1. I am hoping to purchase a house in a little over two years. My price range is $220-250k. I want to set aside $60,000 of the $87,000 (see below) for a house down payment plus closing costs. I am trying to figure out where to park this money. I did a little digging and came up with these as possible options:
Code: Select all
Ticker Product Yield Post-Tax* Treasury Corporate Duration VMRXX Money Market 1.14% 0.74% - - - -- Barclay's Savings 1.30% 0.85% - - - VFIRX Short Term Treasury 1.31% 0.85% 100.00% 0.00% 2.2 -- 2-Yr CD 1.60% 1.04% - - - VBIRX Short Term Bond 1.72% 1.12% 70.00% 30.00% 2.8 VFIUX Intermediate Treasury 1.83% 1.19% 100.00% 0.00% 5.2 VFSUX Short Term Inv Grade 2.08% 1.35% 20.00% 80.00% 2.6 VBILX Intermediate Bond 2.55% 1.66% 50.00% 50.00% 6.5 VWITX Intermediate Municipal 1.78% 1.78% - - 5.1 VFIDX Intermediate Inv Grade 2.68% 1.74% 10.00% 90.00% 5.5 *28% Federal + 7% Maine
2. Depending on what happens in the market over the next 2 years, I may want to be able to access some or all of this money if an opportunity arises to purchase stocks at a discount. If this was the case, I would be fine with continuing to rent for a couple years while I save up another down payment.
3. I am opened to any other portfolio suggestions or critiques. Overall financial goals are to hopefully cut down to 24hr/week in 4-6 years, then fully retire at 45 with a 3.5% SWR.
NOTE: I have never had my personal mettle tested when it comes to bear markets, thus the fairly conservative AA. Depending on how I personally feel during the next one, I may adjust upwards to 70/30 or 80/20 if I behaved (stuck to my AA/IPS). As it is right now my need (low), ability (high) and willingness (moderate) tells me that my allocation is about where I should be currently.
Emergency funds: Approximately $27,000 in checking, which would last me about 10-11 months at current spending rates. I live frugally and happily.
Debt: $9,000 on a 2016 Mazda CX-5 at 3% APR worth roughly $17,000
Tax Filing Status: Single
Tax Rate: 28% Federal, 7% State
Current Income: ~$120,000
State of Residence: Maine
Desired Asset allocation: 60% stocks/40% bonds/cash
Desired International allocation: 40%
Current retirement assets
-100% State Street Aggregate Bond Index – SSFEX (ER 0.04)
Roth IRA (37k)
- 100% Vanguard Small Cap Value – VSIAX (ER 0.07)
Taxable Account (138k)
- 50% Vanguard Total US – VTSAX (ER 0.04)
- 50% Vanguard Total Int' – VTIAX (ER 0.11)
- 100% Cash earning ~0.1% (source of the $60k down payment)
Total Assets (less car): $371,000
Current AA: 48% Stocks, 52% Bonds/Cash
Current AA (not including $60k): 56% Stocks, 44% Bonds/Cash
Thank you to this great board!