Portfolio Review

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beebog
Posts: 17
Joined: Sun Aug 27, 2017 9:51 am

Portfolio Review

Post by beebog » Tue Sep 12, 2017 6:30 pm

single, no dependents
age 44
tax rate 25% fed, 5% state
income 75-90K varies per year
plan to work until 67 or older if possible
monthly expenses 4.5K (though could probably cut back to 4K easily in emergency)
desired emergency fund 48K - 12 months at scaled back expense

DEBT
281K remaining on mortgage est home value >350K probably closer to 400k - 3.5%/30 yr. 27 yr remaining.
5K CC at 0% will be payed off by 8/18

Portfolio 265K

AA Portfolio (I use Fidelity analysis tool with non-Fido manually added)
stock domestic 52%
stock int 23%
bonds 14%
short term 11% (I consider this part of my bond AA)

Too aggressive? I was 80/20 before I started reading here.

Rollover IRA
3.7% FNCMX FIDELITY NASDAQ COMPOSITE INDEX (ER 0.3)
6.4% FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
9.1% FSIVX FIDELITY INTERNATL INDEX PREMIUM CLASS (ER 0.06)
11.7% FUSVX FIDELITY 500 INDEX PREMIUM CLASS (ER 0.035)

Roth
2.9% FBALX FIDELITY BALANCED (ER 0.55)
6.4% FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
22.6% FSTVX FIDELITY TOTAL MKT INDEX PREMIUM CL (ER 0.035)
14.0% FTIPX FIDELITY TOTAL INTL INDEX FD PREMIUM CL (ER 0.1)
1.7% CSCO CISCO SYS INC COM
0.9% GE GENERAL ELECTRIC CO
2% LUV SOUTHWEST AIRLNS CO
2.8% MSFT MICROSOFT CORP
8% CD Ladder + FDRXX(default acct for settlement)

401k
1.4% RIDEX (ER 0.62)
3.3% VADAX (ER 0.54)
These are the best of bad options. The rest have nearly 1.0 ER and higher.

HSA Investment account
1.2% VTSMX (ER 0.16) - within a month will become VITSX (ER 0.03)
1.7% CASH
also has $3 monthly fee

Future contribution goal
401k 15% + 3.5% match of (75-90K) est 15K/yr (was 6% + 3.5% match of (75-90K) est 8K/yr
ROTH 5.5K/yr maxing
HSA 3,400/yr maxing

If I don't have the money for this level of contribution, I plan to keep HSA and Roth maxed and limit 401k. Thoughts?

Emergency
I currently have 3 month in cash, 1 month in HSA (have receipts for out of pocket), 5 months in laddered CDs (1/4 maturing every 3 months) inside Roth. My goal is 12 months in cash outside of portfolio. I'm counting "emergency" $$ in Roth and HSA as part of AA of portfolio for now.

I usually have the option of funding emergency or Roth and choose Roth since I can always take the contributions out but the opportunity to contribute goes away. As long as I continue doing this, I want to have CD ladder in Roth equal to 48K - (emergency fund cash that is outside portfolio). I currently fall short of this goal. I could sell stock now to get there, but on the fence. I treat this money as part of my bond allocation.

I am still transitioning to a more simplified portfolio and would appreciate any feedback. FBALX and individual stocks are remnants of my old portfolio and will be getting rid of them at some point. Probably NASDAQ, too. I may keep a little stock just for fun.

I had thought 20% international stock was recommended, but recently realized that must have been 20% of stocks not 20% total portfolio. I'm currently almost at 1/3 international as portion of stocks. I'm not convinced that is a bad thing, but may slowly drift toward lower international with new contributions based on feedback.

I own 20% of a privately held business. It may/may not have residual value in the future, so I am ignoring it in my AA.

I will likely have a small (mid 5 figure) inheritance in the next 10-15 years and possibly yearly gifts (mid 4 figure) before then. I am leaving this out of planning. If any of it materializes, it is earmarked for cash emergency fund and possible home improvements.

I know I am a bit behind the curve, but hoping that I can get back on track with some discipline.

Thank you for your feedback.

Lafder
Posts: 3553
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: Portfolio Review

Post by Lafder » Sat Sep 16, 2017 10:10 pm

Welcome here! Sorry there was a delay in any replies :) Hopefully my reply will get others to take a closer look too.

DEBT
281K remaining on mortgage est home value >350K probably closer to 400k - 3.5%/30 yr. 27 yr remaining. ((Are you paying ahead?))
5K CC at 0% will be payed off by 8/18 ((Good))

Portfolio 265K ((Nice))

AA Portfolio (I use Fidelity analysis tool with non-Fido manually added)
stock domestic 52%
stock int 23%
bonds 14%
short term 11% (I consider this part of my bond AA)

Too aggressive? I was 80/20 before I started reading here. ((We were at 80/20 until our late 40s. Now at average age 51 we are at 65/35. Actually I just checked and due to stock growth we are closer to 70/30. But my goal is 65/35))

Rollover IRA
((Nice low ERs. Can you use any Fidelity fund here? You could simplify to a total stock market index instead of 2 US stock funds))
3.7% FNCMX FIDELITY NASDAQ COMPOSITE INDEX (ER 0.3)
6.4% FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
9.1% FSIVX FIDELITY INTERNATL INDEX PREMIUM CLASS (ER 0.06)
11.7% FUSVX FIDELITY 500 INDEX PREMIUM CLASS (ER 0.035)

Roth
((Too many holdings here. I would simplify.))
2.9% FBALX FIDELITY BALANCED (ER 0.55)
6.4% FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
22.6% FSTVX FIDELITY TOTAL MKT INDEX PREMIUM CL (ER 0.035)
14.0% FTIPX FIDELITY TOTAL INTL INDEX FD PREMIUM CL (ER 0.1)
1.7% CSCO CISCO SYS INC COM
0.9% GE GENERAL ELECTRIC CO
2% LUV SOUTHWEST AIRLNS CO
2.8% MSFT MICROSOFT CORP
8% CD Ladder + FDRXX(default acct for settlement)

401k
1.4% RIDEX (ER 0.62)
3.3% VADAX (ER 0.54)
These are the best of bad options. The rest have nearly 1.0 ER and higher.
((Gotta make the most of what you have available :)))

HSA Investment account
1.2% VTSMX (ER 0.16) - within a month will become VITSX (ER 0.03)
1.7% CASH
also has $3 monthly fee
((Are there any other options? That fee is annoying))

Future contribution goal
401k 15% + 3.5% match of (75-90K) est 15K/yr (was 6% + 3.5% match of (75-90K) est 8K/yr ((Can you max the 18k employer contribution?))
ROTH 5.5K/yr maxing
HSA 3,400/yr maxing

If I don't have the money for this level of contribution, I plan to keep HSA and Roth maxed and limit 401k. Thoughts?

((Money in the pretax 401k is pretax. I would max that first so you are putting away a larger amount to grow))

Emergency
I currently have 3 month in cash, 1 month in HSA (have receipts for out of pocket), 5 months in laddered CDs (1/4 maturing every 3 months) inside Roth. My goal is 12 months in cash outside of portfolio. I'm counting "emergency" $$ in Roth and HSA as part of AA of portfolio for now.

((I would personally invest the Roth more aggressively and go ahead and build up an emergency fund in cash))

I usually have the option of funding emergency or Roth and choose Roth since I can always take the contributions out but the opportunity to contribute goes away. As long as I continue doing this, I want to have CD ladder in Roth equal to 48K - (emergency fund cash that is outside portfolio). I currently fall short of this goal. I could sell stock now to get there, but on the fence. I treat this money as part of my bond allocation.

((I would consider the Roth to be part of your portfolio and really only pull from here in an absolute emergency))

I am still transitioning to a more simplified portfolio and would appreciate any feedback. FBALX and individual stocks are remnants of my old portfolio and will be getting rid of them at some point. Probably NASDAQ, too. I may keep a little stock just for fun.

((I would simplify. I really like the simplicity of a 3 fund portfolio. Have you read this through ? viewtopic.php?f=10&t=88005 Though in full disclosure we have 3 individual stocks. As long as a small % of your total go for it :)))

I had thought 20% international stock was recommended, but recently realized that must have been 20% of stocks not 20% total portfolio. I'm currently almost at 1/3 international as portion of stocks. I'm not convinced that is a bad thing, but may slowly drift toward lower international with new contributions based on feedback.

((There is a rec that 0-50% of stocks should be International, so anywhere in that range can be argued for :)))

I own 20% of a privately held business. It may/may not have residual value in the future, so I am ignoring it in my AA.

((Sounds good to ignore in your AA. Hopefully it will pay off some day))

I will likely have a small (mid 5 figure) inheritance in the next 10-15 years and possibly yearly gifts (mid 4 figure) before then. I am leaving this out of planning. If any of it materializes, it is earmarked for cash emergency fund and possible home improvements.

((Sounds appropriate to not count on it))

I know I am a bit behind the curve, but hoping that I can get back on track with some discipline.

((Ahead of the curve compared to most Americans))

lafder

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ruralavalon
Posts: 11694
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Portfolio Review

Post by ruralavalon » Sun Sep 17, 2017 12:15 pm

Welcome to the forum :) .

At age 44 with $265k in investments you are not far "behind the curve". You are far ahead of most of your contemporaries. You are generally using broadly diversified index funds with low expense ratios, and making good use of tax-advantaged accounts. You are doing a lot of things right.

Keep your contributions as high as practical and you should be in good shape in my opinion.


Emergency fund.
beebog wrote:
Tue Sep 12, 2017 6:30 pm
monthly expenses 4.5K (though could probably cut back to 4K easily in emergency)
desired emergency fund 48K - 12 months at scaled back expense
That's a very large emergency fund, in my opinion not really necessary unless your job, or employer or industry is not stable.

I see that you are using Roth IRA space for part of your emergency fund.

Since you are in the 25% tax bracket you could consider future contributions to a traditional IRA rather than the Roth IRA. Most people are in a lower tax bracket in retirement. For most people traditional IRA contributions will likely be better than Roth IRA contributions.

Are you eligible for a substantial pension? If so then Roth IRA contributions are probably better.

Unless you are eligible for a substantial pension, traditional IRA contributions will probably be better for you.


beebog wrote:Age 44
. . . . .
AA Portfolio (I use Fidelity analysis tool with non-Fido manually added)
stock domestic 52%
stock int 23%
bonds 14%
short term 11% (I consider this part of my bond AA)

Too aggressive? I was 80/20 before I started reading here.
At age 44 I suggest about 30% in bonds.

I suggest around 20-30% of stocks in international stocks.

Asset allocation is a very personal decision, and needs to be based on your ability, willingness and need to take risk.


Fund selection.
In selecting funds strive for a good combination of broad diversification (to decrease your risk) and low expense ratios (to increase your net return).
beebog wrote:Rollover IRA
3.7% FNCMX FIDELITY NASDAQ COMPOSITE INDEX (ER 0.3)
6.4% FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
9.1% FSIVX FIDELITY INTERNATL INDEX PREMIUM CLASS (ER 0.06)
11.7% FUSVX FIDELITY 500 INDEX PREMIUM CLASS (ER 0.035)
I suggest selling NASDAQ fund and the 500 index fund. The 500 index fund covers only stocks of larger companies. I suggest instead Fidelity Total Market Index Fund Premium Class (FTIPX) ER 0.035%. That fund is more diversified than the 500 index fund because it also covers small-cap stocks and more mid-cap stocks. That fund is more diversified than the NASDQ fund, with a lower expense ratio.

I also suggest selling the international index fund and instead using Fidelity Total International Index Fund Premium Class (FTIPX) ER 0.11%. That fund is more diversified covering stocks of both larger and smaller companies, in both emerging and developed markets including Canada. The international index fund you are now using covers only larger companies in developed markets except Canada. In my opinion the omissions of emerging markets and Canada are both serious omissions.

beebog wrote:Roth
2.9% FBALX FIDELITY BALANCED (ER 0.55)
6.4% FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
22.6% FSTVX FIDELITY TOTAL MKT INDEX PREMIUM CL (ER 0.035)
14.0% FTIPX FIDELITY TOTAL INTL INDEX FD PREMIUM CL (ER 0.1)
1.7% CSCO CISCO SYS INC COM
0.9% GE GENERAL ELECTRIC CO
2% LUV SOUTHWEST AIRLNS CO
2.8% MSFT MICROSOFT CORPy
8% CD Ladder + FDRXX(default acct for settlement)
I suggest selling the balanced fund and the 4 stocks. Invest the money in the 3 other Fidelity funds, which are very diversified with very low expense ratios.

As mentioned above you could have a smaller emergency fund, and so could use all or some of that final 8% for investing in the 3 other Fidelity fund's, which are very diversified with very low expense ratios.

beebog wrote:401k
1.4% RIDEX (ER 0.62)
3.3% VADAX (ER 0.54)
These are the best of bad options. The rest have nearly 1.0 ER and higher.
I suggest switching all of the 401k to Invesco Equally-Weighted S&P 500 index fund (VADAX) ER 0.54%.


Accounts and priority.
beebog wrote:Future contribution goal
401k 15% + 3.5% match of (75-90K) est 15K/yr (was 6% + 3.5% match of (75-90K) est 8K/yr
ROTH 5.5K/yr maxing
HSA 3,400/yr maxing

If I don't have the money for this level of contribution, I plan to keep HSA and Roth maxed and limit 401k. Thoughts?
In my opinion you have the correct account funding priority.

As mentioned above, unless you are eligible for a significant pension, contributing to a traditional IRA will probably be better for you.
Last edited by ruralavalon on Sun Sep 17, 2017 12:52 pm, edited 3 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

beebog
Posts: 17
Joined: Sun Aug 27, 2017 9:51 am

Re: Portfolio Review

Post by beebog » Sun Sep 17, 2017 12:48 pm

Lafder wrote:
Sat Sep 16, 2017 10:10 pm
Welcome here! Sorry there was a delay in any replies :) Hopefully my reply will get others to take a closer look too.
Thank you so much for replying. I had given up on getting replies and was going to try again next week with more specific questions
due to lack of response. Maybe the time of day I posted and the wait for approval pushed it down the list too quickly.
Lafder wrote:
Sat Sep 16, 2017 10:10 pm
DEBT
281K remaining on mortgage est home value >350K probably closer to 400k - 3.5%/30 yr. 27 yr remaining. ((Are you paying ahead?))
That was the plan when I refi'd (my rate was over 5%). So far I have only been able to pay an additional 1K to the principal. At minimum I plan to make enough extra payments to be mortgage free before I retire.

Lafder wrote:
Sat Sep 16, 2017 10:10 pm
Rollover IRA
((Nice low ERs. Can you use any Fidelity fund here? You could simplify to a total stock market index instead of 2 US stock funds))
Both my Rollover and Roth are accounts I opened directly at Fidelity so I have access to the same funds in both accounts. So I have access to everything at Fidelity, I guess? The NASDAQ fund is a remnant of my old portfolio before I started reading here. I chose FUSVX FIDELITY 500 in Rollover because I wasn't sure which was better: that or total market so I split the difference between the two accounts. Ditto on the differences in the international selections in those two accounts.
Lafder wrote:
Sat Sep 16, 2017 10:10 pm
HSA Investment account
1.2% VTSMX (ER 0.16) - within a month will become VITSX (ER 0.03)
1.7% CASH
also has $3 monthly fee
((Are there any other options? That fee is annoying))
My HSA is with BenefitWallet. No way out of the $3/month fee if you invest. I've tried many times to look for a custodian with better options, but have never found anything I liked enough to bother with the effort of switching.
Lafder wrote:
Sat Sep 16, 2017 10:10 pm
Future contribution goal
401k 15% + 3.5% match of (75-90K) est 15K/yr (was 6% + 3.5% match of (75-90K) est 8K/yr ((Can you max the 18k employer contribution?))
ROTH 5.5K/yr maxing
HSA 3,400/yr maxing
Sorry, I wrote that wrong. I only get a 3.5% match on first 6%.
Lafder wrote:
Sat Sep 16, 2017 10:10 pm
((I would consider the Roth to be part of your portfolio and really only pull from here in an absolute emergency))
I agree. I have never taken contributions out of Roth and do not plan on it. But I do like the extra peace of mind of keeping some of it in safe assets.

Thank you for your time.

beebog
Posts: 17
Joined: Sun Aug 27, 2017 9:51 am

Re: Portfolio Review

Post by beebog » Sun Sep 17, 2017 1:24 pm

ruralavalon wrote:
Sun Sep 17, 2017 12:15 pm
Welcome to the forum :) .

That's a very large emergency fund, in my opinion not really necessary unless your job, or employer or industry is not stable.
It is volatile enough that having a year emergency fund will make me sleep better. I also don't want to be forced into a quick option instead of the right option if I did ever need to look for a new job.
ruralavalon wrote:
Sun Sep 17, 2017 12:15 pm
I see that you are using Roth IRA space for part of your emergency fund.

Since you are in the 25% tax bracket you could consider future contributions to a traditional IRA rather than the Roth IRA. Most people are in a lower tax bracket in retirement. For most people traditional IRA contributions will likely be better than Roth IRA contributions.

Are you eligible for a substantial pension? If so then Roth IRA contributions are probably better.

Unless you are eligible for a substantial pension, traditional IRA contributions will probably be better for you.
No pension, just social security. Which is currently estimated at about $2,500/mo at 67 assuming my income stays roughly the same and assuming I used the calculator correctly.

My income fluctuates with the success of my company every year so I am often not sure I will be able to deduct traditional IRA contributions until the very end of the year. To make my life easier, I just do Roth contibutions instead. I really like the idea of tax free gains also, especially with the amount of guesswork required to figure out my future tax situation given my ownership in the business. If I can't deduct the traditional IRA, then a Roth is better, right?

ruralavalon wrote:
Sun Sep 17, 2017 12:15 pm
Asset allocation is a very personal decision, and needs to be based on your ability, willingness and need to take risk.
I'm not risk averse at present because I do not plan to touch any of this money for 20+ years.
ruralavalon wrote:
Sun Sep 17, 2017 12:15 pm
Fund selection.
In selecting funds strive for a good combination of broad diversification (to decrease your risk) and low expense ratios (to increase your net return).
beebog wrote:Rollover IRA
3.7% FNCMX FIDELITY NASDAQ COMPOSITE INDEX (ER 0.3)
6.4% FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
9.1% FSIVX FIDELITY INTERNATL INDEX PREMIUM CLASS (ER 0.06)
11.7% FUSVX FIDELITY 500 INDEX PREMIUM CLASS (ER 0.035)
I suggest selling NASDAQ fund and the 500 index fund. The 500 index fund covers only stocks of larger companies. I suggest instead Fidelity Total Market Index Fund Premium Class (FTIPX) ER 0.035%. That fund is more diversified than the 500 index fund because it also covers small-cap stocks and more mid-cap stocks. That fund is more diversified than the NASDQ fund, with a lower expense ratio.

I also suggest selling the international index fund and instead using Fidelity Total International Index Fund Premium Class (FTIPX) ER 0.11%. That fund is more diversified covering stocks of both larger and smaller companies, in both emerging and developed markets including Canada. The international index fund you are now using covers only larger companies in developed markets except Canada. In my opinion the omissions of emerging markets and Canada are both serious omissions.
Thanks. When I was attempting to Bogle-fy my portfolio over the past several months I was having a hard time understanding what was best between s&p 500 vs total market and also between the different international index funds. So I split the difference and figured I would get it half right at least. It also felt wrong to have the same exact funds in two different accounts for some reason.

I am still confused about how bonds work so I just went with the index recommended on the wiki.

ruralavalon wrote:
Sun Sep 17, 2017 12:15 pm
beebog wrote:401k
1.4% RIDEX (ER 0.62)
3.3% VADAX (ER 0.54)
These are the best of bad options. The rest have nearly 1.0 ER and higher.
I suggest switching all of the 401k to Invesco Equally-Weighted S&P 500 index fund (VADAX) ER 0.54%.
Thanks. That was going to be one of my followup questions. I was thinking I needed something with bonds in that 401k for balancing, but then just recently was thinking I could add to the bond index fund in my Rollover for that instead.

Thank you so much for responding.

User avatar
ruralavalon
Posts: 11694
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Portfolio Review

Post by ruralavalon » Sun Sep 17, 2017 2:20 pm

beebog wrote:
Sun Sep 17, 2017 1:24 pm
No pension, just social security. Which is currently estimated at about $2,500/mo at 67 assuming my income stays roughly the same and assuming I used the calculator correctly.

My income fluctuates with the success of my company every year so I am often not sure I will be able to deduct traditional IRA contributions until the very end of the year. To make my life easier, I just do Roth contibutions instead. I really like the idea of tax free gains also, especially with the amount of guesswork required to figure out my future tax situation given my ownership in the business. If I can't deduct the traditional IRA, then a Roth is better, right?
Correct, if you can't deduct the contributions to a traditional IRA then Roth IRA contributions are better.

Since your income fluctuates and you don't know your eligibility to deduct until the end of the year, you can wait to make the decision each year. You have until tax day of the following year to make the IRA contribution. For example your IRA contribution for 2017 can be made anytime before tax day in April 2018.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

beebog
Posts: 17
Joined: Sun Aug 27, 2017 9:51 am

Re: Portfolio Review

Post by beebog » Sat Nov 04, 2017 9:51 am

For some comic relief and/or a cautionary tale.

I took a lot of the advice given in this thread. Thank you all.

AA for portfolio is about 70/30.
My Roth and Rollover IRAs are now just
FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
FSTVX FIDELITY TOTAL MKT INDEX PREMIUM CL (ER 0.035)
FTIPX FIDELITY TOTAL INTL INDEX FD PREMIUM CL (ER 0.1)

My 401K is now 100% VADAX and my HSA split between Vanguard VITSX (Total stock market) and VBTLX (total bond), plus money market for part of my emergency fund.

I kept the CDs (emergency fund) and dumped all other funds and stock across my portfolio.

Except GE. :oops: I figured it was so low, it had to come back. I still can't bring myself to sell it. Luckily it becomes a smaller part of my portfolio every day.

User avatar
ruralavalon
Posts: 11694
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Portfolio Review

Post by ruralavalon » Sat Nov 04, 2017 12:35 pm

beebog wrote:
Sat Nov 04, 2017 9:51 am
For some comic relief and/or a cautionary tale.

I took a lot of the advice given in this thread. Thank you all.

AA for portfolio is about 70/30.
My Roth and Rollover IRAs are now just
FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS (ER 0.045)
FSTVX FIDELITY TOTAL MKT INDEX PREMIUM CL (ER 0.035)
FTIPX FIDELITY TOTAL INTL INDEX FD PREMIUM CL (ER 0.1)

My 401K is now 100% VADAX and my HSA split between Vanguard VITSX (Total stock market) and VBTLX (total bond), plus money market for part of my emergency fund.

I kept the CDs (emergency fund) and dumped all other funds and stock across my portfolio.

Except GE. :oops: I figured it was so low, it had to come back. I still can't bring myself to sell it. Luckily it becomes a smaller part of my portfolio every day.
Live and learn. That was a small price to pay.

Nobody has a perfect portfolio, yours is pretty good.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Lafder
Posts: 3553
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: Portfolio Review

Post by Lafder » Sat Nov 04, 2017 5:15 pm

Nice simplification!
lafder

TheAncientOne
Posts: 68
Joined: Wed Jul 19, 2017 8:53 pm

Re: Portfolio Review

Post by TheAncientOne » Sat Nov 04, 2017 5:33 pm

Maybe I missed this in one of the posts but why are you taking until next August to pay off credit card debt? Pay it off today out of your emergency fund, then use the savings to rebuild that.

beebog
Posts: 17
Joined: Sun Aug 27, 2017 9:51 am

Re: Portfolio Review

Post by beebog » Sat Nov 04, 2017 8:33 pm

TheAncientOne wrote:
Sat Nov 04, 2017 5:33 pm
Maybe I missed this in one of the posts but why are you taking until next August to pay off credit card debt? Pay it off today out of your emergency fund, then use the savings to rebuild that.
It is at zero percent so I won't save anything by paying it off early. Also my income is erratic and I sleep better with cash sitting in an online savings account vs the possibility that I won't have the $$ to pay it off in August. If I have a particularly bad year, I can always not contribute to Roth or do a balance transfer and eat a 3% transfer fee. I don't want to be stuck in a position where I have limited income for a stretch and don't have some cash stockpiled.

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