Tax Filing Status: Married Filing Jointly
Tax Rate: 35% Federal, ~10% State
Age both mid 40s
401k ($72k) (VFORX)(.15%) - Company matches and I max out contributions yearly
Desired Asset allocation: 80% stocks(64% US & 16% Intl) / 20% bonds
Current retirement assets ($1,192,000) excluding above mentioned 401K since it's a life-cycle fund.
Aiming to implement the 3 Fund Portfolio. If I am doing this correctly, across all the accounts below, I believe the asset allocation across the portfolio would be as follows:
- Vanguard Total Stock Market Index Fund (VTSAX) → 64% → $762,880
- Vanguard Total International Stock Index Fund (VTIAX) → 16% → $190,720
- Vanguard Total Bond Market Index Fund (VBTLX) → 20% → $238,000
Each of the following accounts have funds ready to invest.
- Taxable ($500k)
- His Roth IRA ($17k)
- His Rollover IRA ($560k)
- Her Roth IRA ($17k)
- Her Rollover IRA ($104k)
1) Looking for feedback on how to distribute the three funds across these accounts.
2) For our IRAs and Roths is it better to have some % of the funds(bonds & stocks) in each of our retirement accounts? Or conversely, have one of our IRA account’s contain the entire portfolio’s % of a fund(for example: $243k of bond index fund in my IRA and none in wifes)?
3) Given these accounts are 100% cash, is it recommend to purchase all up front or spread it out over a period of time?
4) Bonds - I have seen two approaches on whether it should be placed in taxable or tax deferred. Any guidance for my situation? Based on the book, I am leaning towards the IRA accounts.
5) Best place to park short term cash? I have set aside ~$50k to pay capital gains. I will be paying quarterly estimates(June, Sept, & Jan) and then some in April 2019. So, I am wondering what would be the best approach for these funds. CDs, Money Market or other suggestions?
Thank you in advance!