Thanks for this! Your assessment of my risk tolerance is probably more accurate than I am willing to admit to myself. I may shoot for something 75:25 or 80:20. All of my current retirement projections are based on a very conservative 5.5% return, so moving to a mix of 75:25 would more than likely produce greater results over time.Here is a rough suggestion to consider as a goal. It is set close to 85% stocks and 15% bonds with 10% of the stocks (8.5% of the portfolio) in international.
Brokerage - 43% of portfolio
29.1% Total Stock Index <--this number will increase as you invest the savings account
8.5% Total International Index
1.2% VDADX - Vanguard Dividend Appreciation Index Admiral - Exp Ratio .08% <--leaving for now but you might want to sell
1.2% VIGAX - Vanguard Growth Index Admiral - Exp Ratio .08% <--leaving for now
3.0% Single Stocks <--leaving for now
Employer 401K - 7.2% of portfolio
4.2% Fidelity 500 Index - FXAIX
3% FXNAX Fidelity US Bond Index - Exp Ratio .025%
Rollover IRA - 9.4% of portfolio
3.5% 500 index (or extended market Index to "complete" the 500 index)
5.9% Bonds
Roth IRA - 7.5% of portfolio
7.5% 500 Index
HSA - 5% of portfolio
5% 500 index
CD - 6.1% of portfolio
HYSA - 21.8% of portfolio <---whatever is not emergency fund should fold into total stock in the taxable brokerage account
Notice that I have not repeated any fund that is in the taxable account in any other account. This is just my personal preference - it allows you not to have to even think about wash sales with the other accounts.You are currently about 35% stock and considering going to 85% stock within 6 months. I encourage you to get your money invested, but wonder if this might be just a bit too much considering your hesitance in the past.My goal will be, at the latest, to have this all invested by end of year. Hopefully much sooner.
Have you truly had some kind of "ah ha" moment about getting this money invested? Or are you just putting on a brave face, trying to do the right thing, and hoping it works out?
If you have not had a real "ah ha" moment, I suggest that your goal should be 70:30 or 75:25 instead of 85:15 which is fairly aggressive for your age anyway. I'm not sure you are actually that aggressive in nature. Maybe a less aggressive allocation (which is still fine for your situation) would be a better choice.
I'm still mulling over the options on this one. 1) roll into employer 401K and be done 2) assess my income/tax bracket at the end of the year and convert a portion to Roth. I'm not in a rush on this one.Regarding what to do with the rollover of $100k. If you roll this into your current 401k, it will cost you about $370 a year extra. But then you could use the backdoor Roth process yourself. (Your wife can use it anyway.) I'm not inclined to encourage this, but seeing that your portfolio is already mostly in taxable, I can see why you might want to do it. I do believe this would be better than making the non-deductible contributions to IRA.
Thanks to everyone's input, I do feel more confident and compelled than ever to get the my money working harder. I will lay out a plan of action and post on here in the next week or so (I work best with accountability goals).
Have a safe and Happy 4th!
Statistics: Posted by Pioneer940 — Thu Jul 04, 2024 8:41 am — Replies 21 — Views 2035