Dear BHers,
Apologies for long post and thank you for your kind review and advice.
We are planning to retire in 1-2 years. I have been lurking on this board for the past years. I really wish I had access to your collective wisdom much earlier, in which case I would have avoided several mistakes and not have the complex situation below.
DW plants to retire in 2026. My current plan is to retire May 31, 2027.
I am grateful to our good situation, due to luck, LBOM, but we have made our share of mistakes.
I could not find a better way to format info as I did not know how to paste pictures - hence the tables are hard to read.
Tax Filing Status: Married Filing Jointly,
Tax Rate: 37% Federal
State of Residence: FL
Age: 61 him, 59 her; 2 kids – DS 26, DD 23, both launched and in jobs
Him – Employed by Mega European corp.
Her – Physician primary care
TARGET AA – 75:25 Stocks/Fixed Income
Approximate size of total portfolio = Approx $17.5 M. largely equities + Cash $1.6M (SWVXX)
Taxable (Schwab): $11,500K
SymbolDescription% of Acct
BRKABERKSHIRE HTWY A CLASS A22.79%
ABBVABBVIE INC7.54%
ISRGINTUITIVE SURGICAL INC6.92%
EXASEXACT SCIENCES CORP6.74%
AAPLAPPLE INC6.18%
NVDANVIDIA CORP5.59%
HEIHEICO CORP NEW2.89%
GOOGALPHABET INC CLASS C2.60%
METAMETA PLATFORMS INC CLASS A2.48%
AMZNAMAZON.COM INC1.65%
MAMASTERCARD INC CLASS A1.50%
SWPPXSCHWAB S&P 500 INDEX1.37%
SYKSTRYKER CORP1.35%
BRK/BBERKSHIRE HATHAWAY CLASS B1.23%
TMOTHERMO FISHER SCIENTIFIC1.15%
ARGXARGENX SE FUNSPONSORED ADR 1 ADR REPS 1 ORD SHS1.04%
MOALTRIA GROUP INC1.03%
CHDCHURCH & DWIGHT INC1%
SHOPSHOPIFY INC FCLASS A0.84%
GILDGILEAD SCIENCES INC0.78%
PGPROCTER & GAMBLE CO0.72%
LRCXLAM RESH CORP0.66%
BMYBRISTOL MYERS SQUIBB CO0.63%
MARMARRIOTT INTL INC NEW CLASS A0.62%
HBANHUNTINGTON BANCSHARES IN0.58%
BACBANK OF AMERICA CORP0.55%
BNBROOKFIELD CORP FCLASS A0.52%
EWEDWARDS LIFESCIENCES COR0.51%
BLKBLACKROCK INC NEW0.49%
SQBLOCK INC CLASS A0.49%
BABAALIBABA GROUP HLDG LTD FSPONSORED ADR 1 ADR REPS 8 ORD SHS0.48%
CSCOCISCO SYS INC0.47%
RTXRTX CORP0.47%
FDXFEDEX CORP0.45%
JNJJOHNSON & JOHNSON0.44%
EPDENTERPRISE PRODS PART LP0.33%
SIEGYSIEMENS A G FSPONSORED ADR 1 ADR REPS 0.5 ORD SHS0.33%
IBBISHARES BIOTECHNOLOGY ETF0.33%
RSPINVSC S P 500 EQUAL WEIGHT ETF IV0.32%
DXCMDEXCOM INC0.27%
NKENIKE INC CLASS B0.27%
CARRCARRIER GLOBAL CORP0.26%
PMPHILIP MORRIS INTL INC0.19%
MSFTMICROSOFT CORP0.18%
OTISOTIS WORLDWIDE CORP0.18%
JDJD COM INC FSPONSORED ADR 1 ADR REPS 2 ORD SHS0.16%
USBUS BANCORP DEL0.14%
BAMBROOKFIELD ASSET MGMT FCLASS A0.12%
CVXCHEVRON CORP NEW0.12%
COPCONOCOPHILLIPS0.11%
EMQQEMQQ THE EMERGING MKT INTR ETF0.11%
INTCINTEL CORP0.08%
BABOEING CO0.07%
PSXPHILLIPS 660.07%
TNDMTANDEM DIABETES CARE INC0.06%
BIPBROOKFIELD INFRASTRUC LP0.01%
Cash & Cash Investments--
SWVXXSCHWAB VALUE ADVANTAGE MONEY INVESTOR SHARES11.51%
His T-IRA (Schwab) – $1,375K
SymbolDescription% of Acct
AMZNAMAZON.COM INC54.23%
BXBLACKSTONE INC10.34%
BRK/BBERKSHIRE HATHAWAY CLASS B8.51%
TMOTHERMO FISHER SCIENTIFIC5.08%
CHDCHURCH & DWIGHT INC4.01%
PYPLPAYPAL HLDGS INC3.55%
GILDGILEAD SCIENCES INC2.78%
TTTRANE TECHNOLOGIES PLC F2.69%
CSCOCISCO SYS INC1.37%
BACBANK OF AMERICA CORP1.08%
PGPROCTER & GAMBLE CO0.98%
GSGOLDMAN SACHS GROUP INC0.97%
RTXRTX CORP0.93%
FDXFEDEX CORP0.72%
IRINGERSOLL RAND INC0.56%
BLGOBIOLARGO INC0.52%
CARRCARRIER GLOBAL CORP0.50%
COPCONOCOPHILLIPS0.50%
PSXPHILLIPS 660.30%
OTISOTIS WORLDWIDE CORP0.22%
PJTPJT PARTNERS INC CLASS A0.14%
His T-IRA (Fidelity) – $1,155K
SymbolDescription% Of Acct
TSLATESLA INC COM44.30%
HDHOME DEPOT INC24.40%
MAMASTERCARD INCORPORATED CL A12.01%
EXASEXACT SCIENCES CORP3.85%
SYKSTRYKER CORPORATION COM3.62%
ROSTROSS STORES INC3.55%
JNJJOHNSON &JOHNSON COM3.02%
REGNREGENERON PHARMACEUTICALS INC2.71%
STZCONSTELLATION BRANDS INC COM USD0.01 CLASS A1.81%
BLGOBIOLARGO INC COM0.43%
KVUEKENVUE INC COM0.20%
CORE**FDIC-INSURED DEPOSIT SWEEP0.09%
His T-IRA (Vanguard) - $93K
His 401K - $380,000; Company match? 6%
Bond – 18%
Large Cap - 54%
Small Cap US – 19%
Internationl – 11%
Her T-IRA Schwab $803K
SymbolDescription% of Acct
BXBLACKSTONE INC52.43%
BLGOBIOLARGO INC16.18%
PTSGXTOUCHSTONE SANDS CAPITAL SELECT GROWTH Z7.14%
QQQINVSC QQQ TRUST SRS 1 ETF6.63%
BNBROOKFIELD CORP FCLASS A5.29%
ALGNALIGN TECHNOLOGY INC2.85%
PLTRPALANTIR TECHNOLOGIES INCLASS A2.68%
INTCINTEL CORP1.56%
LLYELI LILLY AND CO1.36%
BAMBROOKFIELD ASSET MGMT FCLASS A1.27%
CCITIGROUP INC0.65%
AEYEAUDIOEYE INC0.64%
PJTPJT PARTNERS INC CLASS A0.50%
FROGJFROG LTD F0.41%
BIPBROOKFIELD INFRASTRUC LP0.11%
QSQUANTUMSCAPE CORP CLASS A0.06%
BNTBROOKFIELD WEALTH SOLU FCLASS A0.04%
BBUBROOKFIELD BUSINESS P LP0.02%
LAZRLUMINAR TECHNOLOGIES INCCLASS A0.02%
TSVT2SEVENTY BIO INC0.02%
BBUCBROOKFIELD BUSINESS CO FCLASS A0.01%
BIPCBROOKFIELD INFRASTRU FCLASS A0.01%
BLUEBLUEBIRD BIO INC0.01%
DMDESKTOP METAL INC CLASS A0.01%
Cash & Cash Investments--0.11%
Her T-IRA (Fildeity) – $891K
SymbolDescription% Of Acct
BXBLACKSTONE INC31.25%
ISRGINTUITIVE SURGICAL INC14.96%
EXASEXACT SCIENCES CORP13.06%
FSKAXFIDELITY TOTAL MARKET INDEX FUND7.32%
SYKSTRYKER CORPORATION COM7.07%
FXAIXFIDELITY 500 INDEX FUND6.64%
BACBANK AMERICA CORP COM4.47%
GSGOLDMAN SACHS GROUP INC COM USD0.014.24%
BMYBRISTOL-MYERS SQUIBB CO COM2.66%
DXCMDEXCOM INC2.04%
BABAALIBABA GROUP HOLDING LTD SPON ADS EACH REP 8 ORD SHS1.98%
KRYSKRYSTAL BIOTECH INC COM1.66%
BLKBLACKROCK INC COM1.21%
CORE**FDIC-INSURED DEPOSIT SWEEP0.67%
BLGOBIOLARGO INC COM0.38%
PJTPJT PARTNERS INC COM CL A0.24%
CTSOCYTOSORBENTS CORP0.06%
AGENAGENUS INC COM NEW0.04%
IGMSIGM BIOSCIENCES INC COM0.02%
AMRNAMARIN CORP ADR EACH REP 1 ORD GBP0.500.01%
INKTMINK THERAPEUTICS INC COM0.00%
FSSNXFIDELITY SMALL CAP INDEX FUND0.00%
232RGT019CYTOSORBENTS CO RTS EXP 01/10/20250.00%
Her 457B Deferred Comp 1 - $648K (10 yrs distributions starting Jan 10, 2034)
Symbol% Of Acct
FXAIX73.68%
VIMAX14.45%
RERGX11.87%
Her 401K - $141K
Her Deferred Comp 2 - $388K Moderate Conservative Portfolio
Lumpsum if retired before Sep 1, 2026 otherwise distributed over 5 years following Sep1 retirement
His Deferred Comp – $302K Moderate Aggressive Portfolio (payable Feb 2030)
Real Estate
Taxable - $302K is a multi family syndicate
Tax deferred - $302K tax deferred in a multi family syndicate
Her Roth
$82K in various equities
$225 K in a high risk startup
His Roth
$100 K in a high risk startup
2025 Contributions
Her Deferred Comp - $182,000
His Deferred Comp - $200,000
His - $34,750 Roth 401k (employer match = $25,000 tax deferred)
Her - $30,000 Roth
Variable Universal Life Insurance balance - $297K (we bought this when we were much more gullible)
Unused 529 = $57K. plan to give grandkids when they arrive or give kids as ROTH.
Cash:
~ $1,600,000 - 90% in SWVXX, rest in HYSA at Marcus
Debt: $720,000 mortgage (3.75% ARM ends 2030). Similar new homes have sold for ~$3.5 M in the same community.
Plan to claim SS at 70 for both – we should get over $4,500/month each
Taxable High risk investments: $2.1 M (not counted in portfolio above) in various seed/early-stage investments in Life Sciences space. Not liquid and locked up until exit.
Questions/Advice needed:
1. How to simplify towards a 75:25. Cap gains and various human biases/behavior are holding us back..
2. I realize we are very heavy in equities and have been lucky so far. I have significant capital gains in my taxable.
3. My estimated annual expenses - $480K / year incl taxes - it sounds large but see below - we live in a VHCOL area.
a.Real estate taxes, HOA, home car and umbrella insurance, etc is $65K per year and will increase w inflation.
b.Mortgage is $42K per year, planning onkeeping it at least until 3.75% ARM expired in 2030.
c.Health Insurance - $40K/year
d.Other (util, groceries, fitness, house maintenance, entertainment, etc) - $120K/year
e.Discretionary Travel – GoGo Years - $120K per year (realize this is high but we want to travel comfortably)
f.Discretionary Children Gifts $72K/year - $36K each. Would to give when children are young
6. When I retire in mid 2027, what would be the best way to cover my expenses
- Taxable account dividends are $85K per year.
- Current thinking that I should draw down my tax deferred to avoid large RMDs.
7. Any other concerns, opinions, thoughts.
Thank you for reviewing my situation and for your kind advice.
With much respect and gratitude,
SRM
Apologies for long post and thank you for your kind review and advice.
We are planning to retire in 1-2 years. I have been lurking on this board for the past years. I really wish I had access to your collective wisdom much earlier, in which case I would have avoided several mistakes and not have the complex situation below.
DW plants to retire in 2026. My current plan is to retire May 31, 2027.
I am grateful to our good situation, due to luck, LBOM, but we have made our share of mistakes.
I could not find a better way to format info as I did not know how to paste pictures - hence the tables are hard to read.
Tax Filing Status: Married Filing Jointly,
Tax Rate: 37% Federal
State of Residence: FL
Age: 61 him, 59 her; 2 kids – DS 26, DD 23, both launched and in jobs
Him – Employed by Mega European corp.
Her – Physician primary care
TARGET AA – 75:25 Stocks/Fixed Income
Approximate size of total portfolio = Approx $17.5 M. largely equities + Cash $1.6M (SWVXX)
Taxable (Schwab): $11,500K
SymbolDescription% of Acct
BRKABERKSHIRE HTWY A CLASS A22.79%
ABBVABBVIE INC7.54%
ISRGINTUITIVE SURGICAL INC6.92%
EXASEXACT SCIENCES CORP6.74%
AAPLAPPLE INC6.18%
NVDANVIDIA CORP5.59%
HEIHEICO CORP NEW2.89%
GOOGALPHABET INC CLASS C2.60%
METAMETA PLATFORMS INC CLASS A2.48%
AMZNAMAZON.COM INC1.65%
MAMASTERCARD INC CLASS A1.50%
SWPPXSCHWAB S&P 500 INDEX1.37%
SYKSTRYKER CORP1.35%
BRK/BBERKSHIRE HATHAWAY CLASS B1.23%
TMOTHERMO FISHER SCIENTIFIC1.15%
ARGXARGENX SE FUNSPONSORED ADR 1 ADR REPS 1 ORD SHS1.04%
MOALTRIA GROUP INC1.03%
CHDCHURCH & DWIGHT INC1%
SHOPSHOPIFY INC FCLASS A0.84%
GILDGILEAD SCIENCES INC0.78%
PGPROCTER & GAMBLE CO0.72%
LRCXLAM RESH CORP0.66%
BMYBRISTOL MYERS SQUIBB CO0.63%
MARMARRIOTT INTL INC NEW CLASS A0.62%
HBANHUNTINGTON BANCSHARES IN0.58%
BACBANK OF AMERICA CORP0.55%
BNBROOKFIELD CORP FCLASS A0.52%
EWEDWARDS LIFESCIENCES COR0.51%
BLKBLACKROCK INC NEW0.49%
SQBLOCK INC CLASS A0.49%
BABAALIBABA GROUP HLDG LTD FSPONSORED ADR 1 ADR REPS 8 ORD SHS0.48%
CSCOCISCO SYS INC0.47%
RTXRTX CORP0.47%
FDXFEDEX CORP0.45%
JNJJOHNSON & JOHNSON0.44%
EPDENTERPRISE PRODS PART LP0.33%
SIEGYSIEMENS A G FSPONSORED ADR 1 ADR REPS 0.5 ORD SHS0.33%
IBBISHARES BIOTECHNOLOGY ETF0.33%
RSPINVSC S P 500 EQUAL WEIGHT ETF IV0.32%
DXCMDEXCOM INC0.27%
NKENIKE INC CLASS B0.27%
CARRCARRIER GLOBAL CORP0.26%
PMPHILIP MORRIS INTL INC0.19%
MSFTMICROSOFT CORP0.18%
OTISOTIS WORLDWIDE CORP0.18%
JDJD COM INC FSPONSORED ADR 1 ADR REPS 2 ORD SHS0.16%
USBUS BANCORP DEL0.14%
BAMBROOKFIELD ASSET MGMT FCLASS A0.12%
CVXCHEVRON CORP NEW0.12%
COPCONOCOPHILLIPS0.11%
EMQQEMQQ THE EMERGING MKT INTR ETF0.11%
INTCINTEL CORP0.08%
BABOEING CO0.07%
PSXPHILLIPS 660.07%
TNDMTANDEM DIABETES CARE INC0.06%
BIPBROOKFIELD INFRASTRUC LP0.01%
Cash & Cash Investments--
SWVXXSCHWAB VALUE ADVANTAGE MONEY INVESTOR SHARES11.51%
His T-IRA (Schwab) – $1,375K
SymbolDescription% of Acct
AMZNAMAZON.COM INC54.23%
BXBLACKSTONE INC10.34%
BRK/BBERKSHIRE HATHAWAY CLASS B8.51%
TMOTHERMO FISHER SCIENTIFIC5.08%
CHDCHURCH & DWIGHT INC4.01%
PYPLPAYPAL HLDGS INC3.55%
GILDGILEAD SCIENCES INC2.78%
TTTRANE TECHNOLOGIES PLC F2.69%
CSCOCISCO SYS INC1.37%
BACBANK OF AMERICA CORP1.08%
PGPROCTER & GAMBLE CO0.98%
GSGOLDMAN SACHS GROUP INC0.97%
RTXRTX CORP0.93%
FDXFEDEX CORP0.72%
IRINGERSOLL RAND INC0.56%
BLGOBIOLARGO INC0.52%
CARRCARRIER GLOBAL CORP0.50%
COPCONOCOPHILLIPS0.50%
PSXPHILLIPS 660.30%
OTISOTIS WORLDWIDE CORP0.22%
PJTPJT PARTNERS INC CLASS A0.14%
His T-IRA (Fidelity) – $1,155K
SymbolDescription% Of Acct
TSLATESLA INC COM44.30%
HDHOME DEPOT INC24.40%
MAMASTERCARD INCORPORATED CL A12.01%
EXASEXACT SCIENCES CORP3.85%
SYKSTRYKER CORPORATION COM3.62%
ROSTROSS STORES INC3.55%
JNJJOHNSON &JOHNSON COM3.02%
REGNREGENERON PHARMACEUTICALS INC2.71%
STZCONSTELLATION BRANDS INC COM USD0.01 CLASS A1.81%
BLGOBIOLARGO INC COM0.43%
KVUEKENVUE INC COM0.20%
CORE**FDIC-INSURED DEPOSIT SWEEP0.09%
His T-IRA (Vanguard) - $93K
His 401K - $380,000; Company match? 6%
Bond – 18%
Large Cap - 54%
Small Cap US – 19%
Internationl – 11%
Her T-IRA Schwab $803K
SymbolDescription% of Acct
BXBLACKSTONE INC52.43%
BLGOBIOLARGO INC16.18%
PTSGXTOUCHSTONE SANDS CAPITAL SELECT GROWTH Z7.14%
QQQINVSC QQQ TRUST SRS 1 ETF6.63%
BNBROOKFIELD CORP FCLASS A5.29%
ALGNALIGN TECHNOLOGY INC2.85%
PLTRPALANTIR TECHNOLOGIES INCLASS A2.68%
INTCINTEL CORP1.56%
LLYELI LILLY AND CO1.36%
BAMBROOKFIELD ASSET MGMT FCLASS A1.27%
CCITIGROUP INC0.65%
AEYEAUDIOEYE INC0.64%
PJTPJT PARTNERS INC CLASS A0.50%
FROGJFROG LTD F0.41%
BIPBROOKFIELD INFRASTRUC LP0.11%
QSQUANTUMSCAPE CORP CLASS A0.06%
BNTBROOKFIELD WEALTH SOLU FCLASS A0.04%
BBUBROOKFIELD BUSINESS P LP0.02%
LAZRLUMINAR TECHNOLOGIES INCCLASS A0.02%
TSVT2SEVENTY BIO INC0.02%
BBUCBROOKFIELD BUSINESS CO FCLASS A0.01%
BIPCBROOKFIELD INFRASTRU FCLASS A0.01%
BLUEBLUEBIRD BIO INC0.01%
DMDESKTOP METAL INC CLASS A0.01%
Cash & Cash Investments--0.11%
Her T-IRA (Fildeity) – $891K
SymbolDescription% Of Acct
BXBLACKSTONE INC31.25%
ISRGINTUITIVE SURGICAL INC14.96%
EXASEXACT SCIENCES CORP13.06%
FSKAXFIDELITY TOTAL MARKET INDEX FUND7.32%
SYKSTRYKER CORPORATION COM7.07%
FXAIXFIDELITY 500 INDEX FUND6.64%
BACBANK AMERICA CORP COM4.47%
GSGOLDMAN SACHS GROUP INC COM USD0.014.24%
BMYBRISTOL-MYERS SQUIBB CO COM2.66%
DXCMDEXCOM INC2.04%
BABAALIBABA GROUP HOLDING LTD SPON ADS EACH REP 8 ORD SHS1.98%
KRYSKRYSTAL BIOTECH INC COM1.66%
BLKBLACKROCK INC COM1.21%
CORE**FDIC-INSURED DEPOSIT SWEEP0.67%
BLGOBIOLARGO INC COM0.38%
PJTPJT PARTNERS INC COM CL A0.24%
CTSOCYTOSORBENTS CORP0.06%
AGENAGENUS INC COM NEW0.04%
IGMSIGM BIOSCIENCES INC COM0.02%
AMRNAMARIN CORP ADR EACH REP 1 ORD GBP0.500.01%
INKTMINK THERAPEUTICS INC COM0.00%
FSSNXFIDELITY SMALL CAP INDEX FUND0.00%
232RGT019CYTOSORBENTS CO RTS EXP 01/10/20250.00%
Her 457B Deferred Comp 1 - $648K (10 yrs distributions starting Jan 10, 2034)
Symbol% Of Acct
FXAIX73.68%
VIMAX14.45%
RERGX11.87%
Her 401K - $141K
Her Deferred Comp 2 - $388K Moderate Conservative Portfolio
Lumpsum if retired before Sep 1, 2026 otherwise distributed over 5 years following Sep1 retirement
His Deferred Comp – $302K Moderate Aggressive Portfolio (payable Feb 2030)
Real Estate
Taxable - $302K is a multi family syndicate
Tax deferred - $302K tax deferred in a multi family syndicate
Her Roth
$82K in various equities
$225 K in a high risk startup
His Roth
$100 K in a high risk startup
2025 Contributions
Her Deferred Comp - $182,000
His Deferred Comp - $200,000
His - $34,750 Roth 401k (employer match = $25,000 tax deferred)
Her - $30,000 Roth
Variable Universal Life Insurance balance - $297K (we bought this when we were much more gullible)
Unused 529 = $57K. plan to give grandkids when they arrive or give kids as ROTH.
Cash:
~ $1,600,000 - 90% in SWVXX, rest in HYSA at Marcus
Debt: $720,000 mortgage (3.75% ARM ends 2030). Similar new homes have sold for ~$3.5 M in the same community.
Plan to claim SS at 70 for both – we should get over $4,500/month each
Taxable High risk investments: $2.1 M (not counted in portfolio above) in various seed/early-stage investments in Life Sciences space. Not liquid and locked up until exit.
Questions/Advice needed:
1. How to simplify towards a 75:25. Cap gains and various human biases/behavior are holding us back..
2. I realize we are very heavy in equities and have been lucky so far. I have significant capital gains in my taxable.
3. My estimated annual expenses - $480K / year incl taxes - it sounds large but see below - we live in a VHCOL area.
a.Real estate taxes, HOA, home car and umbrella insurance, etc is $65K per year and will increase w inflation.
b.Mortgage is $42K per year, planning onkeeping it at least until 3.75% ARM expired in 2030.
c.Health Insurance - $40K/year
d.Other (util, groceries, fitness, house maintenance, entertainment, etc) - $120K/year
e.Discretionary Travel – GoGo Years - $120K per year (realize this is high but we want to travel comfortably)
f.Discretionary Children Gifts $72K/year - $36K each. Would to give when children are young
6. When I retire in mid 2027, what would be the best way to cover my expenses
- Taxable account dividends are $85K per year.
- Current thinking that I should draw down my tax deferred to avoid large RMDs.
7. Any other concerns, opinions, thoughts.
Thank you for reviewing my situation and for your kind advice.
With much respect and gratitude,
SRM
Statistics: Posted by SRM007 — Mon Jan 20, 2025 4:04 pm — Replies 4 — Views 218