Greetings! First I should say I've long been a Boglehead, but for the last few years due to job issues, health issues and various other things I haven't (unfortunately) paid as much attention to my retirement accounts as I definitely should. Hence, finally registering here for the guidance of fellow Bogleheads!
What I'm seeking is general advice on my current fund distribution and feedback on the best way to simplify these accounts. I am married, we are both 32, hope to retire by 55-60 and will in 2013 be making likely a combined income of a bit north of $100,000. My wife was graciously given a large sum for UTMA's and Roth contributions for many, many years and I am now "in charge" of these accounts. For this, I have separated mine and hers.
Emergency funds: Yes, several months - probably too much actually.
Debt: Only house, 3.29 percent. Will have new car note in mid 2013, estimating a low rate as well.
Tax Filing Status: Single, Married Filing Jointly
Tax Rate: 8.15% federal (this will be going up, making $25,000 more annually this year), 3.01% State
State of Residence: Pennsylvania
Desired Asset allocation: Unknown, but higher on stocks
Desired International allocation: Unknown, but higher on stocksCurrent retirement assetsHIS ACCOUNTS
ROTH IRA - Mid $30,000s
8% Strategic Equity Fund (VSEQX)
92% Target Retirement 2045 Fund (VTIVX)HER ACCOUNTS
Combined, her Roth and UTMA equals Upper $200,000s.
0.30% Growth Equity Fund (VGEQX)
15.20% Health Care Fund Investor Shares (VGHCX)
7.40% International Growth Fund Investor Shares (VWIGX)
0.80% REIT Index Fund Investor Shares (VGSIX)
10.20% Strategic Equity Fund (VSEQX)
53.30% Health Care Fund Admiral Shares
11.10% 1.70% Pennsylvania Long-Term Tax-Exempt Fund Investor Shares
401k - mid $20,000s
100% Fidelty Target Retirement Fund 2055
All Vanguard funds available to both; her account has access to Admiral and Investor shares. QUESTIONS
1) I have yet to make our annual Roth contributions and thought now would be a good time for feedback. I am seeking advice on current allocations and if my current road is "acceptable" for someone who is OK with mostly stocks at this time (again, we are 31).
2) The UTMA accounts can't be exchanged without capital gain taxes of course, so I'm unsure (as we all are) if I should transfer these into the Roth prior to the Cliff or not. This isn't a question as much as a known issue I'll be facing like so many others.
3) Our asset allocation is clearly not the "four fund" approach - is it even possible / feasible to move in this route at this time?
Thank you all for your expertise. I am finally excited to be able to start thinking of the future again. Happy holidays to everyone!