More information is needed.Emergency funds: Yes
Income:
Him $170k + $20-30k bonus
Her $90k + $5-9k bonus
Debt:
Car Loan - $10k balance @2.99%, 3 years remaining
Mortgage - $290k balance @2.99%, 27 years remaining
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 6.25% State
State of Residence:New York
Age:Him 32, Her 30
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 16% of stocks
Portfolio Size: $320k
Current retirement assets
Taxable
15.3% Vanguard Total Stock Market ETF (VTI) (0.03)
1.6% Invesco QQQ Trust (QQQ) (0.2)
1.9% Vanguard 500 index Fund ETF (VOO) (0.03)
His 401k - Using self-directed option through fidelity
37.7% Fidelity® Total Market Index (FSKAX) (.015)
12.4% Fidelity® Total International Index (FTIHX) (.06)
9.1% Fidelity® U.S. Bond Index Fund (FXNAX) (.025)
Company match: Company contributes 3% of salary regardless of employee contribution
His Roth IRA
6.8% Vanguard Total Stock Market ETF (VTI) (0.03)
Her 401k
3.3% Large Cap US Equity Index Fund (.015)
3.3% Large Cap Growth Index Fund (.016)
2.2% Mid Cap US Equity Index Fund (.03)
2.2% Small Cap US Equity Index Fund (.04)
Company match: 4% of salary when employee contributes 5%
Her Roth IRA
4.4% Vanguard Total Stock Market ETF (VTI) (0.03)
_______________________________________________________________
Contributions
New annual Contributions
$23,000 his 401k + ~$5,500 employer contribution
$23,000 her 401k + ~$3,600 employer contribution
$7,000 His Roth IRA (via backdoor conversion)
$7,000 Roth IRA (via backdoor conversion)
TBD taxable
Available funds
Funds available in his 401(k)
Self-directed – open to most of the market through fidelity
Funds available in her 401k
Fixed Index Fund (.000)
Bond Index Fund (.028)
Balanced Index Fund (.022)
Large Cap Equity Index Fund (.015)
Large Cap Value Index Fund (.02)
Large Cap Growth Index Fund (.016)
Mid Cap Equity Index Fund (.03)
Small Cap Equity Index Fund (.04)
International Equity Fund (.423)
Questions:
1. Her 401k offers Roth and after tax contribution options. Are these of any use to us?
Will either or both of you be eligible for both a substantial pension and Social Security benefits? How much do you currently have in traditional tax-deferred accounts? What are your professions or occupations?
Most people will likely be in a lower tax bracket during retirement. Most people (without a pension or very large balances in traditional tax-deferred accounts) will likely be better off using traditional tax-deductible contributions.
TFB blog post, The Case Against Roth 401(k): Still True After All These Years
Wiki article, Traditional versus Roth examples
What index is used by each of those funds? Can you post a link to the fact sheet for each of those funds?2. In order to keep thinks simple, I want her 401k to be 100% US Stock. The account is set to 30%/30%/20%/20% for the funds listed. Is this an appropriate balance of US stock market?
Large Cap US Equity Index Fund (.015)
Large Cap Growth Index Fund (.016)
Mid Cap US Equity Index Fund (.03)
Small Cap US Equity Index Fund (.04)
It's hard to judge knowing nothing about the real estate market in your locality. In general it seems within reason.3. Our expenses today are around $10k per month. We are planning to start having kids, and would like to either expand our home with an addition or sell and buy a larger house. Either way looking at spending about $3-400K in 3-5 years. In addition to funds listed above, I have about $50k in I-Bonds + $20K HYSA earmarked towards this. Does this seem like an unreasonable amount of money to spend on our home?
Statistics: Posted by ruralavalon — Fri Feb 23, 2024 1:55 pm — Replies 1 — Views 72