I would love to pick the collective BH wisdom on the proposed allocations.
Plan to retire: Dec2017 from a Mega-Corp.
Expected Withdrawal Rate: Under 3%
Social Security: Me - 70, DW - 67 (and then shift to spousal)
IRA/401K: Mid 7 figures
Roth: Low 5 figures
Taxable: Mid 6 figures.
Emergency Funds: $50,000
Debt: Mortgage, $130,000 remaining, paid off in Feb2028 - 15 year 2.75%
Tax Filing: Married Filing Jointly
Children: Daughter, already launched (hoping for marriage and grand-babies)
Fed Tax Rate:28%
CA Tax Rate: 9.3%
Age: Me-58, DW-57
Desired Asset Allocation: 57%/39%/4% (start of Retirement)
Desired International allocation: 33% of Equities
Current Asset Allocation: 57%/39%/4%
Currently funds are partially invested with an FA at Merrill Lynch and the other portion is part of my 401K at my Mega-Corp. Plan is to Roll-over the 401K in Jan2018 (after retirement) to an IRA already at Merrill Lynch. In late 2018 I will shift all of the funds to Merrill Edge and begin managing them myself. In addition, I plan a series of Roth Conversions from age 58-70 to fund living expenses and reduce the expected Taxes when RMDs begin.
**Note the Asset breakdown has been revised based on feedback in this thread-revision posted as response below**
In the meantime, I have been working with my FA and have come up with a proposed allocation strategy:
- 5% IEMG ISHARES INC CORE MSCI EMERGING MKTS ETF
14% EFA ISHARES MSCI EAFE
14% VUG VANGUARD GROWTH ETF
5% VBK VANGUARD SMALL CAP GROWTH ETF
14% VTV VANGUARD VALUE ETF
5% VNQ VANGUARD REAL ESTATE
- 5% PONPX PIMCO INCOME FUND
27% BIV VANGUARD INTERMEDIATE TERM BOND ETF 31L53
7% BSV VANGUARD SHORT TERM BOND 31L60
- 4% CASH Cash (USD)
- 1. What are your thoughts on the proposed portfolio?
2. Any thoughts on the Asset Allocation Strategy?
3. Any concerns with the International Exposure?
4. Other suggestions or concerns?