Some advice please!!! Current retirement assets (Roth and 403(b)'s) are in the mid $300K range (wife and I combined). We are both school teachers with a successful summer business. We have three children and have 529 accounts for two of the three (more later). While we've done well lately, as have so many, with our portfolio, I'm well aware that the party won't last. I know that I'm in need of some re-balancing but am a bit lost as to where to go next...
All of our retirement accounts are at Vanguard. Currently, we both max out our Roth contributions ($5500 each) and, until 4 months ago, were contributing an additional $10,000/year toward 403(b)'s. We needed some current income, so we temporarily stopped those contributions until September, 2013 when we intend to start up again. In short, we'll be contributing $21,000 toward retirement by September, 2013. We've also stopped contributing toward children's 529's for same reason. Come September, we will begin those contributions again.
As teachers, we will both be eligible for pensions. I can begin collecting 54% of final year's salary at age 55 (in 9 years), my wife 60% in 17 years. I am also retired military and am eligible to collect $1200/month pension at age 60.
Emergency funds: $6500 in savings account (Admittedly light here. Contributing $600/month. Goal is $25000 minimum)
Debt: Mortgage Balance - $288,000, 13 years remain. Paying approximately $3300/month (includes property tax and insurance)
Tax Filing Status: Married Filing Jointly
Tax Rate: 28% Federal, 3% State
State of Residence: PA
Age: Me 46, Spouse 42
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 15-20% of stocks
All Vanguard accounts:
Small Cap Index - 7.0%
Inflation Protected Securities (TIPS) - 9.5%
International Growth - 13.2%
Short Term Bond Index - 7.0%
Mid-Cap Index Admiral - 8.6%
Growth and Income - 13.3%
Total Bond Market Index - 4.2%
Emerging Markets Stock Index Admiral - 4.2%
Health Care - 13.6%
International Growth - 12.2%
REIT - 7.3%
Child #1 (age 12) - $21,277
Child #2 (age 10) - $13,300
Child #3 (age 5) - $0 --- Strategy is that our mortgage, 13 year remaining ($2400/month) will be paid in full by the time #3 begins college.
Any assistance that might be given regarding rebalancing would be great. Thanks so much!!!!