If only I would have known about this earlier, I am so thankful to have found Bogleheads now. We were/are using Betterment and are working on transferring assets out. There are no losses to harvest at this time. A recent windfall has brought the issues to the forefront of our attention and we could use help on how to prepare to make the most of our current excess cash and fixed income in taxable and how to select the location and what to put in tax deferred accounts. The ultimate goal is to clean up the accounts and make it easier to manage and add to regularly.
Emergency funds: $120,000 (2 years of expenses) in HYSA @ 4.5%
Debt: Student Loans $8,700 @ 3.88% (Navigating PSLF), Mortgage $82,000 @ 2.75%, no other debt
Tax Filing Status: Married Filing Jointly
Tax Rate: 22% Federal, 0% State
State of Residence: Washington State
Age: 42,42
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 10% of stocks
Approximate size of your total portfolio $1.1M
Current retirement assets
Taxable Individual
3.50%Vanguard Total Stock Market(VTI)(0.03)
0.89%iShares National Muni Bond(MUB)(0.05)
0.40%Vanguard FTSE Developed Markets(VEA)(0.06)
Taxable Joint
11.86% cash (for investing)
18.01%iShares Core S&P Total U.S. Stock Market(ITOT)(0.03)
8.82%Goldman Sachs ActiveBeta U.S. Large Cap(GSLC)(0.09)
8.77%iShares 0-3 Month Treasury Bond(SGOV)(0.09)
2.00%Goldman Sachs ActiveBeta International Equity(GSIE)(0.25)
1.20%Goldman Sachs ActiveBeta Europe Equity(GSEU)(0.25)
1.09%Goldman Sachs Access Treasury 0-1 Year(GBIL)(0.12)
0.92%Goldman Sachs ActiveBeta Emerging Markets Equity(GEM)(0.45)
0.46%Goldman Sachs ActiveBeta U.S. Small Cap Equity(GSSC)(0.20)
0.46%Vanguard Long-Term Treasury(VGLT)(0.04)
0.42%iShares National Muni Bond(MUB)(0.05)
0.39%Goldman Sachs ActiveBeta Japan Equity(GSJY)(0.25)
0.33%JPMorgan Ultra-Short Income(JPST)(0.18)
0.31%Goldman Sachs Access Investment Grade Corporate (GIGB)(0.14)
0.30%Goldman Sachs Access High Yield Corporate Bond(GHYB)(0.34)
0.27%iShares 0-5 Year TIPS Bond(STIP)(0.03)
0.24%Goldman Sachs Access Emerging Markets USD Bond(GEMD)(0.39)
0.21%Vanguard FTSE Developed Markets(VEA)(0.06)
0.17%Vanguard Total International Bond(BNDX)(0.07)
0.16%Vanguard Total Stock Market(VTI)(0.03)
0.13%Vanguard Emerging Markets Government Bond(VWOB)(0.20)
0.13%iShares MSCI Japan(EWJ)(0.50)
0.10%Vanguard Emerging Markets Stock(VWO)(0.08)
0.06%SPDR Portfolio S&P 500(SPLG)(0.02)
0.05%iShares J.P. Morgan USD Emerging Markets Bond(EMB)(0.39)
0.04%iShares J.P. Morgan USD Emerging Markets Bond(AGG)(0.03)
0.03%Vanguard Value Index(VTV)(0.04)
0.03%Vanguard Short-Term Inflation-Protected(VTIP)(0.04)
0.03%iShares Short Treasury Bond(SHV)(0.15)
0.03%Vanguard Mid-Cap Value Index(VOE)(0.07)
0.02%Vanguard Small-Cap Value Index(VBR)(0.07)
0.01%SPDR Portfolio S&P 400 Mid Cap(SPMD)(0.03)
His 401k at Betterment Company match - Yes
3.65%Vanguard Total Stock Market(VTI)(0.03)
0.12%iShares 0-5 Year TIPS Bond(STIP)(0.03)
1.00%iShares J.P. Morgan USD Emerging Markets Bond(AGG)(0.03)
His Roth IRA at Betterment
2.44%Vanguard Total Stock Market(VTI)(0.03)
1.13%Vanguard Mid-Cap Value Index(VOE)(0.07)
1.13%Vanguard Small-Cap Value Index(VBR)(0.07)
0.91%Vanguard Emerging Markets Stock Index(VWO)(0.08)
2.49%Vanguard FTSE Developed Markets(VEA)(0.06)
0.01%iShares 0-5 Year TIPS Bond(STIP)(0.03)
0.07%iShares J.P. Morgan USD Emerging Markets Bond(AGG)(0.03)
His Traditional IRA at at Betterment
5.24%Vanguard Total Stock Market(VTI)(0.03)
1.13%Vanguard Value Index(VTV)(0.04)
0.01%Vanguard Mid-Cap Value Index(VOE)(0.07)
1.00%iShares 0-5 Year TIPS Bond(STIP)(0.03)
1.14%Goldman Sachs Access Treasury 0-1 Year(GBIL)(0.12)
1.21%iShares J.P. Morgan USD Emerging Markets Bond(AGG)(0.03)
Her 401a Company match - Yes
0.14%WSIB Short Term(0.08)
0.10%WSIB Pending TAP(0.50)
6.72%WSIB Total Asset Portfolio(0.50)
Her Rollover IRA at at Betterment
0.01%Invesco Emerging Markets Sovereign Debt(PCY)(0.50)
0.66%SPDR Portfolio S&P 500(SPLG)(0.02)
0.00%iShares Core MSCI EAFE(IEFA)(0.07)
0.38%Vanguard FTSE Developed Markets(VEA)(0.06)
0.02%Vanguard Total International Bond Index(BNDX)(0.07)
0.09%SPDR Portfolio S&P 400 Mid Cap(SPMD)(0.03)
0.02%iShares J.P. Morgan USD Emerging Markets Bond(EMB)(0.39)
0.07%SPDR Portfolio S&P 600 Small Cap(SPSM)(0.03)
0.14%Vanguard Emerging Markets Stock Index(VWO)(0.08)
Her SSIRAU
0.54%Lincoln Select Annuity (Trying to get more info on this account and options)
Her IAP
6.57%Individual Account Program(Oregon IAP FUND)
_______________________________________________________________
Contributions
New annual Contributions
$23,000 his 401k (employer matching: $2,400)
$12,400 her 401a (employer matching: $8,000)
$7,000 his Roth IRA
$7,000 her Roth IRA (new account to be added)
$6,000 taxable (for retirement, with uncertain additions based on S-Corp distributions)
Available funds
Funds available in his 401(k) Additional 25bps plan fee
Vanguard Growth Index(VUG)(0.04)
Schwab U.S. REIT(SCHH)(0.07)
Vanguard Total Stock Market(VTI)(0.03)
SPDR Portfolio S&P 500(SPLG)(0.02)
Vanguard Dividend Appreciation(VIG)(0.06)
SPDR Portfolio S&P 600 Small Cap(SPSM)(0.03)
Vanguard Value Index(VTV)(0.04)
Vanguard Mid-Cap Value Index(VOE)(0.07)
Vanguard Small-Cap Value Index(VBR)(0.07)
SPDR Portfolio S&P 400 Mid Cap(SPMD)(0.03)
Invesco QQQ Trust(QQQ)(0.20)
SPDR S&P Kensho New Economies(KOMP)(0.20)
GraniteShares Bloomberg Commodit(COMB)(0.25)
Vanguard Global ex-U.S. Real Est(VNQI)(0.12)
Vanguard Emerging Markets Stock (VWO)(0.08)
Vanguard FTSE Developed Markets(VEA)(0.06)
iShares 0-5 Year TIPS Bond(STIP)(0.03)
iShares National Muni Bond(MUB)(0.05)
Goldman Sachs Access Treasury 0-(GBIL)(0.12)
iShares J.P. Morgan USD Emerging(AGG)(0.03)
Xtrackers USD High Yield Corpora(HYLB)(0.05)
iShares 5-10 Year Investment Gra(IGIB)(0.04)
Vanguard Total International Bon(BNDX)(0.07)
iShares J.P. Morgan USD Emerging(EMB)(0.39)
Funds available in her 401(a) Expense ratio inclusive of all plan and record keeping fees
https://www.drs.wa.gov/plan/trs3/#h-investments
2045 TDF (0.3)
Short-Term (0.17)
WA Bond(0.1)
US Large Cap (0.09)
Global Equity (0.126)
Small Cap Value (0.11)
Emerging Market Equity (0.18)
WA Total Allocation Port(0.50)
Notes:
I know we have many funds in taxable which we were unaware of until recently. We were using Betterment and have since transferred the taxable account. Most of the funds are profitable without too many large gains and are willing to sell to consolidate. We are not wanting to realize too many gains until next year when most will be realized at long-term rates.
His income is lower with possible (S-Corp small business) distributions that would be added to retirement goal. Possible wind-down (or sale) of business in the next few years which is why a we currently have a larger emergency fund. This may or may not generate another small windfall. The future is uncertain and additional planning will have an impact on when or how this might happen.
One child halfway through college with a funded 529 that should cover expenses through undergrad. Also have a separate cash cavings account for other miscellaneous college expenses not covered by the 529. Not looking to add additional funds that would be locked up as we are unsure what additional scholarships may be secured for graduate school.
Questions:
1. Taxable account contains a recent windfall as well as Betterment transfers- ITOT is recently added with a plan of tax-loss harvesting into VTI. SGOV is just a placeholder and extra cash is waiting to go somewhere. Should I reallocate SGOV and cash? Possible to hold in FZCXX money market or other ETF (VGIT?) and DCA as needed. The mental stress of doing a lump sum is overwhelming.
2. His IRA and ROTH and her IRA are held in Betterment and would like to transfer to another brokerage to avoid the 25bps fee. Help on fund allocation/location would be appreciated.
3. His 401k will have to stay in Betterment. Help on fund allocation.
4. Her 401a state retirement plan has many more options now than when enrolled. Help on which options would be best. The plan features an auto-rebalancing option which would be very helpful to take advantage of if not using a TDF.
5. After much reading, we still don't know what we don't know. Any other input would be very much appreciated.
Emergency funds: $120,000 (2 years of expenses) in HYSA @ 4.5%
Debt: Student Loans $8,700 @ 3.88% (Navigating PSLF), Mortgage $82,000 @ 2.75%, no other debt
Tax Filing Status: Married Filing Jointly
Tax Rate: 22% Federal, 0% State
State of Residence: Washington State
Age: 42,42
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 10% of stocks
Approximate size of your total portfolio $1.1M
Current retirement assets
Taxable Individual
3.50%Vanguard Total Stock Market(VTI)(0.03)
0.89%iShares National Muni Bond(MUB)(0.05)
0.40%Vanguard FTSE Developed Markets(VEA)(0.06)
Taxable Joint
11.86% cash (for investing)
18.01%iShares Core S&P Total U.S. Stock Market(ITOT)(0.03)
8.82%Goldman Sachs ActiveBeta U.S. Large Cap(GSLC)(0.09)
8.77%iShares 0-3 Month Treasury Bond(SGOV)(0.09)
2.00%Goldman Sachs ActiveBeta International Equity(GSIE)(0.25)
1.20%Goldman Sachs ActiveBeta Europe Equity(GSEU)(0.25)
1.09%Goldman Sachs Access Treasury 0-1 Year(GBIL)(0.12)
0.92%Goldman Sachs ActiveBeta Emerging Markets Equity(GEM)(0.45)
0.46%Goldman Sachs ActiveBeta U.S. Small Cap Equity(GSSC)(0.20)
0.46%Vanguard Long-Term Treasury(VGLT)(0.04)
0.42%iShares National Muni Bond(MUB)(0.05)
0.39%Goldman Sachs ActiveBeta Japan Equity(GSJY)(0.25)
0.33%JPMorgan Ultra-Short Income(JPST)(0.18)
0.31%Goldman Sachs Access Investment Grade Corporate (GIGB)(0.14)
0.30%Goldman Sachs Access High Yield Corporate Bond(GHYB)(0.34)
0.27%iShares 0-5 Year TIPS Bond(STIP)(0.03)
0.24%Goldman Sachs Access Emerging Markets USD Bond(GEMD)(0.39)
0.21%Vanguard FTSE Developed Markets(VEA)(0.06)
0.17%Vanguard Total International Bond(BNDX)(0.07)
0.16%Vanguard Total Stock Market(VTI)(0.03)
0.13%Vanguard Emerging Markets Government Bond(VWOB)(0.20)
0.13%iShares MSCI Japan(EWJ)(0.50)
0.10%Vanguard Emerging Markets Stock(VWO)(0.08)
0.06%SPDR Portfolio S&P 500(SPLG)(0.02)
0.05%iShares J.P. Morgan USD Emerging Markets Bond(EMB)(0.39)
0.04%iShares J.P. Morgan USD Emerging Markets Bond(AGG)(0.03)
0.03%Vanguard Value Index(VTV)(0.04)
0.03%Vanguard Short-Term Inflation-Protected(VTIP)(0.04)
0.03%iShares Short Treasury Bond(SHV)(0.15)
0.03%Vanguard Mid-Cap Value Index(VOE)(0.07)
0.02%Vanguard Small-Cap Value Index(VBR)(0.07)
0.01%SPDR Portfolio S&P 400 Mid Cap(SPMD)(0.03)
His 401k at Betterment Company match - Yes
3.65%Vanguard Total Stock Market(VTI)(0.03)
0.12%iShares 0-5 Year TIPS Bond(STIP)(0.03)
1.00%iShares J.P. Morgan USD Emerging Markets Bond(AGG)(0.03)
His Roth IRA at Betterment
2.44%Vanguard Total Stock Market(VTI)(0.03)
1.13%Vanguard Mid-Cap Value Index(VOE)(0.07)
1.13%Vanguard Small-Cap Value Index(VBR)(0.07)
0.91%Vanguard Emerging Markets Stock Index(VWO)(0.08)
2.49%Vanguard FTSE Developed Markets(VEA)(0.06)
0.01%iShares 0-5 Year TIPS Bond(STIP)(0.03)
0.07%iShares J.P. Morgan USD Emerging Markets Bond(AGG)(0.03)
His Traditional IRA at at Betterment
5.24%Vanguard Total Stock Market(VTI)(0.03)
1.13%Vanguard Value Index(VTV)(0.04)
0.01%Vanguard Mid-Cap Value Index(VOE)(0.07)
1.00%iShares 0-5 Year TIPS Bond(STIP)(0.03)
1.14%Goldman Sachs Access Treasury 0-1 Year(GBIL)(0.12)
1.21%iShares J.P. Morgan USD Emerging Markets Bond(AGG)(0.03)
Her 401a Company match - Yes
0.14%WSIB Short Term(0.08)
0.10%WSIB Pending TAP(0.50)
6.72%WSIB Total Asset Portfolio(0.50)
Her Rollover IRA at at Betterment
0.01%Invesco Emerging Markets Sovereign Debt(PCY)(0.50)
0.66%SPDR Portfolio S&P 500(SPLG)(0.02)
0.00%iShares Core MSCI EAFE(IEFA)(0.07)
0.38%Vanguard FTSE Developed Markets(VEA)(0.06)
0.02%Vanguard Total International Bond Index(BNDX)(0.07)
0.09%SPDR Portfolio S&P 400 Mid Cap(SPMD)(0.03)
0.02%iShares J.P. Morgan USD Emerging Markets Bond(EMB)(0.39)
0.07%SPDR Portfolio S&P 600 Small Cap(SPSM)(0.03)
0.14%Vanguard Emerging Markets Stock Index(VWO)(0.08)
Her SSIRAU
0.54%Lincoln Select Annuity (Trying to get more info on this account and options)
Her IAP
6.57%Individual Account Program(Oregon IAP FUND)
_______________________________________________________________
Contributions
New annual Contributions
$23,000 his 401k (employer matching: $2,400)
$12,400 her 401a (employer matching: $8,000)
$7,000 his Roth IRA
$7,000 her Roth IRA (new account to be added)
$6,000 taxable (for retirement, with uncertain additions based on S-Corp distributions)
Available funds
Funds available in his 401(k) Additional 25bps plan fee
Vanguard Growth Index(VUG)(0.04)
Schwab U.S. REIT(SCHH)(0.07)
Vanguard Total Stock Market(VTI)(0.03)
SPDR Portfolio S&P 500(SPLG)(0.02)
Vanguard Dividend Appreciation(VIG)(0.06)
SPDR Portfolio S&P 600 Small Cap(SPSM)(0.03)
Vanguard Value Index(VTV)(0.04)
Vanguard Mid-Cap Value Index(VOE)(0.07)
Vanguard Small-Cap Value Index(VBR)(0.07)
SPDR Portfolio S&P 400 Mid Cap(SPMD)(0.03)
Invesco QQQ Trust(QQQ)(0.20)
SPDR S&P Kensho New Economies(KOMP)(0.20)
GraniteShares Bloomberg Commodit(COMB)(0.25)
Vanguard Global ex-U.S. Real Est(VNQI)(0.12)
Vanguard Emerging Markets Stock (VWO)(0.08)
Vanguard FTSE Developed Markets(VEA)(0.06)
iShares 0-5 Year TIPS Bond(STIP)(0.03)
iShares National Muni Bond(MUB)(0.05)
Goldman Sachs Access Treasury 0-(GBIL)(0.12)
iShares J.P. Morgan USD Emerging(AGG)(0.03)
Xtrackers USD High Yield Corpora(HYLB)(0.05)
iShares 5-10 Year Investment Gra(IGIB)(0.04)
Vanguard Total International Bon(BNDX)(0.07)
iShares J.P. Morgan USD Emerging(EMB)(0.39)
Funds available in her 401(a) Expense ratio inclusive of all plan and record keeping fees
https://www.drs.wa.gov/plan/trs3/#h-investments
2045 TDF (0.3)
Short-Term (0.17)
WA Bond(0.1)
US Large Cap (0.09)
Global Equity (0.126)
Small Cap Value (0.11)
Emerging Market Equity (0.18)
WA Total Allocation Port(0.50)
Notes:
I know we have many funds in taxable which we were unaware of until recently. We were using Betterment and have since transferred the taxable account. Most of the funds are profitable without too many large gains and are willing to sell to consolidate. We are not wanting to realize too many gains until next year when most will be realized at long-term rates.
His income is lower with possible (S-Corp small business) distributions that would be added to retirement goal. Possible wind-down (or sale) of business in the next few years which is why a we currently have a larger emergency fund. This may or may not generate another small windfall. The future is uncertain and additional planning will have an impact on when or how this might happen.
One child halfway through college with a funded 529 that should cover expenses through undergrad. Also have a separate cash cavings account for other miscellaneous college expenses not covered by the 529. Not looking to add additional funds that would be locked up as we are unsure what additional scholarships may be secured for graduate school.
Questions:
1. Taxable account contains a recent windfall as well as Betterment transfers- ITOT is recently added with a plan of tax-loss harvesting into VTI. SGOV is just a placeholder and extra cash is waiting to go somewhere. Should I reallocate SGOV and cash? Possible to hold in FZCXX money market or other ETF (VGIT?) and DCA as needed. The mental stress of doing a lump sum is overwhelming.
2. His IRA and ROTH and her IRA are held in Betterment and would like to transfer to another brokerage to avoid the 25bps fee. Help on fund allocation/location would be appreciated.
3. His 401k will have to stay in Betterment. Help on fund allocation.
4. Her 401a state retirement plan has many more options now than when enrolled. Help on which options would be best. The plan features an auto-rebalancing option which would be very helpful to take advantage of if not using a TDF.
5. After much reading, we still don't know what we don't know. Any other input would be very much appreciated.
Statistics: Posted by coprolite — Mon Oct 07, 2024 8:59 pm — Replies 0 — Views 20
