Debt: $9,900 remaining on car loan (1.49%)
Tax Filing Status: Single
Tax Rate: 25%? Federal, 9.3% State (Income ~$70,000/year, Registered Nurse)
State of Residence: California
Age: 29
Desired Asset allocation: 90% stocks / 10% bonds (Pursuing further education/curious of consensus)
Desired International allocation: 32% of stocks (Pursuing further education/curious of consensus)
Current total portfolio: ~$44,500 (~$36,000 vested)
Current retirement assets
Taxable
2% in Robinhood account to learn/monitor/play (and satiate desire to be more active in investing). Holding SPY (S&P 500 ETF), GLD (SPDR Gold Trust ETF), BRK.B (Berkshire Hathaway), BND (Vanguard Total Bond Market ETF), VXUS (Vanguard Total International Stock ETF)
457b (Non-Government, hospital) (Fidelity)
30.5% FID 500 INDEX INST (FXSIX) (0.035%)
12% FID GLB XUS IDX PR (FSGDX) (0.11%)
2.5% FID DIVERSIFD INTL K (FDIKX) (0.92%)
2% FID GROWTH CO K (FGCKX) (0.77%)
Company match is something low, 50% of first 2%? (I can’t recall, will confirm) into 401a.
401a (Fidelity) ($10,500; $2,000 currently vested)
21% FID FDM IDX 2060 IPR (FFLEX) (0.1%)
3% FID 500 INDEX INST (FXSIX) (0.035%)
Company automatically contributes 7% of income.
Roth IRA at Vanguard
7% Vanguard Total Bond Market Index Fund Investor Shares (VBMFX) (0.16%)
8.5% Vanguard Total International Stock Index Fund Investor Shares (VGTSX) (0.19%)
11.5% Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) (0.16%)
Annual Contributions
$18,500 457b (Contribution percentage is set such that maximum contribution will be met by year end)
$0 401a (Employer contribution, with match, is approx. $7,000 total per year)
$5,500 Roth IRA (already made for 2017)
Funds available in 457b and 401a
ABF SM CAP VAL INST (AVFIX) 0.82%
COL DIVIDEND INC Z (GSFTX) 0.77%
FID 500 INDEX INST (FXSIX) 0.035%
FID BLUE CHIP GR K (FBGKX) 0.70%
FID DIVERSIFD INTL K (FDIKX) 0.92%
FID DIVIDEND GR K (FDGKX) 0.50%
FID EXT MKT IDX PR (FSEVX) 0.07%
FID GLB XUS IDX PR (FSGDX) 0.11%
FID GROWTH CO K (FGCKX) 0.77%
FID INTL SM CAP OPP (FSCOX) 1.17%
FID LOW PRICED STK K (FLPKX) 0.78%
FID MID CAP STOCK K (FKMCX) 0.61%
H & W MID CAP VAL I (HWMIX) 1.02%
MSIF SMALL CO GRTH I (MSSGX) 1.11%
FID BALANCED K (FBAKX) 0.46%
FID FDM IDX 2005 IPR (FFGFX) 0.19%
FID FDM IDX 2010 IPR (FFWTX) 0.19%
FID FDM IDX 2015 IPR (FIWFX) 0.18%
FID FDM IDX 2020 IPR (FIWTX) 0.18%
FID FDM IDX 2025 IPR (FFEDX) 0.18%
FID FDM IDX 2030 IPR (FFEGX) 0.19%
FID FDM IDX 2035 IPR (FFEZX) 0.19%
FID FDM IDX 2040 IPR (FFIZX) 0.19%
FID FDM IDX 2045 IPR (FFOLX) 0.19%
FID FDM IDX 2050 IPR (FFOPX) 0.19%
FID FDM IDX 2055 IPR (FFLDX) 0.19%
FID FDM IDX 2060 IPR (FFLEX) 0.19%
FID FDM IDX INC IPR (FFGZX) 0.19%
FID GNMA (FGMNX) 0.45%
FID US BOND IDX PR (FSITX) 0.05%
MIP CL 1 0.77%
PIM TOTAL RT INST (PTTRX) 0.47%
FID RET GOVT MM (FGMXX) 0.42%
Questions:
Hi!
I’ve rented a few books from the library and researched online a great deal, but I know I am still a novice to investing and retirement planning! I am an aggressive novice though, reaching contribution limits for my 457b and Roth IRA for 2016 (and I intend to do the same each year until retirement). Seeking guidance/mentorship, my questions are to those with more knowledge and experience than me:
1. General opinion related to my current holdings and asset allocation - Are my holdings and asset allocation appropriate?
2. Considering how I will allocate my 457b contributions for this year to be as follow, I would be very appreciative of mentorship. My current plan for 2017 457b contributions is as follows:
- 50% Target 2060 fund
23% International Stocks (FID GLB XUS IDX PR [FSGDX])
22% Domestic Stocks (15% FID 500 INDEX INST [FXSIX], 7% FID EXT MKT IDX PR [FSEVX])
5% Bonds (FID US BOND IDX PR [FSITX])
4. I am considering doing away with the Target Date funds and “doing it myself.” Would you support this or advise against it? If supportive, how would you adjust/direct your contributions for this year?
5. Should I reconsider my contribution allocation between the 457b / 401a / Roth such that I am taking the best of the three worlds?
Thank you in advance, I look forward to learning and discussing in the comments! Honored to receive any advice and mentorship!
-Bud