I am interested in some portfolio allocation suggestions and an opinion on whether its time to get an advisor. Situation and questions:
1. I recently returned to work after a layoff, rolled my 401K over into an IRA, and am sitting in considerable cash. Given my portfolio is heavy in real estate, I would like some suggestions on an asset allocation that accounts for that. I have an inclination to drop bonds and carry an 80% or greater allocation of stock. However, valuations right now concern me. Allocation thoughts?
2. I would welcome suggestions on placement/where to allocate what across:
-Rollover IRA
-Taxable
-Non-qualified account
-Small Roth IRA
-V. Small Brand New 401K
3. My layoff triggered distributions from the non-qualified account at roughly 15% / year for the next 4 years, half that / year for each of the subsequent 5 years. That creates horrendous tax implications i'm working through (near 40% tax rate on top of regular pay) - worse than if I hadn't deferred.
4. Fidelity suggested their Separately Managed Accounts - which the 'fully hands off' element is attractive, but I've read the reviews here and don't think the returns are significantly better than an aggressively tilted portfolio held over the longterm. However, given the complexity and nearness to retirment, am I better off with a fee based advisor review, to re-set my allocation, discuss tax implications of the distributions, plus real estate liquidation (should I need to relocate across states)?
Key Points
-~30% of retirement assets are in real estate (not the primary)
-another ~30% in a non-qualified account
-Rest in Rollover IRA, Roth IRA, Taxable
-State taxes jump to 9.9% at $125K income
-Intention is to work another 4-5 years, but layoffs are constant. Recently offered a retirement package I will likely decline, but may be forced to take.
----Details------
6 months Emergency funds: $60,000
Debt:
Primary Home Mortgage - $380K, 1.99%
Investment Home Mortgage - $133K, 3.5%
Tax Filing Status: Head of Household
Tax Rate: Federal: Marginal = 35%, Effective = 20-21%
State: Marginal = 9.9%, Effective = 8.4%
State of Residence: Oregon
Age: 58
Desired Asset allocation: ~80% stocks / ~10-15% bonds / ~5% liquid
Desired International allocation: 20% of stocks
Investment Real Estate = $1.1M (~$40K/ year net income)
Bill Pay Accounts = $32K
Income = ~$300-340K
Retirement Portfolio = $2.5M - details below
Current retirement assets + $150K college – All Fidelity unless listed
non-qualified account – 39% - being distributed over 9 years
•45% BTC S&P 500 INDEX (NON40O32T) (.01)
•47% BTC US DEBT (NON40OXPU) (.021)
•4.5% Vanguard R1000 Val Index (VRVIX) (.07)
•3.5% FID CAPITAL & INCOME (FAGIX) (.99)
Rollover IRA – 36%
•100% FZDXX (.30)
Taxable – retirement + ~$100K college– 16%
•50% FZDXX (.30)
•44% Treasuries & Premium
•6% stock (airlines, chevron, (ticker symbol))
Roth IRA – 3.4%
•41% SPAXX - Money Market (.38%)
•29% FZROX – Fidelity Zero Total Market Index (0%)
•21% FGRIX – Fidelity Growth & Income (.55%)
•9% VGK - Vanguard Intl Equity Index Fds Ftse Europe Etf (.09)
HSA - 2.5%
•100% FFEZX – Fidelity Freedom 2035 Fund (.08%)
Real Estate Syndication – 2.0%
401k New - 0.6%
•50% BTC S&P 500 INDEX (NON40O32R) (.01)
•30% - BTC ACWI EX US IMI (NON40OXPW) ()
•10% FID GR CO POOL CL S (31617E471) (.01)
•10% BTC RUSSELL 2500 (NON40OXPV) (.01)
529 – 2%
•100% Tgt Date Fund
Company match: 7%
Contributions
New annual Contributions
$30,500 his 401k (7% match)
$38,500 Megaback door Roth
Funds available in 401(k)
InstrumentTypeFees
FID GR CO POOL CL Stock InvestmentsLarge Cap Growth0.32%
BTC S&P 500 INDEX 06/30/2022 Stock InvestmentsLarge Cap Blend0.01%
DODGE & COX STOCK X (DOXGX)01/04/1965 Stock InvestmentsLarge Cap Value0.46%
FID LPS POOL CLASS O 03/14/2014 Stock InvestmentsMid-Cap Value0.41%
BTC RUSSELL 2500 10/01/2008 Stock InvestmentsSmall Cap Blend0.01%
BTC ACWI EX US IMI 03/01/2011 Stock InvestmentsForeign0.05%
CG EUROPAC GRTH U3 07/17/2019 Stock InvestmentsForeign0.41%
BTC TOTAL RET BOND F 06/30/2022 Bond InvestmentsIntermediate-Term0.19%
BTC US DEBT 06/01/1996 Bond InvestmentsIntermediate-Term0.02%
STABLE VALUE FUND 04/02/1990 Bond InvestmentsStable Value0.25%
401K GLOBAL DIVERS 0.67%
TARGET DATE 2020 12/01/2009 0.38%
TARGET DATE 2025 06/01/2004 0.37%
TARGET DATE 2030 07/01/2011 0.36%
TARGET DATE 2035 06/01/2004 0.34%
TARGET DATE 2040 07/01/2011 0.32%
TARGET DATE 2045 06/01/2004 0.31%
TARGET DATE 2050 07/01/2011 0.31%
TARGET DATE 2055 08/01/2013 0.31%
TARGET DATE 2060 06/01/2020 0.31%
TARGET DATE INCOME 06/01/2004 0.38%
Funds available in non-qualified account
Name/Inception DateAsset Class Category Gross Expense Ratio**
VANG GRTH INDEX INST (VIGIX)11/02/1992 Stock InvestmentsLarge Cap Growth0.04%
BTC S&P 500 INDEX 06/30/2022 Stock InvestmentsLarge Cap Blend0.01%
VANG R1000 VAL IDX I (VRVIX)09/20/2010 Stock InvestmentsLarge Cap Value0.07%
BTC RUSSELL 2500 10/01/2008 Stock InvestmentsSmall Cap Blend0.01%
FID SM CAP IDX (FSSNX)09/08/2011 Stock InvestmentsSmall Cap Blend0.03%
BTC ACWI EX US IMI 03/01/2011 Stock InvestmentsForeign0.05%
VANG DEV MKT IDX IS (VTMNX)08/17/1999 Stock InvestmentsForeign0.06%
VG EM MKT ST IDX ISP (VEMRX)05/04/1994 Stock InvestmentsDiversfd Emerging Mkts0.08%
VANG BAL INDEX INST (VBAIX)11/09/1992 Blended Fund Investments*Asset Allocation0.06%
FID INTM TR BD IDX (FUAMX)12/20/2005 Bond InvestmentsIntermed Government0.03%
BTC US DEBT 06/01/1996 Bond InvestmentsIntermediate-Term0.02%
FID INFL PR BD IDX (FIPDX)05/16/2012 Bond InvestmentsIntermediate-Term0.05%
FID CAPITAL & INCOME (FAGIX)11/01/1977 Bond InvestmentsHigh-Yield0.99%
STABLE VALUE FUND 04/02/1990 Bond InvestmentsStable Value0.25%
VG TL INTL BD IDX IS (VTIFX)05/31/2013 Bond InvestmentsInternational0.07%
UNINVEST BAL TRACKER Bond InvestmentsOther--
INV GOVT & AGCY PRT (AGPXX)09/01/1998 7 day yield as of07/31/2024 5.22%
Short-Term/OtherShort Government0.16%
****END****
1. I recently returned to work after a layoff, rolled my 401K over into an IRA, and am sitting in considerable cash. Given my portfolio is heavy in real estate, I would like some suggestions on an asset allocation that accounts for that. I have an inclination to drop bonds and carry an 80% or greater allocation of stock. However, valuations right now concern me. Allocation thoughts?
2. I would welcome suggestions on placement/where to allocate what across:
-Rollover IRA
-Taxable
-Non-qualified account
-Small Roth IRA
-V. Small Brand New 401K
3. My layoff triggered distributions from the non-qualified account at roughly 15% / year for the next 4 years, half that / year for each of the subsequent 5 years. That creates horrendous tax implications i'm working through (near 40% tax rate on top of regular pay) - worse than if I hadn't deferred.
4. Fidelity suggested their Separately Managed Accounts - which the 'fully hands off' element is attractive, but I've read the reviews here and don't think the returns are significantly better than an aggressively tilted portfolio held over the longterm. However, given the complexity and nearness to retirment, am I better off with a fee based advisor review, to re-set my allocation, discuss tax implications of the distributions, plus real estate liquidation (should I need to relocate across states)?
Key Points
-~30% of retirement assets are in real estate (not the primary)
-another ~30% in a non-qualified account
-Rest in Rollover IRA, Roth IRA, Taxable
-State taxes jump to 9.9% at $125K income
-Intention is to work another 4-5 years, but layoffs are constant. Recently offered a retirement package I will likely decline, but may be forced to take.
----Details------
6 months Emergency funds: $60,000
Debt:
Primary Home Mortgage - $380K, 1.99%
Investment Home Mortgage - $133K, 3.5%
Tax Filing Status: Head of Household
Tax Rate: Federal: Marginal = 35%, Effective = 20-21%
State: Marginal = 9.9%, Effective = 8.4%
State of Residence: Oregon
Age: 58
Desired Asset allocation: ~80% stocks / ~10-15% bonds / ~5% liquid
Desired International allocation: 20% of stocks
Investment Real Estate = $1.1M (~$40K/ year net income)
Bill Pay Accounts = $32K
Income = ~$300-340K
Retirement Portfolio = $2.5M - details below
Current retirement assets + $150K college – All Fidelity unless listed
non-qualified account – 39% - being distributed over 9 years
•45% BTC S&P 500 INDEX (NON40O32T) (.01)
•47% BTC US DEBT (NON40OXPU) (.021)
•4.5% Vanguard R1000 Val Index (VRVIX) (.07)
•3.5% FID CAPITAL & INCOME (FAGIX) (.99)
Rollover IRA – 36%
•100% FZDXX (.30)
Taxable – retirement + ~$100K college– 16%
•50% FZDXX (.30)
•44% Treasuries & Premium
•6% stock (airlines, chevron, (ticker symbol))
Roth IRA – 3.4%
•41% SPAXX - Money Market (.38%)
•29% FZROX – Fidelity Zero Total Market Index (0%)
•21% FGRIX – Fidelity Growth & Income (.55%)
•9% VGK - Vanguard Intl Equity Index Fds Ftse Europe Etf (.09)
HSA - 2.5%
•100% FFEZX – Fidelity Freedom 2035 Fund (.08%)
Real Estate Syndication – 2.0%
401k New - 0.6%
•50% BTC S&P 500 INDEX (NON40O32R) (.01)
•30% - BTC ACWI EX US IMI (NON40OXPW) ()
•10% FID GR CO POOL CL S (31617E471) (.01)
•10% BTC RUSSELL 2500 (NON40OXPV) (.01)
529 – 2%
•100% Tgt Date Fund
Company match: 7%
Contributions
New annual Contributions
$30,500 his 401k (7% match)
$38,500 Megaback door Roth
Funds available in 401(k)
InstrumentTypeFees
FID GR CO POOL CL Stock InvestmentsLarge Cap Growth0.32%
BTC S&P 500 INDEX 06/30/2022 Stock InvestmentsLarge Cap Blend0.01%
DODGE & COX STOCK X (DOXGX)01/04/1965 Stock InvestmentsLarge Cap Value0.46%
FID LPS POOL CLASS O 03/14/2014 Stock InvestmentsMid-Cap Value0.41%
BTC RUSSELL 2500 10/01/2008 Stock InvestmentsSmall Cap Blend0.01%
BTC ACWI EX US IMI 03/01/2011 Stock InvestmentsForeign0.05%
CG EUROPAC GRTH U3 07/17/2019 Stock InvestmentsForeign0.41%
BTC TOTAL RET BOND F 06/30/2022 Bond InvestmentsIntermediate-Term0.19%
BTC US DEBT 06/01/1996 Bond InvestmentsIntermediate-Term0.02%
STABLE VALUE FUND 04/02/1990 Bond InvestmentsStable Value0.25%
401K GLOBAL DIVERS 0.67%
TARGET DATE 2020 12/01/2009 0.38%
TARGET DATE 2025 06/01/2004 0.37%
TARGET DATE 2030 07/01/2011 0.36%
TARGET DATE 2035 06/01/2004 0.34%
TARGET DATE 2040 07/01/2011 0.32%
TARGET DATE 2045 06/01/2004 0.31%
TARGET DATE 2050 07/01/2011 0.31%
TARGET DATE 2055 08/01/2013 0.31%
TARGET DATE 2060 06/01/2020 0.31%
TARGET DATE INCOME 06/01/2004 0.38%
Funds available in non-qualified account
Name/Inception DateAsset Class Category Gross Expense Ratio**
VANG GRTH INDEX INST (VIGIX)11/02/1992 Stock InvestmentsLarge Cap Growth0.04%
BTC S&P 500 INDEX 06/30/2022 Stock InvestmentsLarge Cap Blend0.01%
VANG R1000 VAL IDX I (VRVIX)09/20/2010 Stock InvestmentsLarge Cap Value0.07%
BTC RUSSELL 2500 10/01/2008 Stock InvestmentsSmall Cap Blend0.01%
FID SM CAP IDX (FSSNX)09/08/2011 Stock InvestmentsSmall Cap Blend0.03%
BTC ACWI EX US IMI 03/01/2011 Stock InvestmentsForeign0.05%
VANG DEV MKT IDX IS (VTMNX)08/17/1999 Stock InvestmentsForeign0.06%
VG EM MKT ST IDX ISP (VEMRX)05/04/1994 Stock InvestmentsDiversfd Emerging Mkts0.08%
VANG BAL INDEX INST (VBAIX)11/09/1992 Blended Fund Investments*Asset Allocation0.06%
FID INTM TR BD IDX (FUAMX)12/20/2005 Bond InvestmentsIntermed Government0.03%
BTC US DEBT 06/01/1996 Bond InvestmentsIntermediate-Term0.02%
FID INFL PR BD IDX (FIPDX)05/16/2012 Bond InvestmentsIntermediate-Term0.05%
FID CAPITAL & INCOME (FAGIX)11/01/1977 Bond InvestmentsHigh-Yield0.99%
STABLE VALUE FUND 04/02/1990 Bond InvestmentsStable Value0.25%
VG TL INTL BD IDX IS (VTIFX)05/31/2013 Bond InvestmentsInternational0.07%
UNINVEST BAL TRACKER Bond InvestmentsOther--
INV GOVT & AGCY PRT (AGPXX)09/01/1998 7 day yield as of07/31/2024 5.22%
Short-Term/OtherShort Government0.16%
****END****
Statistics: Posted by jammer45 — Mon Aug 12, 2024 1:52 am — Replies 1 — Views 256