Wife and I are trying to simplify our investment plan to promote efficiency and optimization and maximize contribution dollars. Our estimated combined gross income will be 150-155k. Our current portfolio and asset allocation is as follows:
Roth IRA 1: $35k Total US Stock Market
Roth IRA 2: $5k Total US Stock Market
401k 1: $93k S&P500 Index
401k 2: $60k Total US Stock Market
Roth TSP: $40k (C/S Total US Stock Market)
Leftover Digital Assets: $2k or so in ETH letting it ride
Emergency Fund (6-12 months expenses): $30k split between TIPS and Treasury Funds
Home: Purchase Price: $340k, current value $420k. Let’s say 400k even for the sake of net worth valuation.
Mortgage: $150k left
Total Net Worth: $517k
“Liquid” Net Worth (Minus House Equity): $267k
Asset Allocation: 88% US Index 12% TIPS/TBILLs
We are young and have 25-30 more years before retirement. (Which would be 55-60).
Plan for 2025:
I will max out my Roth TSP at $23,500 and will get a $4k vested match
My wife will send 30% of her pay to her traditional 401k so 18k plus $5,400 vested match.
Total Invested by Us: $41,500
Total Invested Inclusive of Matches: $50,900
This means we will be aiming to invest roughly 33% of our gross income if matches are included.
Reason I am not using traditional TSP: my state taxes traditional TSP contributions on the way in and they are not tax deferred at the state level. You'd then need to track state taxes paid to ensure you don't get double taxed on the way out. Seems way too much of a hassle for not much benefit (unless I am wrong here?).
This year we prioritized Roth IRA’s more than our workplace accounts and what I found was we had to wait to the end of each month to see what we had leftover to put in the IRA’s because it was never a fixed amount and it was harder for us to track and maximize so behaviorally we were spending more than I would like. I want to automate more of it so that only our money needed for expenses shows up after all our retirement assets are auto contributed, with maybe a 500-700 dollar a month buffer (we can add that to savings for future home repairs and maintenance etc. on a month by month basis when we have excess). The TSP has good low cost funds and so does my wife’s 401k. Maybe not as low as our IRA’s but negligible.
Also, my wife’s entire 30% 401k contributions moving forward will be going toward VTIAX, with the idea that in 5 years we will have roughly 20-30% international and be more diversified, but we are in no rush to convert straight to that today.
Are we doing okay?
Roth IRA 1: $35k Total US Stock Market
Roth IRA 2: $5k Total US Stock Market
401k 1: $93k S&P500 Index
401k 2: $60k Total US Stock Market
Roth TSP: $40k (C/S Total US Stock Market)
Leftover Digital Assets: $2k or so in ETH letting it ride
Emergency Fund (6-12 months expenses): $30k split between TIPS and Treasury Funds
Home: Purchase Price: $340k, current value $420k. Let’s say 400k even for the sake of net worth valuation.
Mortgage: $150k left
Total Net Worth: $517k
“Liquid” Net Worth (Minus House Equity): $267k
Asset Allocation: 88% US Index 12% TIPS/TBILLs
We are young and have 25-30 more years before retirement. (Which would be 55-60).
Plan for 2025:
I will max out my Roth TSP at $23,500 and will get a $4k vested match
My wife will send 30% of her pay to her traditional 401k so 18k plus $5,400 vested match.
Total Invested by Us: $41,500
Total Invested Inclusive of Matches: $50,900
This means we will be aiming to invest roughly 33% of our gross income if matches are included.
Reason I am not using traditional TSP: my state taxes traditional TSP contributions on the way in and they are not tax deferred at the state level. You'd then need to track state taxes paid to ensure you don't get double taxed on the way out. Seems way too much of a hassle for not much benefit (unless I am wrong here?).
This year we prioritized Roth IRA’s more than our workplace accounts and what I found was we had to wait to the end of each month to see what we had leftover to put in the IRA’s because it was never a fixed amount and it was harder for us to track and maximize so behaviorally we were spending more than I would like. I want to automate more of it so that only our money needed for expenses shows up after all our retirement assets are auto contributed, with maybe a 500-700 dollar a month buffer (we can add that to savings for future home repairs and maintenance etc. on a month by month basis when we have excess). The TSP has good low cost funds and so does my wife’s 401k. Maybe not as low as our IRA’s but negligible.
Also, my wife’s entire 30% 401k contributions moving forward will be going toward VTIAX, with the idea that in 5 years we will have roughly 20-30% international and be more diversified, but we are in no rush to convert straight to that today.
Are we doing okay?
Statistics: Posted by BizarroJerry — Fri Nov 22, 2024 7:22 pm — Replies 3 — Views 479