We're just starting out in the USA and need advice on investments. We plan to be here for the long haul and intend to retire in the US eventually. I have been reading all the wonderful materials you have on the wiki and have come up with the following plan. I'd really appreciate any comments on the plan and help with:
- Does this seem well balanced?
- Is there a better configuration for my spouses 401K?
- Does it make sense to put the majority of our bonds in Vanguard Total Bond Market or should we diversify?
- Is it worth doing the Roth backdoor conversion (the math suggests yes, but the whole process seems strange to me)?
- Is there a better place to put the house downpayment?
Emergency funds: 6 months (achieved)
Debt: None
Tax status: Married, filing jointly
State: CA
Age: 30
Annual outgoings: < $100,000
Annual investable money: ~ $100,00
Desired asset allocation: 70% stocks, 30% bonds
Desired international allocation: 40 - 50% of stocks
Investment style: Not that aggressive, but interested in pushing myself
Goals
Purchase a home within the next 2 years ($150,000 downpayment)
Retire at 70 (40 years, 2056) with > $2 millon for both myself and spouse
Current Retirement Assets
$5,800 in my 401K
Currently 81%index 500, 4%mid, 15%small cap Vanguard funds (more details below)
Possible Choices
My 401K funds (some employer contribution): http://pastebin.com/SWpRbtFe
Spouse 401K funds (no employer contribution): http://pastebin.com/dTuU3Eaj
Planned Investment Plan - end of 2016 view
GS Bank @ 1.05% APR (For house downpayment)
$100,000
My Trad(?) IRA at Vanguard (Maxed)
100% Vanguard Total Bond Market (VBMFX) (0.16%)
Spouse Trad(?) IRA at Vanguard (Maxed)
100% Vanguard Total Bond Market (VBMFX) (0.16%)
My 401K (Maxed)
64.80% Vanguard 500 Index Admiral (VFIAX) (0.05%)
3.20% Vanguard Mid Cap Index Adm (VIMAX) (0.09%)
12% Vanguard Small Cap Index Adm (VSMAX) (0.09%)
20% DFA Intermediate Govt Fixed-Income I (DFIGX) (0.12%)
Note - Follows: https://www.bogleheads.org/wiki/Approxi ... ock_market
Spouse 401K (Maxed)
80% Vanguard International Growth Inv (VWIGX) (0.47%)
20% Columbia Large Cap Index Fund (NINDX) (0.20%)
Taxable Joint Account at Vanguard (~$40,000)
35% Vanguard Total Stock Market (VTSMX) (0.16%)
35% Vanguard Total International (VGTSX) (0.19%)
30% Vanguard Total Bond Market (VBMFX) (0.16%)
End of 2017 view
Same allocations, tax advantaged maxed out, less added to taxable than in 2016, house downpayment goal closer.
Final Asset Allocation
Tax Advanted
38% US Stock
31% Intl Stock
31% Bonds
Taxable
35% US Stock
35% Intl Stock
30% Bonds
Thanks!