Emergency funds: Yes
Debt: $250k left on 30-year fixed @ 4.25%, ~27 years left
Tax Filing Status: Single
Tax Rate: 28% Federal, 6.37% State
State of Residence: NJ
Age: 29
Desired Asset allocation: 80% stocks / 20% bonds (+/- 5% on stocks, still uncertain)
Desired International allocation: 30% of stocks
Total portfolio currently high 5 figures, soon to invest another $50k or so into taxable (not reflected in below percentages)
Current retirement assets
Taxable
10% Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) (0.17)
3% Vanguard Total International Stock Index Fund Investor Shares (VGTSX) (0.22)
401k at Mercer (w/ ex-employer)
71% Lifepath Index 2050 (ticker n/a) (0.12)
401k at Fidelity (w/ ex-employer)
9% Fidelity Freedom 2050 (FFFHX ) (0.77)
Roth IRA at Vanguard
6% Vanguard Target Retirement 2050 Fund (VFIFX) (0.18)
Contributions
New annual Contributions
$5500 Roth IRA (via backdoor conversions)
$6000 taxable (for retirement, not short term goals)
No 401k currently
Available funds
Funds available at Mercer 401k (excluding target and high-cost/actively managed funds)
Vanguard Institutional Index Fund Institutional Plus Shares [tracks S&P 500] (VIIIX) (0.02)
Vanguard Extended Market Index Fund Institutional Plus Shares (VEMPX) (0.10)
Vanguard FTSE All-World ex-US Index Fund Institutional Plus Shares (VFWPX) (0.10)
Vanguard Total Bond Market Index Fund Institutional Plus Shares (VBMPX) (0.05)
Funds available at Fidelity 401k (excluding target and high-cost/actively managed funds)
Spartan 500 Index Fund (FUSVX) (0.07)
Spartan Intertional Index Fund (FSIVX) (0.17)
Spartan U.S. Bond Index Fund (FSITX) (0.17)
Other considerations:
1. I have no current 401k so am limited to the Roth contributions (though I do expect to get a 401k within a year or two hopefully).
2. Salary is too high for normal Roth contributions, so I am doing backdoor conversions. I'd prefer to roll over my 401k's into a Vanguard IRA, but am not doing so in order to continue with the backdoor conversions (which I only just started this year).
3. Up until now I've considered the taxable account separate, so the asset allocation of the entire portfolio is wrong until I rebalance. (And the asset balance of the taxable was wrong anyway as I had sold some bonds a while ago before I really knew what I was doing)
4. I'm not totally certain about what stock/bond split I really want. To me it's somewhat arbitrary on such a long time horizon and I am just going off what "experts" say. The 2050 retirement funds are all 90/10, which seems super aggressive to me, but 70/30 seems too conservative for my age, hence why my initial thought is 80/20. Willing to hear some thoughts on that.
My Plan
NOTE: This would be accomplished by also putting in additional 50% of total funds into my taxable account.
1. Put the entire bond allocation (20%) into the Mercer 401k in Vanguard Total Bond Market Index Fund Institutional Plus Shares (VBMPX) (0.05)
2. Put the entire international equity allocation (24%) into the taxable Vanguard account into Total International fund, either admiral or ETF. Note: I would sell the existing Investor shares to move that into Admiral/ETF as there would only be $30 LT tax bill to pay)
3. The remaining 56% into broad U.S stock market split among several funds/locations:
- Roth IRA completely in Vanguard Total Stock Market ETF (VTI) (0.05)
- Fidelity 401k completely in Spartan 500 Index Fund (FUSVX) (0.07)
- Remaining Mercer 401k money being split between the following 2 funds, such that the makeup would be the same as having invested in a single total market fund (also considering that entire Fidelity 401k is only exposed to S&P 500):
- Vanguard Institutional Index Fund Institutional Plus Shares [tracks S&P 500] (VIIIX) (0.02)
- Vanguard Extended Market Index Fund Institutional Plus Shares (VEMPX) (0.10)
(I've yet to determine the appropriate split between S&P 500 + Extended Market to approximate a total market (random guess, 70/30?)) - Remaining taxable balance in Vanguard Total Stock Market ETF (0.05) and Investor shares (0.17) [investor shares have unrealized gain of a few thousand so figured not wise to exchange for ETF]