We recently opened a Vanguard account and started moving funds there and would like to build a base there outside of our employer tax advantaged accounts.
We have been reading a lot here and on /r/financialindependence/ lately to get educated and appreciate any guidance this community might be willing to provide.
- Are our retirement goals/plans viable?
- How should we have our portfolio allocated to support our goals? What should we be doing to mitigate against "sequence of return risk" and handle living expenses over the next 7-10 years? Right now our AA is 70/30 all-up (65/35 in taxable, 75/25 in tax advantaged). We are thinking desired allocation is 65/35 or 60/40 all up.
- How should assets be best allocated between taxable and tax advantaged accounts? It seems like our total investment balance is well-distributed across the two (about 50/50), but unsure what asset classes (equities, bonds, etc) should best go where given short-term income and long-term growth needs of this plan.
Debt: Zero debt, own our primary residence worth about 900k.
Tax Filing Status: Married Filing Jointly, no children
Tax Rate: 33% Federal (based on 2016 Tax Year)
State of Residence: WA
Age: DH 49, DW 47
DH wants to retire this year, does not have a pension.
DW wants to retire at age 60 and will start collecting a pension (25k/yr).
DH start collecting SS at age 70 (37k/yr)
DW start collecting SS at age 62 (20k/yr)
DW salary 90k/yr, contributes mandatory 15k/yr to 401a DCP and 5k/yr to Roth IRA.
Total Investment Assets - 2.7M
Short Term Reserves/Emergency Fund - 165k
115k Discover Bank High-Yield Savings Account (1.10%)
25k Checking/Savings bank account
25k 1-year CD Ladder
Joint Taxable Account - 1.14M
122k Vanguard Wellesley Income Fund Adm (VWIAX)
111k Vanguard Total Stock Market Index Adm (VTSAX)
100k Vanguard Intermediate Term Tax Exempt Fund (VWITX)
65k Vanguard Limited Term Tax Exempt Fund (VMLUX)
38k Vanguard Total International Stock Index Fund Adm (VTIAX)
396k Microsoft (MSFT)
58k Berkshire Hathaway (BRKB)
49k Alphabet Class A (GOOGL)
48k Alphabet Class C (GOOG)
36k Johnson & Johnson (JNJ)
23k AT&T (T)
19k Cisco (CSCO)
15k Facebook (FB)
10k Energy Transfer Equity LP (ETE)
11k Realty Income Corp (O)
11k Handful of misc speculative stocks
25k Groundfloor Real Estate Lending Marketplace
DH 401k - 680k
128k Fidelity Growth Pool Account
128k Pimco Total Return Account
104k Fidelity Contrafund Pool Account
99k Vanguard Russell 1000 Value Account
60k Russell International Value
47k Russell International Growth
46k Vanguard Short Term Bond Index (VBIPX)
35k Vanguard Russell 2000 Growth Account
33k Artisan Mid Cap
DH Roth IRA - 331k
100k T.Rowe Price Retirement 2030 Fund (TRRCX)
82k Apple (AAPL)
28k Hershey (HSY)
25k Wells Fargo (WFC)
24k Fidelity Four-In-One Index (FFNOX)
20k Vanguard High Dividend Yield Index Fund (VYM)
20k Pimco Income Fund Class D (PONDX)
16k Fidelity Strategic Dividend & Income (FSDIX)
16k iShares Core US Aggregate Bond (AGG)
DW 401a (Defined Contribution Plan) - 257k
105k US Large Cap Equity Index Fund
76k Washington State Bond Fund
40k Global Equity Index Fund
25k US Small Cap Value Equity Index Fund
11k Northern Emerging Markets Equity Index Fund
DW Roth IRA - 115k
50k Vanguard Total Stock Market Index Fund Adm (VTSAX)
39k Vanguard Dividend Appreciation Index Fund (VIG)
16k Vanguard Total Bond Market Index Fund (BND)
10k Vanguard Consumer Discretionary (VCR)
DH HSA - 12k
12K Vanguard Wellesley Income Fund