His age: 32. Approximate income of $110K /yr.
Her age: 31. Approximate income of $80K /yr.
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 5-10% of stocks
Emergency funds: Covered for six months and beyond
Debt: Home mortgage; $137,710 outstanding balance, 3.5% interest rate on a 30-year fixed loan 6 years in with a property value of approximately $350K. One car loan of $20K @ 1.6% interest all of the above in his name. No credit card debt or other loans for either him/her.
Tax Filing Status: Single, no children (yet). Planning to get married in 2018 and will (probably) file jointly (?)
Tax Rate: 17% Federal, 3% AZ State (based on actuals from 2017 filing)
State of residence: Arizona
Other: No pensions. Have good healthcare plan via his employer. Not currently contributing to HSA.
Current retirement assets
His 401K Portfolio size: $250K
His Roth IRA: $20K
His Taxable: $20K, after emergency savings, sitting in various stocks/mutual funds
His 401K current allocation
5% - Short Term Bond Fund. ER: 0.13%
5% - Intermediate Bond Fund. ER: 0.18%
70% - NT Collective S&P 500 Index Fund. ER: 0.02%
5% - T. Rowe Price Mid-Cap Growth. ER: 0.50%
10% - Small-Cap Equity. ER: 0.80%
5% - International Equity Fund. ER: 0.87%
His Roth IRA at TD Ameritrade (looking to move to Vanguard)
13% - T. Rowe Price U.S. Bond Enhanced Index Fund. PBDIX. ER: 0.30%
28% - Vanguard Total Stock Market Index Fund ETF Shares. VTI. ER: 0.04%
2% - Payden Absolute Return Bond Fund Investor Class. PYARX. ER: 0.70%
30% - T. Rowe Price Personal Strategy Growth Fund. TRSGX. ER: 0.88%
27% - USAA World Growth Fund. USAWX. ER: 1.13%
His taxable account at TD Ameritrade (looking to move to Vanguard)
31% - Vanguard Total Stock Market Index Fund ETF Shares. VTI. ER: 0.04%
1% - Payden Absolute Return Bond Fund Investor Class. PYARX. ER: 0.70%
25% - USAA World Growth Fund. USAWX. ER: 1.13%
4% - SPDR® S&P Health Care Equipment ETF. XHE. ER: 0.35%
28% - iShares Core Aggressive Allocation ETF. AOA. ER: 0.25%
11% - USAA Tax Exempt Intermediate-Term Fund. USATX. ER: 0.52%
$7,700 his 401K, plus company match of 75% on first 3% saved; 25% on next 4% saved (not included in $7,700)
$5,500 his Roth IRA
$8,000 in taxable TD Ameritrade account
Funds available in his 401k
(Additional administrative fee of approximately $10 /quarter not included below)
Vanguard Retirement 2015. ER: 0.07%
Vanguard Retirement 2025. ER: 0.07%
Vanguard Retirement 2035. ER: 0.07%
Vanguard Retirement 2045. ER: 0.07%
Vanguard Retirement 2055. ER: 0.07%
Short-Term Bond Fund. ER: 0.13%
Intermediate Bond Fund. ER: 0.18%
Balanced Fund. ER: 0.31%
Dodge & Cox Stock Portfolio. ER: 0.20%
NT Collective S&P 500 Index. ER: 0.02%
Large-Cap Equity Fund. ER: 0.29%
Fidelity Contrafund. ER: 0.43%
Large-Cap Growth Fund. ER: 0.56%
T. Rowe Price Mid-Cap Growth. ER: 0.50%
Small-Cap Equity Fund. ER: 0.80%
International Equity Fund. ER: 0.87%
Funds available in His Roth IRA and taxable:
(Both are standard TD Ameritrade accounts)
Planned Next Steps
• Move his Roth IRA and taxable accounts from TD Ameritrade to Vanguard
• Change his taxable account and Roth investment to 90% vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) and 10% to Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) (?)
• Increase his contribution to 401K
1. Should I increase my 401K contribution and reduce my contribution to my taxable account?
2. Does it make sense to open an IRA and contribute there due to my limited 401K choices?
3. Is it worth moving his accounts from TD Ameritrade to Vanguard?
4. Should we contribute to HSA, if so, which one/how much?
5. Should we file jointly when we get married?
6. My fiancée has approximately:
- $50K in Fidelity from prior 401Ks
$8K in Fidelity current employer 401K, contributing 15% with a 6% match
$6K in Fidelity Roth IRA
$40K in Prudential current employer 403B account contributing 14% with a 6% match