Hi Bogleheads,
I’ve been following the forum for a few years now and have learned a lot from you all. I used to have a financial advisor (he was a connection with my parents), but thanks to you all I’ve been DIY for the past 2.5 years.
I’m in my final year of my grad program and will be re-entering the workforce next year. Before re-entering, I would love to receive your feedback/advice on my investment portfolio and thoughts on my questions at the end of my portfolio summary.
Emergency funds: $55K ($9K in checkings, $46K in HYSA). It’s a little higher than I would otherwise hold because I’m in school and not earning income. This covers at least a year’s worth of expenses for me, though I plan to reduce it once I’m working again.
Tax Filing Status: Single
Total salary starting later next year: $220K
Tax Rate when working next year: 32% Federal, 4.95% State
State of Residence: IL
Age: 28
Desired Asset allocation: 100% stocks
Desired International allocation: Currently 0% of stocks. I felt that S&P500 had international exposure, so I didn’t feel the need to enter international funds. I understand this point is one that is frequently challenged, and I’m open to revisiting it in the future.
Current retirement assets
Taxable
100% iShares Core S&P 500 ETF (IVV) (0.03%) - $415K
Roth IRA
100% iShares Core S&P 500 ETF (IVV) (0.03%) - $91K
401k
Will max contribute once I begin working. Future employer matches 7.5% of total compensation. (~$17K from me + ~$17K employer match = ~$34K total annually)
New Annual Contributions
Not contributing while in school, but I believe I’ll be able to contribute ~$50-60K annually once I begin working. I plan to contribute the max to a Backdoor Roth IRA ($6.5K annually), with the remaining going to taxable investments.
Note on Taxes
I do my own taxes and haven’t practiced tax-loss harvesting (TLH) yet. I understand that I currently cannot TLH due to holding the same fund (IVV) in both my taxable account and Roth IRA, as it would trigger the wash sale rule.
Questions:
1. Does my portfolio and strategy make sense? Is there anything else I should consider adding to/changing in my portfolio while keeping things simple and easy to manage? I recognize 100% stocks is riskier than other approaches, but I have a long-term horizon and am comfortable with taking on this risk at the time being.
2. I plan to work for the next 30-35 years and therefore am willing to take on more risk, but curious as to how you all would mitigate risk as you age. Would love to know how you approached adjusting your allocation when you decided it was time to be a bit safer. What glide paths or asset allocation strategies did you find effective when transitioning from a 100% stock portfolio? In other words, what would you recommend (i.e. bond ETFs) investing in? I’d prefer a simple, set-and-forget investment approach.
Would warmly welcome any other thoughts that you may have.
Thank you in advance!
I’ve been following the forum for a few years now and have learned a lot from you all. I used to have a financial advisor (he was a connection with my parents), but thanks to you all I’ve been DIY for the past 2.5 years.
I’m in my final year of my grad program and will be re-entering the workforce next year. Before re-entering, I would love to receive your feedback/advice on my investment portfolio and thoughts on my questions at the end of my portfolio summary.
Emergency funds: $55K ($9K in checkings, $46K in HYSA). It’s a little higher than I would otherwise hold because I’m in school and not earning income. This covers at least a year’s worth of expenses for me, though I plan to reduce it once I’m working again.
Tax Filing Status: Single
Total salary starting later next year: $220K
Tax Rate when working next year: 32% Federal, 4.95% State
State of Residence: IL
Age: 28
Desired Asset allocation: 100% stocks
Desired International allocation: Currently 0% of stocks. I felt that S&P500 had international exposure, so I didn’t feel the need to enter international funds. I understand this point is one that is frequently challenged, and I’m open to revisiting it in the future.
Current retirement assets
Taxable
100% iShares Core S&P 500 ETF (IVV) (0.03%) - $415K
Roth IRA
100% iShares Core S&P 500 ETF (IVV) (0.03%) - $91K
401k
Will max contribute once I begin working. Future employer matches 7.5% of total compensation. (~$17K from me + ~$17K employer match = ~$34K total annually)
New Annual Contributions
Not contributing while in school, but I believe I’ll be able to contribute ~$50-60K annually once I begin working. I plan to contribute the max to a Backdoor Roth IRA ($6.5K annually), with the remaining going to taxable investments.
Note on Taxes
I do my own taxes and haven’t practiced tax-loss harvesting (TLH) yet. I understand that I currently cannot TLH due to holding the same fund (IVV) in both my taxable account and Roth IRA, as it would trigger the wash sale rule.
Questions:
1. Does my portfolio and strategy make sense? Is there anything else I should consider adding to/changing in my portfolio while keeping things simple and easy to manage? I recognize 100% stocks is riskier than other approaches, but I have a long-term horizon and am comfortable with taking on this risk at the time being.
2. I plan to work for the next 30-35 years and therefore am willing to take on more risk, but curious as to how you all would mitigate risk as you age. Would love to know how you approached adjusting your allocation when you decided it was time to be a bit safer. What glide paths or asset allocation strategies did you find effective when transitioning from a 100% stock portfolio? In other words, what would you recommend (i.e. bond ETFs) investing in? I’d prefer a simple, set-and-forget investment approach.
Would warmly welcome any other thoughts that you may have.
Thank you in advance!
Statistics: Posted by hoota — Tue Sep 17, 2024 1:36 pm — Replies 0 — Views 40