I’ve been reading this forum for about a year now, thank you for making my financial education! Most of my portfolio is tied to a company I work for. I want to get out of this position in a tax-efficient manner and diversify. I’m looking for a review of my current assets and help on deciding the best way to match my desired allocation.
Emergency fund: 4 months
Tax Rate: 24% Federal, 6.65%% State
Tax Filing Status: Married Filing Jointly
State of Residence: NY
Annual income: $155k
Desired asset allocation: 92% stocks / 8% bonds
Desired international allocation: 40% of stocks
Current assets - total is about ~$400k
Taxable at Schwab - 79%
4% - Cash (for investing)
72% - US individual stock (vested from RSUs, still at the company, large cap)
3% - US individual stock (large cap)
Roth IRA at Schwab - 5%
Cash (for investing) 5%
401(k) at Vanguard - 16%
16% - T. Rowe Price Retirement 2060 (TRPLX) (0.60% expense ratio)
- $18,500 to 401(k) (+$1,500 employer match)
- $5,500 to Roth IRA
Funds available in 401(k) at Vanguard below 0.6% ER
Balanced Funds (Stocks and Bonds)
T. Rowe Price Retirement I 2005 Fund I Class (TRPFX) (0.43%)
T. Rowe Price Retirement I 2060 Fund I Class (TRPLX) (0.60%)
PIMCO Income Fund Institutional Class (PIMIX) (0.74%)
PIMCO Total Return Fund Institutional Class (PTTRX) (0.55%)
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) (0.05%)
Domestic Stock Funds
Fidelity® Contrafund® K6 (FLCNX) (0.45%)
Vanguard Equity Income Fund Admiral Shares (VEIRX) (0.17%)
Vanguard Extended Market Index Fund Institutional Shares (VIEIX) (0.06%)
Vanguard Institutional Index Fund Institutional Shares (VINIX) (0.04%)
International Stock Funds
DFA International Core Equity Portfolio Institutional Class (DFIEX) (0.3%)
Vanguard Total International Stock Index Fund Institutional Shares (VTSNX) (0.09%)
Vanguard Federal Money Market Fund (VMFXX) (0.11%)
- US resident (green card) but not a US citizen.
- No planned major financial expenditures.
- No idea about long-term retirement country.
- Due to its size, I cannot aggressively get out of my largest taxable position immediately without facing moving to a higher tax bracket.
- My current 401(k) fund expense ratio is high, any recommendation?
- Any recommendation for a 3/4-fund portfolio with funds available at Charles Schwab?
- When I move out of the US, any issue I should be aware of regarding owning US-based funds shares?