Welcome!
Some initial comments:
Portfolio
* Could you elaborate a bit about the rationale and setup for your portfolio?
- 401k: I assume for your 401k, the S&P500 is the closest available to something like VTI (Total US)?
- Mega Backdoor Roth: Is this available to you via your employer?
- HSA: Are you using your company HSA or something outside of it. I have found company sponsored HSAs to be lacking in terms of offerings and costs. If you are utilizing your company HSA, I would strongly encourage you to consider opening an account at brokerage like Fidelity (very popular for this purpose) and simply make periodic transfers from your work HSA to the Fidelity / other account. What triggered my question is that you were also using S&P 500 here as well...versus VTI for example.
- 529: People have different ideas about what is an acceptable education...do you have a firm idea about what kind of education you are planning to provide? For example, some people think it is important for their child to live on campus. Nothing wrong with that, but the cost is considerably more expensive than living at home for example.
-Other:
Cash: How many months of living expenses will this cover?
Rental Property: I think a good idea to assess your interest in owning a rental property. I see quite a few people think they are making money, but actually not. Furthermore, I completely understand that being a landlord is not a passive endeavor and fully support your desire to be rid of the responsibility.
Primary Residence: My own metric for buying a house is no more than 3x income. Kudos to you.
Other Assets: thanks for sharing, but generally not counted as part of your portfolio.
Credit Card Debt: My assumption is that you have no real debt (aside from mortgage) and this is simply something that will retired when the promotion expires.
Expenses
* What are your current annual expenses? A reasonable estimate is ok.
* How much do you think you will need as far as income when you are no longer working? Again, best reasonable estimate is ok.
* Having this information will help better understand whether not your proposed plan to retire / semi-retire at age 50 appears to be on track / how large your portfolio may need to be to support the lifestyle you want.
Your Questions
1. You are in your mid-30s with plenty of working years ahead of you. Unless you have changed your risk tolerance,why do you think you need to increase your allocation to bonds / fixed income?
* I have found bonds to be more complex than stocks. I strongly encourage you to start / continue educating yourself so you better understand what bonds / fixed income investments make sense for you. Many people have been surprised that what they purchased did not behave the way they thought they would...such as when inflation showed up. What Warren Buffet does is not really relevant to you. Nonetheless, quite a few people do want to have 2-3 years of cash (some more) by the time they are no longer working to help mitigate sequence of return risk.
2. I think more information about your parents is needed to provide any advice. What do their actual finances look like? Is the 320K all of their assets? I suspect a separate post may be needed for this particular topic.
3. TLH: Thus far, I have never had a taxable account, and I expect others more experienced will provide some help here.
4. If you really want a larger allocation to bonds / fixed income, there is nothing wrong with that. As mentioned above, please make sure you understand what you are investing in and the pros / cons associated with it.
5. At your age and given your current and future dependents, I would not go without life insurance right now. 1x from employer is not enough. If you died tomorrow, your dependents will need money for decades. Given your income, it is relatively cheap and will provide additional piece of mind.
6. For all the right reasons, I would talk to a professional to ensure that all of your needs are accounted for and are provided the relevant choices and advice. This is another relatively cheap expense that you should not do without.
You are doing well...best wishes.
Some initial comments:
Portfolio
* Could you elaborate a bit about the rationale and setup for your portfolio?
- 401k: I assume for your 401k, the S&P500 is the closest available to something like VTI (Total US)?
- Mega Backdoor Roth: Is this available to you via your employer?
- HSA: Are you using your company HSA or something outside of it. I have found company sponsored HSAs to be lacking in terms of offerings and costs. If you are utilizing your company HSA, I would strongly encourage you to consider opening an account at brokerage like Fidelity (very popular for this purpose) and simply make periodic transfers from your work HSA to the Fidelity / other account. What triggered my question is that you were also using S&P 500 here as well...versus VTI for example.
- 529: People have different ideas about what is an acceptable education...do you have a firm idea about what kind of education you are planning to provide? For example, some people think it is important for their child to live on campus. Nothing wrong with that, but the cost is considerably more expensive than living at home for example.
-Other:
Cash: How many months of living expenses will this cover?
Rental Property: I think a good idea to assess your interest in owning a rental property. I see quite a few people think they are making money, but actually not. Furthermore, I completely understand that being a landlord is not a passive endeavor and fully support your desire to be rid of the responsibility.
Primary Residence: My own metric for buying a house is no more than 3x income. Kudos to you.
Other Assets: thanks for sharing, but generally not counted as part of your portfolio.
Credit Card Debt: My assumption is that you have no real debt (aside from mortgage) and this is simply something that will retired when the promotion expires.
Expenses
* What are your current annual expenses? A reasonable estimate is ok.
* How much do you think you will need as far as income when you are no longer working? Again, best reasonable estimate is ok.
* Having this information will help better understand whether not your proposed plan to retire / semi-retire at age 50 appears to be on track / how large your portfolio may need to be to support the lifestyle you want.
Your Questions
1. You are in your mid-30s with plenty of working years ahead of you. Unless you have changed your risk tolerance,why do you think you need to increase your allocation to bonds / fixed income?
* I have found bonds to be more complex than stocks. I strongly encourage you to start / continue educating yourself so you better understand what bonds / fixed income investments make sense for you. Many people have been surprised that what they purchased did not behave the way they thought they would...such as when inflation showed up. What Warren Buffet does is not really relevant to you. Nonetheless, quite a few people do want to have 2-3 years of cash (some more) by the time they are no longer working to help mitigate sequence of return risk.
2. I think more information about your parents is needed to provide any advice. What do their actual finances look like? Is the 320K all of their assets? I suspect a separate post may be needed for this particular topic.
3. TLH: Thus far, I have never had a taxable account, and I expect others more experienced will provide some help here.
4. If you really want a larger allocation to bonds / fixed income, there is nothing wrong with that. As mentioned above, please make sure you understand what you are investing in and the pros / cons associated with it.
5. At your age and given your current and future dependents, I would not go without life insurance right now. 1x from employer is not enough. If you died tomorrow, your dependents will need money for decades. Given your income, it is relatively cheap and will provide additional piece of mind.
6. For all the right reasons, I would talk to a professional to ensure that all of your needs are accounted for and are provided the relevant choices and advice. This is another relatively cheap expense that you should not do without.
You are doing well...best wishes.
Statistics: Posted by invest4 — Mon Sep 02, 2024 8:24 pm — Replies 1 — Views 189