FIRE within 5 years with high income?

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unstoppable
Posts: 38
Joined: Tue Aug 07, 2018 9:40 am

FIRE within 5 years with high income?

Post by unstoppable » Wed Aug 15, 2018 12:19 pm

Hi All,

I've been thinking very hard about things lately, and I've come to terms that I'm not sure I feel comfortable with a potential 50% drop in overall assets, especially if I'd like be FIRE within 5 years or less. I don't know if I'll actually leave my job, as I love it, but that can obviously change quickly...new boss, new projects, bad ideas, etc. I'm currently 32 years old.

Anyways, here's where I stand:

Retirement Accounts:
401k work - $135K in Voya Target Retirement 2050 Fund (95/5) and 0.77 ER (https://individuals.voya.com/product/mu ... erformance)

Personal Roth IRA
$15K - VSTAX (haven't submitted due to income limits)

---

Taxable Brokerage Accounts: $265K (a mix of dividend growth how I first started, now indexing...) and Betterment/VASGX
Betterment is at 90/10 which is $35k of the above, and VASGX is 80/20 and is $25K of the above

---

Cash: $130K in High Yeild Online Savings (1.8%)

---
More complicated stated here:
viewtopic.php?f=1&t=255898

Here's the kicker...the income levels are staying steady at $200K+ and rising (many side hustles), and I'm only spending $25-30K year right now, so all is being saved or invested...which may make sense to lower risk amount?

A few questions for the Bogleheads here, your help is incredibly appreciated:

1. What stock/bond ratio would you recommend for someone in this situation? I was quite pleased when reviewing long term gains for 80/20 or 70/30 vs. 100% stocks (which I'm near)...

2. In Betterment if I switch from 90/10 to say 80/20, how do they handle that? Will there be a lot of taxable events created? Has anyone changed their allocation within the app?

3. I plan to use Personal Capital to get the overall picture with everything combined, but expect it to be 95/5 or higher. Does anyone have a referral link? Happy to use the first one provided.

4. My plan is to continue to contribute to VASGX which is 80/20, and breakdown shown here: https://investor.vanguard.com/mutual-fu ... file/VASGX

48% Total Stock Market, 32% Int Stock Market, 20% Bonds

This seems pretty ideal, for a long term "set and forget" approach, right? I was surprised when I got into this one, how solid the breakdown is. Is the 32% too much International? I keep seeing people say 20% International max, is that 20% of the stock allocation (20% of the 80%, which would be 16% intl?), or 20% overall? Hopefully I didn't make that too confusing...

5. Lastly, I finally got a chance to look at my plans from Voya, and they seemed to finally have a really good option, I'm currently in the 95/5 target date fund with a high ER (.77), but found they have:

Voya Target Solution Income
Voya Target Solution 2020 through 2060 (multiple funds - too many to list, all in 5 year increments)
Stable Value Fund
BlackRock US Debt Index
Fidelity Total Bond
Vanguard Balanced Index
American Funds Washington Mutual
BlackRock Russell 3000 Index
Voya Large Cap Growth Port
JHancock Dspl Val Mid Cap
T.Rowe Mid Cap Growth
Federated Clover Sm Cap Val
T. Rowe Price New Horizons
BlackRock Global Equity Ex US
American Funds EuroPacific

I was thinking of putting everything into "Vanguard Balanced Index" which is VBINX and 0.07% (a full .70 points lower than my existing fund!!!), and 60/40 allocation instead of 95/5 (my current target date fund), looks like a very strong fund, and I believe having the 40% bonds in the 401k would be a good move.

What are your thoughts on this change? Is there any taxes, fees, or penalties by taking everything out of target date into this Vanguard fund? (so happy there's now a Vanguard fund available).

Oddly enough, the 60/40 V Balanced Index is beating the 95/5 Target Date Fund YTD...is that just due to the ER, or another reason? I couldn't believe it, I thought it would have been much lower. I know YTD isn't anything strong to go by, just was interesting to see!

Thanks to all in advance, I can't thank you guys enough, I'm forever grateful for your help!

- Billy
Last edited by unstoppable on Wed Aug 15, 2018 12:26 pm, edited 1 time in total.

Dottie57
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Re: FIRE within 5 years with high income?

Post by Dottie57 » Wed Aug 15, 2018 12:24 pm

Please update your post ( pencil in upper right hand corner of message)?

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BL
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Re: FIRE within 5 years with high income?

Post by BL » Wed Aug 15, 2018 12:40 pm

AFAIK, Balanced has no International, and Int has not done as well lately, so it could be due to that. Who knows about the future. I think it is a good fund with a low ER.

Search Wiki for "backdoor Roth".

aristotelian
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Re: FIRE within 5 years with high income?

Post by aristotelian » Wed Aug 15, 2018 12:53 pm

I think VBINX is a solid choice but that would represent quite a change in your bond allocation. Perhaps consider 10-20% in the Russell 3000 index.

You mention "many side hustles". Consider opening a Solo 401k to make additional "employer" contributions up to 20% of net business income.

usnaron
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Re: FIRE within 5 years with high income?

Post by usnaron » Wed Aug 15, 2018 1:11 pm

Do all Voya funds have a "sales charge" like the website says?

Site says " max sales charge of 5.5%"

unstoppable
Posts: 38
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Re: FIRE within 5 years with high income?

Post by unstoppable » Wed Aug 15, 2018 2:47 pm

usnaron wrote:
Wed Aug 15, 2018 1:11 pm
Do all Voya funds have a "sales charge" like the website says?

Site says " max sales charge of 5.5%"
I'm looking to learn more about this, do you have any insight on how that is charged and when it's charged? I'm googling it now and reading, but maybe you have a simple explanation? Well I get dinged for selling it?

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Meg77
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Re: FIRE within 5 years with high income?

Post by Meg77 » Wed Aug 15, 2018 3:12 pm

unstoppable wrote:
Wed Aug 15, 2018 12:19 pm
Hi All,

I've been thinking very hard about things lately, and I've come to terms that I'm not sure I feel comfortable with a potential 50% drop in overall assets, especially if I'd like be FIRE within 5 years or less. I don't know if I'll actually leave my job, as I love it, but that can obviously change quickly...new boss, new projects, bad ideas, etc. I'm currently 32 years old.
...
Here's the kicker...the income levels are staying steady at $200K+ and rising (many side hustles), and I'm only spending $25-30K year right now, so all is being saved or invested...which may make sense to lower risk amount?
It sounds like you need to update your target AA, but not because of your high savings rate. I was 100% stocks too until my early 30s, which coincided with crossing well into the 6 figure investment balance range as you have done. It's a lot easier to stomach a 50% drop when you have $20k invested versus $200K or $2M. Plus you might retire in the next decade, so it makes sense to ratchet down the risk. I think 70/30 makes a lot of sense, or 75/25. But I wouldn't go much lower than that on equities given your age. You gotta make this money last 50+ years after all. And you need to count the cash you have in excess of your 12 month EF too. You're a lot less aggressive than you think you are right now if you incorporate your fat cash cushion into the mix.
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm

Retirement Accounts:
401k work - $135K in Voya Target Retirement 2050 Fund (95/5) and 0.77 ER (https://individuals.voya.com/product/mu ... erformance)

Personal Roth IRA
$15K - VSTAX (haven't submitted due to income limits)
Definitely switch to the cheaper index fund(s) in your 401k. Your ER is pretty high on this Voya fund. There are no taxable consequences to trading within a retirement account. I'd pick the Blackrock Russell 3000 index assuming the fee is low. The VG Balanced index is great too, especially since most of your savings are going into taxable accounts. So you can control your AA mainly from putting new money into whichever asset class is lagging.

And look into backdoor Roth IRA contributions. You CAN contribute to a Roth.
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm

I plan to use Personal Capital to get the overall picture with everything combined, but expect it to be 95/5 or higher. Does anyone have a referral link? Happy to use the first one provided.
https://share.personalcapital.com/x/6tTuGy

Referral link. I love PC and you will definitely get good use out of it.
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm

4. My plan is to continue to contribute to VASGX which is 80/20, and breakdown shown here: https://investor.vanguard.com/mutual-fu ... file/VASGX

48% Total Stock Market, 32% Int Stock Market, 20% Bonds

This seems pretty ideal, for a long term "set and forget" approach, right? I was surprised when I got into this one, how solid the breakdown is. Is the 32% too much International? I keep seeing people say 20% International max, is that 20% of the stock allocation (20% of the 80%, which would be 16% intl?), or 20% overall? Hopefully I didn't make that too confusing...
That's pretty heavy in international for my taste. And you can save even more on the expense ratio by just investing directly in the underlying index funds yourself. You're saving so much each year that your asset allocation is going to be a moving target anyway with new cash pouring in monthly - which is great. But I'd just go with VTSAX and VTIAX and VBTLX.
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm

Oddly enough, the 60/40 V Balanced Index is beating the 95/5 Target Date Fund YTD...is that just due to the ER, or another reason? I couldn't believe it, I thought it would have been much lower. I know YTD isn't anything strong to go by, just was interesting to see!
I'm guessing this is because that fund is heavy in international equities which have not done well this year. But that does seem surprising.
"An investment in knowledge pays the best interest." - Benjamin Franklin

unstoppable
Posts: 38
Joined: Tue Aug 07, 2018 9:40 am

Re: FIRE within 5 years with high income?

Post by unstoppable » Wed Aug 15, 2018 5:17 pm

Meg77 wrote:
Wed Aug 15, 2018 3:12 pm
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm
Hi All,

I've been thinking very hard about things lately, and I've come to terms that I'm not sure I feel comfortable with a potential 50% drop in overall assets, especially if I'd like be FIRE within 5 years or less. I don't know if I'll actually leave my job, as I love it, but that can obviously change quickly...new boss, new projects, bad ideas, etc. I'm currently 32 years old.
...
Here's the kicker...the income levels are staying steady at $200K+ and rising (many side hustles), and I'm only spending $25-30K year right now, so all is being saved or invested...which may make sense to lower risk amount?
It sounds like you need to update your target AA, but not because of your high savings rate. I was 100% stocks too until my early 30s, which coincided with crossing well into the 6 figure investment balance range as you have done. It's a lot easier to stomach a 50% drop when you have $20k invested versus $200K or $2M. Plus you might retire in the next decade, so it makes sense to ratchet down the risk. I think 70/30 makes a lot of sense, or 75/25. But I wouldn't go much lower than that on equities given your age. You gotta make this money last 50+ years after all. And you need to count the cash you have in excess of your 12 month EF too. You're a lot less aggressive than you think you are right now if you incorporate your fat cash cushion into the mix.
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm

Retirement Accounts:
401k work - $135K in Voya Target Retirement 2050 Fund (95/5) and 0.77 ER (https://individuals.voya.com/product/mu ... erformance)

Personal Roth IRA
$15K - VSTAX (haven't submitted due to income limits)
Definitely switch to the cheaper index fund(s) in your 401k. Your ER is pretty high on this Voya fund. There are no taxable consequences to trading within a retirement account. I'd pick the Blackrock Russell 3000 index assuming the fee is low. The VG Balanced index is great too, especially since most of your savings are going into taxable accounts. So you can control your AA mainly from putting new money into whichever asset class is lagging.

And look into backdoor Roth IRA contributions. You CAN contribute to a Roth.
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm

I plan to use Personal Capital to get the overall picture with everything combined, but expect it to be 95/5 or higher. Does anyone have a referral link? Happy to use the first one provided.
https://share.personalcapital.com/x/6tTuGy

Referral link. I love PC and you will definitely get good use out of it.
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm

4. My plan is to continue to contribute to VASGX which is 80/20, and breakdown shown here: https://investor.vanguard.com/mutual-fu ... file/VASGX

48% Total Stock Market, 32% Int Stock Market, 20% Bonds

This seems pretty ideal, for a long term "set and forget" approach, right? I was surprised when I got into this one, how solid the breakdown is. Is the 32% too much International? I keep seeing people say 20% International max, is that 20% of the stock allocation (20% of the 80%, which would be 16% intl?), or 20% overall? Hopefully I didn't make that too confusing...
That's pretty heavy in international for my taste. And you can save even more on the expense ratio by just investing directly in the underlying index funds yourself. You're saving so much each year that your asset allocation is going to be a moving target anyway with new cash pouring in monthly - which is great. But I'd just go with VTSAX and VTIAX and VBTLX.
unstoppable wrote:
Wed Aug 15, 2018 12:19 pm

Oddly enough, the 60/40 V Balanced Index is beating the 95/5 Target Date Fund YTD...is that just due to the ER, or another reason? I couldn't believe it, I thought it would have been much lower. I know YTD isn't anything strong to go by, just was interesting to see!
I'm guessing this is because that fund is heavy in international equities which have not done well this year. But that does seem surprising.
Thanks for all the incredible insight, very much appreciated. I signed up to PC using your link, so hopefully you got credit. I'm really excited to use it, I've been worried for a while to "share" all my info, but after due diligence it looks quite buttoned up and used by many. It will be really interesting to really see a fully hollistic view, and know my actual allocations with multiple funds/accounts.

Is the process of transfering a 401k into a new fund a long process? It looked simple in the Voya system, but I'm trying to see if there's any charges/fees for doing this. Good to know this won't hit on any taxes. The 60/40 at .07 ER is way more appealing, and like you said I can simply dial up on 80/20 in taxable and it will balance out to 75/25 to 80/20 range overall.

For the VASGX would the higher international be ok with all my other US stocks? I guess PC will paint the full picture, it really looks like PC will be a game changer when I get everything logged in there. I plan to enter in all information next week. Will PC show me overall international vs. US for my stocks?

I will look into the Roth information you mentioned, surprised my accountant never mentioned it last year when I submitted my taxes.

Thanks again!

Lckiii
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Re: FIRE within 5 years with high income?

Post by Lckiii » Wed Aug 15, 2018 9:15 pm

I recently experienced an unexpected job loss. It was very easy to be near 100% equities with a high income, my risk aversion sky rocketed, however, when salary plummeted. I echo the advice above. Keep a substantial part of your portfolio in uncorrelated assets and some in cash equivalents to jump on the next bear market.

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Meg77
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Re: FIRE within 5 years with high income?

Post by Meg77 » Fri Aug 17, 2018 4:57 pm

unstoppable wrote:
Wed Aug 15, 2018 5:17 pm

Thanks for all the incredible insight, very much appreciated. I signed up to PC using your link, so hopefully you got credit. I'm really excited to use it, I've been worried for a while to "share" all my info, but after due diligence it looks quite buttoned up and used by many. It will be really interesting to really see a fully hollistic view, and know my actual allocations with multiple funds/accounts.

Is the process of transfering a 401k into a new fund a long process? It looked simple in the Voya system, but I'm trying to see if there's any charges/fees for doing this. Good to know this won't hit on any taxes. The 60/40 at .07 ER is way more appealing, and like you said I can simply dial up on 80/20 in taxable and it will balance out to 75/25 to 80/20 range overall.

For the VASGX would the higher international be ok with all my other US stocks? I guess PC will paint the full picture, it really looks like PC will be a game changer when I get everything logged in there. I plan to enter in all information next week. Will PC show me overall international vs. US for my stocks?

I will look into the Roth information you mentioned, surprised my accountant never mentioned it last year when I submitted my taxes.

Thanks again!
Awesome! No, trading funds within your 401k is quick; it should happen overnight just like within a regular brokerage account. And it's possible, but I've never heard of trading fees within a 401k. Usually you pay expense ratios and also maybe annual admin fees on top of that, but not usually trading fees (which are more common with stocks and ETFs but rarely apply to exchanging mutual funds). Anyway, you should make the trade even if there is a small fee for doing so.

And yeah, I'd just look at your total AA before making the fund call. That's one reason I like to own individual index funds instead of balanced funds or funds of funds like VASGX since it makes rebalancing more difficult across accounts. Plus individual indices are cheaper. But if you just want to have the balanced fund in the 401k and VASGX outside of it and never look at it again or worry about fiddling with it, that should work!

Good luck, sounds like you're doing great. :beer
"An investment in knowledge pays the best interest." - Benjamin Franklin

unstoppable
Posts: 38
Joined: Tue Aug 07, 2018 9:40 am

Re: FIRE within 5 years with high income?

Post by unstoppable » Wed Aug 29, 2018 10:40 am

Meg77 wrote:
Fri Aug 17, 2018 4:57 pm
unstoppable wrote:
Wed Aug 15, 2018 5:17 pm

Thanks for all the incredible insight, very much appreciated. I signed up to PC using your link, so hopefully you got credit. I'm really excited to use it, I've been worried for a while to "share" all my info, but after due diligence it looks quite buttoned up and used by many. It will be really interesting to really see a fully hollistic view, and know my actual allocations with multiple funds/accounts.

Is the process of transfering a 401k into a new fund a long process? It looked simple in the Voya system, but I'm trying to see if there's any charges/fees for doing this. Good to know this won't hit on any taxes. The 60/40 at .07 ER is way more appealing, and like you said I can simply dial up on 80/20 in taxable and it will balance out to 75/25 to 80/20 range overall.

For the VASGX would the higher international be ok with all my other US stocks? I guess PC will paint the full picture, it really looks like PC will be a game changer when I get everything logged in there. I plan to enter in all information next week. Will PC show me overall international vs. US for my stocks?

I will look into the Roth information you mentioned, surprised my accountant never mentioned it last year when I submitted my taxes.

Thanks again!
Awesome! No, trading funds within your 401k is quick; it should happen overnight just like within a regular brokerage account. And it's possible, but I've never heard of trading fees within a 401k. Usually you pay expense ratios and also maybe annual admin fees on top of that, but not usually trading fees (which are more common with stocks and ETFs but rarely apply to exchanging mutual funds). Anyway, you should make the trade even if there is a small fee for doing so.

And yeah, I'd just look at your total AA before making the fund call. That's one reason I like to own individual index funds instead of balanced funds or funds of funds like VASGX since it makes rebalancing more difficult across accounts. Plus individual indices are cheaper. But if you just want to have the balanced fund in the 401k and VASGX outside of it and never look at it again or worry about fiddling with it, that should work!

Good luck, sounds like you're doing great. :beer
Update: I went ahead and did the 401K fund change, and moved it all into the Vanguard Balanced Index (60/40), and realized I'm actually getting an insane amount of match, as my company is matching my normal 26 pay periods, AND when I get my additional (4) pay periods from commission they are matching the 5% that I'm submitting from those large deposits. It looks like I may be getting an extra $8K on top of my regular match, is that even possible?

I also started to use Personal Capital, gosh was it exciting connecting each account, and watching the net worth go up every time I hit enter. That was pretty awesome. The only issue is that I haven't been able to find a way to get my employee 401k integrated through my payment processor. I guess I will need to contact support, so I'm still unsure of my exact AA.

I've always looked at my cash cushion as separate, but I guess I will always need to include in my AA, right? I'm not sure if everyone on here does that, so it can be a bit confusing. At 1.8% interest, how bad is it to keep a big cushion? I never really thought about the inflation erosion over time, but as I keep adding to it, it's more of a concern.

Finding out what AA I should go with has been a difficult choice. I'm thinking about 75-80% stocks, and the rest bond/cash (mainly cash). The vanguard breakdown helped quite a bit.

Thanks again. I also sent you a PM too.

unstoppable
Posts: 38
Joined: Tue Aug 07, 2018 9:40 am

Re: FIRE within 5 years with high income?

Post by unstoppable » Wed Sep 12, 2018 4:22 pm

I'm going to have to rethink the 401k allocation, I thought I was able to do the transfer, but after seeing it didn't go through...I got the following message from support:

The Vanguard Balanced Index Fund is closed to new investments and is no longer available for transfers.


Sad to hear...

Here's a list w/ expenses:
http://www.voyadelivers.com/adpts/fundf ... d_grid.pdf

I'm thinking of maybe the Russell 3000 fund (still a brutal ER), and a bond fund? Any suggestions for a 60/40 or 70/30 blend?

Thanks

unstoppable
Posts: 38
Joined: Tue Aug 07, 2018 9:40 am

Re: FIRE within 5 years with high income?

Post by unstoppable » Mon Sep 17, 2018 8:48 am

Anyone else have the same 401k options?

aristotelian
Posts: 4762
Joined: Wed Jan 11, 2017 8:05 pm

Re: FIRE within 5 years with high income?

Post by aristotelian » Mon Sep 17, 2018 9:26 am

OP, changing your allocation in Betterment would be taxable and would also set you up with an inefficient portfolio with bonds producing taxable dividends.

IMO, the best approach would be to ditch your high expense Target Date fund in the 401k and put a portion in Fidelity Bond Index up to your desired bond allocation.

Why do you have so much in cash? In effect your portfolio is already pretty conservative with about 25% in cash. That is a large portion of your portfolio out of market earning no return. With high income, do you need such a large cash allocation? Consider something like:

$50K savings account
---
401k 100% Fidelity bond index ($135K)
Brokerage Account 100% stock ($350K)
Roth IRA 100% stock ($15K)

This would give you 73/27 overall allocation plus $50K cash if needed. Lower expenses and more tax-efficient than your current portfolio.

Do you have a mortgage? Another possibility with the cash would be to pay off your mortgage.

Also, you can and should do Backdoor Roth regardless of income limits.

unstoppable
Posts: 38
Joined: Tue Aug 07, 2018 9:40 am

Re: FIRE within 5 years with high income?

Post by unstoppable » Tue Oct 09, 2018 12:49 pm

aristotelian wrote:
Mon Sep 17, 2018 9:26 am
OP, changing your allocation in Betterment would be taxable and would also set you up with an inefficient portfolio with bonds producing taxable dividends.

IMO, the best approach would be to ditch your high expense Target Date fund in the 401k and put a portion in Fidelity Bond Index up to your desired bond allocation.

Why do you have so much in cash? In effect your portfolio is already pretty conservative with about 25% in cash. That is a large portion of your portfolio out of market earning no return. With high income, do you need such a large cash allocation? Consider something like:

$50K savings account
---
401k 100% Fidelity bond index ($135K)
Brokerage Account 100% stock ($350K)
Roth IRA 100% stock ($15K)

This would give you 73/27 overall allocation plus $50K cash if needed. Lower expenses and more tax-efficient than your current portfolio.

Do you have a mortgage? Another possibility with the cash would be to pay off your mortgage.

Also, you can and should do Backdoor Roth regardless of income limits.
Thanks for the awesome reply! I spoke w/ Betterment and they have a way of manually allowing new deposits to balance out to avoid taxable events, and they mentioned this will eventually be a public feature when changing allocations. I just left it at 90/10 for now, and didn't make any changes.

I agree on changing the TDF to a bond index, as this will be my tax efficient bond holding. Here's the one thing I'm curious about...that scares me. I looked at the TDF I have all my 401k in:

https://individuals.voya.com/product/mu ... -2050-fund

It says: "Current Maximum Sales Charge: 5.75%", what does that actual mean? Will I get charged 5.75% to transfer the fund? How are they able to get away with this? Are they currently charging me 5.75% of all my deposited funds + an ER? This really seems like highway robbery, and there should be more regulation in the space on this...some fees are understandable.

In regards to cash, it's really just a mental aspect. I was once super negative in debt and struggling each day/week to make ends meet, and really want to ensure I'm far away from a scenario like that again. It was very stressful, but obviously taught me a lot. I may drop the cash a bit, but might still stay at a high amount if I ever want to dip it into it.

I really like the allocation you mentioned, as I looked at 70/30 here, and the risk/reward seems quite good overall:
https://personal.vanguard.com/us/insigh ... ns?lang=en

I do not have a mortgage or home, just renting a room at a low rate currently from a friend. I will also look into a Backdoor Roth, surprised my accountant never brought it up, but he might not even know himself. I will do my own research on it.

Lastly, random question for those pursuing FI, does anyone use savings to get them their faster? For example, let's say I save another $50K cash, couldn't I potentially use $5K for the next 10 years to give me a quicker FI start time, while my portfolio continues to grow? Just curious.

Thanks for the incredible help. Very appreciative.

aristotelian
Posts: 4762
Joined: Wed Jan 11, 2017 8:05 pm

Re: FIRE within 5 years with high income?

Post by aristotelian » Tue Oct 09, 2018 1:05 pm

unstoppable wrote:
Tue Oct 09, 2018 12:49 pm
I agree on changing the TDF to a bond index, as this will be my tax efficient bond holding. Here's the one thing I'm curious about...that scares me. I looked at the TDF I have all my 401k in:

https://individuals.voya.com/product/mu ... -2050-fund

It says: "Current Maximum Sales Charge: 5.75%", what does that actual mean? Will I get charged 5.75% to transfer the fund? How are they able to get away with this? Are they currently charging me 5.75% of all my deposited funds + an ER? This really seems like highway robbery, and there should be more regulation in the space on this...some fees are understandable.


Lastly, random question for those pursuing FI, does anyone use savings to get them their faster? For example, let's say I save another $50K cash, couldn't I potentially use $5K for the next 10 years to give me a quicker FI start time, while my portfolio continues to grow? Just curious.
Sounds like that is a load fee they would charge on every contribution. However, it refers to "maximum" charge, so it is possible/likely that the charge is waived for plans like yours. Still, you should post all the options in your plan with their expense ratios, and folks here can help you select the best ones.

Yes, the more you save, the more you invest. At the same time, you lower your spending, so you also lower the number you need for your portfolio to sustain your expenses. This is a good intro to the concept of savings rate and how much you can shorten your working career by saving more: http://www.mrmoneymustache.com/2012/01/ ... etirement/

unstoppable
Posts: 38
Joined: Tue Aug 07, 2018 9:40 am

Re: FIRE within 5 years with high income?

Post by unstoppable » Tue Oct 09, 2018 4:51 pm

Thanks for the insight, much appreciated. I had posted above, but here's the list again:

Here's a list w/ expenses:
http://www.voyadelivers.com/adpts/fundf ... d_grid.pdf

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