Hello Bogleheads,
I have reached a milestone in my investing journey and would appreciate any feedback to further improve my financial planning and portfolio.
Emergency funds: yes
Debt: 350K left on mortgage at 2%, 12 years remaining
Tax Filing Status: Single
Tax Rate: 24% Federal, 5.75% State
Age: 39
Desired Asset allocation: 60-70% stocks / 30-40% bonds (current portfolio is at about 73/27)
Desired International allocation: 10-20% of stocks
Approximate size of total portfolio: 1M
Current retirement assets
Taxable at Fidelity
9.69% in Fidelity Treasury Only Money Market Fund (FDLXX) and individiaul U.S. Treasury Bills
8.91% Vanguard Total Stock Market Index Fund ETF (VTI)
3.31% Vanguard Developed Markets ETF (VEA)
1.67% Vanguard Total International Stock ETF (VXUS)
401k at Fidelity
35.2% Fidelity 500 Index Fund, FXAIX, ER 0.015
6% Fidelity Extended Market Index Fund, FSMAX, ER 0.035
17.6% Fidelity U.S. Bond Index Fund, FXNAX, ER 0.025
5% Fidelity International Index Fund, FSPSX, ER 0.035
Roth IRA at Fidelity
1.66% Fidelity ZERO International Index Fund, FZILX, ER 0
8.5% Fidelity ZERO Large Cap Index Fund, FNILX, ER 0
HSA at Fidelity
1.05% Fidelity ZERO International Index Fund, FZILX, ER 0
1.37% Fidelity ZERO Large Cap Index Fund, FNILX, ER 0
New annual Contributions: 62K/year
$23K 401k (5% match), $28K Mega backdoor Roth, $7K Roth IRA, $4K HSA
Questions:
1. The retirement assets listed above reflects recent adjustments made to follow tax-efficient fund placement recommendations. I would like to keep 50-100K cash equivalent in taxable to sleep well at night. Do you have any additional suggestions for further optimization?
2. I am planning to start a family in the next year or so, and monthly expenses are expected to rise from the current spend of ~$6500/mo (mortgage is $3600 of this). My plan is to continue maxing out 401k and mega-backdoor Roth, and to spend down funds in my taxable account, to move money to the Roth space. (I have only recently gotten access to the mega backdoor Roth option at work).
Based on my calculations, the current invested asset of $1M should grow to ~$4M in 20 years without additional contributions. I enjoy my current job and could easily work another 10-20 years, and am not looking to retire early. Do I have room to dial down my savings rate further with increased expenses in mind? (I would like to exclude my future spouses’s income/assets in the calculations for now).
I started maxing out retirement accounts when I found this forum ~10 years ago, with no specific target in mind. I reached a milestone this year thanks to the Bogleheads! I would appreciate any feedback you may have.
I have reached a milestone in my investing journey and would appreciate any feedback to further improve my financial planning and portfolio.
Emergency funds: yes
Debt: 350K left on mortgage at 2%, 12 years remaining
Tax Filing Status: Single
Tax Rate: 24% Federal, 5.75% State
Age: 39
Desired Asset allocation: 60-70% stocks / 30-40% bonds (current portfolio is at about 73/27)
Desired International allocation: 10-20% of stocks
Approximate size of total portfolio: 1M
Current retirement assets
Taxable at Fidelity
9.69% in Fidelity Treasury Only Money Market Fund (FDLXX) and individiaul U.S. Treasury Bills
8.91% Vanguard Total Stock Market Index Fund ETF (VTI)
3.31% Vanguard Developed Markets ETF (VEA)
1.67% Vanguard Total International Stock ETF (VXUS)
401k at Fidelity
35.2% Fidelity 500 Index Fund, FXAIX, ER 0.015
6% Fidelity Extended Market Index Fund, FSMAX, ER 0.035
17.6% Fidelity U.S. Bond Index Fund, FXNAX, ER 0.025
5% Fidelity International Index Fund, FSPSX, ER 0.035
Roth IRA at Fidelity
1.66% Fidelity ZERO International Index Fund, FZILX, ER 0
8.5% Fidelity ZERO Large Cap Index Fund, FNILX, ER 0
HSA at Fidelity
1.05% Fidelity ZERO International Index Fund, FZILX, ER 0
1.37% Fidelity ZERO Large Cap Index Fund, FNILX, ER 0
New annual Contributions: 62K/year
$23K 401k (5% match), $28K Mega backdoor Roth, $7K Roth IRA, $4K HSA
Questions:
1. The retirement assets listed above reflects recent adjustments made to follow tax-efficient fund placement recommendations. I would like to keep 50-100K cash equivalent in taxable to sleep well at night. Do you have any additional suggestions for further optimization?
2. I am planning to start a family in the next year or so, and monthly expenses are expected to rise from the current spend of ~$6500/mo (mortgage is $3600 of this). My plan is to continue maxing out 401k and mega-backdoor Roth, and to spend down funds in my taxable account, to move money to the Roth space. (I have only recently gotten access to the mega backdoor Roth option at work).
Based on my calculations, the current invested asset of $1M should grow to ~$4M in 20 years without additional contributions. I enjoy my current job and could easily work another 10-20 years, and am not looking to retire early. Do I have room to dial down my savings rate further with increased expenses in mind? (I would like to exclude my future spouses’s income/assets in the calculations for now).
I started maxing out retirement accounts when I found this forum ~10 years ago, with no specific target in mind. I reached a milestone this year thanks to the Bogleheads! I would appreciate any feedback you may have.
Statistics: Posted by garomee — Mon Jul 29, 2024 7:52 pm — Replies 1 — Views 287