is my thread from two months ago. A LOT has changed. I have successfully switched brokers, blew up my Roth, and have begun tearing into my taxable account. My goal of zero capital gains taxes for 2013 is still within reach. I have opened up a traditional IRA for my wife and am contemplating a one for myself as well to lower our taxable income.
My first go of allocating my Roth IRA seems to have worked well, although I am not opposed to tweaking it.
On August 1st my wife will start a new job which we are excited about. It is less money initially, but it gets her out of awful retail hours at Verizon and into an 8-5 M-F job at an excellent company with a lot of growth potential. The 401k is only a 3% match (6% @ Verizon), but they will let you contribute up to 67% of your income up to the limit each year (although that much plus IRA's may not be feasible for us to survive on). Below are her options for the new 401k. Please review my asset allocation and let me know what you think.
30% Fidelity Spartan 500 FUSEX ER .09%
20% Fidelity Spartan Ext FSEMX ER .10%
35% Fidelity Spartan Intl FSIIX ER .20%
15% Vanguard Infl Prot VIPSX ER .11% *I'm not opposed to the Vanguard Tot Bd fund, but figure with their similar ER and performance the hedge against inflation going forward is worth it
What do you think? Also, should I be rolling her old 401k over into an IRA?
Here is our current updated financial picture. Any advice is always appreciated.
Emergency funds: $39k total cash savings ($25k is emergency fund)
Debt:~$105k @ 2.75% house, $17.5k @ 2.44% car loan
Tax Filing Status: Married Filing Jointly
Tax Rate: 15%, 7% State
State of Residence: Arkansas
Desired Asset allocation: 80/20 equities/bonds
Desired International allocation: 60/40ish
Fidelity (cost basis in parenthesis)
McDonalds MCD $5225($1509)
Oracle ORCL $2630 ($694)
Pepsico PEP $11982 ($4015)
Wal-Mart de Mexico WMMVY $4202 ($1009)
Wal-Mart WMT $7776 ($2045)
Yum Brands YUM $3240 ($419)
Cash $47879 (I sold all of my American Funds mutual funds yesterday and the funds are still settling)
Roth IRA at Fidelity (Current asset allocation was set on 7/11/13)
iShares Core Total US Bond Market AGG $1722 ($1708) ER .08%
iShares Trust Core MSCI EAFE IEFA $4512 ($4404) ER .14%
iShares Core MSCI Emerging Markets IEMG $2723 ($2645) ER .18%
iShares Core S&P Small Cap IJR $1747 ($1718) ER .16%
iShares Core S&P 500 IVV $7143 ($7043) ER .07%
My wife's 401k with her employer, 6% matched, managed by Fidelity, currently 25% contributed but last day of employment is 7/23/13
US Large Co Index $14976 ER .02%
Intl Company Index $8970 ER .10%
PIM Real Return Inst $5701 ER .47%