I thought I would provide an update to what has happened in the last 6 years.Posted April 2017
Emergency funds: @ 5-6 Months, plus $50K in bank savings acct to cash flow (upcoming car purchase, college cash flow, prop taxes etc)
Debt: Mortgage 15 year (refi 12/2010). 106K Balance, 4.125% - $1506/mo, (worth $350K, maybe more)
Car @ $12K bal, 1.75% - $533/mo - 23 mo left.
Tax Filing Status: Married Filing Jointly: combined Income $200-225K.
State of Residence: Texas
Age: Him 52, Her 50 (Kids: 21, 19,15)
Desired Asset allocation: not sure. Current 58% Stocks: 42% Bonds/Cap Preservation (based on below)
Current Total Retirement Focused assets: $ 950K
Taxable - 294K
(had 11 funds with ERs ranging from .35 to 1.98%)
Taxable 2 $113K (50K allotted for Emergency Fund )
His Rollover IRA - $ 400K
(16 funds ERs ranging .61 to 1.98%)
HER Rollover IRA - $92K
(6 fund ERs ranging .96 to 1.98%)
Her 403b - $ 37K (no match)
(5 funds ERs ranging from .16 to .43%)
HIS 401K @ 1.5K --Vanguard Target 2030 VTHRX .15% ER (Not included in $950K)
529 Kids - @ 150K (Not included in $950K)-- should be OK and we plan to cash flow difference.
His HSA - started 2017 - $1000 balance. (Not included in $950K)
SS His - I'll project $2,900/mo at 67 (SS website says $2900 if I earn $118K until retire, but should earn SS max each year)
SS Hers - $ 1450 spousal benefit of his. (did not work enough to beat $1450/mo )
Project combined $50K a year. Leaning toward delaying until 67.
New annual Contributions (expect $250K over 8 years, hope for more)
$4,500 his 401k (available matching in 3/2018, match vests after 12 months)
$24,000 her 403b ($2,000/mo - no matching)
$3,500 his HSA (company adds additional $2000)
$300/mo to 529 for next 36 mo until youngest heads to college and then will use to cashflow college or increase his 401K or taxable add.
$0 his IRA/Roth IRA
$0 her IRA/Roth IRA
$0 taxable
EF $100K
Mortgage paid off Jan 2021 (Value $600K - Zillow $647K)
Debt - $25K Car Loan - 2 years left
Tax Filing Status: Married Filing Jointly: combined Income $350-400K
( Bunching deductions every other year)
State of Residence: Texas
Age: Him 58, Her 56 (supporting 1 child, last year of college - other 2 launched)
Desired Asset allocation: 65/35
Current Total Retirement Focused assets: $ 1.58M
Taxable - $ 455K
VTSAX / VTI / VTIAX (started buying VTI instead of VTSAX)
His Rollover IRA - $ 500K
VBTLX / VTSAX / VTIAX
His Roth IRA $30K
VTSAX
Her Roth IRA - $46K
VTSAX/VTI - (started buy VTI instead)
Her Trad IRA - $0K (backdoor Roth)
Her 403b - $ 295K
VBTLX / VTSAX / VTIAX
His 401K $45k
FXAIX (SP 500)
His Deferred Comp $160K (paid out equally over 10 years, at separation)
75% FXAIX ( SP 500) / 25% FSSNX (Small Cap Blend)
HIS HSA $34K
VFIAX
529 - @ 28K (Not included)-- will be depleted 1/2024; cash flow monthly room/board
SS His - project ~ $4,200/mo at 70
SS Hers - ~$ 1700/mo spousal benefit. (has not earned enough SS credits)
Project combined ~ $70K a year. Plan to delay until 70.
New annual Contributions
$0 His 401k (HCE
)$30K His Deferred Comp ($21K Match. 7% on 10%)
$12,000 her 403b (no matching)
$7,500 his HSA (company adds $1,000)
$0 his IRA/Roth IRA
$7.500 her Roth IRA
$100K taxable (yes $100K, primarily 70-80% year end bonus)
approx $15K vesting RSUs
*Do anticipate very high 6 figure inheritance in 1-5 years (40% IRA,30% Taxable, 30% Property Sales)
Plan to retire inside of 2 years with $100K (maybe up to $120K) year expenses.
Plan to use ACA until 65 (keeping income below $75K for subsidies)
Plan to do Roth conversions of $20-30K year from 60-73 (75?)
*I understand the 10 yr rule on the inherited IRA.
*Working to understand withdrawal options for tax/income efficiency
Appreciate Thoughts and Input
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