Hi, new poster, long time passive (and sadly uninterested) investor, seeking a general portfolio review, with an eye on retirement in 1-3 years.
Despite my age, I’ve only recently taken control of my finances, previously managed by a spouse. I've spent the last few months getting up to speed on common-sense investing (reading the Wiki, past posts, recommended books, blogs, and listening to podcasts, probably just scratching the surface). I think there's sufficient organization to my portfolio for review, and have formatted it based on the wiki template. Specific questions follow, though am open to any feedback (not without some apprehension!).
Emergency funds: 8 months of expenses, 2/3 in Vanguard MM
Debt: None
-Own single-family home
-Pay CC monthly
Tax Filing Status: Single
Tax Rate: 24% Federal, 5% State
State of Residence:WI
Age:62
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 15% of stocks
Approximate total portfolio size 1.8M
- (Not including em. fund or house)
Current retirement assets
Taxable
0% (emergency funds only)
Current employer 401k at Fidelity
9% Fidelity Total Market Index Fund (FSKAX) (0.015%)
- 76% Roth
Current employer funded retirement plan (SEP IRA) at Fidelity
2% Fidelity Total Market Index Fund (FSKAX) (0.015%)
Current HSA at Fidelity
1% Half invested in Fidelity Total Market Index Fund (FSKAX) (0.015%)
Previous employer 401k at Fidelity
24% Vanguard Institutional 500 Index Fund (no ticker) (0.015%)
Roth IRA at Fidelity
5% Fidelity Total International Fund (FTIHX) (0.06%)
5% Fidelity ZERO Total Market Index Fund (FXROX) (0.00%)
4% Fidelity US Bond Index Fund (FXNAX) (0.025%)
Rollover IRA 1 at Fidelity
7% Fidelity ZERO Total Market Index Fund (FXROX) (0.00%)
12% Fidelity US Bond Index Fund (FXNAX) (0.025%)
2% Fidelity Inflation-Protected Bond Index Fund (FIPDX) (0.05%)
Rollover IRA 2 at Fidelity
9% Fidelity Total Market Index Fund (FSKAX) (0.015%)
5% Fidelity Total International Fund (FTIHX) (0.06%)
3% Fidelity Inflation-Protected Bond Index Fund (FIPDX) (0.05%)
6% Treasuries (maturing between retirement and SS, half TIPS)
Inherited IRA at Vanguard
5% Vanguard FTSE Social Index Fund (VFTAX) (0.14%)
Pension from old company
1% of portfolio cash value
SS Monthly starting at 70
4.3k, sufficient to cover non-discretionary expenses
_______________________________________________________________
Note: Total percentage of all the above accounts together (not each account individually) should equal 100%. *Verified*
Contributions
New annual Contributions
$26k 401k, + $5k Employer match (4%)
$5k Employer SEP IRA
$8k My Roth IRA
Available funds
34 choices, all higher ER than my current election, not listing for now to reduce clutter, happy to provide if it’s helpful
Questions:
1. I've made an effort to simplify starting last year by consolidating most investments to Fidelity, and moving to low-expense index funds (it was far more complicated a year ago, with multiple brokerage firms, more funds, higher expense ratios, and some individual stock). I’d like recommendations on how to further simplify, if appropriate, while maintaining my AA.
2. I plan to retire in 2025 (at the latest in 2026 when I reach 65). My actual expenses in 2023 were 60k, my retirement budget is 85k (1/3 discretionary), and includes an estimate of health care costs. Fidelity retirement planner, VPW, cFireSim, FireCalc, SWR Toolbox, and “Rich, Broke, or, Dead” all suggest I can retire next year (or even this year) and withdraw well above 4% from now until 70, when I plan to collect SS and withdrawal rate would drop closer to 3% (using the most pessimistic models in each tool). For example, FireCalc suggests I could have a WR up to 100k with 100% success ratio. What am I missing (i.e. what homework do I still need to do)?
3. What investment question am I not asking that I should, as I approach retirement?
I appreciate your help,
NB
Despite my age, I’ve only recently taken control of my finances, previously managed by a spouse. I've spent the last few months getting up to speed on common-sense investing (reading the Wiki, past posts, recommended books, blogs, and listening to podcasts, probably just scratching the surface). I think there's sufficient organization to my portfolio for review, and have formatted it based on the wiki template. Specific questions follow, though am open to any feedback (not without some apprehension!).
Emergency funds: 8 months of expenses, 2/3 in Vanguard MM
Debt: None
-Own single-family home
-Pay CC monthly
Tax Filing Status: Single
Tax Rate: 24% Federal, 5% State
State of Residence:WI
Age:62
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 15% of stocks
Approximate total portfolio size 1.8M
- (Not including em. fund or house)
Current retirement assets
Taxable
0% (emergency funds only)
Current employer 401k at Fidelity
9% Fidelity Total Market Index Fund (FSKAX) (0.015%)
- 76% Roth
Current employer funded retirement plan (SEP IRA) at Fidelity
2% Fidelity Total Market Index Fund (FSKAX) (0.015%)
Current HSA at Fidelity
1% Half invested in Fidelity Total Market Index Fund (FSKAX) (0.015%)
Previous employer 401k at Fidelity
24% Vanguard Institutional 500 Index Fund (no ticker) (0.015%)
Roth IRA at Fidelity
5% Fidelity Total International Fund (FTIHX) (0.06%)
5% Fidelity ZERO Total Market Index Fund (FXROX) (0.00%)
4% Fidelity US Bond Index Fund (FXNAX) (0.025%)
Rollover IRA 1 at Fidelity
7% Fidelity ZERO Total Market Index Fund (FXROX) (0.00%)
12% Fidelity US Bond Index Fund (FXNAX) (0.025%)
2% Fidelity Inflation-Protected Bond Index Fund (FIPDX) (0.05%)
Rollover IRA 2 at Fidelity
9% Fidelity Total Market Index Fund (FSKAX) (0.015%)
5% Fidelity Total International Fund (FTIHX) (0.06%)
3% Fidelity Inflation-Protected Bond Index Fund (FIPDX) (0.05%)
6% Treasuries (maturing between retirement and SS, half TIPS)
Inherited IRA at Vanguard
5% Vanguard FTSE Social Index Fund (VFTAX) (0.14%)
Pension from old company
1% of portfolio cash value
SS Monthly starting at 70
4.3k, sufficient to cover non-discretionary expenses
_______________________________________________________________
Note: Total percentage of all the above accounts together (not each account individually) should equal 100%. *Verified*
Contributions
New annual Contributions
$26k 401k, + $5k Employer match (4%)
$5k Employer SEP IRA
$8k My Roth IRA
Available funds
34 choices, all higher ER than my current election, not listing for now to reduce clutter, happy to provide if it’s helpful
Questions:
1. I've made an effort to simplify starting last year by consolidating most investments to Fidelity, and moving to low-expense index funds (it was far more complicated a year ago, with multiple brokerage firms, more funds, higher expense ratios, and some individual stock). I’d like recommendations on how to further simplify, if appropriate, while maintaining my AA.
2. I plan to retire in 2025 (at the latest in 2026 when I reach 65). My actual expenses in 2023 were 60k, my retirement budget is 85k (1/3 discretionary), and includes an estimate of health care costs. Fidelity retirement planner, VPW, cFireSim, FireCalc, SWR Toolbox, and “Rich, Broke, or, Dead” all suggest I can retire next year (or even this year) and withdraw well above 4% from now until 70, when I plan to collect SS and withdrawal rate would drop closer to 3% (using the most pessimistic models in each tool). For example, FireCalc suggests I could have a WR up to 100k with 100% success ratio. What am I missing (i.e. what homework do I still need to do)?
3. What investment question am I not asking that I should, as I approach retirement?
I appreciate your help,
NB
Statistics: Posted by NatureBoy — Tue Jul 09, 2024 8:49 pm — Replies 0 — Views 184