This is my first post on this forum. I'm a fairly new investor who's been doing a lot of reading here, the wiki, and elsewhere. I'm hoping that I can get some insight on my situation from your collective wisdom. Thanks in advance!
Filing Status: Married, filing jointly
State: Ohio resident
Brackets: 25% federal / 3.521% state
Income: $80,000/year total
Desired AA: 75/25 (or thereabouts)
Desired International: about 30% of equities
Current Allocation Plan: 27% large cap, 15% small cap, 25% international, 8% REIT, and 25% bonds.
Emergency Fund: $3,100 (savings account, about 2 months of expenses)
HSA: $4,200 (not invested)
My Employer 401k: $3,400 ING U.S. Stock Index Portfolio Institutional Shares (no symbol given for this)
My Wife's Employer 401k: $400 ING U.S. Stock Index Portfolio Institutional Shares (no symbol given for this)
My Roth IRA (with Vanguard): $3,600 Vanguard Total International Stock Index Investor Shares (VGTSX)
- $2,500 at 6.8%
- $3,700 at 2.25%
- $4,200 at 6.8%
- $5,200 at 6.0%
- $5,200 at 5.6%
- $8,000 at 6.8%
- $4,100 at 8.0%
- $3,470 at 8.0%
- $3,100 at 5.0%
Current Budget Surplus
Funds Available in 401k Plan through ING (no symbols given for any of these)
*My wife and I are employed at the same place, so we have the same funds available
- ING Fixed Account 3.0%
- ING Money Market Portfolio - Class I (0.34% ER)
- ING PIMCO Total Return Portfolio - Initial Class (0.58% ER)
- PIMCO VIT Real Return Portfolio - Admin Class (0.65% ER)
- ING Solution 2015 Portfolio - Initial Class (0.89% ER)
- ING Solution 2025 Portfolio - Initial Class (0.97% ER)
- ING Solution 2035 Portfolio - Initial Class (1.03% ER)
- ING Solution 2045 Portfolio - Initial Class (1.04% ER)
- ING Solution 2055 Portfolio - Initial Class (1.04% ER)
- ING Solution Income Portfolio - Initial Class (0.83% ER)
- ING T. Rowe Price Capital Appreciation Portfolio - Service (0.90% ER)
- Eaton Vance Large-Cap Value Fund - Class R (1.23% ER)
- ING U.S. Stock Index Portfolio - Institutional Class (0.26% ER)
- Pioneer Equity Income Fund - Class Y Shares (0.77% ER)
- American Funds The Growth Fund of America - Class R-4 (0.69% ER)
- ING T. Rowe Price Growth Equity Portfolio - Initial Class (0.74% ER)
- Columbia Mid Cap Value Fund - Class A Shares (1.19% ER)
- Franklin Small Cap Value Securities Fund - Class 2 (0.92% ER)
- ING Baron Growth Portfolio - Initial Class (1.00% ER)
- ING Russell Mid Cap Index Portfolio - Class I (0.45% ER)
- ING Russell Small Cap Index Portfolio - Class I (0.48% ER)
- Wanger Select (0.92% ER)
- American Funds EuroPacific Growth Fund - Class R-4 (0.85% ER)
- ING Oppenheimer Global Portfolio - Initial Class (0.75% ER)
We have no immediate plans for children or to buy a house or car. Our current plan of attack is to pay off the loans in order from highest interest rate to lowest. My wife and I agree that paying off the loans frees up extra income and gives us peace of mind. We're currently deferring enough of my paycheck to get the match on the 401k. I think we're making the best choice in the 401k accounts by going with the US stock index fund. They all seem pretty expensive compared to Vanguard funds. So I figure we can keep that in the 401k, and the other index funds will be in the Roth. Of the $2,000 monthly budget surplus, $1,500 is going towards extra payment on the loans, and $500 is going into the Roth IRA. At the moment, that $500 is just going into the International Index (VGTSX), but I plan to split it once there's enough money in there.
- What is the best way to acquire all of the funds that I'm currently missing? Is there an order any of you would suggest?
- I'm currently planning to keep it simple by holding a small cap index fund and a total international index fund, as well as a total bond market index fund, although I've also been considering adding a large and small value. Is tilting this way worth it? Should I wait until I have a bigger pool before worrying about it?
- The HSA money could be invested, but I figure that keeping it as another emergency fund is a better idea, since our emergency fund isn't too big, right?
- Is there anything you would do differently? I'm open to all suggestions!
Please let me know if you have any questions!