I want to be frank and say upfront that honestly I am having trouble comprehending how to manage my finances. I purchased the Bogle investing book some time ago and even though I've read it is an easy read, it isn't for me. I get totally confused and end up throwing it by the wayside.
I'm one of those people that has to have the bare essentials laid out. When given too much explanation and choices and a bunch of terms thrown around, I get confused.
Summary: I don't know what I'm doing and don't even know really why I have my money allocated in certain ways other than some advice I got off of here a long time ago. I honestly am trying to understand. Instinctively, I know there are many knowledgeable people on this forum that have given me good advice in the past, though it has been several years.
I'll do the best I can in giving you information
Emergency Fund-70K (Vanguard Prime Money Market Fund)
Tax Filing Status: Married Filing Jointly
Tax Rate: 25%
Residence: Germany (husband civillian working overseas)
Age: 53 SAHM; Husband: 48 Works for US government; 3 dependent children ages 9, 9 and 12 (yes, I had them when I was 102)
Desired allocation: 60/40
Individual IRA: VTTVX Vanguard Target Retirement 2025 $35,597 (just hanging around-no contributions)
Roth IRA: VTTVX Vanguard Target Retirement 2025 $35,354 ($230 biweekly contribution)
12 year old son:
ESA: VTWNX Vanguard target 2020 $13,088 (also hanging around-no contributions)
Roth IRA: BTHRX Vanguard target Retirement 2030 $41,311 ($192 biweekly contributions)
TSP #1 Reserves: L 2030 (no contributions $1,200)
TSP #2 L 2030 (contributes 10% with 5% match) 250,000
1. Will probably have to go back to USA in next 5 years. No clue where we will go as it will be up in the air. We like being mobile and have no interest in buying a home. Personally wouldn't mind renting the rest of my life.
2. Not overly interested in college funds for kids. I know that may sound terrible for many of you but feel that I can partner with them and find a way if they choose to go. Husband went to school at age 29 while I worked and we easily paid for his college. I just feel there are so many more options then either we pay or they take out massive loans. I am more interested that they feel they can pursue their passions without worrying about money and focus more on living a simple lifestyle rather than making money to fuel an extravagant lifestyle. They certainly don't have to make a decision at the ripe old age of 18. Regardless, we will support them 100% in what they choose to do.
Each child will receive $10,000 in cash from my father's estate. Sister in USA is going to invest in mutual funds and will act as a guardian. She has used an advisor for years. She will give them the money when they turn 18 or give it to me to handle when I return to the States.
To receive $50,000 in PP&G stock from father. The general advice given when I posted this on the other forum was to sell and put in MMF. Vanguard won't allow me to open up another account because I am overseas. I have the Roth IRA, traditional IRA and MMF with Vanguard. I opened up one with USAA and can put it there too. No problem with selling but then what should I do? What should I look at when deciding where to move it?
I will also receive approximately $70,000 or so in cash in the next 2 months or so if everything well. Suggestions on how I should handle this or what I should consider with regard to investing it?
I don't want to make any rash decisions. Husband will receive the two pensions upon retirement though the reserves will only be about $1,000 per month. Where can I look to see how we are doing as far as saving enough for retirement?
Life insurance: We are looking at USAA for life insurance. Husband has approximately 560,000 (FEGLI) but can't get anymore and I don't feel this is enough so thinking of stopping it and going with USAA. I'm an RN but stopped practicing in 2000 and have no desire to go back. I would have to go back to school too at this point since my license has been inactive for so long. I don't plan working at a full time job again if I can help it. Homeschool the kids anyway. Where do I get information or what should I consider when determining how much to get? We just have to get through questions like have we ever smoked pot in our entire lives and things like that.
Thank you for this website. The bottom line is I need a portfolio that is pretty much on autopilot. I honestly just want to know if we are saving enough and want to think about it as little as possible. I'm not dismissing the importance but frankly there are many things going on in my life that require my energy and I don't want finances to be the main focus of my life or a constant worry. Thank you again for all your help