TimeRunner wrote:Age: 58
Desired Asset allocation: 65s/35b but open to advice
I think this is too aggressive. First of all, you have no need to take risk. You've already "won the game" so to speak, so what reason do you have to put this money at risk? Second, 35% bonds is more aggressive than "age minus 20" in bonds - and that's about the most aggressive stance that gets much discussion around here.
You may have a willingness
to take risk, but you have no need
for risk and not that great an ability
to take risk since you are only 4 years from retirement. If you consider your willingness, need, and ability to take risk, your 65/35 idea is just too risky in my opinion. At a minimum, you should have 40% in bonds, but I really think 50% would be smarter.
Total = 1,597,500 (nice job
). Looking at percentages instead of dollars, your current portfolio looks like this:Taxable 15.8% 251.7k
0% Vanguard CA Tax-Exempt MM Fund (VCTXX) (0.17%) (Sweep acct)
1.8% Vanguard Emerg Mkts Stock Index Fund Admiral VEMAX (0.20%)
3.05 Vanguard Total Intl Stock Index Fund Admiral VTIAX (0.18%)
1.9 Vanguard Total Stock Mkt Index Fund Admiral VTSAX (0.06)
.3% Vanguard VAW ETF (0.19%)
4.1% AAPL (cost $39K LT)
4.7% GOOG (cost $36.4K LT)His 401k 65.1%
$1.04M USGOV TSP L2020 (39.7% bonds) contrib max every year since 1987, currently $22K pre-tax, <--what does this mean?Roth IRA at Vanguard 19.1% ($305.8)
3.4% Vanguard VEMAX Emerging Markets(0.20)
3.9% Vanguard VBTLX Total Bond (0.10%)
4.3% Vanguard VTIAX Total International (0.18%)
7.6% Vanguard VTSAX Total Stock (0.06%)
Your current portfolio is 70% stocks, 30% bonds, with 35% of your stocks in international. Your portfolio is "OK" other than being too aggressive. However, it could be simpler and more efficient if you want. But I suspect you have nothing but gains in your taxable account, right?
Expected CSRS Pension 5 years approx $10.5K/year @ age 62
Expected FERS Pension 32 years approx $49.3K/year @ age 62
Planning to not file for Soc Security until age 70, expected $40.5K/year @ age 70
Do you expect this to cover most of your expenses? I realize that retirement and marriage might change things, but give it your best guess.
New annual Contributions
$22.5K into TSP L2030 + employer match $7K <-----do you mean 2030 or is this a typo? It doesn't make a lot of sense to be adding to your stock percentage - you are already too aggressive.
Age 58, will retire at 62 (god and gov't willing), should I continue to hold AAPL and GOOG or sell in 2013? I am somewhat uncomfortable with these large holdings.
This is 8.8% of your portfolio. Up to 10% in "play money" is not greatly frowned upon around here. 5% might be better. Some would say 0%. And it would not really matter if it all went to zero - you won't be eating cat food in retirement. But, it is your discomfort that indicates you should sell some. You could sit on it and let it become a smaller part of your portfolio as it grows. You could sell a little each year. You could donate some each year - you get the full value of the donation as a deduction. Or you could just pull the bandaid off and dump it if that is what you want.
I want to take another look at this more holistically with my fiancee's finances - something I really haven't seriously done to date, but which I really need to do. Gulp! She's extremely responsible, so I don't expect any surprises. I'll repost with her info in the next month or so
You should not combine portfolios until marriage. Combining portfolios often puts one party at a disadvantage - all the bonds or all the stocks.
I *think* I understand your advice re: roth conversions post retirement...which I think is looking at filling the buckets below 28 or 33% tax bracket or so with Roth IRA conversions using TSP money that has been transferred to a TIRA.
This is often a good idea. But in your case, I think Roth conversions is not necessarily a good idea and will only benefit heirs (perhaps nieces and nephews?). And probably not at 28% and CERTAINLY not at 33%. This can be looked at at a later time though.
With the answers to some questions above, maybe an idea could be given for your consideration. However, with taxable gains in your taxable account, the amount of "improvement" might be limited.