Emergency funds: Yes, funded
Debt: 700k mortgage 29 years left @ 6.8%
No cc debt, car loans, or other debt
Tax Filing Status: Married Filing Jointly
Tax Rate: 35% Federal, 4.95% State
State of Residence: IL
Age: both 36, 3yo little one, would like a 2nd child soon
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 25% of stocks
Portfolio size: ~1.8M
Current Portfolio:
Cash 6.5% includes emergency fund
His 401k (no tickers available if not listed); 5% salary match
Of note; 401k does not allow for pre-tax and roth contributions to be invested in separate buckets; all funds in the account are invested according to percentages below regardless of contribution type. Currently consists of ~75% pre-tax funds and 25% roth funds
11.5% Large US stock: State St S&P 500® Indx SL Cl II ER 0.01
2% Small/Mid Cap US stock: State St Russell Sm/Mid Cp® Indx SL ClII ER 0.046
10.3% International stock: State St Gbl AllCp Eq ex-US Idx SL Cl II ER 0.05
2% Bond: State St US Bnd Indx SL Cl XIV ER 0.022
Her Previous Employer 401k
3.6% Large US stock: State St S&P 500® Indx SL Cl II ER 0.01
0.5% Small/Mid Cap US stock: State St Russell Sm/Mid Cp® Indx SL ClII ER 0.046
6.6% International stock: State St Gbl AllCp Eq ex-US Idx SL Cl II ER 0.05
1.5% Bond: State St US Bnd Indx SL Cl XIV ER 0.022
Her Current Employer 401k Account has 0.39% AUM maintenance fee
5.1% Vanguard Total Stock Market Index Fund Admiral Shares, VTSAX, ER 0.04
1.5% Vanguard Total International Stock Index Admiral Fund, VTIAX, ER 0.12
His Roth IRA
7.1% Vanguard Total Stock Market Index Fund Admiral Shares, VTSAX, ER 0.04
Her Roth IRA
9..3% Vanguard Total Stock Market Index Fund Admiral Shares, VTSAX, ER 0.04
His HSA
1.4% FIDELITY TOTAL MARKET INDEX FUND, FSKAX, ER 0.01
Her HSA
1.8% FIDELITY TOTAL MARKET INDEX FUND, FSKAX, ER 0.01
Combined Brokerage
23.9% Vanguard Total Stock Market Index Fund Admiral Shares, VTSAX, ER 0.04
2.8% VANGUARD INTERMEDIATE TERM TAX
EXEMPT ADMIRAL, VWIUX, ER 0.09
0.8% SCHWAB US BROAD Market, SCHB, ER 0.03
Treasury direct
2.6% I-Bonds
Total=100% 85% stocks (22% international) / 9% bonds / 6% cash
Pension: both will receive a small pension through employers but not including in financial planning at the moment
2024 Contributions
$23k his 401k (+~29k match+after-tax contributions; 52k
$23k her 401k (+~4k match); 27k total
$7k his Roth IRA via backdoor
$7k her Roth IRA via backdoor
$8.3k HSA ($4 k employer contribution included)
Additional funds available: 50-100k see questions regarding how to deploy
Total ~150k
Available funds: thankfully all accounts have decent low expense ratio funds
Questions:
1. Checking in after a few years, any apparent issues to work through? Any overarching advice?
2. Recently bought home with 700k left on the mortgage at 6.8%. Aim to refinance when it makes sense. Would you recommend investing excess funds in taxable or paying down mortgage? Or maybe splitting the difference?
3. For the mega backdoor Roth I do in my 401k, I currently do an in plan conversion of after-tax contributions to Roth 401k monies. I do this largely due to convenience as I can simply click a button vs having to submit a form if I want to roll each contribution to an external rIRA. The downside of doing the in-plan conversion is that I cannot invest the Roth monies differently than the pre-tax funds in the account. Is there any reason I should prioritize rolling after-tax contributions to my external rIRA instead?
Debt: 700k mortgage 29 years left @ 6.8%
No cc debt, car loans, or other debt
Tax Filing Status: Married Filing Jointly
Tax Rate: 35% Federal, 4.95% State
State of Residence: IL
Age: both 36, 3yo little one, would like a 2nd child soon
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 25% of stocks
Portfolio size: ~1.8M
Current Portfolio:
Cash 6.5% includes emergency fund
His 401k (no tickers available if not listed); 5% salary match
Of note; 401k does not allow for pre-tax and roth contributions to be invested in separate buckets; all funds in the account are invested according to percentages below regardless of contribution type. Currently consists of ~75% pre-tax funds and 25% roth funds
11.5% Large US stock: State St S&P 500® Indx SL Cl II ER 0.01
2% Small/Mid Cap US stock: State St Russell Sm/Mid Cp® Indx SL ClII ER 0.046
10.3% International stock: State St Gbl AllCp Eq ex-US Idx SL Cl II ER 0.05
2% Bond: State St US Bnd Indx SL Cl XIV ER 0.022
Her Previous Employer 401k
3.6% Large US stock: State St S&P 500® Indx SL Cl II ER 0.01
0.5% Small/Mid Cap US stock: State St Russell Sm/Mid Cp® Indx SL ClII ER 0.046
6.6% International stock: State St Gbl AllCp Eq ex-US Idx SL Cl II ER 0.05
1.5% Bond: State St US Bnd Indx SL Cl XIV ER 0.022
Her Current Employer 401k Account has 0.39% AUM maintenance fee
5.1% Vanguard Total Stock Market Index Fund Admiral Shares, VTSAX, ER 0.04
1.5% Vanguard Total International Stock Index Admiral Fund, VTIAX, ER 0.12
His Roth IRA
7.1% Vanguard Total Stock Market Index Fund Admiral Shares, VTSAX, ER 0.04
Her Roth IRA
9..3% Vanguard Total Stock Market Index Fund Admiral Shares, VTSAX, ER 0.04
His HSA
1.4% FIDELITY TOTAL MARKET INDEX FUND, FSKAX, ER 0.01
Her HSA
1.8% FIDELITY TOTAL MARKET INDEX FUND, FSKAX, ER 0.01
Combined Brokerage
23.9% Vanguard Total Stock Market Index Fund Admiral Shares, VTSAX, ER 0.04
2.8% VANGUARD INTERMEDIATE TERM TAX
EXEMPT ADMIRAL, VWIUX, ER 0.09
0.8% SCHWAB US BROAD Market, SCHB, ER 0.03
Treasury direct
2.6% I-Bonds
Total=100% 85% stocks (22% international) / 9% bonds / 6% cash
Pension: both will receive a small pension through employers but not including in financial planning at the moment
2024 Contributions
$23k his 401k (+~29k match+after-tax contributions; 52k
$23k her 401k (+~4k match); 27k total
$7k his Roth IRA via backdoor
$7k her Roth IRA via backdoor
$8.3k HSA ($4 k employer contribution included)
Additional funds available: 50-100k see questions regarding how to deploy
Total ~150k
Available funds: thankfully all accounts have decent low expense ratio funds
Questions:
1. Checking in after a few years, any apparent issues to work through? Any overarching advice?
2. Recently bought home with 700k left on the mortgage at 6.8%. Aim to refinance when it makes sense. Would you recommend investing excess funds in taxable or paying down mortgage? Or maybe splitting the difference?
3. For the mega backdoor Roth I do in my 401k, I currently do an in plan conversion of after-tax contributions to Roth 401k monies. I do this largely due to convenience as I can simply click a button vs having to submit a form if I want to roll each contribution to an external rIRA. The downside of doing the in-plan conversion is that I cannot invest the Roth monies differently than the pre-tax funds in the account. Is there any reason I should prioritize rolling after-tax contributions to my external rIRA instead?
Statistics: Posted by Coolguy8877 — Sun Nov 03, 2024 8:44 pm — Replies 0 — Views 138