Emergency funds: $24,000
Debt #1: $110,000 student loan (2.75%), paying minimum of $600/mo
Debt #2: $13,000 credit card, 1% for another 16 months, paying $1000/mo
Tax Filing Status: Single
Tax Rate: 33% Federal, 9% State
State of Residence: CA
Age: 35
Desired Asset allocation: 70% stocks / 10% bonds
Desired International allocation: 20% of stocks
Income After taxes: $200,000-210,000
Current retirement assets:
Taxable (held at Vanguard) $10,000
3% Vanguard Total Stock index fund (VTSMX) (0.17% ER)
2% Vanguard REIT index (VGSIX) (0.24% ER)
1% Vanguard Target retirement fund 2020 (VTWNX) (0.16% ER)
Tax-Free Municipal Bonds $17,900
2% California Tax -free Fund A (LCFIX) (0.81%)
2% High Yield Municipal Bond A (HYMAX) (0.83%)
401K (held at Charles Schwab) $92,300
38% Vanguard Total Stock Market Index institution (VITNX) (0.04%)
9% Vanguard Small Cap Index (VSCIX) (0.08%)
1% Vanguard Total bond index market fund institution (VBMPX) (0.05%)
No company match
Keogh Plan (another tax deferred account allowing $34,000 annual contribution) $73,600
9% Lord Abbett Fundamental Equity (LDFVX) (1.06% ER)
8 % Lord Abbett Value Opportunity Equity (LVOAX) (1.28%)
7% Lord Abbett Calibrated Dividend Growth Equity (LAMAX) (0.85%)
3% Lord Abbett High Yield Fund Fixed Income (LHYAX) (0.95%)
3% Lord Abbett Diversified Income Strategy Blend (ISFAX) (1.16%)
3% Lord Abbett LA Short Duration Fixed Income (LALDX) (0.58%)
3% 4815 Lord Abbett Floating Rate Fund Fixed Income (LFRAX) (0.80%)
2% Lord Abbett Brokerage Money Market
Converted Roth IRA $7,175
1% Lord Abbett Fundamental Equity (LDFVX) (1.06%)
1% Lord Abbett Value Opportunity Equity (LVOAX) (1.28%)
1% Lord Abbett Calibrated Dividend Growth Equity (LAMAX) (0.85%)
1% Lord Abbett Diversified Income Strategy Blend (ISFAX) (1.16%)
Contributions:
New annual Contributions
$34,000 towards Keogh
$17,500 towards 401k
$5,500 towards IRA
$120,000 taxable/Municipals
Available funds:
Funds available in his 401(k)
Vanguard Total Bond Market Index Fund Institutional Plus Shares (VBMPX) (0.05%)
Vanguard Target Retirement Income Trust I (no symbol) (0.083%)
- 40% Vanguard Total Bond Market II Index Fund
21% Vanguard Total Stock Market Index Fund
17% Vanguard Short-Term Inflation Protected Securities Index Fund
14% Vanguard Total International Bond Index Fund
9% Vanguard Total International Stock Index Fund
- 37% Vanguard Total Stock Market Index Fund
32% Vanguard Total Bond Market II Index Fund
16% Vanguard Total International Stock Index Fund
9% Vanguard Total International Bond Index Fund
6% Vanguard Short-Term Inflation Protected Securities Index Fund
Vanguard Target Retirement 2025 Trust I (no symbol) (0.083%)
Vanguard Target Retirement 2030 Trust I (no symbol) (0.083%)
Vanguard Target Retirement 2035 Trust I (no symbol) (0.083%)
Vanguard Target Retirement 2040 Trust I (no symbol) (0.083%)
- 64% Vanguard Total Stock Market Index Fund
26% Vanguard Total International Stock Index Fund
8% Vanguard Total Bond Market II Index Fund
2% Vanguard Total International Bond Index Fund
Vanguard Target Retirement 2050 Trust I (no symbol) (0.083%)
Vanguard Target Retirement 2055 Trust I (no symbol) (0.083%)
Vanguard Target Retirement 2060 Trust I (no symbol) (0.083%)
Vanguard Wellington Fund Admiral Shares (VWENX) (0.18%)
Vanguard Value Index Fund Institutional Shares (VIVIX) (0.08%)
Vanguard Institutional Total Stock Market Index Fund (VITNX) (0.04%)
Vanguard FTSE Social Index Fund Institutional Shares (VFTNX) (0.16%)
Vanguard Morgan Growth Fund Admiral Shares (VMRAX) (0.25%)
Vanguard PRIMECAP Fund Admiral Shares (VPMAX) (0.36%)
Hotchkis and Wiley Mid-Cap Value (no symbol) (unknown ER)
Vanguard Small-Cap Index Fund Institutional Shares (VSCIX) (0.08%)
American Funds Capital World Growth/Income Fund R-6 (RWIGX) (0.45%)
Vanguard International Growth Fund Admiral Shares (VWILX) (0.35%)
T. Rowe Price International Discovery Fund (PRIDX) (1.23%)
Funds available in his Keogh
All the funds listed above along with the following...
BTC US Equity Market Index Fund (no symbol) (0.01%)
Janus Forty Fund Class N (JFRNX) (0.47%)
Vanguard Capital Opportunity Fund Admiral Shares (VHCAX) (0.41%)
Robeco Boston Partners Small/Mid Cap Value Equity (no symbol) (unknown ER)
DFA U.S. Core Equity II Portfolio Institutional Class (DFQTX) (0.22%)
Cambiar Small Cap Value (no symbol) (unknown ER)
Dodge & Cox International Stock Fund (DODFX) (0.64%)
Columbia Acorn International Fund Class Y Shares (CCYIX) (0.87%)
Questions:
1. My goal is to keep working aggressively for the next 5-10 years to build the most aggressive portfolio. I will continue to work after that of course but much less hours. So I’m very ok being uber aggressive and I am very risk tolerant. Once I get to age 45 I’ll probably convert things into less risky funds and just add to the stash slowly.
2. My biggest concern in the taxable accounts is my high effective tax rate. I would like to be able to minimize the tax burden as much as possible but I understand there is only so little I can do.
3. Would like to simplify and go with just 4-5 funds maximum if that's possible. I definitely want to get rid of the actively managed mutual funds.