Should I make changed in FBIFX ?
Portfolio Holdings FBIFX
* Fidelity Series Total Market Index: ~50%
* Fidelity Series Global ex US Index: ~34%
* Fidelity Series Bond Index: ~9%
* Fidelity Series Long-Term Trs Bd Idx: ~5%
* Fidelity Series Intl Dev Mkts Bd Idx: ~2%
* Cash: ~<.5%%
Annual Expenses:
* What are your current annual expenses? Best guess is ok. --> A rough idea of expense: I never calculated, but guess 44,000 (Rent, etc. 20,000, groceries 6,000, travel domestic and international 10,000, internet 600, gas 200, car service & insurance 2000, misc. 6000)
* How much income do you want / need when you are no longer working? Best guess also ok. --> Probably same as current expense, plus kid may be still in college when I will stop working. I am guessing I will work for 15 years more.
- I did $7000 in my and $7000 in wife's Roth IRA last year. If that is suggested, I can do same this year too.
- I never invested in HSA. Fortunately so far our expenses towards medical are almost nil. But I agree, no guarantee for future.
- I do not know, if my company allows for Mega Backdoor Roth or not. I will send email to HR and will ask them. But I never heard in emails coming from benefits department, so probably this may not be the option.
In regard to your follow up questions:
* Should I make a change in FBIFX? I just wanted to show you what investments were in there and their %s. It's simple, easy to manage and just fine.
* Annual Expenses now and desired income when no longer working
Please have a look at the following (there are many threads on these topics). Should help you think about how much you will need to be financially independent and how to ensure you do not run out money when you are no longer working.
4% Rule
https://www.investopedia.com/terms/f/fo ... t-rule.asp
How to Harness the Flowing Nature of Withdrawal Rate Math
https://portfoliocharts.com/2024/03/15/ ... rate-math/
Roth: you should absolutely invest in Roth. You have already paid the taxes on the money when you contribute...and you won't have to pay any tax when you decide to withdraw from it in the future, including any gains. Read about it.
HSA: Please also look into this. If your family is healthy, it can be a great tax advantaged investment. I think of it as my 'medical 401k' for when I am no longer working.
Mega Backdoor Roth: not that many years ago, it was not really widely available. It has become very popular and more employers are offering it. Please do talk to your plan provider to see if it is available.
Best wishes.
Statistics: Posted by invest4 — Thu Oct 10, 2024 10:39 pm