Portfolio, retirement plan, cash flow

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
SSM1
Posts: 61
Joined: Wed Sep 26, 2018 2:47 pm

Portfolio, retirement plan, cash flow

Post by SSM1 »

Requesting current input on portfolio, cash flow, retirement, please --

Emergency funds: TBD
Debt: N/A (small no-interest medical <350)

Tax Filing Status: Single
529 College fund: $10,471 (Vanguard income portfolio and mod age-based inc college savings plan) – on hold/inactive
Tax Rate: 15% Federal, 4.5% State
State of Residence: VA
Age: 63.7
Desired Asset allocation: xx% stocks / xx% bonds ( 60/40 or 70/30 TBD ? Probably never < 25% bonds?)
Desired International allocation: % of stocks (24 - 50%? TBD?)

Current total portfolio (7 figure starting with 1.9; would be approx. 2.5 if include house sale CD = 593k.)

Current retirement assets

Taxable
0.6% cash/checking
5.4 % VG Primecap Admiral (VPMAX) (.32%)
16% VG Wellington Admiral (VWENX) (.17%)
2% Schwab S&P 500 (SWPPX) (.02%)
1.7% (Schwab) Nuveen Quality Municipal Income Fund (NAD) (previously NPF) (Note: missing cost basis, not available from brokerages or Fund))

Other
0.5% IBond Treasury Direct (0 %?)

Roth IRA at Vanguard
3.8% Vanguard Extended Market Index Admiral (VEXAX) (.08%)
5% Vanguard Growth Index Admiral (VIGAX) (.05%)
0.2% Vanguard Total International Bond Index Investor (VTABX) (.13%)
9.5% Vanguard Total Stock Market Index Admiral (.04%) (VTSAX)

SEP IRA at Vanguard
0.1% Vanguard Target Retirement 2015 Fund (VTXVX) (.13%)

Traditional IRA at Vanguard
3.7% Vanguard total stock market index fund admiral (VTSAX) (.04%)

Rollover IRA at Vanguard
1.2% Vanguard High-Yield Corporate Fund Investor (VWEHX) (.23%)
3% Vanguard Short-term Admiral (VFSUX) (.1%)
3.6% Vanguard Small-cap Index Fund Admiral (VSMAX) (.05%)
19.5% Vanguard Total Bond Market Index Fund Admiral (VBTLX) (.05%)
0.3% Vanguard Total International Bond Index Fund Investor (VTABX) (.13%)
6.9% Vanguard Total International Stock Index Fund Admiral (VTIAX) (.11%)
16.5% Vanguard total stock market index fund admiral (VTSAX) (.04%)

Rollover IRA at Schwab - none

Annuity
0.24% Metlife Growth Plus Fixed Annuity

Total of All Accounts Together (not each account individually) should equal 100%. {Note: 99.7% rounding)

Contributions

New annual Contributions
0
Dividends reinvested except for taxable mutual funds

Future SS and pension --
Social Security: age 63 = $2311/mo;
FRA = age 66.5 yo = $2726/mo;
age 70 yo = $3490/mo.
Pension SJH approx. $248/mo.

Annual Individual expenses
About $45 – 49k/yr. (includes 1 BR apt rent and storage unit, not including support for adult daughter possibly for 10 + months)

Insurance notes: No dental, LTC, disability or life insurance. Yes, other insurances: umbrella to 1.5m, medical, renters, auto.

Questions:
1. Advice on asset allocation, asset location, etc.
Total Bond Index vs. stable value, bond tent, CD and/or TIPS ladders, or combination?
Use laddered CDs and/or TIPS for a number of years of cash?
Shift to small value from large growth?
Percent international and subclasses? Stock and bonds?
Any crypto or securitized gold?
Social/environmental funds?
Consider Larry portfolio or what?

2. Cash flow advice/plan and W/D rate and system?
Assume lower returns next decade/s

3. House or townhome purchase cost?? Thinking up to $420k (preferably in $200s-300s), or may consider over $420k with apartment/studio/cottage onsite for rental income, possible roommate? (Plus crazy sellers’ RE market now)

4. Considering working --but need low/no stress; and if earn over ~ $24k, hit cliff for health insurance premiums; or a position with medical insurance.

5. What about Social Security – when to take, solvency/reduction?

Thank you!
delamer
Posts: 17458
Joined: Tue Feb 08, 2011 5:13 pm

Re: Portfolio, retirement plan, cash flow

Post by delamer »

So you are planning to use the house sale CD funds to pay for a new home outright?

I don’t see any scenario where you aren’t financially secure in retirement. You’ll spend $300,000 from your portfolio to cover expenses until age 70. At that point, you’ll only need about $8,000/year to supplement Social Security. And even with 0% real growth, that’s $1.6 million left for a withdrawal rate of less than 1%.

If you are concerned about risk, go with the lowest stock allocation that let’s you sleep at night (but not less than 30%).

Work if you want, but that’s a lifestyle choice not a financial need.

Consider reducing the number of funds in your IRAs. Positions below 5% of your total assets don’t have much affect on your total return and complicate your record keeping.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
LeeMKE
Posts: 2233
Joined: Mon Oct 14, 2013 9:40 pm

Re: Portfolio, retirement plan, cash flow

Post by LeeMKE »

+1 Delamer
Consider reducing the number of funds in your IRAs. Positions below 5% of your total assets don’t have much affect on your total return and complicate your record keeping.
When I retired about your same age, I also streamlined my accounts, going from 6 accounts to 3. With the Boglehead portfolio, and just 2 accounts at Fidelity and one at Schwab, things are nice and tidy, and easy to manage.

I started retirement with a CD ladder, but yields are so low now I'm not replenishing it. You don't need Gold or bitcoin. You have won the game. Time to do a bit of tidying up and finding your next adventure.
The mightiest Oak is just a nut who stayed the course.
User avatar
dogagility
Posts: 3237
Joined: Fri Feb 24, 2017 5:41 am

Re: Portfolio, retirement plan, cash flow

Post by dogagility »

Some comments in blue below.
SSM1 wrote: Thu Jul 08, 2021 9:07 am Questions:
1. Advice on asset allocation, asset location, etc.
I agree with delamers asset allocation advice above.
Total Bond Index vs. stable value, bond tent, CD and/or TIPS ladders, or combination?
Use laddered CDs and/or TIPS for a number of years of cash?
Shift to small value from large growth?
Percent international and subclasses? Stock and bonds?
Any crypto or securitized gold?
Social/environmental funds?
Consider Larry portfolio or what?
I'd stick with the three index fund portfolio... total US stock; total international stock and total bond market
2. Cash flow advice/plan and W/D rate and system?
I think you have enough money so no real need to worry about a rate or system.

4. Considering working --but need low/no stress; and if earn over ~ $24k, hit cliff for health insurance premiums; or a position with medical insurance.
Work if you'd like to; it's a lifestyle choice for you.
5. What about Social Security – when to take, solvency/reduction?
Delay until you are 70. Best value by far for a stable, COLAed annuity.
Thank you!
Cheers!
Make sure you check out my list of certifications. The list is short, and there aren't any. - Eric 0. from SMA
Topic Author
SSM1
Posts: 61
Joined: Wed Sep 26, 2018 2:47 pm

Re: Portfolio, retirement plan, cash flow

Post by SSM1 »

Feeling a bit jittery with rollercoaster market. Thinking I should rebalance and need to decide AA.
Go from 70/30 to 60/40 - and what percent international? Rebalance any day market is up - or just any day? I know ya can't time the market, but I am still doing "time in the market".
I'm close to making a house purchase for approx $380k, tho it does have an HOA. People like it there, but mostly retired couples. 2 acres, mostly wooded, <1900 SF contemporary style house.
Thanks in advance for comments!
User avatar
JoeRetire
Posts: 15381
Joined: Tue Jan 16, 2018 1:44 pm

Re: Portfolio, retirement plan, cash flow

Post by JoeRetire »

SSM1 wrote: Thu Jul 08, 2021 9:07 am 5. What about Social Security – when to take, solvency/reduction?
Use https://opensocialsecurity.com/

Don't worry about solvency/reduction - they are out of your control and shouldn't impact your decisions.
This isn't just my wallet. It's an organizer, a memory and an old friend.
Topic Author
SSM1
Posts: 61
Joined: Wed Sep 26, 2018 2:47 pm

Re: Portfolio, retirement plan, cash flow

Post by SSM1 »

Updates:
Moved, now have more expenses (sans rent) and challenges...
Trees damage/pruning cost $3300 from ice storm and unmaintained landscaping. Doing yard-work now, got poison ivy twice, also ticks here. LOL!
Paid cash for house (08/2021), trying to decide about driveway and want a garage/shed ($$$ bad timing), later kitchen update, etc...I need unbiased input!?
HOA is $1900/yr.
Also dealing with fatigue, hypersomnia, uncertain causes & trying to figure out. Hypersomnia ~ early mortality &/or cognitive issues (yikes)
Anxiety about health, world situation, inflation, adult child, and Social Security solvency. NTS: Need to update LRT too.
So my total portfolio is now 1.857...68% stocks, 32% bonds...and declining with volatility.
Ten-year returns per VG have been:
8.2% all accounts; 7.5% retirement; 10.6% non-retirement
Consider possible part-time work if something enjoyable/interesting, not covid-risky, and not adversely affecting health ins premiums.
I did not implement prior suggestions (my apologies) -- so I'm checking if advice would change based on current situation.
I'm motivated to have a better handle on things, including accounts and SS.

Thank you in advance.
delamer
Posts: 17458
Joined: Tue Feb 08, 2011 5:13 pm

Re: Portfolio, retirement plan, cash flow

Post by delamer »

If your expenses haven’t changed, then the recent stock & bond market declines don’t change my suggestions. Improvements to the house are affordable, but only you know your priorities.

If your expenses have changed significantly, then you should spell those out.

You could try a calculator to get a better big picture view of your finances: https://www.bogleheads.org/wiki/Retirem ... d_spending

It’s too bad about your health; uncertainty is scary. But only the very lucky few don’t have anxiety about something. Speak to a medical professional (MD, therapist) if it’s overwhelming. Volunteering can get you out of your own head.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
User avatar
JoeRetire
Posts: 15381
Joined: Tue Jan 16, 2018 1:44 pm

Re: Portfolio, retirement plan, cash flow

Post by JoeRetire »

SSM1 wrote: Thu May 19, 2022 8:32 pmI did not implement prior suggestions (my apologies) -- so I'm checking if advice would change based on current situation.
I'm motivated to have a better handle on things, including accounts and SS.
Prior suggestions still apply.
This isn't just my wallet. It's an organizer, a memory and an old friend.
Topic Author
SSM1
Posts: 61
Joined: Wed Sep 26, 2018 2:47 pm

Re: Portfolio, retirement plan, cash flow

Post by SSM1 »

Thank you
Topic Author
SSM1
Posts: 61
Joined: Wed Sep 26, 2018 2:47 pm

Re: Portfolio, retirement plan, cash flow

Post by SSM1 »

thank you.
Sold a chunk of VTSAX in traditional IRA on Friday, now starting a CD Ladder thru Vanguard fixed investments...3 mo, 6 mo, 12 mo...see how it goes. Have about 30k from sale in money market, maybe more CDs...Since I'm unsure now about VBTLX bond fund and I already have a big chunk in that. Will look at AA and any other replies here.
{PS More med tests pending, but nothing specific just yet. Then decide about SS}
Topic Author
SSM1
Posts: 61
Joined: Wed Sep 26, 2018 2:47 pm

Re: Portfolio, retirement plan, cash flow

Post by SSM1 »

PS Primecap did the best over 10 years at various intervals, so not selling that...I know though, about past performance... :?
User avatar
retired@50
Posts: 12829
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Portfolio, retirement plan, cash flow

Post by retired@50 »

SSM1 wrote: Thu May 19, 2022 8:32 pm Anxiety about health, world situation, inflation, adult child, and Social Security solvency.
I can understand the anxiety about your health, but the world situation, inflation, and Social Security are outside your sphere of influence, so I'd suggest you turn off the television and avoid the news. The media seems to be interested in whipping up viewers feelings on a variety of topics. It's not helpful.

As for the adult child, you're not really in charge there either, just do what you can and let them make their own mistakes.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Topic Author
SSM1
Posts: 61
Joined: Wed Sep 26, 2018 2:47 pm

Re: Portfolio, retirement plan, cash flow

Post by SSM1 »

What about Total Bond fund vs or add CD ladder (started CD ladder), or other thoughts?
Post Reply