Hello Bogleheads! I am looking at our portfolio with an eye toward retiring in 10 years and I hope you will weigh in. I didn’t I appreciated the complexity of the analyses being conducted here until I dug deeper while compiling my data. Thank you for taking the time and lending your expertise.
Emergency funds: 6 months
Debt: Mortgage $226K at 2.875% (15 years left, current value of primary residence $570K)
Tax Filing Status: Married Filing Jointly
Tax Rate: 22% Federal, 0% State
State of Residence: Washington
Age: He is 54, She is 50 (Gross earnings: his $120K, hers $45K working 1/2 time)
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 20% of stocks
Current retirement assets: 616K
His 403b
20% 2025 Retirement Strategy Fund (0.18% “fund management fee”)
His 457
07% 2025 Retirement Strategy Fund (0.18% “fund management fee”)
His Roth IRA at Fidelity
25% Fidelity Freedom Index 2030 Fund Investor Class (FXIFX) (0.12%)
Her 401k
02% 2030 Target Date Portfolio (0.27%) - no company match
Her Roth IRA at Fidelity
31% Fidelity Freedom Index 2030 Fund Investor Class (FXIFX) (0.12%)
Her Inherited (Stretch) IRA at Fidelity
09% Fidelity Zero Total Market Index Fund (FZROX) (0.00%)
01% Fidelity Government Money Market (SPAXX)
Her HSA at Fidelity
04% Fidelity Zero Total Market Index Fund (FZROX) (0.00%)
01% Fidelity Government Cash Reserves (FDRXX)
New annual Contributions:
$5900 his 403b
$6300 his 457
$8,000 his Roth IRA
$8,000 her Roth IRA
Available funds:
Funds available in his 403b
Short-Term Investment Fund (0.081%)
Washington State Bond Fund
WSIB TAP Total Allocation Portfolio
US Large Cap Equity Index Fund (.001% total annual operating expense)
US Small Cap Value Equity Index Fund (.019% total annual operating expense)
Global Equity Index Fund (0.035%)
Emerging Market Equity Index Fund (0.09%)
Socially Responsible Equity Investments (0.42%)
2030 Retirement Strategy Fund (0.20% “fund management fee”)
2035 Retirement Strategy Fund (0.21% “fund management fee”)
Funds available in his 457
(same as for 403b above)
Funds available in her 401k
Stable Income Fund (0.45%)
Short-Term Bond Fund (0.34%)
Diversified Bond Fund (0.49%)
S&P 500 Stock Index Fund (0.23%)
Value Stock Fund (0.34%)
Diversified Growth Stock Fund (0.52%)
Small Company Stock Fund (0.68%)
International Stock Fund (0.60%)
2040 Target Date Portfolio (0.27%)
Other (not included in current retirement assets)
529 for 12-year-old $57K in NH Portfolio 2030 (NHX203002). We deposit $3.6K/yr and grandma deposits $8K/yr (if she decreases or discontinues contributions, we’ll increase ours).
Rental property with no mortgage, net income $12,000/yr, current value $400K. I inherited it (paid off sibling’s half) and ROI is 12%.
He will have pension with joint and 66% survivor worth about $24K/yr at age 65 if he stays with employer 3 more years (smaller amount if he does not).
If we work 10 more years, my Social Security at age 62 would be $15K and his at age 70 would be $48K (according to SSA.tools using strategy recommended by Open Social Security).
Goals
College – Fund 100% of in-state public school.
Retirement – I would like for both of us to be able to retire in 10 years when my husband is 65 and eligible for Medicare and pension benefits. Our child would finish college around that time. I realize I may need to keep working an additional 5 years until I’m 65.
Questions
Our retirement assets are modest compared to most who post here. Are my goals realistic at our current savings rate? I hope to begin working more soon and would set aside the extra for retirement. We will eventually downsize our primary residence and consider selling the rental property if we don’t move into it.
I attempted the 3-fund portfolio for a while but wasn’t good at maintaining it, so I switched to target date funds. Should I give 3-fund another shot or is my target date setup acceptable?
I love Roth IRAs for flexibility, but am I overdoing it? My husband is a shareholder in his family’s S-corp and will probably inherit more shares, which could mean higher taxes in retirement. However, the company could see losses or be sold, so maybe I shouldn’t speculate.
I plan to stop withdrawing more than my RMD from the Inherited IRA, stop withdrawing from the HSA, and resume contributions to my 401k, especially if I can get the employer match. Are there any other changes you would recommend?
Thank you!
AprilMay
Emergency funds: 6 months
Debt: Mortgage $226K at 2.875% (15 years left, current value of primary residence $570K)
Tax Filing Status: Married Filing Jointly
Tax Rate: 22% Federal, 0% State
State of Residence: Washington
Age: He is 54, She is 50 (Gross earnings: his $120K, hers $45K working 1/2 time)
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 20% of stocks
Current retirement assets: 616K
His 403b
20% 2025 Retirement Strategy Fund (0.18% “fund management fee”)
His 457
07% 2025 Retirement Strategy Fund (0.18% “fund management fee”)
His Roth IRA at Fidelity
25% Fidelity Freedom Index 2030 Fund Investor Class (FXIFX) (0.12%)
Her 401k
02% 2030 Target Date Portfolio (0.27%) - no company match
Her Roth IRA at Fidelity
31% Fidelity Freedom Index 2030 Fund Investor Class (FXIFX) (0.12%)
Her Inherited (Stretch) IRA at Fidelity
09% Fidelity Zero Total Market Index Fund (FZROX) (0.00%)
01% Fidelity Government Money Market (SPAXX)
Her HSA at Fidelity
04% Fidelity Zero Total Market Index Fund (FZROX) (0.00%)
01% Fidelity Government Cash Reserves (FDRXX)
New annual Contributions:
$5900 his 403b
$6300 his 457
$8,000 his Roth IRA
$8,000 her Roth IRA
Available funds:
Funds available in his 403b
Short-Term Investment Fund (0.081%)
Washington State Bond Fund
WSIB TAP Total Allocation Portfolio
US Large Cap Equity Index Fund (.001% total annual operating expense)
US Small Cap Value Equity Index Fund (.019% total annual operating expense)
Global Equity Index Fund (0.035%)
Emerging Market Equity Index Fund (0.09%)
Socially Responsible Equity Investments (0.42%)
2030 Retirement Strategy Fund (0.20% “fund management fee”)
2035 Retirement Strategy Fund (0.21% “fund management fee”)
Funds available in his 457
(same as for 403b above)
Funds available in her 401k
Stable Income Fund (0.45%)
Short-Term Bond Fund (0.34%)
Diversified Bond Fund (0.49%)
S&P 500 Stock Index Fund (0.23%)
Value Stock Fund (0.34%)
Diversified Growth Stock Fund (0.52%)
Small Company Stock Fund (0.68%)
International Stock Fund (0.60%)
2040 Target Date Portfolio (0.27%)
Other (not included in current retirement assets)
529 for 12-year-old $57K in NH Portfolio 2030 (NHX203002). We deposit $3.6K/yr and grandma deposits $8K/yr (if she decreases or discontinues contributions, we’ll increase ours).
Rental property with no mortgage, net income $12,000/yr, current value $400K. I inherited it (paid off sibling’s half) and ROI is 12%.
He will have pension with joint and 66% survivor worth about $24K/yr at age 65 if he stays with employer 3 more years (smaller amount if he does not).
If we work 10 more years, my Social Security at age 62 would be $15K and his at age 70 would be $48K (according to SSA.tools using strategy recommended by Open Social Security).
Goals
College – Fund 100% of in-state public school.
Retirement – I would like for both of us to be able to retire in 10 years when my husband is 65 and eligible for Medicare and pension benefits. Our child would finish college around that time. I realize I may need to keep working an additional 5 years until I’m 65.
Questions
Our retirement assets are modest compared to most who post here. Are my goals realistic at our current savings rate? I hope to begin working more soon and would set aside the extra for retirement. We will eventually downsize our primary residence and consider selling the rental property if we don’t move into it.
I attempted the 3-fund portfolio for a while but wasn’t good at maintaining it, so I switched to target date funds. Should I give 3-fund another shot or is my target date setup acceptable?
I love Roth IRAs for flexibility, but am I overdoing it? My husband is a shareholder in his family’s S-corp and will probably inherit more shares, which could mean higher taxes in retirement. However, the company could see losses or be sold, so maybe I shouldn’t speculate.
I plan to stop withdrawing more than my RMD from the Inherited IRA, stop withdrawing from the HSA, and resume contributions to my 401k, especially if I can get the employer match. Are there any other changes you would recommend?
Thank you!
AprilMay
Statistics: Posted by AprilMay — Fri Jan 31, 2025 4:03 pm — Replies 3 — Views 306