Emergency funds: Yes. 6 months in MM.
Tax Filing Status: Married Filing Jointly
Tax Rate: 32% Federal, 0% State
State of Residence: Texas
Age: 52 (him), 45 (her)
Desired Asset allocation: Not sure
Portfolio size: 500K (as per assets below)
Total net worth: 1.1M (including assets below, home, cars, college, emergency fund)
Total annual contribution to accounts: 50K
Current retirement assets - Percentages are of total retirement portfolio.
17% cash (available for investing, not including emergency funds)
43% Betterment (Betterment allocation: 72% stocks, 28% bonds)
1% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) (.04%)
1% Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) (.05%)
1% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) (.11%)
His 403b at Fidelity
11% Fidelity Freedom 2040 (FFFFX) (.75%)
Company match? Yes.
His Roth IRA at Vanguard
3% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) (.04%)
His Rollover IRA at Vanguard
5% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) (.04%)
Her SEP IRA at Vanguard
12% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) (.04%)
Her Roth IRA at Vanguard
6% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) (.04%)
1. Would you move funds from Betterment (it's not an IRA just General Investing) to Vanguard?
2. If we retire early, how do we take out 4% from our taxable accounts before retirement accounts? Do we just go to Transact > Sell Vanguard Funds > and choose $1667 ($5000/3) from each of the 3 funds?
3. Would you keep all college funds for oldest child in the MM since we’ll be using it over the next 3 years?
4. When saving, we understand extra cash should go first to our eligible tax advantaged accounts (403b, Rollover IRA, SEP IRA) then to taxable accounts (Vanguard Brokerage or Betterment General Investing). A few questions about that:
- 4a. Is a backdoor Roth something we should do? We keep hearing about it but aren’t sure if it applies.
4b. How do we know if we are contributing the max to the 403b? We do know employer monthly contribution is $150.00 and (his) monthly contribution is $518.34.
4c. Can we contribute to the 403b, Rollover IRA and SEP IRA all at the same time?
6. Anything else you would do differently?
Other info that may or not be helpful:
Home value: 330k. No mortgage.
Annual expenses: ~60K
College: 160k saved. We have 4 kids. We’ve committed to provide $10,000 per child per year for college for a total of $40K each (thus the 160k). Our oldest is just beginning college, so the first 40k is in MM for immediate access. Then we have three 529s with 40k in each (we just recently opened those). We want our kids involved in the process of paying for college. We’re working together to reduce the cost and avoid loans by (a) taking dual credit / AP / CLEP in high school to graduate college in less than 4 years, (b) taking additional general ed courses at community college, (c) attending a state university (d) applying for scholarships (e) contributing money from their own jobs, etc. This plan has worked for Child #1 and we’re on track with Child #2. We’ll see if the trend continues.
HSA: None. We are part of a health sharing plan which has worked out well for us for many years.
Available funds for 403b:
FID FDM IDX 2005 INV (FJIFX)10/02/2009
FID FDM IDX 2010 INV (FKIFX)10/02/2009
FID FDM IDX 2015 INV (FLIFX)10/02/2009
FID FDM IDX 2020 INV (FPIFX)10/02/2009
FID FDM IDX 2025 INV (FQIFX)10/02/2009
FID FDM IDX 2030 INV (FXIFX)10/02/2009
FID FDM IDX 2035 INV (FIHFX)10/02/2009
FID FDM IDX 2040 INV (FBIFX)10/02/2009
FID FDM IDX 2045 INV (FIOFX)10/02/2009
FID FDM IDX 2050 INV (FIPFX)10/02/2009
FID FDM IDX 2055 INV (FDEWX)06/01/2011
FID FDM IDX 2060 INV (FDKLX)08/05/2014
FID FDM IDX INC INV (FIKFX)10/02/2009
FID FREEDOM 2005 (FFFVX)11/06/2003
FID FREEDOM 2010 (FFFCX)10/17/1996
FID FREEDOM 2015 (FFVFX)11/06/2003
FID FREEDOM 2020 (FFFDX)10/17/1996
FID FREEDOM 2025 (FFTWX)11/06/2003
FID FREEDOM 2030 (FFFEX)10/17/1996
FID FREEDOM 2035 (FFTHX)11/06/2003
FID FREEDOM 2040 (FFFFX)09/06/2000
FID FREEDOM 2045 (FFFGX)06/01/2006
FID FREEDOM 2050 (FFFHX)06/01/2006
FID FREEDOM 2055 (FDEEX)06/01/2011
FID FREEDOM 2060 (FDKVX)08/05/2014
FID FREEDOM INCOME (FFFAX)10/17/1996
FID FREEDOM INCOME (FFFAX)10/17/1996