New Boglehead and 1st post ![:)]( "Smile")
We followed Dave Ramsey's advice to pay off all of our debt and build an emergency fund. Due to a lot of critiques, I wasn't confident in his investment advice. I recently started listening to the Bogleheads and Rob Berger podcasts. I wish we found the Bogleheads 20 years ago! I would love your advice on our portfolio.
Emergency Fund: $30k
Additional Savings: $20K
In the process of moving both to a high yield savings account at 4.4%.
Debt:
Mortgage $233K at 3.75%, 22 years remaining on loan.
No other debt.
Tax Filing: Married, age 45 Her and 45 Him
Tax Rate: 22% Federal
Desired Asset allocation: 95% stocks / 5% bonds
(using William Bengen aggresive strategy 140-age)
Desired International allocation: 20% of stocks
Total investment portfolio: $260K
Current assets
Majority is in Morgan Stanley ($220K total)
His IRA at Morgan Stanley:
12.86% ISHARES CORE MSCI EAFE ETF/IEFA
6.7% VANGUARD FTSE EMERGING MARKETS/VWO
31.01% VANGUARD GROWTH ETF/VUG
11.78% VANGUARD SMALL CAP ETF/VB
24.46% VANGUARD VALUE ETF INDEX
8.17% FEDERATED HERMES GOVT OBL AVR/GOVXX
5.03% MORGAN STANLEY Money Market
Her IRA at Morgan Stanley:
12.6% ISHARES CORE MSCI EAFE ETF/IEFA
6.75% VANGUARD FTSE EMERGING MARKETS/VWO
30.39% VANGUARD GROWTH ETF/VUG
11.54% VANGUARD SMALL CAP ETF/VB
23.98% VANGUARD VALUE ETF INDEX
9.71% FEDERATED HERMES GOVT OBL AVR/GOVXX
5.03% MORGAN STANLEY Money Market
Her Rollover IRA at Fidelity:
100% VTI ($10k)
Her Roth IRA Fidelity:
100% VTI ($10K)
His Roth 401K at Fidelity (old job, plan to roll to Roth IRA):
After rollover 100% VTI ($20K)
Her new 403B, company match 4%, will be eligible for match in 6 months
100% FXAIX ($2K)
Available Funds:
Her 403B (Empower):
Fidelity Small Cap Index/FSSNX
Fidelity Mid Cap Index/FSMDX
Fidelity Advisor Equity Growth Z/FZAFX
Fidelity U.S. Sustainability Index Instl/FITLX
Fidelity 500 Index/FXAIX
Fidelity US Bond Index/FXNAX
Fidelity(R) Total Bond K6/FTKFX
Him
Self-employed, open SEP or simple IRA in Fidelity?
Questions:
1. What funds/allocation would you advise in her 403B? From what I can tell there isn't a total stock market index fund. I reached out to HR and they advised me to contact the plan administrator, Empower about adding a fund.
2. We plan to get rid of our Morgan Stanley adviser and roll our IRAs to Fidelity. This will put everything in Fidelity except my 403B. The research I've done so far has landed me at buying Vanguard ETFs with Fidelity: VTI/VEA/BND. Is this a good plan or should we just do Fidelity funds?
3. ETFs vs mutual funds for ongoing contributions to Roth IRAs with Fidelity: Our goal is to have 15% of our income going into retirement savings. I like the Vanguard funds (has to be Vanguard ETF through Fidelity) but automatic contributions into mutual funds seem less stressful than ETFs. Am I overthinking this?
4. Should we allocate all accounts equally between stocks/bonds/international?
I would appreciate any guidance you can provide!
We followed Dave Ramsey's advice to pay off all of our debt and build an emergency fund. Due to a lot of critiques, I wasn't confident in his investment advice. I recently started listening to the Bogleheads and Rob Berger podcasts. I wish we found the Bogleheads 20 years ago! I would love your advice on our portfolio.Emergency Fund: $30k
Additional Savings: $20K
In the process of moving both to a high yield savings account at 4.4%.
Debt:
Mortgage $233K at 3.75%, 22 years remaining on loan.
No other debt.
Tax Filing: Married, age 45 Her and 45 Him
Tax Rate: 22% Federal
Desired Asset allocation: 95% stocks / 5% bonds
(using William Bengen aggresive strategy 140-age)
Desired International allocation: 20% of stocks
Total investment portfolio: $260K
Current assets
Majority is in Morgan Stanley ($220K total)
His IRA at Morgan Stanley:
12.86% ISHARES CORE MSCI EAFE ETF/IEFA
6.7% VANGUARD FTSE EMERGING MARKETS/VWO
31.01% VANGUARD GROWTH ETF/VUG
11.78% VANGUARD SMALL CAP ETF/VB
24.46% VANGUARD VALUE ETF INDEX
8.17% FEDERATED HERMES GOVT OBL AVR/GOVXX
5.03% MORGAN STANLEY Money Market
Her IRA at Morgan Stanley:
12.6% ISHARES CORE MSCI EAFE ETF/IEFA
6.75% VANGUARD FTSE EMERGING MARKETS/VWO
30.39% VANGUARD GROWTH ETF/VUG
11.54% VANGUARD SMALL CAP ETF/VB
23.98% VANGUARD VALUE ETF INDEX
9.71% FEDERATED HERMES GOVT OBL AVR/GOVXX
5.03% MORGAN STANLEY Money Market
Her Rollover IRA at Fidelity:
100% VTI ($10k)
Her Roth IRA Fidelity:
100% VTI ($10K)
His Roth 401K at Fidelity (old job, plan to roll to Roth IRA):
After rollover 100% VTI ($20K)
Her new 403B, company match 4%, will be eligible for match in 6 months
100% FXAIX ($2K)
Available Funds:
Her 403B (Empower):
Fidelity Small Cap Index/FSSNX
Fidelity Mid Cap Index/FSMDX
Fidelity Advisor Equity Growth Z/FZAFX
Fidelity U.S. Sustainability Index Instl/FITLX
Fidelity 500 Index/FXAIX
Fidelity US Bond Index/FXNAX
Fidelity(R) Total Bond K6/FTKFX
Him
Self-employed, open SEP or simple IRA in Fidelity?
Questions:
1. What funds/allocation would you advise in her 403B? From what I can tell there isn't a total stock market index fund. I reached out to HR and they advised me to contact the plan administrator, Empower about adding a fund.
2. We plan to get rid of our Morgan Stanley adviser and roll our IRAs to Fidelity. This will put everything in Fidelity except my 403B. The research I've done so far has landed me at buying Vanguard ETFs with Fidelity: VTI/VEA/BND. Is this a good plan or should we just do Fidelity funds?
3. ETFs vs mutual funds for ongoing contributions to Roth IRAs with Fidelity: Our goal is to have 15% of our income going into retirement savings. I like the Vanguard funds (has to be Vanguard ETF through Fidelity) but automatic contributions into mutual funds seem less stressful than ETFs. Am I overthinking this?
4. Should we allocate all accounts equally between stocks/bonds/international?
I would appreciate any guidance you can provide!
Statistics: Posted by firefly443 — Fri Feb 09, 2024 3:44 pm