Hi Bogleheads,
I started reading Bogleheads at the beginning of the year and it helped me reallocate my investments and, probably more important than anything, to stop trying to time the market. Thank you!
I'm in my early 30s and my ultimate goal is to retire as soon as possible (goal--120k/year in withdrawals), but I think that's still a ways off relatively speaking, which helps explain the aggressive asset allocation below.
I work in the legal profession. My only finance knowledge has come from what I've learned from helping clients and from reading online, particularly this forum and the BH wiki.
Your time and consideration of the portfolio below is greatly appreciated--thank you for sharing your wisdom, time, and expertise!
PLEASE NOTE: There are a bunch of random stocks and ETFs here. These are leftover investments from my pre-Bogleheads-knowledge days. At this point, with respect to new money investments and reallocations, I have been focusing on VTI, VXUS, BND, and BNDX when and where appropriate, if that makes sense. These are not always available in the retirement accounts, so I try to approximate with an S&P 500 index fund, as diversified bond fund as I can find, etc.
Total securities: ~$1.15M
Non-retirement accounts: ~$854k
Retirement accounts: ~$291k
Emergency funds:
I have probably six months or so in my emergency fund, probably more if we budgeted carefully, if needed
About 6k spread among checking and HYS accounts
45k in Vanguard MMFs (about 35k in VUSXX (treasury MMF) and 10k in VMSXX (muni MMF)) which I keep in my taxable account
Debt:
All of this I'm paying off as slowly as possible (i.e., minimum payments)
About 380k mortgage at 3.25%--paying this off as slow as possible
Car 1: 10k at 2.99%
Car 2: 22k at 4.15%
Student loan debt: ~28k, two loan groups, one (larger one) is about 5%, the other is much lower
Tax Filing Status:
MFJ
Tax Rate:
32% Federal, 0% State
State of Residence:
FL
Age:
<35
Desired Asset allocation:
92% stocks / 8% bonds, with goal of reallocating when split is > +/-5%
Desired International allocation:
15-20% of stocks; 10-15% of bonds
Current retirement assets
Taxable
--499k in a mix of stocks and (mainly) ETFs; about a third of this is VOO/VTI, the rest is random ETFs and stocks I bought pre-Bogleheads
--245k in VTI (separate from above 499k)
--100k in VXUS (separate from above 499k)
401k from last job
--95k in VIIIX (S&P 500 index fund)
--15k in VBTIX (US investment-grade bond market fund)
--7.5k in VTIFX (non-US investment-grade international bond fund)
401k at new job
--38k in FXNAX (US investment-grade bond market fund)
--34k in FXAIX (S&P 500)
--8.5k in FTIXH (non-US investment-grade bond market fund)
His Roth IRA at Vanguard
--32.5k in VTI
--16k in BND
--13k in VXUS
--4k in BNDX
--8k in tech and consumer discretionary ETFs
Her Roth IRA at Vanguard
--5.7k in BND
--5.3k in VTI
--2.2k in VXUS
--1.4k in BNDX
HSA
About 5k split between VTI and VXUS
Crypto
About 10k-15k I intended as a long-term investment, purchased about 3 years ago
Questions:
1. Would you, at this point--accumulation phase--be concerned about adding other types of asset classes to the portfolio, like commodities, precious metals, additional real estate (although my house is a huge piece of my total worth), or TIPS? I didn't even know what TIPS were until BH.
2. For "random" stocks and ETFs purchased over the years, would you hold, sell immediately and reallocate (with tax consequences? only if tax consequences can be avoided?), sell when it reaches a certain high/low point?
3. Do you agree with the following overall strategy, or would you do something different?
--Take new money, continue to invest in VTI and VXUS until bond allocation falls below 3%, then sell and reallocate to BND and BNDX
--Make minimum payments on all low-interest rate debt
--When retirement gets more within striking distance, start increasing bond allocation by 2%/year or so
--At some point my understanding is that I'm going to have to convert the bond funds into a bond ladder, but I don't think that's something I have to worry about right now, but let me know if I'm wrong.
Anything other advice?
Thanks!!!
I started reading Bogleheads at the beginning of the year and it helped me reallocate my investments and, probably more important than anything, to stop trying to time the market. Thank you!
I'm in my early 30s and my ultimate goal is to retire as soon as possible (goal--120k/year in withdrawals), but I think that's still a ways off relatively speaking, which helps explain the aggressive asset allocation below.
I work in the legal profession. My only finance knowledge has come from what I've learned from helping clients and from reading online, particularly this forum and the BH wiki.
Your time and consideration of the portfolio below is greatly appreciated--thank you for sharing your wisdom, time, and expertise!
PLEASE NOTE: There are a bunch of random stocks and ETFs here. These are leftover investments from my pre-Bogleheads-knowledge days. At this point, with respect to new money investments and reallocations, I have been focusing on VTI, VXUS, BND, and BNDX when and where appropriate, if that makes sense. These are not always available in the retirement accounts, so I try to approximate with an S&P 500 index fund, as diversified bond fund as I can find, etc.
Total securities: ~$1.15M
Non-retirement accounts: ~$854k
Retirement accounts: ~$291k
Emergency funds:
I have probably six months or so in my emergency fund, probably more if we budgeted carefully, if needed
About 6k spread among checking and HYS accounts
45k in Vanguard MMFs (about 35k in VUSXX (treasury MMF) and 10k in VMSXX (muni MMF)) which I keep in my taxable account
Debt:
All of this I'm paying off as slowly as possible (i.e., minimum payments)
About 380k mortgage at 3.25%--paying this off as slow as possible
Car 1: 10k at 2.99%
Car 2: 22k at 4.15%
Student loan debt: ~28k, two loan groups, one (larger one) is about 5%, the other is much lower
Tax Filing Status:
MFJ
Tax Rate:
32% Federal, 0% State
State of Residence:
FL
Age:
<35
Desired Asset allocation:
92% stocks / 8% bonds, with goal of reallocating when split is > +/-5%
Desired International allocation:
15-20% of stocks; 10-15% of bonds
Current retirement assets
Taxable
--499k in a mix of stocks and (mainly) ETFs; about a third of this is VOO/VTI, the rest is random ETFs and stocks I bought pre-Bogleheads
--245k in VTI (separate from above 499k)
--100k in VXUS (separate from above 499k)
401k from last job
--95k in VIIIX (S&P 500 index fund)
--15k in VBTIX (US investment-grade bond market fund)
--7.5k in VTIFX (non-US investment-grade international bond fund)
401k at new job
--38k in FXNAX (US investment-grade bond market fund)
--34k in FXAIX (S&P 500)
--8.5k in FTIXH (non-US investment-grade bond market fund)
His Roth IRA at Vanguard
--32.5k in VTI
--16k in BND
--13k in VXUS
--4k in BNDX
--8k in tech and consumer discretionary ETFs
Her Roth IRA at Vanguard
--5.7k in BND
--5.3k in VTI
--2.2k in VXUS
--1.4k in BNDX
HSA
About 5k split between VTI and VXUS
Crypto
About 10k-15k I intended as a long-term investment, purchased about 3 years ago
Questions:
1. Would you, at this point--accumulation phase--be concerned about adding other types of asset classes to the portfolio, like commodities, precious metals, additional real estate (although my house is a huge piece of my total worth), or TIPS? I didn't even know what TIPS were until BH.
2. For "random" stocks and ETFs purchased over the years, would you hold, sell immediately and reallocate (with tax consequences? only if tax consequences can be avoided?), sell when it reaches a certain high/low point?
3. Do you agree with the following overall strategy, or would you do something different?
--Take new money, continue to invest in VTI and VXUS until bond allocation falls below 3%, then sell and reallocate to BND and BNDX
--Make minimum payments on all low-interest rate debt
--When retirement gets more within striking distance, start increasing bond allocation by 2%/year or so
--At some point my understanding is that I'm going to have to convert the bond funds into a bond ladder, but I don't think that's something I have to worry about right now, but let me know if I'm wrong.
Anything other advice?
Thanks!!!
Statistics: Posted by llxRhinoxll — Fri Aug 16, 2024 1:13 pm — Replies 0 — Views 32