, you have a desired AA of 70% stocks, 30% bonds (a little low for your age), with 25% of stocks in international. That breaks down to 52% US stocks, 18% international stocks, and 30% bonds. Here is a possible retirement portfolio:Taxable at Vanguard -- 49%
) Vanguard Total Stock Market Index Fund Admiral Shares (0.05%)
) Vanguard Total International Stock Index Fund Admiral Shares (0.16%)His Thrift Savings Plan -- 22%
6% C Fund
2% S Fund
(0.027%) <-- Roughly 80% large caps (C Fund) plus 20% mid/small caps (S Fund) makes up the total US stock market.
4% F Fund
% G Fund
(0.027%)Her Thrift Savings Plan -- 16%
16% F Fund
(0.027%)His Roth IRA at Vanguard -- 7%
) Vanguard Total Stock Market Index Fund Admiral Shares (0.05%)Her Roth IRA at Vanguard -- 6%
) Vanguard Total Stock Market Index Fund Admiral Shares (0.05%)My comments:
-- This ignores the tax cost of selling in taxable. (And the cost could be major.)
-- This has TISM in taxable to take advantage of the
Foreign tax credit
and because it's a much better fund than the TSP I Fund.
-- I think the G Fund should be from 25% to 50% of the total bond AA. The above is 33%.
-- You wrote:
"Marginal Tax Rate: 28% Federal; currently no state taxes due to active military based in HI (CA as home state
) and HI doesn’t tax military pensions".
You need to separate yourself from California before you retire. Driver's licenses, vehicle registrations, voter registrations, bank accounts, etc. need to be in Hawaii. CA is really nasty about trying to tax you after you've moved.Your questions:
1. What is the best way to achieve my desired AA?-- The above is the easiest way. It may not be the cheapest when considering tax costs. (And bonds don't belong in taxable as long as you have room in tax-sheltered.)
2. We do not anticipate a need to tap any of our tax-deferred accounts for another 20+ years…does it make sense to leave our TSP in Lifecycle 2030 and TSP Roth Lifecycle 2040 (Target Date TSP Funds)? Or should we be more aggressive? Should I consider the G Fund?-- Once you have taxable accounts for retirement using balanced funds is not optimum (because you shouldn't use them in taxable). Place your money in individual funds instead. And yes, use the G Fund. It's practically a free lunch.
3. Where should we put the relatively high percentage of cash reserves or should we leave that where it is (mostly FDIC insured Ally online savings with under 1% interest)?-- Are you writing about the 21% cash in taxable or something else? If it is for retirement purposes, it should be a part of your AA. If it is not for retirement, what is it for?
4. Will we have enough for a comfortable retirement if/when my wife and I decide to pursue our volunteering passion once she retires from the Army in a couple of years?-- Can't help here.
Something to think about.