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Key Details:
Emergency funds: >12months (Mature Ibonds + Taxable Basis)
Debt: 61K on rental property (4%)
Tax Filing Status: Married Filing Jointly
Tax Rate: 32% Federal, 7% State
Age: 43/43/13/9
Desired Asset allocation: 70% Stocks / 30% Bonds (International 20% of Stock)
Retirement Portfolio Size: 2.84M
Retirement Targets (Annual Spend, WR, Size): 130K/3.5%/3.72M
Gross Income: 310K + Variable Bonus + Variable RSU
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| Account Name | Jan1 2025 ($) | Jan1 2025 (%) | Notes |
|-------------------------------------|---------------|---------------|------------------------------------------------|
| Retirement Total | $2,841,664.38 | 100.0% | 77% Stocks (86US/14INT) / 19% Bonds / 4% Cash |
| Tax Exempt Total (Roth) | $822,825.92 | 29.0% | Mix of FZROX, FZILX, and Individual Stocks |
| Tax Deferred Total (Traditional) | $1,452,703.56 | 51.1% | Mix of FSKAK, FTIHX, FXNAX, and VAN TGT 2040 |
| Tax Free Total (HSA) | $91,077.32 | 3.2% | Mix of FXAIX and Cash |
| Tax Advantaged Total (Ibonds) | $94,328.00 | 3.3% | I-Bonds |
| Taxable Total (Brokerage) | $380,729.58 | 13.4% | Mix of ITOT, VTI, Individual Stock, and Cash |
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| Account Name | Jan1 2025 ($) | Jan1 2025 (%) | Notes |
|-----------------------------|---------------|---------------|--------------------------------------------------------------------------------------------------------------------|
| Roth IRA (his) | $169,161.08 | 7.4% | 83% FZROX + 17% FZILX |
| Roth IRA(hers) | $136,385.40 | 4.8% | 79% FZROX + 21% Individual Stocks |
| Roth 401K (his) | $272,827.65 | 9.6% | 100% FZROX |
| Roth 401K (hers) | $244,451.79 | 8.6% | 100% FZROX |
| Traditional IRA (his) | $0.00 | 0.0% | NA |
| Traditional IRA (hers) | $0.00 | 0.0% | NA |
| Traditional 401K(his) | $880,795.30 | 31.0% | (6% Company 401K) + (94% BrokerageLink) = (100% VAN TGT 2040 [46/30/22/2]) + (53% FSKAK + 16% FTIHX + 31% FXNAX) |
| Traditional 401K (hers) | $571,908.26 | 20.1% | (70% Company 401K) + (30% BrokerageLink) = (100% VAN TGT 2040 [46/30/22/2]) + (100% FXNAX) |
| HSA (his) | $42,351.55 | 1.5% | 98% FXAIX + 2% Cash |
| HSA (hers) | $48,725.77 | 1.7% | 100% FXAIX |
| I-Bonds (his) | $47,164.00 | 1.7% | 100% I-Bonds |
| I-Bonds (hers) | $47,164.00 | 1.7% | 100% I-Bonds |
| Individual Brokerage (his) | $155,639.66 | 5.5% | 81% ITOT, 14% VTI, 5% Cash |
| Individual Brokerage (hers) | $225,089.92 | 7.9% | 84% ITOT, 7% VTI, 5% Individual Stocks, 4% Cash |
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| Account Name | INDEX US ($) | INDEX INT ($) | INDIV STOCKS ($) | INDEX BOND ($) | CASH ($) | RE EQUITY ($) |
|-------------------------------------|---------------|---------------|------------------|----------------|-------------|----------------|
| Retirement Total | $1,855,560.28 | $297,184.05 | $39,895.43 | $527,936.60 | $121,088.02 | $0.00 |
| Tax Exempt Total (Roth) | $765,427.60 | $28,757.38 | $28,640.93 | $0.00 | $0.00 | $0.00 |
| Tax Deferred Total (Traditional) | $647,276.63 | $268,426.66 | $0.00 | $527,936.60 | $9,063.67 | $0.00 |
| Tax Free Total (HSA) | $90,166.55 | $0.00 | $0.00 | $0.00 | $910.77 | $0.00 |
| Tax Advantaged Total (Ibonds) | $0.00 | $0.00 | $0.00 | $0.00 | $94,328.00 | $0.00 |
| Taxable Total (Brokerage) | $352,689.50 | $0.00 | $11,254.50 | $0.00 | $16,785.58 | $0.00 |
| | | | | | | |
| Retirement Total | 65.3% | 10.5% | 1.4% | 18.6% | 4.3% | 0.0% |
| Tax Exempt Total (Roth) | 26.9% | 1.0% | 1.0% | 0.0% | 0.0% | 0.0% |
| Tax Deferred Total (Traditional) | 22.8% | 9.4% | 0.0% | 18.6% | 0.3% | 0.0% |
| Tax Free Total (HSA) | 3.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Tax Advantaged Total (Ibonds) | 0.0% | 0.0% | 0.0% | 0.0% | 3.3% | 0.0% |
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| Account Name | INDEX US ($) | INDEX INT ($) | INDIV STOCKS ($) | INDEX BOND ($) | CASH ($) | RE EQUITY ($) |
|-----------------------------|--------------|---------------|------------------|----------------|------------|---------------|
| Roth IRA (his) | $140,403.70 | $28,757.38 | $0.00 | $0.00 | $0.00 | $0.00 |
| Roth IRA(hers) | $107,744.47 | $0.00 | $28,640.93 | $0.00 | $0.00 | $0.00 |
| Roth 401K (his) | $272,827.65 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Roth 401K (hers) | $244,451.79 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Traditional IRA (his) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Traditional IRA (hers) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Traditional 401K(his) | $463,122.17 | $148,325.93 | $0.00 | $268,290.25 | $1,056.95 | $0.00 |
| Traditional 401K (hers) | $184,154.46 | $120,100.73 | $0.00 | $259,646.35 | $8,006.72 | $0.00 |
| HSA (his) | $41,928.03 | $0.00 | $0.00 | $0.00 | $423.52 | $0.00 |
| HSA (hers) | $48,238.51 | $0.00 | $0.00 | $0.00 | $487.26 | $0.00 |
| I-Bonds (his) | $0.00 | $0.00 | $0.00 | $0.00 | $47,164.00 | $0.00 |
| I-Bonds (hers) | $0.00 | $0.00 | $0.00 | $0.00 | $47,164.00 | $0.00 |
| Individual Brokerage (his) | $147,857.68 | $0.00 | $0.00 | $0.00 | $7,781.98 | $0.00 |
| Individual Brokerage (hers) | $204,831.83 | $0.00 | $11,254.50 | $0.00 | $9,003.60 | $0.00 |
| | | | | | | |
| Roth IRA (his) | 4.9% | 1.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Roth IRA(hers) | 3.8% | 0.0% | 1.0% | 0.0% | 0.0% | 0.0% |
| Roth 401K (his) | 9.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Roth 401K (hers) | 8.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Traditional IRA (his) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Traditional IRA (hers) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Traditional 401K(his) | 16.3% | 5.2% | 0.0% | 9.4% | 0.0% | 0.0% |
| Traditional 401K (hers) | 6.5% | 4.2% | 0.0% | 9.1% | 0.3% | 0.0% |
| HSA (his) | 1.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| HSA (hers) | 1.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| I-Bonds (his) | 0.0% | 0.0% | 0.0% | 0.0% | 1.7% | 0.0% |
| I-Bonds (hers) | 0.0% | 0.0% | 0.0% | 0.0% | 1.7% | 0.0% |
| Individual Brokerage (his) | 5.2% | 0.0% | 0.0% | 0.0% | 0.3% | 0.0% |
| Individual Brokerage (hers) | 7.2% | 0.0% | 0.4% | 0.0% | 0.3% | 0.0% |
ITOT S&P500 INDEX ER=0.03%
FZROX US MARKET INDEX ER=0%
FZILX INTL MARKET INDEX ER=0%
VAN TARGET 2040 (46% Vanguard US Index + 30% Vanguard Total Int Index + 22% Vanguard Bond Index + 2% Cash) ER=0.06%
FXNAX US BOND INDEX ER=0.025%
FSKAK US MARKET INDEX ER=0.015%
FTIHX INTL MARKET INDEX ER=0.06%
VFIAX VANGUARD 500 INDEX ADMIRAL ER=0.04%
VTI VANGUARD TOTAL STOCK MARKET ETF ER=0.03%
TGT Growth Fund (45% Vanguard US Index + 30% Vanguard Total Int Index + 25% Vanguard Bond Index) ER=0.49%
TGT Aggressive Growth Fund (60% Vanguard US Index + 40% Vanguard Total Int Index) ER=0.49%
Current non-retirement assets
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| Account Name | Jan1 2025 ($) | Jan1 2025 (%) | Notes |
|-----------------------------|---------------|---------------|----------------------------------------------|
| 529 (child1) | $134,591.03 | 8.5% | 100% TGT Growth Fund [45/30/25/0] |
| 529 (child2) | $58,977.43 | 3.7% | 100% TGT Aggressive Growth Fund [60/40/0/0] |
| Primary Home (value - debt) | $887,200.00 | 56.3% | No Debt |
| Rental Home (value - debt) | $495,192.67 | 31.4% | Debt = 60K |
Contributions
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| Account Name | 2025 Planned |
|-------------------------------------|--------------|
| Retirement Total | $164,000.00 |
| Tax Exempt Total (Roth) | $71,500.00 |
| Tax Deferred Total (Traditional) | $66,000.00 |
| Tax Free Total (HSA) | $6,500.00 |
| Tax Advantaged Total (Ibonds) | $0.00 |
| Taxable Total (Brokerage) | $20,000.00 |
| Non-Retirement Total | $32,000.00 |
| Tax Exempt Total (529) | $12,000.00 |
| Real Estate (Primary + Rental) | $20,000.00 |
| Total Save | $196,000.00 |
| | |
| Account Name | 2025 Planned |
| Roth IRA (his) (via BDR) | $7,000.00 |
| Roth IRA(hers) (via BDR) | $7,000.00 |
| Roth 401K (his) (via MBDR) | $28,750.00 |
| Roth 401K (hers) (via MBDR | $28,750.00 |
| Traditional IRA (his) | $0.00 |
| Traditional IRA (hers) | $0.00 |
| Traditional 401K(his) | $36,000.00 |
| Traditional 401K (hers) | $30,000.00 |
| HSA (his) | $3,300.00 |
| HSA (hers) | $3,200.00 |
| I-Bonds (his) | $0.00 |
| I-Bonds (hers) | $0.00 |
| Individual Brokerage (his) | $20,000.00 |
| Individual Brokerage (hers) | $0.00 |
| 529 (child1) | $0.00 |
| 529 (child2) | $12,000.00 |
| Primary Home | $0.00 |
| Rental Home | $20,000.00 |
2025 Portfolio Insights:
- Stock vs Bond % really got away from me over the last couple of years. With a target early retirement year of 2030 I am not comfortable maintaining near 80% stock weighting. First plan of action is to fix that with some conversion into Bonds, see portfolio questions below.
- Lifestyle creep and annual spend increases have not stopped year over year (cant blame it all on inflation). The old me would have freaked out and forced a strict budget to get it under control but I have become better at accepting this and just making sure we understand its impacts on final target numbers and retirement date. There is a direct correlation between getting closer to retirement date and reduced stress at work which has in turn made me ok working longer. Always interesting to read about that when I was younger but another thing to experience it first hand!
2025 Portfolio Questions:
- To continue efforts to reduce account complexity I was thinking of closing one of the individual accounts and just having one joint brokerage account? Any issues with moving investments from one fidelity account to another without selling and incurring taxable gains? Any gotchas?
- To get closer to my desired 70/30 allocation we are moving effective immediately ~350K out of her company 401k (VAN TGT 2040). Plan to push it into FXNAX within the brokeragelink account. Since this is a mutual fund any issues with moving that much all at once? If it was an ETF I would be more hesitant to make sure to put limit order ect but if its mutual fund no concerns and this is probably small compared to how much is bought/sold each day right?
- My plan is to go to 65/35 in 3-4 years then go to 60/40 on the day of early retirement. I think I would be fine with a more aggressive portfolio after I have weathered the first 3-5 years of early retirement. Maybe march it up to 65/35 but don't see me going any higher then 70/30 from here on out. Is sitting at 60/40 for 3-5 years enough to compensate for sequence of returns risk?
- Plan to use Roth conversion ladder to move 401K/IRA into RothIRA in early retirement. Will need taxable + ibonds to fund 5 years of expenses as well as conversion tax costs. Our desired annual budget is increasing year over year so this has been difficult to get on top of. 130K*5=650K but you have growth over those 5 years so targeting 580K. Don't think I will get to that amount by my desired target year (2030) so plan on leveraging roth contribution basis as a backup or selling rental for equity or HELOC? Is general consensus to not touch roth contribution amounts unless last resort?
- At this point I don't think I can be convinced that a sub 3.5% withdrawal rate is needed even with my longer runway but over the last couple of years has this consensus changed at all?