I've been reading here for many years, but this is my first post. I have been trying to decide how comfy I am with not going back to work, and it hit me... Duh! I should ask the Bogleheads for a review of my status and thinking! So here I am, asking for your feedback on my portfolio and plans. Many thanks for any comments, suggestions, concerns, whatever.
Me
- Retired (surprise!, but here I am)
- 60 years old, single, good health, no dependents or hard assets (e.g., no house)
- Traveling extensively (and cheaply!) and pondering where to eventually settle down
- Grown kids and family that might periodically need financial help, but no actual dependents
Budget/Expenses
- $50K/year until age 70, then $75K/year (senior living or additional help some day?)
- I actually spend <$40K now, but prefer to plan for $50K and come in under budget
----------
Emergency funds (I think of this as a cash bucket more than an emergency fund)
- Goal: 2-3 years expenses, plus emergency health cash = $120K + $15K HSA
- Current: $106K + $15K HSA
- Where is it? Checking/savings + money market within IRA + money market within HSA
Debt: $0
Tax Filing Status: Single, no dependents
Tax Rate: 12% Federal, 0% State (Texas, for now)
State of Residence: Texas now, but no decision yet on long-term
Age: 60
Desired Asset allocation:
General: 60% stocks / 30% bonds / 10% international stocks
HSA: 70% stocks / 30% bonds
----------
Approximate size of total portfolio: $1.3 million without counting emergency funds ($1.4 million with everything)
----------
Current retirement assets (percentages are of invested amounts, NOT including "emergency" cash funds above)
Taxable
$0
Roth IRA, Vanguard
21% Total Stock Market Index, Admiral (VTSAX) (expense 0.04%)
Traditional IRA, Vanguard
24% Total Stock Market Index, Admiral (VTSAX) (expense 0.04%)
8% US Growth, Admiral (VWUAX) (expense 0.02%)
-----
9% International Growth (VWILX) (expense 0.31%)
-----
17% Intermediate Term Bond Index, Admiral (VIBLX) (expense 0.07%)
7% Short term Bond Index, Admiral (VBIRX) (expense 0.07%)0
403b, Fidelity (see Note 5)
2% Total Market Index (FSKAK) (expense 0.015 %)
403b, TIAA/CREF (see Note 5)
4% CREF Growth R1 (QCGRRX) (expense 0.46%)
<1% CREF Growth R2 (QCGRPX) (expense 0.29%)
-----
1% TIAA Traditional
Treasury Direct
3% I-Bonds
HSA, Fidelity
3% 500 Index (FXAIX) (expense 0.015%) (71% of HSA)
1% Total Bond Market (FTBFX) (expense 0.44%) (29% of HSA)
Future Contributions
None planned
----------
Social Security
FRA 67 = $25K/year
Former stay-at-home mom with a lot of $0 years on my record, but I don't think ex's spousal benefit will be better.
----------
Notes/Questions:
1. Too much cash in "emergency funds?" I sleep soundly with 2-3 years of expenses handy, but it seems like a lot.
2. If I keep that much cash, maybe I should bump AA to 75/25 or even 80/20. I sleep well at 60/30/10, but 35 years is a long time. I know it's a personal thing, but ... thoughts?
3. How do my prospects look? I've checked Empower, Fidelity eMoney, FireCalc, etc. to age 95, and they look okay, but certainly not a slam dunk. I've also played with the 3-4% drawdown suggestions with the same walk-away feeling of "doable, but not much room for error." If I can keep low expenses for a few years, I'll feel better. I have good history at this expense level, but future plans are murky.
4. I might want to buy a house/condo in a few years. I've played with house-buying scenarios, and they don't seem to throw the plans off by much. Feels like I'm missing something there.
5. I would like to roll the 403(b) accounts into my IRA for simplicity, but there's a question about whether that would affect service credits if I work for the state again. Plus, I keep thinking TIAA might give me access to decent annuity options if I ever decide that's helpful (doubtful, but who knows?). Need to understand options better.
6. Do the intermediate/short-term/iBonds look reasonable? Bonds still confuse me, no matter how often I read about them. I get it, then a month later question it again. I-Bonds, however, I understand and like. I use bond funds to stabilize volatility, and to kick out some income. I use I-Bonds because I like the no-loss stabilization aspect. I'm happy to move $10K/year from bond funds to I-Bonds when it makes sense.
7. VWUAX is a silly leftover adventure. I rode it high for years, felt the pain of its death dive, and sold most of it as part of a portfolio simplification when it recovered a bit post-Covid. Not sure why I hung onto some, but it does keep things interesting.
8. Roth conversions sound good (well, Roth WITHDRAWALS sound good), but I'm not convinced they make sense at this point. Am I wrong? I'm thinking I could use Roth funds to supplement IRA withdrawals if I get too close to a tax level bump some years.
9. Totally clueless about RMDs, but when I looked a few years ago, I walked away thinking I didn't need to spend much time there. Right or wrong?
Okay. That's a lot. Any and all thoughts and suggestions welcome. I'm fully prepared to be schooled ... bring it! And thanks.
Me
- Retired (surprise!, but here I am)
- 60 years old, single, good health, no dependents or hard assets (e.g., no house)
- Traveling extensively (and cheaply!) and pondering where to eventually settle down
- Grown kids and family that might periodically need financial help, but no actual dependents
Budget/Expenses
- $50K/year until age 70, then $75K/year (senior living or additional help some day?)
- I actually spend <$40K now, but prefer to plan for $50K and come in under budget
----------
Emergency funds (I think of this as a cash bucket more than an emergency fund)
- Goal: 2-3 years expenses, plus emergency health cash = $120K + $15K HSA
- Current: $106K + $15K HSA
- Where is it? Checking/savings + money market within IRA + money market within HSA
Debt: $0
Tax Filing Status: Single, no dependents
Tax Rate: 12% Federal, 0% State (Texas, for now)
State of Residence: Texas now, but no decision yet on long-term
Age: 60
Desired Asset allocation:
General: 60% stocks / 30% bonds / 10% international stocks
HSA: 70% stocks / 30% bonds
----------
Approximate size of total portfolio: $1.3 million without counting emergency funds ($1.4 million with everything)
----------
Current retirement assets (percentages are of invested amounts, NOT including "emergency" cash funds above)
Taxable
$0
Roth IRA, Vanguard
21% Total Stock Market Index, Admiral (VTSAX) (expense 0.04%)
Traditional IRA, Vanguard
24% Total Stock Market Index, Admiral (VTSAX) (expense 0.04%)
8% US Growth, Admiral (VWUAX) (expense 0.02%)
-----
9% International Growth (VWILX) (expense 0.31%)
-----
17% Intermediate Term Bond Index, Admiral (VIBLX) (expense 0.07%)
7% Short term Bond Index, Admiral (VBIRX) (expense 0.07%)0
403b, Fidelity (see Note 5)
2% Total Market Index (FSKAK) (expense 0.015 %)
403b, TIAA/CREF (see Note 5)
4% CREF Growth R1 (QCGRRX) (expense 0.46%)
<1% CREF Growth R2 (QCGRPX) (expense 0.29%)
-----
1% TIAA Traditional
Treasury Direct
3% I-Bonds
HSA, Fidelity
3% 500 Index (FXAIX) (expense 0.015%) (71% of HSA)
1% Total Bond Market (FTBFX) (expense 0.44%) (29% of HSA)
Future Contributions
None planned
----------
Social Security
FRA 67 = $25K/year
Former stay-at-home mom with a lot of $0 years on my record, but I don't think ex's spousal benefit will be better.
----------
Notes/Questions:
1. Too much cash in "emergency funds?" I sleep soundly with 2-3 years of expenses handy, but it seems like a lot.
2. If I keep that much cash, maybe I should bump AA to 75/25 or even 80/20. I sleep well at 60/30/10, but 35 years is a long time. I know it's a personal thing, but ... thoughts?
3. How do my prospects look? I've checked Empower, Fidelity eMoney, FireCalc, etc. to age 95, and they look okay, but certainly not a slam dunk. I've also played with the 3-4% drawdown suggestions with the same walk-away feeling of "doable, but not much room for error." If I can keep low expenses for a few years, I'll feel better. I have good history at this expense level, but future plans are murky.
4. I might want to buy a house/condo in a few years. I've played with house-buying scenarios, and they don't seem to throw the plans off by much. Feels like I'm missing something there.
5. I would like to roll the 403(b) accounts into my IRA for simplicity, but there's a question about whether that would affect service credits if I work for the state again. Plus, I keep thinking TIAA might give me access to decent annuity options if I ever decide that's helpful (doubtful, but who knows?). Need to understand options better.
6. Do the intermediate/short-term/iBonds look reasonable? Bonds still confuse me, no matter how often I read about them. I get it, then a month later question it again. I-Bonds, however, I understand and like. I use bond funds to stabilize volatility, and to kick out some income. I use I-Bonds because I like the no-loss stabilization aspect. I'm happy to move $10K/year from bond funds to I-Bonds when it makes sense.
7. VWUAX is a silly leftover adventure. I rode it high for years, felt the pain of its death dive, and sold most of it as part of a portfolio simplification when it recovered a bit post-Covid. Not sure why I hung onto some, but it does keep things interesting.
8. Roth conversions sound good (well, Roth WITHDRAWALS sound good), but I'm not convinced they make sense at this point. Am I wrong? I'm thinking I could use Roth funds to supplement IRA withdrawals if I get too close to a tax level bump some years.
9. Totally clueless about RMDs, but when I looked a few years ago, I walked away thinking I didn't need to spend much time there. Right or wrong?
Okay. That's a lot. Any and all thoughts and suggestions welcome. I'm fully prepared to be schooled ... bring it! And thanks.
Statistics: Posted by lizzieb — Fri Nov 15, 2024 5:36 am