Hello all~
My spouse and I would like to retire in ~16 years. I am somewhat of a novice at investing but have done as best as I can over the years and am proud of what I’ve managed to save and invest so far. Now that my kids are nearing college, I have more time to spend on this and have been reading as much as I can on the subject (including Bogleheads Guide to Investing). I would appreciate suggestions for improvement in my portfolio to make sure my spouse and I are on track for retirement. Our goal is to have ~3M in ~16 years. I have free access to advice for my 401k via Morningstar’s Retirement Manager program and am happy with that for now so not seeking feedback on that account; it’s my other accounts (taxable brokerage, Roth IRA, Trad IRA, Simple IRA) that I need help with as they are a bit all over the place and not tax efficient. Specific questions are at the end below. Thanks in advance!
Emergency funds: Yes, 6 months
Debt: mortgage only – interest rate is 6.375%
Tax Filing Status: Married Filing Jointly
Tax Rate: 22% Federal, 4.95% State
State of Residence: IL
Age: 49
Desired Asset allocation: ~60% stocks / 40% bonds
Desired International allocation: ~5-10% of stocks
Approximate size of total portfolio: $1M
Current retirement assets
My Roth 401k at Schwab
Employer matches $0.75 for every dollar contributed, up to a max of 7%, on a pre-tax basis. I am taking full advantage of the match.
21% VBTIX Vanguard Total Bond Market Index I (0.035%)
11% VIIIX Vanguard Institutional Index Instl PI (0.02%)
10% VTMNX Vanguard Developed Markets Index Instl (0.05%)
7% PRRIX PIMCO Real Return Instl (0.67%)
6% DOXLX Dodge & Cox Global Bond X (0.37%)
6% VFTNX Vanguard FTSE Social Index I (0.12%)
5% PTTAX PIMCO Total Return A (0.83%)
4% VSCIX Vanguard Small Cap Index I (0.04%)
3% VEMIX Vanguard Emerging Mkts Stock Idx Instl (0.10%)
2% VGSNX Vanguard Real Estate Index Instl (0.10%)
1% PCRIX PIMCO Commodity Real Ret Strat Instl (0.99%)
1% RNWGX American Funds New World R6 (0.57%)
1% VASVX Vanguard Selected Value Inv (0.38%)
1% LSBDX Loomis Sayles Bond Instl (0.66%)
0% PRHYX T. Rowe Price High Yield (0.70%) [hold a very small position]
My Taxable Brokerage at Vanguard
3% VWELX Vanguard Wellington Investor CL (0.25%)
2% WMT Walmart Inc
1% MORN Morningstar Inc
1% VBIRX Vanguard Short Term Bond Index Admiral CL (0.07%)
0% IYW IShares Technology ETF (0.400%) [hold a very small position]
0% AAPL Apple Inc [hold a very small position]
0% COIN Coinbase Global Inc CL A [hold a very small position]
0% cash [none]
My Roth IRA at Vanguard
8% FSKAX Fidelity Total Market Index (0.015%)
2% VWELX Vanguard Wellington Investor CL (0.25%)
1% VBTLX Vanguard Total Bond Market Index Admiral CL (0.05%)
0% VTIAX Vanguard Total Intl Stock Index Admiral CL (0.12%)
0% NVDA Nvidia Corp [hold a very small position]
0% O Realty Income Corp [hold a very small position]
My Traditional IRA at Vanguard
1% FSKAX Fidelity Total Market Index (0.015%)
1% VBTLX Vanguard Total Bond Market Index Admiral CL (0.05%) [hold a very small position]
Spouse SIMPLE IRA at Schwab
1% VWELX Vanguard Wellington Inv CL (0.25%) [hold a very small position]
Annual Contributions
$15,933 my Roth 401k (employer matches $0.75 for every dollar contributed, up to a max of 7%, on a pre-tax basis)
$3,600 my Roth IRA
$0 my taxable brokerage
$0 my Traditional IRA
$0 spouse SIMPLE IRA
$2,400 to emergency fund
$6,000 529s at Vanguard
Questions:
1. Many years ago, when I opened my taxable brokerage account, I wasn’t considering tax efficiency and didn’t really know what I was doing. Some of the investments in the account, like Vanguard Wellington, are not tax efficient. I am currently reinvesting both dividends and capital gains back into the fund. Should I move the $$ in Vanguard Wellington from this taxable brokerage account into my Roth IRA? If I do that I will be able to change to Admiral shares which is a lower expense ratio. I’m just not sure of the tax implications of doing that.
2. If I do the above, I was thinking about then selecting the ETFs VOO, VXUS and BND for my taxable account. Would like feedback on this or alternative suggestions.
3. Not sure what I should do with COIN (Coinbase) in my taxable brokerage account. It’s a losing stock and I am not proficient at tax loss harvesting.
4. Are the investments in my Traditional IRA ok for now? That account is mainly there as a spillover account or if I cannot contribute to my Roth in a given year due to income limits.
5. My spouse owns their own small biz and opened a SIMPLE IRA many years ago but does not contribute to it currently. Considering switching this to a Solo 401k and moving to Vanguard and contributing more actively to it in the future. Would appreciate suggestions on what to invest in here, assuming I do the switch to a Solo 401k.
Other Key Points
I have two 529 plans at Vanguard for both of my children that I contribute $6,000 annually to.
My spouse and I would like to retire in ~16 years. I am somewhat of a novice at investing but have done as best as I can over the years and am proud of what I’ve managed to save and invest so far. Now that my kids are nearing college, I have more time to spend on this and have been reading as much as I can on the subject (including Bogleheads Guide to Investing). I would appreciate suggestions for improvement in my portfolio to make sure my spouse and I are on track for retirement. Our goal is to have ~3M in ~16 years. I have free access to advice for my 401k via Morningstar’s Retirement Manager program and am happy with that for now so not seeking feedback on that account; it’s my other accounts (taxable brokerage, Roth IRA, Trad IRA, Simple IRA) that I need help with as they are a bit all over the place and not tax efficient. Specific questions are at the end below. Thanks in advance!
Emergency funds: Yes, 6 months
Debt: mortgage only – interest rate is 6.375%
Tax Filing Status: Married Filing Jointly
Tax Rate: 22% Federal, 4.95% State
State of Residence: IL
Age: 49
Desired Asset allocation: ~60% stocks / 40% bonds
Desired International allocation: ~5-10% of stocks
Approximate size of total portfolio: $1M
Current retirement assets
My Roth 401k at Schwab
Employer matches $0.75 for every dollar contributed, up to a max of 7%, on a pre-tax basis. I am taking full advantage of the match.
21% VBTIX Vanguard Total Bond Market Index I (0.035%)
11% VIIIX Vanguard Institutional Index Instl PI (0.02%)
10% VTMNX Vanguard Developed Markets Index Instl (0.05%)
7% PRRIX PIMCO Real Return Instl (0.67%)
6% DOXLX Dodge & Cox Global Bond X (0.37%)
6% VFTNX Vanguard FTSE Social Index I (0.12%)
5% PTTAX PIMCO Total Return A (0.83%)
4% VSCIX Vanguard Small Cap Index I (0.04%)
3% VEMIX Vanguard Emerging Mkts Stock Idx Instl (0.10%)
2% VGSNX Vanguard Real Estate Index Instl (0.10%)
1% PCRIX PIMCO Commodity Real Ret Strat Instl (0.99%)
1% RNWGX American Funds New World R6 (0.57%)
1% VASVX Vanguard Selected Value Inv (0.38%)
1% LSBDX Loomis Sayles Bond Instl (0.66%)
0% PRHYX T. Rowe Price High Yield (0.70%) [hold a very small position]
My Taxable Brokerage at Vanguard
3% VWELX Vanguard Wellington Investor CL (0.25%)
2% WMT Walmart Inc
1% MORN Morningstar Inc
1% VBIRX Vanguard Short Term Bond Index Admiral CL (0.07%)
0% IYW IShares Technology ETF (0.400%) [hold a very small position]
0% AAPL Apple Inc [hold a very small position]
0% COIN Coinbase Global Inc CL A [hold a very small position]
0% cash [none]
My Roth IRA at Vanguard
8% FSKAX Fidelity Total Market Index (0.015%)
2% VWELX Vanguard Wellington Investor CL (0.25%)
1% VBTLX Vanguard Total Bond Market Index Admiral CL (0.05%)
0% VTIAX Vanguard Total Intl Stock Index Admiral CL (0.12%)
0% NVDA Nvidia Corp [hold a very small position]
0% O Realty Income Corp [hold a very small position]
My Traditional IRA at Vanguard
1% FSKAX Fidelity Total Market Index (0.015%)
1% VBTLX Vanguard Total Bond Market Index Admiral CL (0.05%) [hold a very small position]
Spouse SIMPLE IRA at Schwab
1% VWELX Vanguard Wellington Inv CL (0.25%) [hold a very small position]
Annual Contributions
$15,933 my Roth 401k (employer matches $0.75 for every dollar contributed, up to a max of 7%, on a pre-tax basis)
$3,600 my Roth IRA
$0 my taxable brokerage
$0 my Traditional IRA
$0 spouse SIMPLE IRA
$2,400 to emergency fund
$6,000 529s at Vanguard
Questions:
1. Many years ago, when I opened my taxable brokerage account, I wasn’t considering tax efficiency and didn’t really know what I was doing. Some of the investments in the account, like Vanguard Wellington, are not tax efficient. I am currently reinvesting both dividends and capital gains back into the fund. Should I move the $$ in Vanguard Wellington from this taxable brokerage account into my Roth IRA? If I do that I will be able to change to Admiral shares which is a lower expense ratio. I’m just not sure of the tax implications of doing that.
2. If I do the above, I was thinking about then selecting the ETFs VOO, VXUS and BND for my taxable account. Would like feedback on this or alternative suggestions.
3. Not sure what I should do with COIN (Coinbase) in my taxable brokerage account. It’s a losing stock and I am not proficient at tax loss harvesting.
4. Are the investments in my Traditional IRA ok for now? That account is mainly there as a spillover account or if I cannot contribute to my Roth in a given year due to income limits.
5. My spouse owns their own small biz and opened a SIMPLE IRA many years ago but does not contribute to it currently. Considering switching this to a Solo 401k and moving to Vanguard and contributing more actively to it in the future. Would appreciate suggestions on what to invest in here, assuming I do the switch to a Solo 401k.
Other Key Points
I have two 529 plans at Vanguard for both of my children that I contribute $6,000 annually to.
Statistics: Posted by JET1005 — Tue Mar 05, 2024 5:26 pm — Replies 0 — Views 26
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