Emergency funds: $115k
Debt: mortgage only (current balance of ~$510k at 2.75%); pay credit cards monthly
Tax Filing Status: MFJ
Tax Rate: 24.0% federal (2020 effective rate), 5.0% state
State of Residence: MA
Ages: me 33 / her 33; one 3 y/o
Jobs: me consulting at VeryLargeCorp / her CPA at VerySmallLLC
Income: total $650k (me $400k [$350k + $50k bonus] / her $250k [$200k + $50k bonus])
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Total Portfolio Size: $1.91M
- Cash: $210k
- Taxable: $545k
- Retirement: $730k
- 529: $70k
- Home Equity: $360k (90% of average of Zillow and Redfin)
- Emergency Fund (~10x monthly expenses): $120k in Schwab savings (0.05% APY)
- Cash: $90k in Schwab checking (0.03% APY)
- 1% cash
- 1% BTC/ETH
- 5% bonds/treasuries (BND and SPDR T-Bills)
- 25% equities (mostly large dividend-paying household brands bough incrementally over time and ~10% "play w/ it for fun" )
- 38% ETFs (5% ONEQ, 11% DIA, 27% SPDR sector-specific, 57% VO, VOO SPTM, SPY and SPYD)
- 29% his company stock via ESPP
His 401k at Schwab = $355k (overall 90% equity/10% bonds/treasuries)
Vanguard Institutional Index Instl Pl (VIIIX) 29% (0.2% expense ratio)
American Funds Washington Mutual R6 (RWMGX) 20% (0.27%)
Vanguard Total Intl Stock Index I (VTSNX) 17% (0.15%)
MFS Intl Diversification (MDIZX) 9% (0.73%)
Harbor Capital Appreciation Instl (HACAX) 9% (0.67%)
American Funds Europacific Growth R6 (RERGX) 7% (0.46%)
JPMorgan Mid Cal Value L (FLMVX) 3% (0.75%)
Vanguard Mid Cap Index Institutional (VMCIX) 2% (0.04%)
American Beacon Small Cp Val R5 (AVFIX) 1% (0.83%)
Loomis Sayles Small Cap Growth Fund Institutional Class (LSSIX) 1% (0.94%)
Vanguard Small-Cap Index Fund VSCIX 1% (0.04%)
MassMutual Mid Cap Growth Fund Class I (MEFZX) 1% (0.71%)
Note: weighted expense ratio = 0.52%
Her 401k at Insperity = $90k (overall 90% equity/10% bonds/treasuries)
SSGA Target Retiree 2055 Fund (0.06% expense ratio), comprised of below:
State Street Equity 500 Index II Portfolio 37%
State Street Global All Cap Equity ex-US Index Portfolio 37%
State Street Small/Mid Cap Equity Index Portfolio 16%
SPDR Portfolio Long Term Treasury ETF 7%
SPDR Portfolio Intermediate Treasury ETF 3%
Note: weighted expense ratio = 0.06%
Her 401k at Schwab = $165k (old employer)
Causeway International Value Fund; Institutional (CIVIX) 3% (0.85% expense ratio)
Delaware Emerging Markets Fund Class R6 (DEMZX) 7% (1.20%)
Eaton Vance Atlanta Capital SMID-Cap Fund Class R6 (ERASX) 9% (0.82%)
Harbor Large Cap Value Fund Retirement Class (HNLVX) 10% (0.61%)
Harbor Small Cap Value Fund Retirement Class (HNVRX) 5% (0.80%)
John Hancock Income Fund Class R6 (JSNWX) 9% (0.41%)
JPMorgan Core Bond Fund Class R6 (JCBUX) 3% (0.33%)
Polen Growth Fund Institutional Class (POLIX) 14% (0.98%)
Vanguard Institutional Index Fund Institutional Shares (VINIX) 27% (0.04%)
Vanguard Total International Stock Index Fund Institutional Shares (VTSNX) 5% (0.08%)
Victory Integrity Small-Cap Value Fund Class R6 (MVSSX) 3% (0.96%)
William Blair International Sm Cap Gr R6 (WIISX) 5% (1.45%)
Note: weighted expense ratio = 0.59%
Her Roth IRA at TD Ameritrade = $120k (overall 97% equities, 3% cash)
Cash 3%
iShares Core Growth Allocation ETF (AOR) 9% (0.2%)
Vanguard DFTSE Developed Markets ETF (VEA) 15% (0.05%)
AMG Yacktman Focused Fund (YAFFX) 19% (1.24%)
Chartwell Income Fund (BERIX) 4% (0.68%)
FPA New Income Fund (FPNIX) 5% (0.47%)
FPA Crescent Fund (FPACX) 10% (1.13%)
Guggenheim Floating Rate Strats A (GIFAX) 5% (1.05%)
Touchstone Small Cap Y (TSFYX) 15% (1.03%)
Lyrical US Value Equity Institutional (LYRIX) 16% (0.99%)
Note: weighted expense ratio = 0.81%
Note also: this is professionally managed at 0.20% via a "legacy" arrangement)
Non-Taxable Contributions
- His 401k: $20,500 + $16k match
- Her 401k: $20,500 + $10k match
- The funds available in both Schwab 401k's are what seems to generally be available
- Insperity funds are more limited; they are either SSGA Target Date funds or the below, though I don't know the expense ratios for them
Pimco Income Instl
Ssga Us Bond Index Fund
American Fds Europac Gr R6
Ssga Global All Cap Ex Us Ind
Dodge & Cox Stock
Pimco All Asset Inst
Ssga S&P 500 Index Fund
Trowe Blue Chip Growth Cl T7
Ssga Russell Sm Md Cap Index
T Rowe Price Mid-Cap Growth I
Victory Sycamore Mid Cap Val
Hartford Small Cap Gr Hls Ia
Nuveen Small Cap Value
Ny Life Anchor Stable Val Fnd
Two Important Notes:
- Prior to beginning to read Bogleheads several years ago, I had essentially no investment strategy. I knew I wanted to invest my/our "surplus" money, and I'm glad I did, but it was mostly into large cap individual equities. I generally no longer do this (small % of taxable portfolio)
- Since this time, I have clearly not adopted the full Bogleheads way of investing, but I've been trying to ensure threethings: (1) more $ into the market on a regular (monthly-ish) cadence, (2) ensuring all retirement accounts meet desired asset allocation of 90%/10% and (3) reducing my overall exposure to my company via selling ESPP shares, w/ a goal of ~15% in the short-term and 10% over time (note the shares vest immediately upon grant once/year, and I will be selling ~$30k more w/i the next few weeks, reducing % of taxable from 29% to 23%)
- We don't really have retirement goals per se, and we both like our jobs (for now!), but we do want the "FI" of "FIRE"
- We plan to move into a larger house w/i the next 18 months; it will likely cost $1.2-$2M (I had another thread on this, so not looking for specific advice on this topic here)
- We want to fund the full cost of undergraduate/college for our children (via 529 and cash), something I did not have for either degree (boo hoo)
- We have a high investing risk tolerance at our ages, though we are fairly conservative w/ other risks (e.g., insurance, etc.)
- Our monthly expenses are ~$12k. We generally feel we are reasonable spenders (though there are some lumpy expenses here and there)
1. A broad one: generally speaking, are we on track re: the above goals?
2. Regarding retirement funds, I was frankly overwhelmed trying to consolidate all of this information and that's a bad sign. While our retirement accounts generally meet our desired asset allocation of 90%/10%, they are spread out across 10s of funds w/i each account w/ varying expense ratios. What do I do here, move toward a 3-5-fund portfolio based on what's available, targeting the lowest weighted expense ratio?
3. Regarding the Roth IRA specifically, should this be 100% equities? If so, I will need to be in touch w/ this advisor and get a list of available "options," right? Is it that simple?
4. Regarding Roth IRAs more broadly, we don't do and have never done any backdoor Roths. I really was never aware of this, sadly. Is it worth it at this point? I am curious re: guides to maximizing tax efficiency in our investments. If anything stands out off-the-bat, please let me know.
5. Similarly, I feel our taxable investments are too complicated. Given the taxability, there's not a ton I can do at this point I don't think. Moving forward, my goal is to invest all future taxable $s in VOO (65%),VO (20%) and ONEQ (10%) and BND (5%). I'll sell off some equities (harvesting losses, etc.), but mostly keep this to new $s. Does this make sense?
6. I think our emergency fund is OK, and I'd like to keep it where it is (I know I am sacrificing some ROI) but I am comfortable w/ it. Regarding the $90k in cash in our checking account, I am considering making a lump sum $30k investment into our new child's 529 upon birth/opening an account and putting another $30k into taxable ASAP. My bonus is paid this month, as well. Other ideas?
Thank you in advance! I've lurked over the years. While I wish I adopted more/sooner, I'm glad to be more engaged now!