First post. I haven't lurked long, but I can see that this is one of the best investment websites
I'm very new to the world of investing. I've participated in 401k, but that's been all and I haven't really paid attention to what I've been doing. However I've had some kind of "midlife crisis" and realized that I could have been doing a lot better and potentially be retiring early if I hadn't made some financial mistakes earlier in life. I'm now busy reading books and preparing for what's ahead.
Anyway, this is where I stand right now.
Background
Emergency funds: Fully funded for 6 months expenses
Debt: 360k Mortgage, 20-year, 3.625%. Plan to pay off in 10 years.
Tax Filing Status: Married Filing Jointly
Tax Rate: 33% Federal, 10% State (however, the effective rate reduced after charitable giving and other itemization)
State of Residence: CA
Age: 44
Note: Not eligible for Roth or Backdoor Roth due to income limits
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 50% of stocks
Current retirement assets
Taxable
None
Employer 401k at Fidelity
Value: low six figures.
Allocation:
- Vanguard Target Retirement 2035 (VTTHX) (0.18) [20%]
EDIT: This IRA will be rolled into the 401k due to Roth considerations:
Rollover IRA at Fidelity (Came from older 401k)
Current value mid six figures.
Current allocation:
- Fidelity Balanced Fund (FBALX) (0.56) [20%]
- Fidelity Freedom Fund 2040 (FFFFX) (0.78) [10%]
- Spartan US Bond Index Fidelity Advantage Class (FSITX) (0.17) [13%]
- Spartan Intl Index Fund Advantage Class (FSIVX) (0.12) [15%]
- Spartan Total Market Index Fidelity Advantage Class (FSTVX) (0.05)[7%]
- Spartan 500 Index Fund Advantage Class (FUSVX) (0.05)[15%]
Contributions
- Taxable: None today, but will have ~$20k/year starting this fall
- IRA: None, above income limit for deductions
- 401k: Max allowed by law
Available Funds
Employer 401k
- Fidelity International Money Market Portfolio (FMPXX) (0.21)
- Fidelity Government Income Fund (FGOVX) (0.45)
- PIMCO Total Return Fund – Institutional Class (PTTRX) (0.46)
- Vanguard Windsor II Fund – Admiral Class (VWNAX) (0.28)
- Vanguard Institutional Index Fund - Institutional Plus (VIIIX) (0.02)
- Fidelity Contrafund® - Class K (FCNKX) (0.54)
- Fidelity OTC Portfolio - Class K (FOCKX) (0.65)
- Vanguard Mid-Cap Index Fund-Institutional Plus Shares (VMCPX) (0.06)
- American Beacon (ABF) Small Cap Value Fund (AVFIX) (0.81)
- Fidelity Low-Priced Stock Fund - Class K (FLPKX) (0.72)
- Vanguard Explorer Fund - Admiral Class (VEXRX) (0.36)
- American Funds Capital World Growth and Income Fund - Class R6 (RWIGX) (0.44)
- American Funds EuroPacific Growth Fund - Class R6 (RERGX) (0.49)
- Dimensional (DFA) Emerging Markets Value Portfolio (DFEVX) (0.55)
- Vanguard Target Retirement Income (VTINX) (0.16)
- Vanguard Target Retirement 2015 (VTXVX) (0.16)
- Vanguard Target Retirement 2025 (VTTVX) (0.17)
- Vanguard Target Retirement 2035 (VTTHX) (0.18)
- Vanguard Target Retirement 2045 (VTIVX) (0.18)
EDIT: This IRA will not exist soon
Questions:Rollover IRA
- Any funds should be available, correct? I could even do the “Three Vanguard Funds”.
1. Is the allocation within my current 401k ok? Can I do better with the funds available? Some of the expense ratios are very low, eg. VMCPX and VIIIX
EDIT: The IRA is going away
3. This fall I will be able to begin investing on my own. I just need to open a new taxable account and get started? I would like to keep things simple so leaning toward the three fund portfolio here as well.2. Should I sell everything in my IRA and go for the “Three Fund Portfolio”?
Thanks!