Hi all,
I'm looking for any suggestions and feedback you may have for me on my portfolio.
State of Residence: CA (VHCOL)
Age: 37/37
Total income: ~$330K + ~$40K in bonus & RSU
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% / 9.3%
Current Monthly Expenses (excluding mortgage) - $2k
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 10% of stocks
Emergency funds + Savings: $40k in HYSA @ 5% APY
Debt: Mortgage - $1.14m with 6.375% interest rate 7/1 ARM (Home value $1.55m)
Total portfolio size: $1m
Current retirement assets
1. His 401k at Fidelity - $89k
4.49% - Fidelity 500 Index Fund (FXAIX) - 0.02%
1.37% - Fidelity U.S. Bond Index Fund (FXNAX) - 0.03%
1.62% - Fidelity Total International Index Fund (FTIHX) - 0.06%
0.83% - Fidelity® Mid Cap Index Fund (FSMDX) - 0.03%
0.57% - Fidelity® Small Cap Index Fund (FSSNX) - 0.03%
2. Her 401k at Fidelity - $550k (100% vested)
23.51% - Vanguard Institutional 500 Index Trust - 0.01%
13.82% - Vanguard Institutional Total Bond Market Index Trust - 0.03%
9.44% - Vanguard Institutional Total International Stock Market Index Trust - 0.07%
13.82% - Vanguard Institutional Extended Market Index Trust - 0.031%
3. Her (backdoor) Roth IRA at Fidelity - $55K
1.20% - FIDELITY ZERO INTERNATIONAL INDEX (FZILX) - 0%
4.28% - FIDELITY ZERO TOTAL MARKET INDEX (FZROX) - 0%
4. His (backdoor) Roth IRA at Schwab - $41K
4.11% - Schwab Target 2050 Index (SWYMX) - 0.08%
Other assets
Taxable at Schwab - $144K
11.97% - SCHWAB US BROAD MARKET ETF (SCHB) - 0.03%
2.40% - Schwab International Equity (SCHF) - 0.06%
His RSU 0.36% - $3.5K (plus $42K unvested)
HSA at Fidelity - $31.9k:
6.32% - iShares Core S&P Total US Stock Market ETF (ITOT) - 0.08%
Series I Savings Bonds
2.25% - Him - $22.5k
3.37% - Her - $33.7k
Annual Contributions
1. Taxable - adhoc, about $2k
2. HSA - max $8.3K (Employer contributes $1200)
3. Her 401K - Maximum before-tax $23K (Employer - 4% match + 5% quarterly contribution) + after-tax (probably around $20k)
4. His 401K - Maximum before-tax $23K (incl Employer match)
5. His Roth IRA - max $7K
6. Her Roth IRA - max $7K
Additional points
1. We won't be eligible for any pensions.
2. Both our 401k plans allow for after-tax and Roth contributions and in-plan Roth conversions. We haven't explored this yet though.
3. Expecting home improvement expenses of $50K in the next few months and also planning to have a child soon.
Questions
1. Any ideas on rebalancing the portfolio? The bond fund in her 401k is showing a loss. Do we still need to keep buying it?
2. We last bought IBonds in 2022 when the rate was 9%, what do we do with those?
3. We just started to have some out-of-network medical expenses, is it better to use the HSA or pay with credit card and reimburse later?
4. I have been selling the RSUs as soon as they vest, is that the way to go?
Thank you for your help.
I'm looking for any suggestions and feedback you may have for me on my portfolio.
State of Residence: CA (VHCOL)
Age: 37/37
Total income: ~$330K + ~$40K in bonus & RSU
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% / 9.3%
Current Monthly Expenses (excluding mortgage) - $2k
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 10% of stocks
Emergency funds + Savings: $40k in HYSA @ 5% APY
Debt: Mortgage - $1.14m with 6.375% interest rate 7/1 ARM (Home value $1.55m)
Total portfolio size: $1m
Current retirement assets
1. His 401k at Fidelity - $89k
4.49% - Fidelity 500 Index Fund (FXAIX) - 0.02%
1.37% - Fidelity U.S. Bond Index Fund (FXNAX) - 0.03%
1.62% - Fidelity Total International Index Fund (FTIHX) - 0.06%
0.83% - Fidelity® Mid Cap Index Fund (FSMDX) - 0.03%
0.57% - Fidelity® Small Cap Index Fund (FSSNX) - 0.03%
2. Her 401k at Fidelity - $550k (100% vested)
23.51% - Vanguard Institutional 500 Index Trust - 0.01%
13.82% - Vanguard Institutional Total Bond Market Index Trust - 0.03%
9.44% - Vanguard Institutional Total International Stock Market Index Trust - 0.07%
13.82% - Vanguard Institutional Extended Market Index Trust - 0.031%
3. Her (backdoor) Roth IRA at Fidelity - $55K
1.20% - FIDELITY ZERO INTERNATIONAL INDEX (FZILX) - 0%
4.28% - FIDELITY ZERO TOTAL MARKET INDEX (FZROX) - 0%
4. His (backdoor) Roth IRA at Schwab - $41K
4.11% - Schwab Target 2050 Index (SWYMX) - 0.08%
Other assets
Taxable at Schwab - $144K
11.97% - SCHWAB US BROAD MARKET ETF (SCHB) - 0.03%
2.40% - Schwab International Equity (SCHF) - 0.06%
His RSU 0.36% - $3.5K (plus $42K unvested)
HSA at Fidelity - $31.9k:
6.32% - iShares Core S&P Total US Stock Market ETF (ITOT) - 0.08%
Series I Savings Bonds
2.25% - Him - $22.5k
3.37% - Her - $33.7k
Annual Contributions
1. Taxable - adhoc, about $2k
2. HSA - max $8.3K (Employer contributes $1200)
3. Her 401K - Maximum before-tax $23K (Employer - 4% match + 5% quarterly contribution) + after-tax (probably around $20k)
4. His 401K - Maximum before-tax $23K (incl Employer match)
5. His Roth IRA - max $7K
6. Her Roth IRA - max $7K
Additional points
1. We won't be eligible for any pensions.
2. Both our 401k plans allow for after-tax and Roth contributions and in-plan Roth conversions. We haven't explored this yet though.
3. Expecting home improvement expenses of $50K in the next few months and also planning to have a child soon.
Questions
1. Any ideas on rebalancing the portfolio? The bond fund in her 401k is showing a loss. Do we still need to keep buying it?
2. We last bought IBonds in 2022 when the rate was 9%, what do we do with those?
3. We just started to have some out-of-network medical expenses, is it better to use the HSA or pay with credit card and reimburse later?
4. I have been selling the RSUs as soon as they vest, is that the way to go?
Thank you for your help.
Statistics: Posted by div — Sun Jul 14, 2024 5:59 pm — Replies 3 — Views 369