After many early years of poor decisions ![:oops:]( "D'oh")
and, more recently, a few extra years of hard work, taking welcome BH advice, and socking away savings, my portfolio has improved and simplified. I’m rounding third base and, at 66 years old, nearing retirement.
Thank you to all Bogleheads who provided invaluable guidance and support over the past two years.
Emergency funds: $15k in bank savings account, plus $300k in MMF & T-Bills in taxable account
Debt: No debt: mortgage paid off, no credit card, car, student, or other loans
Tax Filing Status: Married Filing Jointly
Tax Rate: 35% Federal (plus NIT), 6.85% State, 3.85% City
State of Residence: NY
Residence: Owned co-op, no mortgage
Age: Him 66 (working full-time), her 62 (retired)
Expenses: $13k/mo. after taxes (includes $1.5k estimated medical costs in retirement). $11.5k currently.
Social Security: Him $4.6k/mo. (planned at 70), her $3.8k/mo. (planned at 70).
Pensions: N/A
Long-Term Capital Loss Carry-forward: $200k
Desired Asset Allocation: 60% stocks / 40% fixed (gliding toward 55/45)
International allocation: Negligible
Total portfolio: $3.1M (plus home equity)
Current retirement assets
Taxable at Fidelity
28.3% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
3.9% Fidelity NY Muni Fund Long, FTFMX (ER 0.46%)
6.8% Short-Term Treasury Bills, rolling
2.9% Money Market SPAXX
His 401k
13.3% iShares U.S. Aggregate Bond Index Fund, WFBIX (ER 0.05%)
6.0% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
1.7% Principal Stable Value Z Fund, Morley Capital Mgmt (ER 0.33%)
His Roth IRA at Fidelity
6.3% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
His Rollover IRA at Fidelity
5.5% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
3.3% Vanguard Target Date 2030, VTHRX (ER 0.14%)
3.0% Fidelity Total Bond, FXNAX (ER 0.02%)
His I-Bonds
1.1%
His Non-Qualified Annuity New York Life
1.3% 4.0% interest guaranteed for life
Her traditional IRA at Fidelity
5.5% Fidelity Puritan Fund (70% Eq), FPURX (ER 0.51%)
4.6% T Rowe Price Target Date 2030, TRRCX (ER 0.58%)
Her Roth IRA at Fidelity
4.0% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
Her Inherited IRA at Fidelity
0.5% 2-year Treasury Notes
0.5% Fidelity Total Bond, FXNAX (ER 0.02%)
[2023 RMD paid]
Her I-Bonds
1.1%
________________________________
Contributions
New Annual Contributions:
$150k his taxable
$30k his 401k
$10k his iBonds
$10k her iBonds
Retirement Assumptions:
![:?:]( "Question")
1.Overall analysis, the accuracy of my assumptions?
2.Any recommendations?
3.I have a $400k gross bonus coming in April 2024 (2023 was a good year). I plan to purchase $20k in iBonds and $30k in new deposits into an intermediate bond fund in my 401(k). This would leave approximately $165k net after-tax in my taxable brokerage account. How should I best invest and balance this across my accounts? I am considering buying $165k S&P Index Funds in taxable and exchanging VTHRX $100k (2030 target date fund) in my rollover IRA to 3-year or 5-year treasuries.
4.Too much in cash and equivalents in my taxable account? I count this as fixed income, emergency funds, and a partial “social security bridge.” $300k = roughly two years of expenses. Today’s 5% rates are great (despite high taxes in my taxable account). I also have $50k in Stable Value Funds in my 401(k).
6.In IRA and 401(k), FXNAX Total Bond Fund vs. ladder of Treasury Bills/Bonds. I don’t feel sufficiently educated or comfortable with TIPS (I have read the BH threads). Stay the course with FXNAX (Agg) vs building a treasury ladder to fill the SS gap years?
7.When my income is lowest, post-retirement, and pre-social security, would converting dollars from my Tax-Deferred Accounts to Roth IRAs be a good idea? RMDs appear to be less than my planned withdrawals. What thresholds should I watch for? Would there be a pro-rata issue?
8.Creative use for LT Capital Loss Carry-Forward?
Thank you! Your BH feedback, as always, is much appreciated.![:sharebeer]( "celebrate")
and, more recently, a few extra years of hard work, taking welcome BH advice, and socking away savings, my portfolio has improved and simplified. I’m rounding third base and, at 66 years old, nearing retirement. Thank you to all Bogleheads who provided invaluable guidance and support over the past two years.
Emergency funds: $15k in bank savings account, plus $300k in MMF & T-Bills in taxable account
Debt: No debt: mortgage paid off, no credit card, car, student, or other loans
Tax Filing Status: Married Filing Jointly
Tax Rate: 35% Federal (plus NIT), 6.85% State, 3.85% City
State of Residence: NY
Residence: Owned co-op, no mortgage
Age: Him 66 (working full-time), her 62 (retired)
Expenses: $13k/mo. after taxes (includes $1.5k estimated medical costs in retirement). $11.5k currently.
Social Security: Him $4.6k/mo. (planned at 70), her $3.8k/mo. (planned at 70).
Pensions: N/A
Long-Term Capital Loss Carry-forward: $200k
Desired Asset Allocation: 60% stocks / 40% fixed (gliding toward 55/45)
International allocation: Negligible
Total portfolio: $3.1M (plus home equity)
Current retirement assets
Taxable at Fidelity
28.3% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
3.9% Fidelity NY Muni Fund Long, FTFMX (ER 0.46%)
6.8% Short-Term Treasury Bills, rolling
2.9% Money Market SPAXX
His 401k
13.3% iShares U.S. Aggregate Bond Index Fund, WFBIX (ER 0.05%)
6.0% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
1.7% Principal Stable Value Z Fund, Morley Capital Mgmt (ER 0.33%)
His Roth IRA at Fidelity
6.3% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
His Rollover IRA at Fidelity
5.5% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
3.3% Vanguard Target Date 2030, VTHRX (ER 0.14%)
3.0% Fidelity Total Bond, FXNAX (ER 0.02%)
His I-Bonds
1.1%
His Non-Qualified Annuity New York Life
1.3% 4.0% interest guaranteed for life
Her traditional IRA at Fidelity
5.5% Fidelity Puritan Fund (70% Eq), FPURX (ER 0.51%)
4.6% T Rowe Price Target Date 2030, TRRCX (ER 0.58%)
Her Roth IRA at Fidelity
4.0% Fidelity SP500 Index Funds, FXAIX (ER 0.02%)
Her Inherited IRA at Fidelity
0.5% 2-year Treasury Notes
0.5% Fidelity Total Bond, FXNAX (ER 0.02%)
[2023 RMD paid]
Her I-Bonds
1.1%
________________________________
Contributions
New Annual Contributions:
$150k his taxable
$30k his 401k
$10k his iBonds
$10k her iBonds
Retirement Assumptions:
- Expenses: $13k/mo. x 12 = $156,000 (after tax). Roughly $175,000 (pre-tax).
Medicare B + Medicare G-HD + Medicare Part D drug x 2 people (including deductibles) = budgeted at $1,500 per month and included in “expenses” above.
Social Security: Him $4.7k/mo. (planned at 70), her $3.9k/mo. (planned at 70?)
= $8.6k/mo. = $104k/yr. pre-tax.
SS Gap Bridge Years: Retirement until I turn 70, followed by DW when she turns 67-70.
Post SS Gap Years: $175k expenses - $100k SS = $75k net.
75k x 25 (4%) = $1.9M.
or, 75k x 30 (3.3%) = $2.25M.
I’m close.
1.Overall analysis, the accuracy of my assumptions?
2.Any recommendations?
3.I have a $400k gross bonus coming in April 2024 (2023 was a good year). I plan to purchase $20k in iBonds and $30k in new deposits into an intermediate bond fund in my 401(k). This would leave approximately $165k net after-tax in my taxable brokerage account. How should I best invest and balance this across my accounts? I am considering buying $165k S&P Index Funds in taxable and exchanging VTHRX $100k (2030 target date fund) in my rollover IRA to 3-year or 5-year treasuries.
4.Too much in cash and equivalents in my taxable account? I count this as fixed income, emergency funds, and a partial “social security bridge.” $300k = roughly two years of expenses. Today’s 5% rates are great (despite high taxes in my taxable account). I also have $50k in Stable Value Funds in my 401(k).
- a.Too much?
b.Shift to Munis? I’m in a high tax bracket in a high-tax state/city. Concerned regarding volatility.
c.What do I do with MMF and T-Bills when rates drop?
d.Exchange Stable Value Funds (a low interest rate) in 401(k) for better options in my IRAs?
6.In IRA and 401(k), FXNAX Total Bond Fund vs. ladder of Treasury Bills/Bonds. I don’t feel sufficiently educated or comfortable with TIPS (I have read the BH threads). Stay the course with FXNAX (Agg) vs building a treasury ladder to fill the SS gap years?
7.When my income is lowest, post-retirement, and pre-social security, would converting dollars from my Tax-Deferred Accounts to Roth IRAs be a good idea? RMDs appear to be less than my planned withdrawals. What thresholds should I watch for? Would there be a pro-rata issue?
8.Creative use for LT Capital Loss Carry-Forward?
Thank you! Your BH feedback, as always, is much appreciated.
Statistics: Posted by Indeterminacy — Mon Dec 04, 2023 9:40 pm — Replies 0 — Views 21