deadlymonkey wrote:Desired International allocation: xx% of stocks (not even sure how to peg a good number here)
Vanguard has found between 20% and 40% of stocks in international to be the "sweet spot". See the discussion
and the Vanguard paper link
. Vanguard splits the difference and uses 30% in their Target Retirement and LifeStrategy funds. So if you have an AA of 80% stocks and 20% bonds, then it would break down to 56% US stocks, 24% international stocks, and 20% bonds. Your L 2040 Fund
is currently 22% international.
I have only recently opened a Roth TSP option. Between the Roth and Normal TSP, I max out the current 17,500 contribution.
That's good. See Most TSP Participants Should Switch To The Roth TSP
I also have a relatively small amount of money in a USSPX Index mutual fund which was my first attempt at branching out my investing.
Is this a taxable account? Did you buy this for long-term retirement investing or something else?USSPX
is an S&P 500 Index Fund similar to the C Fund. If you're buying for retirement I have better (and cheaper) options below.
I have mid 5 figures that are sitting in a very low interest savings and checking account. My income and career is very stable and can expect a military pension. In 8-10 years, my wife may begin to work part time but probably not until then. What would be a good use for investing my available assets? Should I open a spouse Roth through Vanguard and max that out?
Yes, fully fund Roth IRAs for both of you. Set aside some for the new (to you) cars you'll need when you get back. The remainder could be put in a 529 for your child or a taxable account for your retirement. (VTSMX
) Vanguard Total Stock Market Index Fund Investor Shares (0.18%) and (VGTSX
) Vanguard Total International Stock Index Fund Investor Shares (0.22%) are two good options for taxable (especially TISM because of the
Foreign tax credit
). You could also consider
I Savings Bonds
through Treasury Direct
. However, if you do start a taxable account for retirement, you'll need to drop the L 2040 Fund and start using the C, S, F, and G Funds separately. (The I Fund is the only weak link in the TSP system. It is missing emerging markets, small-caps, and Canada.)
We are currently overseas and will need to buy two cars when we arrive stateside again (low cost used vehicles). We have discussed pros and cons of buying a house, but have no idea where in the world we would like to end up living in after I retire from the military.
Wait until near the end of your service before buying a house. Too many things change.
If you haven't already, check out this thread on Military Investing
and this Wiki article on Military finances
Just some possibilities.