Emergency funds:
4 months
Debt:
Mortgage: $619,160 Rate: 3.37500%
Line of Credit: $143,844 Rate: Secured Overnight Financing Rate (Current ~5.33%)
Tax Filing Status:
Single
Tax Rate:
35% Federal
4.75% State
State of Residence:
Oklahoma
Age:
47
Desired Asset allocation:
60% stocks / 30% bonds
Desired International allocation: ?10% of stocks
Current Retirement Assets
~2.8M
MAIN Account (50.75%)
16.83% BONDS Total (Tax Exempt)
17.41% E/V TAX-MNGD GRWTH 1.1-A Expense Ratio 0.740%
4.15% FIDELITY ADV GWTH & INC Expense Ratio 0.880%
3.71% PGIM JENNISON GROWTH A Expense Ratio 1.010%
3.49% BANK OF AMERICA CORP
0.60% DEERE & CO
0.30% EXXON MOBIL CORP
0.76% GENL DYNAMICS CORP
0.97% IRON MOUNTAIN INC
1.51% OGE ENERGY CORP
1.04% PROCTER & GAMBLE CO
SMA Account (22.44%) AUM Expense 1.25%
Name / % of portfolio
AMERICAN ELECTRIC POWER 0.38%
AMGEN INC 0.59%
AUTOMATIC DATA0.70%
BANK NEW YORK MELLON0.58%
BANK OF AMERICA CORP0.78%
BLACKROCK INC0.70%
CHEVRON CORPORATION0.65%
CISCO SYSTEMS INC0.40%
COMCAST CORP NEW CL A0.43%
CORTEVA INC0.29%
DOVER CORP COMMON0.54%
EOG RESOURCES INC0.54%
GENL DYNAMICS CORP0.71%
GENUINE PARTS CO COM0.45%
GILEAD SCIENCES INC0.46%
HOME DEPOT INC0.33%
ILLINOIS TOOL WORKS INC0.59%
INTERNATIONAL BUSINESS0.32%
INTUIT INC0.65%
JOHNSON & JOHNSON0.53%
JPMORGAN CHASE & CO0.74%
KIMBERLY-CLARK CORP0.27%
LOCKHEED MARTIN CORP0.84%
MARSH AND MC LENNAN0.69%
MCDONALDS CORP0.67%
MERCK & CO INC NEW0.83%
MICROSOFT CORP2.21%
NEXTERA ENERGY INC0.66%
PEPSICO INCORPORATED0.45%
PHILLIPS 660.77%
PROCTER & GAMBLE CO0.55%
QUEST DIAGNOSTICS INC0.30%
STARBUCKS CORP0.39%
TARGET CORP0.27%
UNITED PARCEL SERVICE-B0.35%
UNITEDHEALTH GROUP0.76%
WASTE MGMT INC DEL0.73%
XCEL ENERGY INC0.33%
401(a)
10.48% AF TRGT DATE 2030 R6 Expense 0.330%
403(b)
5.66% AF TRGT DATE 2030 R6 Expense 0.330%
457(b)
4.52% AF TRGT DATE 2030 R6 Expense 0.330%
TSP
6.15% L 2040 Expense 0.048%
Contributions
New annual Contributions
TSP - $23,000 + $17,000 matching
403b no longer eligible
457 no longer eligible
401a no longer eligible
$52,000 towards eliminating line of credit then to savings once complete
Funds available in TSP
Lifecycle Funds 2025 to 2065 Expenses around 0.050%
G Fund, Expense 0.049%
F Fund, Expense 0.049%
C Fund, Expense 0.048%
S Fund, Expense 0.079%
I Fund, Expense 0.054%
Questions:
1. The SMA account was started a 6 years ago as a bit of an experiment. I have decided it is not for me. I am deciding what would be the easiest/best method to close the SMA - would be best to pull funds out of the SMA account letting the algorithm pick the sales until its exhausted, or just end the SMA and move the stock to a non-managed account? In the latter case it would be a commission based fee to sell. What are typical commissions for sales? The non-SMA account was established 40 years and 2 companies ago so who knows what the original terms were - I assume the current Wells Fargo commission would be $25 per order.
2. I would re-invest the funds in the SMA account into something such as
17% (of portfolio) VTI Vanguard Total Stock Market Index Fund ETF
5% (of portfolio) VXUS Vanguard Total International Stock ETF
while keeping the current bonds (~17% of portfolio).
Would this be an acceptable start?
3. I am unsure of the tax burden of selling to simplify the rest of the main account, but if so I would probably clean up the rest of the account by moving everything into the above ETF funds except the following (which were originally purchased in the 1980s so I assume there would be large gains)
17.41% Eaton Vance TAX-MNGD GRWTH 1.1-A
4.15% FIDELITY ADV GWTH & INC
3.49% Bank of America
I am not sure the taxes are worth further simplifying away from these - thoughts on keeping this with their expense ratio vs taxable gains?
I think this would end up above the stock ratio but would eventually have more bonds over time (either purchased directly or from the lifecycle funds) to end up around the target allocation.
Thank you
4 months
Debt:
Mortgage: $619,160 Rate: 3.37500%
Line of Credit: $143,844 Rate: Secured Overnight Financing Rate (Current ~5.33%)
Tax Filing Status:
Single
Tax Rate:
35% Federal
4.75% State
State of Residence:
Oklahoma
Age:
47
Desired Asset allocation:
60% stocks / 30% bonds
Desired International allocation: ?10% of stocks
Current Retirement Assets
~2.8M
MAIN Account (50.75%)
16.83% BONDS Total (Tax Exempt)
17.41% E/V TAX-MNGD GRWTH 1.1-A Expense Ratio 0.740%
4.15% FIDELITY ADV GWTH & INC Expense Ratio 0.880%
3.71% PGIM JENNISON GROWTH A Expense Ratio 1.010%
3.49% BANK OF AMERICA CORP
0.60% DEERE & CO
0.30% EXXON MOBIL CORP
0.76% GENL DYNAMICS CORP
0.97% IRON MOUNTAIN INC
1.51% OGE ENERGY CORP
1.04% PROCTER & GAMBLE CO
SMA Account (22.44%) AUM Expense 1.25%
Name / % of portfolio
AMERICAN ELECTRIC POWER 0.38%
AMGEN INC 0.59%
AUTOMATIC DATA0.70%
BANK NEW YORK MELLON0.58%
BANK OF AMERICA CORP0.78%
BLACKROCK INC0.70%
CHEVRON CORPORATION0.65%
CISCO SYSTEMS INC0.40%
COMCAST CORP NEW CL A0.43%
CORTEVA INC0.29%
DOVER CORP COMMON0.54%
EOG RESOURCES INC0.54%
GENL DYNAMICS CORP0.71%
GENUINE PARTS CO COM0.45%
GILEAD SCIENCES INC0.46%
HOME DEPOT INC0.33%
ILLINOIS TOOL WORKS INC0.59%
INTERNATIONAL BUSINESS0.32%
INTUIT INC0.65%
JOHNSON & JOHNSON0.53%
JPMORGAN CHASE & CO0.74%
KIMBERLY-CLARK CORP0.27%
LOCKHEED MARTIN CORP0.84%
MARSH AND MC LENNAN0.69%
MCDONALDS CORP0.67%
MERCK & CO INC NEW0.83%
MICROSOFT CORP2.21%
NEXTERA ENERGY INC0.66%
PEPSICO INCORPORATED0.45%
PHILLIPS 660.77%
PROCTER & GAMBLE CO0.55%
QUEST DIAGNOSTICS INC0.30%
STARBUCKS CORP0.39%
TARGET CORP0.27%
UNITED PARCEL SERVICE-B0.35%
UNITEDHEALTH GROUP0.76%
WASTE MGMT INC DEL0.73%
XCEL ENERGY INC0.33%
401(a)
10.48% AF TRGT DATE 2030 R6 Expense 0.330%
403(b)
5.66% AF TRGT DATE 2030 R6 Expense 0.330%
457(b)
4.52% AF TRGT DATE 2030 R6 Expense 0.330%
TSP
6.15% L 2040 Expense 0.048%
Contributions
New annual Contributions
TSP - $23,000 + $17,000 matching
403b no longer eligible
457 no longer eligible
401a no longer eligible
$52,000 towards eliminating line of credit then to savings once complete
Funds available in TSP
Lifecycle Funds 2025 to 2065 Expenses around 0.050%
G Fund, Expense 0.049%
F Fund, Expense 0.049%
C Fund, Expense 0.048%
S Fund, Expense 0.079%
I Fund, Expense 0.054%
Questions:
1. The SMA account was started a 6 years ago as a bit of an experiment. I have decided it is not for me. I am deciding what would be the easiest/best method to close the SMA - would be best to pull funds out of the SMA account letting the algorithm pick the sales until its exhausted, or just end the SMA and move the stock to a non-managed account? In the latter case it would be a commission based fee to sell. What are typical commissions for sales? The non-SMA account was established 40 years and 2 companies ago so who knows what the original terms were - I assume the current Wells Fargo commission would be $25 per order.
2. I would re-invest the funds in the SMA account into something such as
17% (of portfolio) VTI Vanguard Total Stock Market Index Fund ETF
5% (of portfolio) VXUS Vanguard Total International Stock ETF
while keeping the current bonds (~17% of portfolio).
Would this be an acceptable start?
3. I am unsure of the tax burden of selling to simplify the rest of the main account, but if so I would probably clean up the rest of the account by moving everything into the above ETF funds except the following (which were originally purchased in the 1980s so I assume there would be large gains)
17.41% Eaton Vance TAX-MNGD GRWTH 1.1-A
4.15% FIDELITY ADV GWTH & INC
3.49% Bank of America
I am not sure the taxes are worth further simplifying away from these - thoughts on keeping this with their expense ratio vs taxable gains?
I think this would end up above the stock ratio but would eventually have more bonds over time (either purchased directly or from the lifecycle funds) to end up around the target allocation.
Thank you
Statistics: Posted by Rutlet — Wed Jul 31, 2024 8:11 pm — Replies 0 — Views 283