We're back on track now and I'm nerding out hard core. Looking for advice on our path. I'm sure this will represent a feeding frenzy with decent sized crypto holding and having bailed from the market in March… but that's what I'm here for.
Me: Age 44, 135k in a stable profession (software eng)
Her: Age 44, 55k in a covid impacted (travel) profession, though still employed, albeit with a 20% haircut
2 kids - 12 and 15. both college-bound
HCOL area - Boston suburbs
Expenses with mortgage - around 7k/mo. non covid prob kids it up to 8k with more leisure, dining, kids activities, etc.
Slacking here - less than 1 month of expenses stashed away. We do have around 2-3 months worth of expenses in crypto that could be liquidated in a few days, though I wouldn't consider that part of our EF.
Mortgage - 409k at 3.75%, zillow value is 552k. plan to stay at least until the kids are through college - so roughly 10 yr time frame.
Student Loans - 17k at 3%.
No loans on cars… proud of that one at least!
Tax Filing Status:
Married filing jointly
Fed 12% avg, 22% marginal
Desired Asset allocation: 90% stocks, 10% bonds (we're behind, so wanting to be aggressive)
Desired International allocation: 25% of stocks
My 401k (no match)
VTSAX - 6600
VTIAZ - 2200
My Traditional IRA
Vanguard Target 2065 - 2000
Cash - 16000 -- RED FLAG -- i moved to cash when the market first ticked down 5% in march. obv couldn't time the bottom and now afraid to time the top. stupid, though i don't think this will be indicative of my behavior going forward. currently DCA'g back in at $1000/week.
My Roth IRA
Vanguard Target 2065 - 1000
Her Traditional IRA
Vanguard Target 2065 - 3500
Her Roth IRA
Vanguard Target 2050 - 4000
529 12 yr old
13k in age-appropriate index fund at Fidelity
529 15 yr old
17k in age-appropriate index fund at Fidelity
Crypto (understanding it's frowned upon here, i do believe in bitcoin as an asymmetric asset - though its def too big a % for now)
Additionally - about 5k in UTMA for each kid, family gifts.
My 401k - maxing out at 19,500
I have solid fund options (all of the big vanguard index funds)
Her Traditional IRA - 6000 (vanguard)
Each 529 plan - 1200 (fido)
Crypto - 2400 (bitcoin)
My Roth (vanguard) - TBD, possibly need to nail down EF first.
So… we can't change the past, can only make decisions going forward. We're both 44 without a lot saved, so there's not going to be a lot of margin for error.
I was reluctant to include my crypto holdings or contributions because that's going to get an immediate red flag. I'm fine with that. Each 401k/IRA contribution reduces our exposure there. Would ideally like to have that around 5-10%.
The way I see it…
- Build up an EF. Most glaring issue.
Re-deploy the IRA cash back into the market
Max out my Roth
Increase contributions to 529 plans
Remove all bond exposure from roths
 didn't include vested/purchasble startup stock options as well. gamble, too messy, etc.