Hello Boglehead forum, first time poster, medium term lurker. I read Jack's Bogles Common Sense Book of Investing a couple years ago and the messages really resonated with me. Glad to find your community here!
Emergency funds: $20k
Debt: None (no credit card debt/car loans/mortgage. I am a renter.)
Tax Filing Status: Single
Tax Rate: 22% Federal, 5% State
State of Residence: Massachusetts
Age: 38
Desired Asset allocation:
90-95% stocks / 5-10% bonds
Desired International allocation: 20-25% of stocks
Current Allocation:
58% US Eq
18.5% Intl Eq
0.6% US Bond
22.25% CASH (excluding emergency funds)
Approx Portfolio Size: $360k (excluding emergency funds)
Approx Annual Income: $110K + 10% Bonus
Current retirement assets
Cash
22.3% (held in HYSA. does not include emergency funds)
Taxable
8.9% FSPGX Fidelity® Large Cap Growth Index Fund (0.035%)
0.85% FZILX Fidelity ZERO® International Index Fund (0.00%)
401k
51.75% Target Date 2055 (unlisted ticker) (0.03%)
2.22% Company Stock Fund (0.00%)
Company match? Yes
Roth IRA
11.9% Fidelity ZERO® Large Cap Index Fund (FNILX) (0.00%)
529 Plan (No kids of my own, for nieces/nephews as needed)
0.7% MA Fidelity 500 Index Portfolio (N/A) (0.11%)
HSA
1.4% Vanguard 500 Index Fund Admiral Shares (VFIAX) (0.04%)
Contributions
New annual Contributions
$Max 401k (employer matching contribution is 50% of first 8%, + annual 3% automatic employer contribution)
$Max Roth IRA
$Max HSA
$200-$400/mo. Taxable Bkg
$100-$200/mo. 529 Plan
Available funds
Funds available in his 401(k) (Tickers are unlisted in plan, managed by BlackRock for my company)
TARGET DATE FUNDS (2025 – 2065) (0.03%)
US LG CAP EQUITY INDEX (0.01%)
US MID CAP EQUITY INDEX (0.01%)
US SM CAP EQUITY INDEX (0.01%)
US AGG BOND INDEX (0.01%)
US TIPS INDEX (0.02%)
Questions:
1. I feel behind on savings for my age, particularly since I have no joint income nor home equity. If I hypothetically stayed single and continued to max-out my tax advantaged accounts, would I be postured for a healthy/wealthy retirement in 30 years? 20 years?
2. Please suggest how you might diversify my assets? I am heavy in equities because I feel I have the time horizon and I want to grow my assets, however I know I could do a better job managing the risk and still earning decent market returns.
3. I realize I'm heavy in cash, Ive been saving for the last few years w/ the intention of using it for a down-payment but the housing market feels unapproachable with a single income, so for the next few years I believe Ill continue to rent. How might I consider the amount of this cash to use for investment?
your time and consideration is very appreciated, thank you.
Emergency funds: $20k
Debt: None (no credit card debt/car loans/mortgage. I am a renter.)
Tax Filing Status: Single
Tax Rate: 22% Federal, 5% State
State of Residence: Massachusetts
Age: 38
Desired Asset allocation:
90-95% stocks / 5-10% bonds
Desired International allocation: 20-25% of stocks
Current Allocation:
58% US Eq
18.5% Intl Eq
0.6% US Bond
22.25% CASH (excluding emergency funds)
Approx Portfolio Size: $360k (excluding emergency funds)
Approx Annual Income: $110K + 10% Bonus
Current retirement assets
Cash
22.3% (held in HYSA. does not include emergency funds)
Taxable
8.9% FSPGX Fidelity® Large Cap Growth Index Fund (0.035%)
0.85% FZILX Fidelity ZERO® International Index Fund (0.00%)
401k
51.75% Target Date 2055 (unlisted ticker) (0.03%)
2.22% Company Stock Fund (0.00%)
Company match? Yes
Roth IRA
11.9% Fidelity ZERO® Large Cap Index Fund (FNILX) (0.00%)
529 Plan (No kids of my own, for nieces/nephews as needed)
0.7% MA Fidelity 500 Index Portfolio (N/A) (0.11%)
HSA
1.4% Vanguard 500 Index Fund Admiral Shares (VFIAX) (0.04%)
Contributions
New annual Contributions
$Max 401k (employer matching contribution is 50% of first 8%, + annual 3% automatic employer contribution)
$Max Roth IRA
$Max HSA
$200-$400/mo. Taxable Bkg
$100-$200/mo. 529 Plan
Available funds
Funds available in his 401(k) (Tickers are unlisted in plan, managed by BlackRock for my company)
TARGET DATE FUNDS (2025 – 2065) (0.03%)
US LG CAP EQUITY INDEX (0.01%)
US MID CAP EQUITY INDEX (0.01%)
US SM CAP EQUITY INDEX (0.01%)
US AGG BOND INDEX (0.01%)
US TIPS INDEX (0.02%)
Questions:
1. I feel behind on savings for my age, particularly since I have no joint income nor home equity. If I hypothetically stayed single and continued to max-out my tax advantaged accounts, would I be postured for a healthy/wealthy retirement in 30 years? 20 years?
2. Please suggest how you might diversify my assets? I am heavy in equities because I feel I have the time horizon and I want to grow my assets, however I know I could do a better job managing the risk and still earning decent market returns.
3. I realize I'm heavy in cash, Ive been saving for the last few years w/ the intention of using it for a down-payment but the housing market feels unapproachable with a single income, so for the next few years I believe Ill continue to rent. How might I consider the amount of this cash to use for investment?
your time and consideration is very appreciated, thank you.
Statistics: Posted by Mr_Ziti — Tue Nov 19, 2024 6:34 pm — Replies 5 — Views 586