Need to make some moves to replenish cash reserves in the coming months/year and this exercise was eye opening. Investment details and questions follow. Thank you.
Emergency funds: Six months of expenses on hand.
Debt: none
Tax Filing Status: Single
Tax Rate: 15% Federal, 0% State
State of Residence: Tennessee
Age: Almost 62, Retired
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 5-10% of stocks
Total portfolio about $1.5 million
Taxable – 15.6%
1.1% Cash
2.2% VG Federal Money Market (VMFXX) (.11%)
8.2% Franklin Income Class (FKINX) (.61%)
1.9% TRowe Value Fund (TRVLX) (.71%)
1.5% Trowe Equity Index (PREIX) (.19%)
0.7% Trowe Global Stock Fund (PRGSX) (.8%)
Tax Advantaged - Traditional IRA (54% total invesment), Rollover IRA (11%), Inherited IRA (19%) – 84.3%
14.3% VG Growth Index (VIGAX) (.35%)
9.2% DFA US Core Equity Instl (DFEOX) (.19%)
8.8% Franklin Income Class A1 (FKINX) (.61%)
0.6% Franklin Income Cl A (FKIQX) (.71%)
5.2% VG Info Technology (VITAX) (.05%)
4.9% DFA Investment Grade Instl (DFAPX) (.19%)
4.3% VG Total Stock Market (VTSAX) (.1%)
3.3% Apple Stock (AAPL)
3.0% VG Large Cap Index Adm (VLCAX) (.05%)
2.9% Microsoft Stock (MSFT)
2.9% VG Mid Cap Growth Index (VMGMX) (.05%)
2.5% DFA Intl Core Equity (DFIEX) (.15%)
2.3% VG Cash Reserves (VMRXX) (.11%)
2.1% Meta Platforms Stock (META)
2.1% VG Real Estate Index Admiral (VGSLX) (.13%)
2.0% VG Mid Cap Index Adm (VIMAX) (.13%)
2.0% Alphabet Stock (GOOGL)
2.0% DFA US Small Cap Instl Cl (DFSTX) (.22%)
1.8% VG Federal Money Market (VMFXX) (.11%)
1.8% Amazon (AMZN)
1.7% VG Healthcare Investor Cl (VGHCX) (.35%)
1.3% DFA Global Real Estate Securities Instl Cl (DFGEX) (.39%)
1.2% VG Windsor Investor Cl (VWNDX) (.07%)
1.2% VG Small Cap Value Index Admiral (VSIAX) (.07%)
0.9% DFA Emerging Markets Core Equity (DFCEX) (.39%)
Roth IRA ($1,000) opened March 2024
0.1% MRVL
Questions:
1.I did not split out the various funds within the Tax Advantaged (between traditional, rollover, inherited) for simplicity. Do I need to do that now for good feedback here? Info is available.
2.This collection of investments is too extensive. This exercise emphasized not only too many different investment funds but also flagged higher expense ratio funds.Suggestions on investments to sell and consolidate to others? Some funds I have appear to be duplicates, with one investor class and the other admiral class. The Franklin Income funds do have a high expense ratios but they provided income during early retirement years I appreciated. But they can go now if it makes sense. I realize in Tax Advantaged accounts I can make moves without tax consequences. I was late to the Roth party, sadly, for various reasons and realize a chunk of my portfolio belongs to Uncle Sam (taxes on IRA).
3.I’ve used up my cash reserves and plan to sell about $275K of investments to cover next 3-4 years expenses (including one time expenses.) Planning to use ACA for medical starting in 2026 so need low income in 2026 and 2027 before Medicare begins. Did a tax review with advisor recently, recommended splitting sales 50/50 between Dec 2024 and Jan 2025 on the following accounts: $100K Inherited IRA (w/h tax 25%), $60K Taxable TRowe accts ($4K capital gain tax) and $122K Taxable Franklin Income fund (minimal capital gain). Doing so will allow me to get back to lower tax bracket in 2026 and 2027 for ACA subsidy purposes. Sound reasonable? Where to put these 275K other than VMFXX? I’m partial to having most investments at Vanguard but not opposed to adding Fidelity account if it makes sense.
4.I’m a buy and hold type investor that has withstood up and down markets. Others that are retired and my age are often a 60/40 stock/bond split. I stated my goal is more aggressive 80/20. I anticipate a significant cash inheritance (mid to upper 6 figures) in the next 5-10 years that will give me a cushion of savings. I use Boldin for retirement planning and eMoney for budgeting and viewing asset allocation. Emoney shows me at 73% Equity, 16% Taxable Bonds, 3% Other (Real Estate) and 7% Cash. Do my plans to sell in point 2 above make sense with current and desired allocation?
5.Current International equities is 4%. Is this way too low? I’ve sold off some international fund losers in last several years. I've held the individual 5 tech stocks for almost 10 years. I'm open to selling them if it makes sense?
6.I’ve asked too many questions, just want to acknowledge I’m aware of Roth Conversions. Boldin recommended an insignificant amount of conversions, so for now that I’m holding off on that topic.
Thank you in advance for your consideration and suggestions.
Stew
Emergency funds: Six months of expenses on hand.
Debt: none
Tax Filing Status: Single
Tax Rate: 15% Federal, 0% State
State of Residence: Tennessee
Age: Almost 62, Retired
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 5-10% of stocks
Total portfolio about $1.5 million
Taxable – 15.6%
1.1% Cash
2.2% VG Federal Money Market (VMFXX) (.11%)
8.2% Franklin Income Class (FKINX) (.61%)
1.9% TRowe Value Fund (TRVLX) (.71%)
1.5% Trowe Equity Index (PREIX) (.19%)
0.7% Trowe Global Stock Fund (PRGSX) (.8%)
Tax Advantaged - Traditional IRA (54% total invesment), Rollover IRA (11%), Inherited IRA (19%) – 84.3%
14.3% VG Growth Index (VIGAX) (.35%)
9.2% DFA US Core Equity Instl (DFEOX) (.19%)
8.8% Franklin Income Class A1 (FKINX) (.61%)
0.6% Franklin Income Cl A (FKIQX) (.71%)
5.2% VG Info Technology (VITAX) (.05%)
4.9% DFA Investment Grade Instl (DFAPX) (.19%)
4.3% VG Total Stock Market (VTSAX) (.1%)
3.3% Apple Stock (AAPL)
3.0% VG Large Cap Index Adm (VLCAX) (.05%)
2.9% Microsoft Stock (MSFT)
2.9% VG Mid Cap Growth Index (VMGMX) (.05%)
2.5% DFA Intl Core Equity (DFIEX) (.15%)
2.3% VG Cash Reserves (VMRXX) (.11%)
2.1% Meta Platforms Stock (META)
2.1% VG Real Estate Index Admiral (VGSLX) (.13%)
2.0% VG Mid Cap Index Adm (VIMAX) (.13%)
2.0% Alphabet Stock (GOOGL)
2.0% DFA US Small Cap Instl Cl (DFSTX) (.22%)
1.8% VG Federal Money Market (VMFXX) (.11%)
1.8% Amazon (AMZN)
1.7% VG Healthcare Investor Cl (VGHCX) (.35%)
1.3% DFA Global Real Estate Securities Instl Cl (DFGEX) (.39%)
1.2% VG Windsor Investor Cl (VWNDX) (.07%)
1.2% VG Small Cap Value Index Admiral (VSIAX) (.07%)
0.9% DFA Emerging Markets Core Equity (DFCEX) (.39%)
Roth IRA ($1,000) opened March 2024
0.1% MRVL
Questions:
1.I did not split out the various funds within the Tax Advantaged (between traditional, rollover, inherited) for simplicity. Do I need to do that now for good feedback here? Info is available.
2.This collection of investments is too extensive. This exercise emphasized not only too many different investment funds but also flagged higher expense ratio funds.Suggestions on investments to sell and consolidate to others? Some funds I have appear to be duplicates, with one investor class and the other admiral class. The Franklin Income funds do have a high expense ratios but they provided income during early retirement years I appreciated. But they can go now if it makes sense. I realize in Tax Advantaged accounts I can make moves without tax consequences. I was late to the Roth party, sadly, for various reasons and realize a chunk of my portfolio belongs to Uncle Sam (taxes on IRA).
3.I’ve used up my cash reserves and plan to sell about $275K of investments to cover next 3-4 years expenses (including one time expenses.) Planning to use ACA for medical starting in 2026 so need low income in 2026 and 2027 before Medicare begins. Did a tax review with advisor recently, recommended splitting sales 50/50 between Dec 2024 and Jan 2025 on the following accounts: $100K Inherited IRA (w/h tax 25%), $60K Taxable TRowe accts ($4K capital gain tax) and $122K Taxable Franklin Income fund (minimal capital gain). Doing so will allow me to get back to lower tax bracket in 2026 and 2027 for ACA subsidy purposes. Sound reasonable? Where to put these 275K other than VMFXX? I’m partial to having most investments at Vanguard but not opposed to adding Fidelity account if it makes sense.
4.I’m a buy and hold type investor that has withstood up and down markets. Others that are retired and my age are often a 60/40 stock/bond split. I stated my goal is more aggressive 80/20. I anticipate a significant cash inheritance (mid to upper 6 figures) in the next 5-10 years that will give me a cushion of savings. I use Boldin for retirement planning and eMoney for budgeting and viewing asset allocation. Emoney shows me at 73% Equity, 16% Taxable Bonds, 3% Other (Real Estate) and 7% Cash. Do my plans to sell in point 2 above make sense with current and desired allocation?
5.Current International equities is 4%. Is this way too low? I’ve sold off some international fund losers in last several years. I've held the individual 5 tech stocks for almost 10 years. I'm open to selling them if it makes sense?
6.I’ve asked too many questions, just want to acknowledge I’m aware of Roth Conversions. Boldin recommended an insignificant amount of conversions, so for now that I’m holding off on that topic.
Thank you in advance for your consideration and suggestions.
Stew
Statistics: Posted by StewInvests24 — Wed Oct 16, 2024 5:35 pm — Replies 3 — Views 286