Thanks to everyone on the forum and for engaging in this community! Just discovering the bogleheads mindset and working on simplifying the financial plan/investments and looking for insight.
Emergency funds: 6-9 months of expenses in savings account.
Debt: 0 debt. We own two houses outright one of which we get rental income from.
Tax Filing Status: Married filing Jointly
Tax Rate: 22% federal (about 30-40k away from higher tax bracket) 4.4% federal.
His income 148k, her income 90k. 20k annually from rental income.
State of Residence: Colorado
Age: 34 and 35 one child age 3
Desired Asset allocation: 85% stocks / 15% bonds
Desired International allocation: 20% of stocks
Current retirement assets 1.2 m all accounts through fidelity
Taxable Accounts Her 750k, Him 125k
Her: 750k Recently acquired this account from family (not inheritance, so standard tax rules apply)
170k/22%
330k/45%Royal Gold (RGLD) (expense ratio) 220k unrealized capital gains
160k/21% Weaton Precious Medals (WPM) 85k unrealized capital gains
50k/7% Atrion (ATRI)
25k/3% Agnico Eagle (AEM:CA) 4k capital gains
15k/ 2% Newmont (NEM) 4k capital losses
Him: Transfered from Robo advisor 125k
Betterment core portfolio transfered in kind, turned off dividend reinvestment. Wide spread of funds but some that match three fund portfolio. Planning to keep those that match and simplify as taxes permit. Not highest priority at the moment.
401k
Her: 61k
100% TRP retire 2055 (0.27% expense ratio)
She does 6% with 6% match currently. Trying to get her to increase to max for 28k annually.
Him: 250k
100% TRP retire 2055 (0.27% expense ratio)
Currently maxed with 6% match for 31k annually
IRA
Have neither Roth or trad IRA but planning to start. Expect taxable income in retirement will be lower than current. Regardless, would like to start with Roth IRA if able or more likely backdoor for diversity. Probably won't make roth contribution limit.
HSA
Family HSA: have 7500 in VTI and maxing contribution moving forward for 8300/yr.
UTMA
50k in cash set aside for kiddo. Not currently invested.
Questions:
1. Thoughts on how to reallocate her taxable account. This represents about 70% of total portfolio and is mostly in gold stock and precious metal stock. It's all long term capital gains. Should we just break it up into two years to avoid jumping up to the 20% bracket? Or just bite the bullet and pay the taxes to diversify immediately.
2. Current plan is to change taxable accounts mostly to total and international stock index funds then put our bond allocation into the 401ks. Does this track? This would be the bulk of the 401k. Should I keep the rest in the trp 2055 fund or just pick a total stock fund from my plans options (can do brokeagelink through fidelity so I assume I have access to standard mutual funds)? Is there a reason to just keep the TRP 2055 funds and put the bonds elsewhere.
3. Any advice on best option for the UTMA. I assume just 80/20 split total stock market and international with no need for bonds? Or is something like a retirement type fund any option?
Thanks for any input
Emergency funds: 6-9 months of expenses in savings account.
Debt: 0 debt. We own two houses outright one of which we get rental income from.
Tax Filing Status: Married filing Jointly
Tax Rate: 22% federal (about 30-40k away from higher tax bracket) 4.4% federal.
His income 148k, her income 90k. 20k annually from rental income.
State of Residence: Colorado
Age: 34 and 35 one child age 3
Desired Asset allocation: 85% stocks / 15% bonds
Desired International allocation: 20% of stocks
Current retirement assets 1.2 m all accounts through fidelity
Taxable Accounts Her 750k, Him 125k
Her: 750k Recently acquired this account from family (not inheritance, so standard tax rules apply)
170k/22%
330k/45%Royal Gold (RGLD) (expense ratio) 220k unrealized capital gains
160k/21% Weaton Precious Medals (WPM) 85k unrealized capital gains
50k/7% Atrion (ATRI)
25k/3% Agnico Eagle (AEM:CA) 4k capital gains
15k/ 2% Newmont (NEM) 4k capital losses
Him: Transfered from Robo advisor 125k
Betterment core portfolio transfered in kind, turned off dividend reinvestment. Wide spread of funds but some that match three fund portfolio. Planning to keep those that match and simplify as taxes permit. Not highest priority at the moment.
401k
Her: 61k
100% TRP retire 2055 (0.27% expense ratio)
She does 6% with 6% match currently. Trying to get her to increase to max for 28k annually.
Him: 250k
100% TRP retire 2055 (0.27% expense ratio)
Currently maxed with 6% match for 31k annually
IRA
Have neither Roth or trad IRA but planning to start. Expect taxable income in retirement will be lower than current. Regardless, would like to start with Roth IRA if able or more likely backdoor for diversity. Probably won't make roth contribution limit.
HSA
Family HSA: have 7500 in VTI and maxing contribution moving forward for 8300/yr.
UTMA
50k in cash set aside for kiddo. Not currently invested.
Questions:
1. Thoughts on how to reallocate her taxable account. This represents about 70% of total portfolio and is mostly in gold stock and precious metal stock. It's all long term capital gains. Should we just break it up into two years to avoid jumping up to the 20% bracket? Or just bite the bullet and pay the taxes to diversify immediately.
2. Current plan is to change taxable accounts mostly to total and international stock index funds then put our bond allocation into the 401ks. Does this track? This would be the bulk of the 401k. Should I keep the rest in the trp 2055 fund or just pick a total stock fund from my plans options (can do brokeagelink through fidelity so I assume I have access to standard mutual funds)? Is there a reason to just keep the TRP 2055 funds and put the bonds elsewhere.
3. Any advice on best option for the UTMA. I assume just 80/20 split total stock market and international with no need for bonds? Or is something like a retirement type fund any option?
Thanks for any input
Statistics: Posted by Delillama2 — Tue Jun 18, 2024 5:44 pm — Replies 0 — Views 93