With that said, the summary of my question is:
1. I have about 56% of my portfolio in savings/cash and would like to invest it boringly with most tax efficiency.
2. Bond and Intl. Equity is preferable to be in tax-sheltered accounts as I am in the 32-35% tax bracket and rather not deal with taxable events in my taxable account.
3. I’m ok with bond funds like VTEAX in my Taxable account.
4. I’m thinking about having VTSAX in my Taxable as well, so the capital gains are minimal now and I can make withdrawals after retirement when I’m in a lower tax bracket.
Emergency funds: Emergency Funds have been allocated separately and not part of this calculation.
Debt: No debt
Tax Filing Status: Single,
Tax Rate: 32-35% Federal, 9.30% State
State of Residence:CA
Age:40
Desired Asset allocation: 60% stocks / 40% bonds (which is my comfort zone and nicely matches with Jack’s recommendation)
Desired International allocation: 30% of stocks
Total portfolio: 750k
Current retirement assets
Taxable
56% - 420k cash/savings
(for investing – not including emergency funds)
Planning on moving these funds to Vanguard.
2.26% - 17k worth in individually picked stocks.(I am not married to these picks, bought them with 18k on an emotional spree. Down 1k due to some Chinese tech stocks)
His 401k
40.9% - 307k - Vanguard Target Retirement 2045 Trust Plus
Breakdown of the fund
3.5% Intl. bond
7.5% US bond
34.5% Intl. Equity
54.5% US Equity
His Roth IRA at Fidelity
0.8% - 6k in Cash, not allocated to any funds yet.
Will add another 5k after-tax in the next month or two for this year.
Contributions
New annual Contributions
$19.5k(my contributions) + 13k(employer contributions) his 401k (also specify any employer matching contributions)
$11k his IRA/Roth IRA backdoor
$60k savings (for retirement, not short term goals)
Available funds
Funds available in his 401(k)
Name/Inception Date Asset Class Category Gross Expense Ratio**
DODGE & COX STOCK (DODGX)01/04/1965 Stock Investments Large Cap 0.52%
FID 500 INDEX (FXAIX) Stock Investments Large Cap 0.02%
TRP BLUE CHIP GR T2 09/30/2009 Stock Investments Large Cap 0.45%
FID MID CAP IDX (FSMDX) 09/08/2011 Stock Investments Mid-Cap 0.03%
FID SM CAP IDX (FSSNX) 09/08/2011 Stock Investments Small Cap 0.03%
FID GLB EX US IDX (FSGGX) 09/08/2011 Stock Investments International 0.06%
MFS INTL DIVRSN R6 (MDIZX) 09/30/2004 Stock Investments International 0.77%
VANGUARD TARGET 2015 06/28/2007 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2020 06/22/2007 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2025 06/28/2007 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2030 06/28/2007 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2035 06/28/2007 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2040 06/28/2007 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2045 06/28/2007 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2050 06/28/2007 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2055 08/31/2010 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2060 03/23/2012 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET 2065 07/24/2017 Blended Fund Investments* N/A 0.06%
VANGUARD TARGET INC 06/22/2007 Blended Fund Investments* N/A 0.06%
STANDISH INCOME FUND 12/28/2018 Bond Investments Stable Value 0.27%
FID US BOND IDX (FXNAX) 03/08/1990 Bond Investments Income 0.03%
METWEST TOT RTN BD P (MWTSX) 03/31/1997 Bond Investments Income 0.38%
Questions: