Friends, it's a good time to get a review. I have some questions and scenarios i would like to get expert input on.
Thanks in advance![:sharebeer]( "celebrate")
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Emergency funds: Yes, have a few months of ready cash in checking + Vanguard Money Market funds.
Debt: We have roughly $30k of credit card debt at 0% interest. Will get paid off in the spring before interest rate increases.
Tax Filing Status: Married filing jointly
Tax Rate: 32% Federal, 11.3% State
State of Residence: CA
Age: 46 & 48 (+ two hungry teenagers)
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 50% of stocks
Please provide an approximate size of your total portfolio: ~$4M (401k, Roth, Taxable) + $300k (529) + paid off home.
Current retirement assets (~$4M)
Taxable
4% Vanguard CA long term tax exempt admiral (VCLAX) (0.09%)
6% Vanguard FTSE All World ex US Small Cap admiral (VFSAX) (0.17%)
13% Vanguard FTSE All World ex US admiral (VFWAX) (0.11%)
His 401k (Traditional)
33% Vanguard TR 2025 (0.055%)
Company match? Yes, $6k
His 401k (Roth in plan)
5% Vanguard TR 2025 (0.055%)
His Roth IRA at Vanguard
1% Vanguard Emerging Markets admiral (VEMAX) (0.14%)
4% Vanguard Small cap value admiral (VSIAX) (0.07%)
Her 401k (Traditional)
10% Non-US equity index fund (0.09%)
8% US Small/Mid Cap equity index fund (0.05%)
Company match? Yes, $6k
12% Vanguard TR 2025 (0.055%)
Her Roth IRA at Vanguard
1% Vanguard Emerging Markets admiral (VEMAX) (0.14%)
3% Vanguard Small cap value admiral (VSIAX) (0.07%)
Total: 100%
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Note: Total percentage of all the above accounts together (not each account individually) should equal 100%.
Contributions
New annual Contributions
$23.5k his 401k (+ $6k employer matching contribution)
$23.5k her 401k (+ $6k employer matching contribution)
$TBD his IRA/Roth IRA
$TBD her IRA/Roth IRA
$TBD taxable (for retirement, not short term goals)
Social Security projections:
Him: $4k a month, starting at age 70
Her: $2k a month, starting age 62
Current expenses: $200K
Projected Retirement expenses: $160K (roughly $100k non-discretionary, including healthcare + $60K fun/travel)
Questions:
1. If I have only 2 years left to work, where should I allocate new contributions? Why?
2. If I have only 4 years left to work, where should I allocate new contributions? Why?
I'm anxious about not having enough in taxable to fund ER between ages 50 to 60. Some scenarios in my head below:
Scenario 1: Continue as I did this past year: max Trad 401k and MBDR (Roth) for him/her: Roughly $110k. Minimal savings in taxable. No Backdoor Roth.
Scenario 2: Only do Trad 401k til match (free money). No Roth. Pile more into taxable ($50k ish)
Scenario 3: Only do Trad 401k til match (free money). Some Roth. Pile more into taxable ($25k ish)
Thoughts? Does it matter much which direction i go?
Thanks in advance
=================================================================================================
Emergency funds: Yes, have a few months of ready cash in checking + Vanguard Money Market funds.
Debt: We have roughly $30k of credit card debt at 0% interest. Will get paid off in the spring before interest rate increases.
Tax Filing Status: Married filing jointly
Tax Rate: 32% Federal, 11.3% State
State of Residence: CA
Age: 46 & 48 (+ two hungry teenagers)
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 50% of stocks
Please provide an approximate size of your total portfolio: ~$4M (401k, Roth, Taxable) + $300k (529) + paid off home.
Current retirement assets (~$4M)
Taxable
4% Vanguard CA long term tax exempt admiral (VCLAX) (0.09%)
6% Vanguard FTSE All World ex US Small Cap admiral (VFSAX) (0.17%)
13% Vanguard FTSE All World ex US admiral (VFWAX) (0.11%)
His 401k (Traditional)
33% Vanguard TR 2025 (0.055%)
Company match? Yes, $6k
His 401k (Roth in plan)
5% Vanguard TR 2025 (0.055%)
His Roth IRA at Vanguard
1% Vanguard Emerging Markets admiral (VEMAX) (0.14%)
4% Vanguard Small cap value admiral (VSIAX) (0.07%)
Her 401k (Traditional)
10% Non-US equity index fund (0.09%)
8% US Small/Mid Cap equity index fund (0.05%)
Company match? Yes, $6k
12% Vanguard TR 2025 (0.055%)
Her Roth IRA at Vanguard
1% Vanguard Emerging Markets admiral (VEMAX) (0.14%)
3% Vanguard Small cap value admiral (VSIAX) (0.07%)
Total: 100%
_______________________________________________________________
Note: Total percentage of all the above accounts together (not each account individually) should equal 100%.
Contributions
New annual Contributions
$23.5k his 401k (+ $6k employer matching contribution)
$23.5k her 401k (+ $6k employer matching contribution)
$TBD his IRA/Roth IRA
$TBD her IRA/Roth IRA
$TBD taxable (for retirement, not short term goals)
Social Security projections:
Him: $4k a month, starting at age 70
Her: $2k a month, starting age 62
Current expenses: $200K
Projected Retirement expenses: $160K (roughly $100k non-discretionary, including healthcare + $60K fun/travel)
Questions:
1. If I have only 2 years left to work, where should I allocate new contributions? Why?
2. If I have only 4 years left to work, where should I allocate new contributions? Why?
I'm anxious about not having enough in taxable to fund ER between ages 50 to 60. Some scenarios in my head below:
Scenario 1: Continue as I did this past year: max Trad 401k and MBDR (Roth) for him/her: Roughly $110k. Minimal savings in taxable. No Backdoor Roth.
Scenario 2: Only do Trad 401k til match (free money). No Roth. Pile more into taxable ($50k ish)
Scenario 3: Only do Trad 401k til match (free money). Some Roth. Pile more into taxable ($25k ish)
Thoughts? Does it matter much which direction i go?
Statistics: Posted by Wannaretireearly — Fri Dec 27, 2024 12:15 pm — Replies 1 — Views 66