Long time lurker, first time poster.
Emergency funds: None, pension hasn't vested yet so if I am fired in the next three years, I would get what I contributed to the pension which thus far is $20k.
Debt: None
Tax Filing Status: Single
Tax Rate: 12%
State of Residence: Maryland
Age: 37
Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 0% of stocks
Current retirement assets
$400k
Taxable
12% vti .01 (ticker symbol) (expense ratio)
His 401k
63% state street sp500 .01
of this, 2/3rds is roth
His Roth IRA at Vanguard
25% vanguard sp500 .01
____________________________________________________
Contributions
New annual Contributions
$23k his Roth 457k
$15 his 401k (10k trade, 5k roth)
$7k his IRA/Roth IRA (from selling brokerage shares)
Questions:
1. My annual salary is $55k so I am maxing my Roth 457 first and then contributing ~$10k to my trad 401k so my tax rate is 12% and then the rest to a Roth 401k so my check every pay period is around ~$30. Should I continue doing this and living off of my brokerage account which as of now has a ~100% gain in it and a balance of ~$55k all vested in vti? I have zero desire to ever own a home, expenses are minimal and my car is in good shape. I sell $1k of shares every month or so and use that as my living expenses. I am doing this because I prefer the protections from creditors that the retirement accounts provide for me.
2. Goals are to continue living minimally as my hobbies require very minimal outlays and I am not a vacation type of person. Am I missing something that I am not seeing that I should be doing? I am perfectly fine with having 100%, I did not lose sleep over the Covid swings and I like the returns thus far, I realize they aren't guaranteed but I sleep well at night with my allocations.
Emergency funds: None, pension hasn't vested yet so if I am fired in the next three years, I would get what I contributed to the pension which thus far is $20k.
Debt: None
Tax Filing Status: Single
Tax Rate: 12%
State of Residence: Maryland
Age: 37
Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 0% of stocks
Current retirement assets
$400k
Taxable
12% vti .01 (ticker symbol) (expense ratio)
His 401k
63% state street sp500 .01
of this, 2/3rds is roth
His Roth IRA at Vanguard
25% vanguard sp500 .01
____________________________________________________
Contributions
New annual Contributions
$23k his Roth 457k
$15 his 401k (10k trade, 5k roth)
$7k his IRA/Roth IRA (from selling brokerage shares)
Questions:
1. My annual salary is $55k so I am maxing my Roth 457 first and then contributing ~$10k to my trad 401k so my tax rate is 12% and then the rest to a Roth 401k so my check every pay period is around ~$30. Should I continue doing this and living off of my brokerage account which as of now has a ~100% gain in it and a balance of ~$55k all vested in vti? I have zero desire to ever own a home, expenses are minimal and my car is in good shape. I sell $1k of shares every month or so and use that as my living expenses. I am doing this because I prefer the protections from creditors that the retirement accounts provide for me.
2. Goals are to continue living minimally as my hobbies require very minimal outlays and I am not a vacation type of person. Am I missing something that I am not seeing that I should be doing? I am perfectly fine with having 100%, I did not lose sleep over the Covid swings and I like the returns thus far, I realize they aren't guaranteed but I sleep well at night with my allocations.
Statistics: Posted by rabbitSEASONduck — Fri Sep 27, 2024 1:42 pm — Replies 7 — Views 794