proceeds of sale to the new home plus cash down and balance as loan? Where do we keep our downpayment? HYSA? Something else? Current Home details in Debt section.
6. Is a professional financial advisor / fiduciary going to be a worthwhile investment for a financial plan in our case? Just a plan, not assets under management.
7. I may not sell every single dollar down to zero since I still have some faith in NVDA but any other things we can do to cash in the rest of the gains and get a leap on financial security for family/kids? I think that's really our number one priority right now.
Thank you very much for your help.
Age: 37(Me)/36(Wife)/4(Kid)/2(Kid)
Taxable:
NVIDIA: 6M (5.9M Long Term Cap Gains)
Boglehead Portfolio:
VTSAX (Vanguard Total Stock Market Index Fund): 114K (66%)
VTIAX (Vanguard Total International Stock Index Fund): 25K (15%)
VBTLX (Vanguard Total Bond Market Index Fund): 33K (19%)
Total Taxable: 6.172M
Retirement:
401ks:
Me: 370K (TargetDate 2053)
Wife: 250K (TargetDate 2054)
RothIRAs (BackDoor):
Me: 70K (60% VIGAX + 40% VWELX) <--- I am working on rebalancing and making this less conservative and more growth.
Wife: 40K (100% FBGRX)
HSA: 40K (Vanguard S&P 500 ETF: VOO)
Total Retirement: 770K
Cash in HYSA:
Emergency: 160K
Home Repairs/Remodel: 100K
Kids: 70K (How can I use this to save for college better?)
Debt:
Credit Cards: 6K, paid in full each month
Home: 600K @3%. This ties into the question I asked previously. We may do some basic remodeling within next 5 years before we sell.
Household Income: 300K
Insurance:
Wife and I sign up for max possible life insurance through workplace without a health check. Do we buy additional life insurance independent of employer? I can't seem to figure this out. If something happens to one of us (health-wise I rate average for myself, good for wife), I expect the work life insurance to kick in. And if something happens to one of us post retirement, I am hoping to have enough saved for my family by then. Am I missing anything by not taking a term life insurance policy outside of work?
College Savings (529):
None yet
Estate Planning:
None yet, but have reached out to professional to get this started.
I've held on to NVIDIA but I strongly believe it's time to reduce risk and use the capital gains to secure my family's financial future. If down the road, FIRE is an option for ourselves, we'll look into that too once we have taken steps towards meaningful financial security by reducing risk. The following questions are with this goal in mind:
1. I want to start selling NVDA without crossing the 15% + 3.8% Cap Gains tax bracket. I am ok to pay LTCG. Do I just channel the proceeds into my taxable 3 fund portfolio? I don't think there's any way to reduce LTCG further but please enlighten me if there are ways I am not looking into.
2. Also with such an amount, what do we do? Lumpsum? DCA?
3. Do we use proceeds to build a 529, or just save for education via taxable investment account?
4.What do we do for life insurance? Is it necessary in our situation? More details later.
5. We do want to move to a larger home in the next 5 years (rough cost 1.5M). It would be unfortunate that interest rates will be higher than what we have now but I don't see any other way. What's the best way to save for this goal? Do I pay off current house using Cap gains and then roll over proceeds of sale to the new home plus cash down and balance as loan? Where do we keep our downpayment? HYSA? Something else? Current Home details in Debt section.
6. Is a professional financial advisor / fiduciary going to be a worthwhile investment for a financial plan in our case? Just a plan, not assets under management.
7. I may not sell every single dollar down to zero since I still have some faith in NVDA but any other things we can do to cash in the rest of the gains and get a leap on financial security for family/kids? I think that's really our number one priority right now.
Thank you very much for your help.
Age: 37(Me)/36(Wife)/4(Kid)/2(Kid)
Taxable:
NVIDIA: 6M (5.9M Long Term Cap Gains)
Boglehead Portfolio:
VTSAX (Vanguard Total Stock Market Index Fund): 114K (66%)
VTIAX (Vanguard Total International Stock Index Fund): 25K (15%)
VBTLX (Vanguard Total Bond Market Index Fund): 33K (19%)
Total Taxable: 6.172M
Retirement:
401ks:
Me: 370K (TargetDate 2053)
Wife: 250K (TargetDate 2054)
RothIRAs (BackDoor):
Me: 70K (60% VIGAX + 40% VWELX) <--- I am working on rebalancing and making this less conservative and more growth.
Wife: 40K (100% FBGRX)
HSA: 40K (Vanguard S&P 500 ETF: VOO)
Total Retirement: 770K
Cash in HYSA:
Emergency: 160K
Home Repairs/Remodel: 100K
Kids: 70K (How can I use this to save for college better?)
Debt:
Credit Cards: 6K, paid in full each month
Home: 600K @3%. This ties into the question I asked previously. We may do some basic remodeling within next 5 years before we sell.
Household Income: 300K
Insurance:
Wife and I sign up for max possible life insurance through workplace without a health check. Do we buy additional life insurance independent of employer? I can't seem to figure this out. If something happens to one of us (health-wise I rate average for myself, good for wife), I expect the work life insurance to kick in. And if something happens to one of us post retirement, I am hoping to have enough saved for my family by then. Am I missing anything by not taking a term life insurance policy outside of work?
College Savings (529):
None yet
Estate Planning:
None yet, but have reached out to professional to get this started.
Statistics: Posted by w3@r3k33pers — Mon Jul 22, 2024 11:43 pm — Replies 6 — Views 478