Emergency funds: Fully funded for one year
Debt:
1) $141k mortgage on investment property, 12 years remaining @1.9%, mortgage, taxes, and HOA payed by tenant with $4800/year left over as cashflow.
2) $12k financing for investment property bathroom remodeling at 0% interest for 18 months (funds already set aside in CD that will mature 3 months before interest hits.)
Tax Filing Status: Single
Tax Rate: 24% federal, 5% state (12% short-term capital gains)
State of Residence: MA
Age: 35
Desired Asset allocation: TBD
Desired International allocation: TBD
Portfolio size: $333k (not including investment real estate equity)
Current retirement assets
Taxable at M1
0% cash
15% Vanguard Total Stock Market ETF (VTI) (.03%)
3% Vanguard Total Bond Market ETF (BND) (0.03%)
401k at Fidelity
48% Vanguard Institutional 500 Index Trust
(VANG INST 500 IDX TR ) (.0105%)
Company match: 4.5%
HSA at Fidelity
5% Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) (0.030%)
Company match: $500/year
Roth IRA at M1
29% Vanguard Total Stock Market ETF (VTI) (.030%)
Note: I participate in my company’s discounted stock purchase plan, but sell immediately twice a year after stocks invests
Contributions
New annual Contributions
$30k 401k, including $7000 employer match
$4150 HSA, including $500 employer match
$7k Roth IRA
$52k taxable
Available funds
Funds available in 401(k)
Vanguard Institutional 500 Index Trust (VANG INST 500 IDX TR) (.0105%)
Vanguard Institutional Extended Market Index Trust (VANG IS EXT MKT IDX)(.0205%)
State Street Global All Cap Equity ex-U.S. Index Non-Lending Series Fund Class K
(SS GACEQ EX-US IDX K)(.07%)
Northern Trust TIPS Index Fund - Non-Lending - Tier Three (NT TIPS INDEX NL 3) (.0325%)
State Street U.S. Bond Index Non-Lending Series Fund Class M (SS US BOND INDEX M) (.025%)
US Large Cap Active Equity Fund
(US LG CAP ACTIVE EQ) (0.3020%)
US Small-Mid Cap Active Equity Fund
(US SMID ACTIVE EQ) (0.5676%)
American Funds EuroPacific Growth Fund® Class R-6
(AF EUROPAC GROWTH R6) (0.47%)
WTC-CIF II Emerging Markets Research Equity (Series 2) Portfolio
(WT EMRG MKT RESEARCH) (0.76%)
PIMCO All Asset Fund Institutional Class
(PIM ALL ASSET INST) (1.395%)
Diversified Active Bond Fund
(DIV ACTIVE BOND FUND) (0.1468%)
Stable Value Fund (Stable Value Fund)(0.270%)
Context: I'm 35 years old, and I anticipate a windfall around the time I'm 65 that will carry me through retirement. I'm also settled in a secure living situation at a negligible cost. My goal is to leave my corporate job by 40. I will continue to bring in income after leaving the corporate world, but I want my investments and rental income as a nest egg to empower more flexible and meaningful work. Therefore, this move is technically a FIRE play, with "Retirement" defined as prioritizing meaningful work.
Questions:
1. Given my current aggressive portfolio and timeline, what bond allocation and investments make sense given that I will likely begin the Roth conversion ladder in as soon as five years?
2. Where should bonds live?
3. What role might a CD ladder play here?
4. Are there any considerations I'm missing?
Thank you all!
Debt:
1) $141k mortgage on investment property, 12 years remaining @1.9%, mortgage, taxes, and HOA payed by tenant with $4800/year left over as cashflow.
2) $12k financing for investment property bathroom remodeling at 0% interest for 18 months (funds already set aside in CD that will mature 3 months before interest hits.)
Tax Filing Status: Single
Tax Rate: 24% federal, 5% state (12% short-term capital gains)
State of Residence: MA
Age: 35
Desired Asset allocation: TBD
Desired International allocation: TBD
Portfolio size: $333k (not including investment real estate equity)
Current retirement assets
Taxable at M1
0% cash
15% Vanguard Total Stock Market ETF (VTI) (.03%)
3% Vanguard Total Bond Market ETF (BND) (0.03%)
401k at Fidelity
48% Vanguard Institutional 500 Index Trust
(VANG INST 500 IDX TR ) (.0105%)
Company match: 4.5%
HSA at Fidelity
5% Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) (0.030%)
Company match: $500/year
Roth IRA at M1
29% Vanguard Total Stock Market ETF (VTI) (.030%)
Note: I participate in my company’s discounted stock purchase plan, but sell immediately twice a year after stocks invests
Contributions
New annual Contributions
$30k 401k, including $7000 employer match
$4150 HSA, including $500 employer match
$7k Roth IRA
$52k taxable
Available funds
Funds available in 401(k)
Vanguard Institutional 500 Index Trust (VANG INST 500 IDX TR) (.0105%)
Vanguard Institutional Extended Market Index Trust (VANG IS EXT MKT IDX)(.0205%)
State Street Global All Cap Equity ex-U.S. Index Non-Lending Series Fund Class K
(SS GACEQ EX-US IDX K)(.07%)
Northern Trust TIPS Index Fund - Non-Lending - Tier Three (NT TIPS INDEX NL 3) (.0325%)
State Street U.S. Bond Index Non-Lending Series Fund Class M (SS US BOND INDEX M) (.025%)
US Large Cap Active Equity Fund
(US LG CAP ACTIVE EQ) (0.3020%)
US Small-Mid Cap Active Equity Fund
(US SMID ACTIVE EQ) (0.5676%)
American Funds EuroPacific Growth Fund® Class R-6
(AF EUROPAC GROWTH R6) (0.47%)
WTC-CIF II Emerging Markets Research Equity (Series 2) Portfolio
(WT EMRG MKT RESEARCH) (0.76%)
PIMCO All Asset Fund Institutional Class
(PIM ALL ASSET INST) (1.395%)
Diversified Active Bond Fund
(DIV ACTIVE BOND FUND) (0.1468%)
Stable Value Fund (Stable Value Fund)(0.270%)
Context: I'm 35 years old, and I anticipate a windfall around the time I'm 65 that will carry me through retirement. I'm also settled in a secure living situation at a negligible cost. My goal is to leave my corporate job by 40. I will continue to bring in income after leaving the corporate world, but I want my investments and rental income as a nest egg to empower more flexible and meaningful work. Therefore, this move is technically a FIRE play, with "Retirement" defined as prioritizing meaningful work.
Questions:
1. Given my current aggressive portfolio and timeline, what bond allocation and investments make sense given that I will likely begin the Roth conversion ladder in as soon as five years?
2. Where should bonds live?
3. What role might a CD ladder play here?
4. Are there any considerations I'm missing?
Thank you all!
Statistics: Posted by danthemaninjapan — Sat Jun 29, 2024 4:32 pm — Replies 3 — Views 590