Emergency funds: between cash/MM, and intermediate term bond MFs there's plenty of liquidity to cover is my plan.
Debt: None
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 9.9% State
State of Residence: OR
Age: 62(Him), 58(Her)
Desired Asset allocation: 65% stocks / 35% bonds?
Desired International allocation: 0% of stocks (over the years I divested explicit international allocations and currently at 0%)
Total portfolio: a bit over $5M at this point thanks to the general stock market upsurge of the past year or so (maintaining fairly close to 65/35)
Current retirement assets
Taxable (~40%)
3% cash (a little extra at the moment, normally closer to 1%)
2.3% INTC
2.8% BRK-B
3.1% TXN
2.4% V
14.3% Vanguard Total Stock Mkt Idx Adm (VTSAX) (0.04%)
4.1% Vanguard Dividend Appreciation Index Fund (VIG)
2.0 % Vanguard Financials Index Fund (VFH)
3.08% Vanguard Intermediate-Term Tax-Exempt Fund (VWIUX) (0.03%)
3.53% Vanguard Intermediate-Term Bond Index Fund (VBILX) (0.04%)
His 401k (~44.5%) (Tax deferred 30.8%, Roth 13.7%)
13.2% BTC S&P 500 Index (0.006%)
4.8% Dodge & Cox Stock Fund Class X (DOXGX) (0.46%)
4.3% Fidelity ® Growth Company Commingled Pool Class S (0.32%)
22.0 % BlackRock U.S. Debt Index Fund 0.02%
(Notes: Reasonably closely aligned with what I’ve read in this forum regarding concentrating Bonds in the tax deferred part and stocks in the Roth portion)
Company match? (Included)
His Roth IRA at Vanguard (5.4%)
4.1% Vanguard Wellington Admiral (VWENX) (0.17%)
1.3% Vanguard Total Stock Mkt Idx Adm (VTSAX) (0.04%)
Her Roth IRA at Vanguard (7.9%)
6.1% Vanguard Wellington Admiral (VWENX) (0.17%)
1.8% Vanguard Total Stock Mkt Idx Adm (VTSAX) (0.04%)
HSA at Fidelity (2.3%)
0.3% FIDELITY BLUE CHIP GROWTH FUND: CLASS K (FBGKX) (0.69%)
1.6% FIDELITY 500 INDEX FUND (FXAIX) (0.01%)
0.4% FIDELITY U.S. BOND INDEX FUND (FXNAX) (0.03%)
_______________________________________________________________
Contributions
New annual Contributions
$75k His 401k (Roth, 'Mega backdoor Roth', Employer contribs)
2X $8k his and her (backdoor) Roth IRA
Expenses
~3% WR based upon current portfolio value would seem to cover taxes, reasonable current lifestyle, and projected new expenses in retirement until SS @age 70(including $10k each for him and her to cover annual healthcare related – is that a reasonable guideline?)
@age 70 SS (His + her spousal) should cover close to 50% of the above estimated annual expenses. I feel we should have enough to cover the case when one of us passes on.
Taxable/Tax-deferred/Tax-free (Roth, HSA) split is ~ 40% / 31% / 29%
I've been working on keeping rough balance between tax-deferred and Roth during accumulation, based on not knowing enough about future tax situation. This may have been too conservative an approach
Two major long term goals:
1. Moderate legacy and any ongoing major purchase help for two adult children just starting out in careers (both don't *need* support now, but we'd *want* to).
2. Self-funding any long term care/end-of-life type of situations rather than purchasing long-term care insurance at roughly ~100k/year for 3 years for him/her
We’ve tried to incorporate these goals in firecalc and Fidelity Retirement planner modeling, and looks like we’d be able to accomplish this within reason. (all in real $ terms per capabilities of the simulators)
Questions:
1. We had set a retirement target for me at 64 (2026). But voluntary/involuntary actions are likely in the very near future with severance packages which would amount to close to a year’s compensation - effectively a choice for an earlier retirement date of 63 for me. No guarantees packages would be available later, of course. I am curious to see what folks would do in a similar situation: would you take the 'early' retirement package? I am not interested in taking up a similarly paying job if I quit, so truly a retirement. (Interestingly, the Fidelity retirement planning tool in their website shows a very substantial increase in the assets left over at the end of plan period depending on my working 1, and 2 more years. In some ways I regard all that as funny money, but it's an eye opener for sure.. )
2. I am looking for suggestions on s/w or non-AUM based service that can help optimize the decumulation process: order of withdrawals, tax planning, modeling scenarios on a continual basis as the years progress, etc. I read so much in this forum over the years, and now I'm feeling a little bit of paralysis in terms of the approach to adopt. Additional consideration would be something my spouse could handle if I pass away first (she is savvy but un-involved so far in the mechanics of financial mgmt). Accumulation was easy!
3. Anything by the way of tips - things in similar lead-up-to-retirement situations you found helpful would be great. Pre-Medicare healthcare seems to be the biggest headache in terms of getting it right. (Post- also, I suppose at that).
Thank you very much for your attention, and any wisdom / advice you feel free to share! The prospect of retirement truly feels like a step into the great unknown, sobering and emotional - and many of this forum's members are truly such a great resource for objective advice and ideas. Thank you -
Debt: None
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 9.9% State
State of Residence: OR
Age: 62(Him), 58(Her)
Desired Asset allocation: 65% stocks / 35% bonds?
Desired International allocation: 0% of stocks (over the years I divested explicit international allocations and currently at 0%)
Total portfolio: a bit over $5M at this point thanks to the general stock market upsurge of the past year or so (maintaining fairly close to 65/35)
Current retirement assets
Taxable (~40%)
3% cash (a little extra at the moment, normally closer to 1%)
2.3% INTC
2.8% BRK-B
3.1% TXN
2.4% V
14.3% Vanguard Total Stock Mkt Idx Adm (VTSAX) (0.04%)
4.1% Vanguard Dividend Appreciation Index Fund (VIG)
2.0 % Vanguard Financials Index Fund (VFH)
3.08% Vanguard Intermediate-Term Tax-Exempt Fund (VWIUX) (0.03%)
3.53% Vanguard Intermediate-Term Bond Index Fund (VBILX) (0.04%)
His 401k (~44.5%) (Tax deferred 30.8%, Roth 13.7%)
13.2% BTC S&P 500 Index (0.006%)
4.8% Dodge & Cox Stock Fund Class X (DOXGX) (0.46%)
4.3% Fidelity ® Growth Company Commingled Pool Class S (0.32%)
22.0 % BlackRock U.S. Debt Index Fund 0.02%
(Notes: Reasonably closely aligned with what I’ve read in this forum regarding concentrating Bonds in the tax deferred part and stocks in the Roth portion)
Company match? (Included)
His Roth IRA at Vanguard (5.4%)
4.1% Vanguard Wellington Admiral (VWENX) (0.17%)
1.3% Vanguard Total Stock Mkt Idx Adm (VTSAX) (0.04%)
Her Roth IRA at Vanguard (7.9%)
6.1% Vanguard Wellington Admiral (VWENX) (0.17%)
1.8% Vanguard Total Stock Mkt Idx Adm (VTSAX) (0.04%)
HSA at Fidelity (2.3%)
0.3% FIDELITY BLUE CHIP GROWTH FUND: CLASS K (FBGKX) (0.69%)
1.6% FIDELITY 500 INDEX FUND (FXAIX) (0.01%)
0.4% FIDELITY U.S. BOND INDEX FUND (FXNAX) (0.03%)
_______________________________________________________________
Contributions
New annual Contributions
$75k His 401k (Roth, 'Mega backdoor Roth', Employer contribs)
2X $8k his and her (backdoor) Roth IRA
Expenses
~3% WR based upon current portfolio value would seem to cover taxes, reasonable current lifestyle, and projected new expenses in retirement until SS @age 70(including $10k each for him and her to cover annual healthcare related – is that a reasonable guideline?)
@age 70 SS (His + her spousal) should cover close to 50% of the above estimated annual expenses. I feel we should have enough to cover the case when one of us passes on.
Taxable/Tax-deferred/Tax-free (Roth, HSA) split is ~ 40% / 31% / 29%
I've been working on keeping rough balance between tax-deferred and Roth during accumulation, based on not knowing enough about future tax situation. This may have been too conservative an approach
Two major long term goals:
1. Moderate legacy and any ongoing major purchase help for two adult children just starting out in careers (both don't *need* support now, but we'd *want* to).
2. Self-funding any long term care/end-of-life type of situations rather than purchasing long-term care insurance at roughly ~100k/year for 3 years for him/her
We’ve tried to incorporate these goals in firecalc and Fidelity Retirement planner modeling, and looks like we’d be able to accomplish this within reason. (all in real $ terms per capabilities of the simulators)
Questions:
1. We had set a retirement target for me at 64 (2026). But voluntary/involuntary actions are likely in the very near future with severance packages which would amount to close to a year’s compensation - effectively a choice for an earlier retirement date of 63 for me. No guarantees packages would be available later, of course. I am curious to see what folks would do in a similar situation: would you take the 'early' retirement package? I am not interested in taking up a similarly paying job if I quit, so truly a retirement. (Interestingly, the Fidelity retirement planning tool in their website shows a very substantial increase in the assets left over at the end of plan period depending on my working 1, and 2 more years. In some ways I regard all that as funny money, but it's an eye opener for sure.. )
2. I am looking for suggestions on s/w or non-AUM based service that can help optimize the decumulation process: order of withdrawals, tax planning, modeling scenarios on a continual basis as the years progress, etc. I read so much in this forum over the years, and now I'm feeling a little bit of paralysis in terms of the approach to adopt. Additional consideration would be something my spouse could handle if I pass away first (she is savvy but un-involved so far in the mechanics of financial mgmt). Accumulation was easy!
3. Anything by the way of tips - things in similar lead-up-to-retirement situations you found helpful would be great. Pre-Medicare healthcare seems to be the biggest headache in terms of getting it right. (Post- also, I suppose at that).
Thank you very much for your attention, and any wisdom / advice you feel free to share! The prospect of retirement truly feels like a step into the great unknown, sobering and emotional - and many of this forum's members are truly such a great resource for objective advice and ideas. Thank you -
Statistics: Posted by PDX_Traveler — Tue Mar 19, 2024 1:24 am