Early 40's need help
Posted: Wed Nov 11, 2009 4:09 pm
Hi-
I wrote in a while ago when thing were a total disaster, lots of various funds with no rhyme or reason. We still have a bit of a hodge-podge, but I’m trying to get things in order. We have most of our money in TIAA-CREF and Fidelity, though we recently opened a Vanguard account. I don’t think I want to switch everything over to Vanguard unless there’s something we can’t get a comparable at TC or Fido.
Emergency funds: at least 9-12 months (not included in allocation)
Children’s 529 not included in allocation
Debt: 355K 30 yr. mortgage at 4.75%
Tax Filing Status: Married filing Jointly
Tax Rate: 35% Federal 10.5% State & City (N.Y.C.)
Age: 41/40
Desired Asset allocation: 80/20
Desired Intl allocation: 20% of stocks (??)
Current portfolio – mid six figures
Taxable – 52%
7% cash
11 %TIAA Inst’l Equity Index (TINRX) (0.44%)
6% TIAA Mid Cap Growth (TCMGX) (0.95%)
14% Fidelity Total market Index (FSTMX) (0.1%)
3% Janus Twenty (JAVLX) (0.84%)
1% VG Total Int’l Stock Index (VGTSX) (.34%)
5% Fidelity Spartan Int’l Index Investor Class (FSIIX) (.10%)
3% Fidelity NY Muni Income (FTFMX) (.47%)
2% PR Muni Bond @5.125% due 2024
Small amounts in individual stocks just for the ‘fun’ of it
Tax Advantaged – 48%
His 403b- maxed out with full match
1% TIAA Traditional
17% CREF Stock (0.62%)
2% CREF Growth (0.63%)
2% CREF Equity Index (0.56%)
9% CREF Global Equities (0.66%)
3% TIAA Real Estate (0.84%)
His Traditional IRA (non-deductible, hoping to convert in 2010 to Roth)
1% CREF Inflation Linked Bond (0.50%)
His SEP IRA
1% TIAA-Cref Inflation Linked Bond- Retirement Class (0.59%)
Her GSRA (lying dormant from a former job)
1% TIAA Traditional
3% CREF Inflation Linked Bond (0.50%)
Her Roth IRA
5% Fidelity Spartan 500 Index (FSMKX) (0.1%)
Her Traditional IRA (non-deductible, hoping to convert in 2010 to Roth)
3% Fidelity Spartan 500 Index (FSMKX) (0.1%)
**Total of All Accounts Together (not each account individually) equals 100%
New annual Contributions
$33,000 his 403b (including matching contributions)
$5000 her IRA (non-deductible – hoping to convert to Roth in 2010)
$5000 his IRA (non-deductible – hoping to convert to Roth in 2010)
His SEP-IRA – varies, dependent on SE income
~$18,000 taxable
Funds available in his 403b and her GSRA (from former job)
TIAA Traditional
CREF Stock (0.62%)
CREF Growth (0.63%)
CREF Equity Index (0.56%)
CREF Global Equities (0.66%)
TIAA Real Estate (0.84%)
CREF Bond Market (0.58%)
CREF Inflation Linked Bond (0.50%)
CREF Money Market (0.54%)
CREF Social Choice (0.59%)
Questions:
1. Should I roll my TIAA GSRA into an IRA? I haven’t touched it in years
2. We’re not eligible for Roth or deductible IRA’s currently because of the income limit. We’ve both contributed to a non-deductible, hoping to convert to a Roth in 2010. Is this a good idea?
3. We need more in bonds to reach our desired AA but I’m not sure what to buy and where. Because of our high tax bracket the NY Muni seems like a good option. I’m not sure if we should put more there or something else somewhere else. The PR Muni bond seems like probably a mistake in retrospect (we didn’t know better at the time) but I’m not sure it’s worth selling.
4. I'm not sure what international funds we should be in and in which accounts.
5. What’s the best way to implement our reallocation with minimal tax implications (or some tax advantages) beyond changing our current contributions?
Thanks so much!!
I wrote in a while ago when thing were a total disaster, lots of various funds with no rhyme or reason. We still have a bit of a hodge-podge, but I’m trying to get things in order. We have most of our money in TIAA-CREF and Fidelity, though we recently opened a Vanguard account. I don’t think I want to switch everything over to Vanguard unless there’s something we can’t get a comparable at TC or Fido.
Emergency funds: at least 9-12 months (not included in allocation)
Children’s 529 not included in allocation
Debt: 355K 30 yr. mortgage at 4.75%
Tax Filing Status: Married filing Jointly
Tax Rate: 35% Federal 10.5% State & City (N.Y.C.)
Age: 41/40
Desired Asset allocation: 80/20
Desired Intl allocation: 20% of stocks (??)
Current portfolio – mid six figures
Taxable – 52%
7% cash
11 %TIAA Inst’l Equity Index (TINRX) (0.44%)
6% TIAA Mid Cap Growth (TCMGX) (0.95%)
14% Fidelity Total market Index (FSTMX) (0.1%)
3% Janus Twenty (JAVLX) (0.84%)
1% VG Total Int’l Stock Index (VGTSX) (.34%)
5% Fidelity Spartan Int’l Index Investor Class (FSIIX) (.10%)
3% Fidelity NY Muni Income (FTFMX) (.47%)
2% PR Muni Bond @5.125% due 2024
Small amounts in individual stocks just for the ‘fun’ of it
Tax Advantaged – 48%
His 403b- maxed out with full match
1% TIAA Traditional
17% CREF Stock (0.62%)
2% CREF Growth (0.63%)
2% CREF Equity Index (0.56%)
9% CREF Global Equities (0.66%)
3% TIAA Real Estate (0.84%)
His Traditional IRA (non-deductible, hoping to convert in 2010 to Roth)
1% CREF Inflation Linked Bond (0.50%)
His SEP IRA
1% TIAA-Cref Inflation Linked Bond- Retirement Class (0.59%)
Her GSRA (lying dormant from a former job)
1% TIAA Traditional
3% CREF Inflation Linked Bond (0.50%)
Her Roth IRA
5% Fidelity Spartan 500 Index (FSMKX) (0.1%)
Her Traditional IRA (non-deductible, hoping to convert in 2010 to Roth)
3% Fidelity Spartan 500 Index (FSMKX) (0.1%)
**Total of All Accounts Together (not each account individually) equals 100%
New annual Contributions
$33,000 his 403b (including matching contributions)
$5000 her IRA (non-deductible – hoping to convert to Roth in 2010)
$5000 his IRA (non-deductible – hoping to convert to Roth in 2010)
His SEP-IRA – varies, dependent on SE income
~$18,000 taxable
Funds available in his 403b and her GSRA (from former job)
TIAA Traditional
CREF Stock (0.62%)
CREF Growth (0.63%)
CREF Equity Index (0.56%)
CREF Global Equities (0.66%)
TIAA Real Estate (0.84%)
CREF Bond Market (0.58%)
CREF Inflation Linked Bond (0.50%)
CREF Money Market (0.54%)
CREF Social Choice (0.59%)
Questions:
1. Should I roll my TIAA GSRA into an IRA? I haven’t touched it in years
2. We’re not eligible for Roth or deductible IRA’s currently because of the income limit. We’ve both contributed to a non-deductible, hoping to convert to a Roth in 2010. Is this a good idea?
3. We need more in bonds to reach our desired AA but I’m not sure what to buy and where. Because of our high tax bracket the NY Muni seems like a good option. I’m not sure if we should put more there or something else somewhere else. The PR Muni bond seems like probably a mistake in retrospect (we didn’t know better at the time) but I’m not sure it’s worth selling.
4. I'm not sure what international funds we should be in and in which accounts.
5. What’s the best way to implement our reallocation with minimal tax implications (or some tax advantages) beyond changing our current contributions?
Thanks so much!!