Emergency funds: 6 months
Debt: 4 years left on a 15-year fixed 2.7% loan - $4,500/month
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 4.4% State
State of Residence: CO
Age: Him -56, Her - 54
Desired Asset allocation: Currently 70% stocks / 30% bonds but aiming to drop down to 60/40
Desired International allocation: 0% of stocks
Overall portfolio size: 4.9 M
Current retirement assets
Taxable
1% cash
8% Vanguard 500 (VFIAX)
0.4% Vanguard Short Term Treasury (VFISX)
4.8% Vanguard Total Stock (VTSAX)
1% Treasury Direct 30-year Ibills.
His 401(a)
14.9% TIAA Traditional
0.87% CREF Equity Index R3
His 403(b)
5% CREF Equity Index
1.7% TIAA Traditional
Her 401k Vanguard
21.8% S&P 500 Index
7% Total Bond Index
Her IRA (inheritance) at TIAA
13.3% CREF Equity Index (0.3%)
2% CREF Bond Index (0.3%)
Her Traditional IRA at Empower
10% S&P 500 Index (.05%)
7% Lockheed Individual Stock
_______________________________________________________________
Contributions
New annual Contributions
$10,700 his 401a (8% match)
$19,200 his 403(b)
$30,000 her 401k (4%)
Salaries:
His: $130,000
Her: $210,000
1 22 year old child – cleared
1 19 year old child – 3 years of college remaining – mostly to be drawn from 529 account, but probably about $30k to come out of taxable.
Questions:
1. She plans on retiring in 1.5 years (age then will be 56). The plan is to draw roughly $100k/year from the Inherited IRA account until she can touch her own ira/401 accounts. We plan to switch from an AA of 70/30 to 60/40 primarily by converting most of the S&P500 in that account to short-term treasury bonds within the next several months. She will likely start SS early (but most here appear to recommend waiting. Why?)
2. He plans on retiring in about 6 years (age then will be 62). Maybe longer if health care costs scare us. He will not have a SS (state employee) (or pension). Will likely annuitize most of his Traditional TIAA account shortly after retirement. Thoughts?
3. Need to convert to Roth. Wait until after both are retired?
4. Would be nice to roll over the inherited IRA to Vanguard to have lower ERs but I’m not sure we’d continue to be grandfathered in on the RMDs based on her lifespan rather than the newer rule of 10 years payout.
5. Any advice on portfolio/strategies?
Debt: 4 years left on a 15-year fixed 2.7% loan - $4,500/month
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 4.4% State
State of Residence: CO
Age: Him -56, Her - 54
Desired Asset allocation: Currently 70% stocks / 30% bonds but aiming to drop down to 60/40
Desired International allocation: 0% of stocks
Overall portfolio size: 4.9 M
Current retirement assets
Taxable
1% cash
8% Vanguard 500 (VFIAX)
0.4% Vanguard Short Term Treasury (VFISX)
4.8% Vanguard Total Stock (VTSAX)
1% Treasury Direct 30-year Ibills.
His 401(a)
14.9% TIAA Traditional
0.87% CREF Equity Index R3
His 403(b)
5% CREF Equity Index
1.7% TIAA Traditional
Her 401k Vanguard
21.8% S&P 500 Index
7% Total Bond Index
Her IRA (inheritance) at TIAA
13.3% CREF Equity Index (0.3%)
2% CREF Bond Index (0.3%)
Her Traditional IRA at Empower
10% S&P 500 Index (.05%)
7% Lockheed Individual Stock
_______________________________________________________________
Contributions
New annual Contributions
$10,700 his 401a (8% match)
$19,200 his 403(b)
$30,000 her 401k (4%)
Salaries:
His: $130,000
Her: $210,000
1 22 year old child – cleared
1 19 year old child – 3 years of college remaining – mostly to be drawn from 529 account, but probably about $30k to come out of taxable.
Questions:
1. She plans on retiring in 1.5 years (age then will be 56). The plan is to draw roughly $100k/year from the Inherited IRA account until she can touch her own ira/401 accounts. We plan to switch from an AA of 70/30 to 60/40 primarily by converting most of the S&P500 in that account to short-term treasury bonds within the next several months. She will likely start SS early (but most here appear to recommend waiting. Why?)
2. He plans on retiring in about 6 years (age then will be 62). Maybe longer if health care costs scare us. He will not have a SS (state employee) (or pension). Will likely annuitize most of his Traditional TIAA account shortly after retirement. Thoughts?
3. Need to convert to Roth. Wait until after both are retired?
4. Would be nice to roll over the inherited IRA to Vanguard to have lower ERs but I’m not sure we’d continue to be grandfathered in on the RMDs based on her lifespan rather than the newer rule of 10 years payout.
5. Any advice on portfolio/strategies?
Statistics: Posted by jbd — Sun Jul 28, 2024 6:14 pm — Replies 1 — Views 280