Emergency Funds: 1 year
Debt: Mortgage = $140,000 at 5%
Tax Filing Status: Single
Tax Rate: 22% Federal, 3.07% State
State of Residence: PA
Age: 53
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: ??% of stocks
Current Asset allocation: 72% stocks/28% bonds
Total Portfolio: $1.8M
Current retirement assets
Taxable
12% cash (2-4mo T-bills)
15% VG Total Stock Market Index (VTSAX)
Employer 401k
2% VG Target Retirement 2060 Trust II
Roth IRA at Vanguard (keeping this mostly in cash for liquidity)
0.25% VG Target Retirement 2035 (VTTHX)
0.75% Federal Money Market (VMFXX)
Rollover IRA at Vanguard
3.5%Small Cap Value (VSIAX)
2.1%Commodity Strategy (VCMDX)
4.1%Total Intl Stock (VTIAX)
4.4%Total Bond Market (VBTLX)
1.9%Inflation Protected Secs(VIPSX)
45.3%Total Stock Market (VTSAX)
3.7%Real Estate Index (VGSLX)
Traditional IRA at Vanguard
3% VG Total Stock Market Index (VTSAX)
Treasury Direct
2% iBonds
Contributions
New annual Contributions (Note, this is moving taxable money into these accounts)
$28,000 401k
$8000 Roth IRA
Funds available in 401(k)
VG Target Retirement Funds (2020-2070)
VG 500 Index
VG Midcap Index
VG Small Cap Index
VG Total Bond Index
VG Total International Stock Index
Notes:
Widow with 2 adult children at home. Salary is around $60k and not quite enough to cover our expenses, plus the majority of my salary is going into retirement funds. Essentially, I am using my job to shuttle my taxable holdings into retirement funds. I am hoping to retire at 60 and pull my widow SS (~2k/mo) and delay my SS until 70 (~3k/mo). Expenses are ~$70k/yr and I see that continuing into retirement.
Questions:
1. How does my portfolio and planned retirement look overall?
2. The Commodity Strategy Fund was a stupid move, lost money on it. Should I just cut my losses and move that in to VTSAX?
3. I’ve had my bond positions for 10+ years and they have performed very poorly. Any reason to keep VIPSX or can I just consolidate into VBTLX?
4. My AA target now is 70/30. May want to move to 60/40 by 60? I’m going to change my new contributions for 401k to either VG TR 2030 (60/40) or 2035 (70/30) since I’m currently at 72/28. Thoughts?
5. Any concerns with my efforts to move my taxable money into retirement funds? I figure the earnings will grow more in non-taxable and the holdings have more legal protection, but I’m also concerned about losing access to that money for 6-7 more years and leaving an inheritance (taxable is cheaper to inherit than an IRA).
Debt: Mortgage = $140,000 at 5%
Tax Filing Status: Single
Tax Rate: 22% Federal, 3.07% State
State of Residence: PA
Age: 53
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: ??% of stocks
Current Asset allocation: 72% stocks/28% bonds
Total Portfolio: $1.8M
Current retirement assets
Taxable
12% cash (2-4mo T-bills)
15% VG Total Stock Market Index (VTSAX)
Employer 401k
2% VG Target Retirement 2060 Trust II
Roth IRA at Vanguard (keeping this mostly in cash for liquidity)
0.25% VG Target Retirement 2035 (VTTHX)
0.75% Federal Money Market (VMFXX)
Rollover IRA at Vanguard
3.5%Small Cap Value (VSIAX)
2.1%Commodity Strategy (VCMDX)
4.1%Total Intl Stock (VTIAX)
4.4%Total Bond Market (VBTLX)
1.9%Inflation Protected Secs(VIPSX)
45.3%Total Stock Market (VTSAX)
3.7%Real Estate Index (VGSLX)
Traditional IRA at Vanguard
3% VG Total Stock Market Index (VTSAX)
Treasury Direct
2% iBonds
Contributions
New annual Contributions (Note, this is moving taxable money into these accounts)
$28,000 401k
$8000 Roth IRA
Funds available in 401(k)
VG Target Retirement Funds (2020-2070)
VG 500 Index
VG Midcap Index
VG Small Cap Index
VG Total Bond Index
VG Total International Stock Index
Notes:
Widow with 2 adult children at home. Salary is around $60k and not quite enough to cover our expenses, plus the majority of my salary is going into retirement funds. Essentially, I am using my job to shuttle my taxable holdings into retirement funds. I am hoping to retire at 60 and pull my widow SS (~2k/mo) and delay my SS until 70 (~3k/mo). Expenses are ~$70k/yr and I see that continuing into retirement.
Questions:
1. How does my portfolio and planned retirement look overall?
2. The Commodity Strategy Fund was a stupid move, lost money on it. Should I just cut my losses and move that in to VTSAX?
3. I’ve had my bond positions for 10+ years and they have performed very poorly. Any reason to keep VIPSX or can I just consolidate into VBTLX?
4. My AA target now is 70/30. May want to move to 60/40 by 60? I’m going to change my new contributions for 401k to either VG TR 2030 (60/40) or 2035 (70/30) since I’m currently at 72/28. Thoughts?
5. Any concerns with my efforts to move my taxable money into retirement funds? I figure the earnings will grow more in non-taxable and the holdings have more legal protection, but I’m also concerned about losing access to that money for 6-7 more years and leaving an inheritance (taxable is cheaper to inherit than an IRA).
Statistics: Posted by catba — Mon Sep 02, 2024 9:38 am — Replies 3 — Views 195