ChrisKtdf12 wrote:Emergency Funds: one year (We have also saved enough to pay for a wedding, college, and LTCi 10-pay premiums. These
additional savings are not included in the retirement assets listed below.)
Are the emergency funds included in the retirement assets listed below? If yes, the desired 10% allocation to cash makes some sense. If your emergency fund is separate, I don't see any purpose in holding an additional 10% allocation in cash. For the idea below, I'm assuming it is separate.
Here's an idea that sells some of your cash reserves and a couple of your mutual funds. The rest of the taxable account is left intact for now, but you should get rid of almost everything there (except CDs, I Bonds, Total Stock and Total International). I'm guessing at some things below. Like which account is your 401k. And where some of these things are housed. 38% Taxable
19% Total Stock Market Index
4.2% Vanguard Total International Index
1.6% AMCAP Fund Class A (Am. Funds) (AMCPX) 0.73%
5.7% Washington Mutual Investors Fund A (Am. Funds) (AWSHX) 0.62%
2.4% Vanguard Tax Managed Growth & Inc. Adm. Sh. (VTGLX) 0.12%
2.5% Vanguard Tax Managed Capital Apprec. Adm. Sh. (VTCLX) 0.12%
0.6% Vanguard Strategic Equity Fund (VSEQX) 0.33%
4.5% Certificates of deposit
1.0% I bonds His 401k 3.6%
1.8% Spartan Total Stock
1.8% Spartan Bonds (to be determined)His Traditional IRA 25.2% <---appears to be a Fido and Vanguard?
25.2% Bonds (to be determined)Her Traditional IRA 15.3% + .9% from Her old 403b = 16.2% <---appears to be at Vanguard?
16.2% Bonds (to be determined) His Roth IRA 4.4% <---appears to be at Vanguard?
2.2% Vanguard Total International Index
2.2% Vanguard Total Bond Market IndexHer Roth IRA 2.9% <---appears to be at Vanguard?
2.9% Bonds (to be determined) His Inherited IRA 3.8%
3.8% Fidelity Spartan Bonds (to be determined) Her Inherited IRA 5.7%
5.7% Fidelity Spartan Bonds (to be determined)
This idea is 40% stock ad 60% bonds and other fixed income investments. It has about 16% of the stocks in international (assuming the other mutual funds don't contain any - I didn't look them up).
You would maintain the ratios with your contributions. I'm not quite sure how that is going to work since I'm not sure what you would be selling in order to buy. But here's a place to start:
His 401k $23k: $11,480 to bonds, $11, 520 to stocks
His Roth IRA: $3k to International, $3500 to Bonds
Her Roth IRA: $6,500 to Bonds
In order for your international to not grow too much, you might need to reduce the international contribution after the first year.
This whole thing would be a great deal easier
if you would just sell all the clutter in your taxable account now - even if you have to pay some capital gains taxes. This would reduce your taxable account to
some short term bonds to use for expenses and to fund your Roth IRAs each year
If you did this, the ratios in the other accounts might have to be adjusted, but that would not be difficult.