Portfolio Advice (32 y.o.) First Post on Bogleheads

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minnlaw
Posts: 6
Joined: Thu Sep 05, 2019 10:30 am

Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by minnlaw » Thu Sep 05, 2019 10:58 am

Hi Everyone:

Looking for insights from folks on my current asset allocation/investment strategy. Got out of law school at 27 and have been working at a firm in MN for last 5 years. Married. Kids. 1 income family. We spent a long time (2 years) half-heartedly investing/paying down student loans, but 3 years ago we went aggressive on student loans and paid them off 12/31/2018. Since then we've been maxing out 401(k), HSA and Roth accounts and sending around $300/month to a 529.

Currently we have 2 401(k) accounts - 1 for me at current employer, 1 for spouse from former employer (working in the home now corralling the kids). Also have 2 Roth IRA accounts, 1 529 account, 1 HSA.

Desired asset allocation something to the effect of the following (would welcome comments/thoughts on overall asset allocation):
1. 60% US Stocks (40% Large Cap/Total Market, 20% Small Cap), with tilt toward growth funds
2. 30% International Stocks (Total Market)
3. 10% REITs

Current allocations within the funds are as follows:
My 401(k) (funds below are what is available in the choice of funds) - 36% of total investment accounts
1. Vanguard Total Stock Market Index I - VITSX (0.04 ER): 20%
2. T. Rowe Price Growth Stock I - PRUFX (0.52 ER): 20%
3. Victory Sycamore Small Company Opp I - VSOIX (0.88 ER): 10%
4. Baron Small Cap Institutional - BSFIX (1.04 ER): 10%
5. American Funds Europacific Growth R6 - RERGX (0.50 ER): 30%
6. Cohen & Steers Instl Realty Shares - CSRIX (0.75 ER): 10%

Spouse 401(k) (funds below are what is available in the choice of funds) - 50% of total investment accounts
1. Vanguard Institutional 500 Index Trust - VFINX (0.015 ER): 25%
2. Fidelity OTC Portfolio Class K - FOCKX (0.70 ER): 20%
3. Vanguard Mid-Cap Index Fund Institutional Plus - VMCPX (0.04 ER): 10%
4. Vanguard Small-Cap Index Fund Institutional - VSCIX (0.05 ER): 10%
5. Vanguard Institutional Total International Stock Market Index Trust - VTSNX (0.065 ER): 20%
6. Vanguard International Growth Fund Admin Shares - VWILX (0.32 ER): 15%

My Roth at Vanguard - 5% of total investment accounts
1. Vanguard Real Estate Index Fund Admiral Shares - VGSLX (0.12 ER): 100%

Spouse Roth at Vanguard - 5% of total investment accounts
1. Vanguard Total Stock Market Index Fund Admiral Shares - VTSAX (0.04 ER): 50%
2. Vanguard Small-Cap Index Fund Institutional - VSMAX (0.05 ER): 50%

HSA - 4% of total investment accounts
1. Vanguard 500 Index Admiral - VFIAX (0.04 ER) - 100%

We've also got 3 months of expenses in cash and the 529 invested in the best US overall market index fund available in our state's 529 program.

Right now we're just maxing out 401(k) ($19,000), 2 Roths ($12,000) and HSA ($7,000), and putting $3,500/year into the 529. We hope to increase the 529 savings this next year with a salary bump and also get out emergency fund to 6 months. With that said, we also would like to set up a brokerage account at some point so we can make charitable donations from appreciated shares, but really we're in the early stages of investing aggressively (at least aggressive to our minds).

ANY THOUGHTS ON THE ABOVE ALLOCATIONS OR PLAN?

Thanks everyone,
MinnLaw

tenkuky
Posts: 803
Joined: Sun Dec 14, 2014 4:28 pm

Re: Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by tenkuky » Thu Sep 05, 2019 2:11 pm

Welcome!
You are doing very well but I have some comments in red below.
minnlaw wrote:
Thu Sep 05, 2019 10:58 am
Hi Everyone:

Looking for insights from folks on my current asset allocation/investment strategy. Got out of law school at 27 and have been working at a firm in MN for last 5 years. Married. Kids. 1 income family. We spent a long time (2 years) half-heartedly investing/paying down student loans, but 3 years ago we went aggressive on student loans and paid them off 12/31/2018. Since then we've been maxing out 401(k), HSA and Roth accounts and sending around $300/month to a 529.

Currently we have 2 401(k) accounts - 1 for me at current employer, 1 for spouse from former employer (working in the home now corralling the kids). Also have 2 Roth IRA accounts, 1 529 account, 1 HSA.

Desired asset allocation something to the effect of the following (would welcome comments/thoughts on overall asset allocation):
1. 60% US Stocks (40% Large Cap/Total Market, 20% Small Cap), with tilt toward growth funds
2. 30% International Stocks (Total Market)
3. 10% REITs
I am concerned you have no bond allocation (assume you are early to mid 30s based on your post). Are you that aggressive? Perhaps a 10-15% allocation to bonds, that's what I'd do. YMMV.

Current allocations within the funds are as follows:
My 401(k) (funds below are what is available in the choice of funds) - 36% of total investment accounts
1. Vanguard Total Stock Market Index I - VITSX (0.04 ER): 20%
2. T. Rowe Price Growth Stock I - PRUFX (0.52 ER): 20%
3. Victory Sycamore Small Company Opp I - VSOIX (0.88 ER): 10%
4. Baron Small Cap Institutional - BSFIX (1.04 ER): 10%
5. American Funds Europacific Growth R6 - RERGX (0.50 ER): 30%
6. Cohen & Steers Instl Realty Shares - CSRIX (0.75 ER): 10%
Get rid of PRUFX, VSOIX, BSFIX. All overlap with VITSX and are too high ERs. Re-allocate either to VITSX or that plus a total bond if you agree with my above premise.

Spouse 401(k) (funds below are what is available in the choice of funds) - 50% of total investment accounts
1. Vanguard Institutional 500 Index Trust - VFINX (0.015 ER): 25%
2. Fidelity OTC Portfolio Class K - FOCKX (0.70 ER): 20%
3. Vanguard Mid-Cap Index Fund Institutional Plus - VMCPX (0.04 ER): 10%
4. Vanguard Small-Cap Index Fund Institutional - VSCIX (0.05 ER): 10%
5. Vanguard Institutional Total International Stock Market Index Trust - VTSNX (0.065 ER): 20%
6. Vanguard International Growth Fund Admin Shares - VWILX (0.32 ER): 15%
Get rid of FOCKX and VWILX, again overlap with your VG funds with high ERs, put the VWILX into the VTSNX, and the othes into the break-up of VFINX, VMCPX, VSCIX.

My Roth at Vanguard - 5% of total investment accounts
1. Vanguard Real Estate Index Fund Admiral Shares - VGSLX (0.12 ER): 100%

Spouse Roth at Vanguard - 5% of total investment accounts
1. Vanguard Total Stock Market Index Fund Admiral Shares - VTSAX (0.04 ER): 50%
2. Vanguard Small-Cap Index Fund Institutional - VSMAX (0.05 ER): 50%

HSA - 4% of total investment accounts
1. Vanguard 500 Index Admiral - VFIAX (0.04 ER) - 100%

We've also got 3 months of expenses in cash and the 529 invested in the best US overall market index fund available in our state's 529 program.
MN has a $3000 per year tax deduction for joint filers. So absolutely to that level. Above that depends on whether you prioritize a taxable account now or not.

Right now we're just maxing out 401(k) ($19,000), 2 Roths ($12,000) and HSA ($7,000), and putting $3,500/year into the 529. We hope to increase the 529 savings this next year with a salary bump and also get out emergency fund to 6 months. With that said, we also would like to set up a brokerage account at some point so we can make charitable donations from appreciated shares, but really we're in the early stages of investing aggressively (at least aggressive to our minds).
What appreciated shares? I didn't see you have a taxable account so far.

ANY THOUGHTS ON THE ABOVE ALLOCATIONS OR PLAN?
You are doing well.

Thanks everyone,
MinnLaw

User avatar
Wiggums
Posts: 1372
Joined: Thu Jan 31, 2019 8:02 am

Re: Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by Wiggums » Thu Sep 05, 2019 2:51 pm

I agree with the previous response. I’d definitely remove some of the funds with the overlap. Your moving in the right direction by paying off those loans and building the retirement accounts. Nice job.

mbt863
Posts: 8
Joined: Sat Aug 31, 2019 6:02 am

Re: Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by mbt863 » Thu Sep 05, 2019 4:30 pm

Congrats on paying off your loan. All about low ERs in my view--go low and index. I'd vote you set up a 529 plan for each child vs. just one (easier to track savings for each individual child and to change investment depending on the age of each and your time horizon before college starts). If it were me I'd push more money into college savings vs. turning to a taxable account (granted I have one in college in two in high school so that is on the mind these days but $ we put in when our little ladies were small has made all the difference).

Here is a curve ball--what about thinking about in-house counsel positions? Five years out is a good sweet spot as you have enough experience and not in the full press for partnership (I made the move in my mid-30s when I saw partners were working crazy hours and climbing the ranks did not mean less work only more). I've found it a much better quality of life (plus working for a mega corporation might open up the mega back door roth option--which I have access to). Good job---keep fully funding your HSA and invest it and pay medical out of pocket.

User avatar
Duckie
Posts: 6760
Joined: Thu Mar 08, 2007 2:55 pm

Re: Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by Duckie » Thu Sep 05, 2019 5:58 pm

minnlaw wrote:Desired asset allocation something to the effect of the following (would welcome comments/thoughts on overall asset allocation):
1. 60% US Stocks (40% Large Cap/Total Market, 20% Small Cap), with tilt toward growth funds
2. 30% International Stocks (Total Market)
3. 10% REITs
Where are your bonds? You need some.
Current allocations within the funds are as follows:
My 401(k) (funds below are what is available in the choice of funds) - 36% of total investment accounts
1. Vanguard Total Stock Market Index I - VITSX (0.04 ER): 20%
2. T. Rowe Price Growth Stock I - PRUFX (0.52 ER): 20%
3. Victory Sycamore Small Company Opp I - VSOIX (0.88 ER): 10%
4. Baron Small Cap Institutional - BSFIX (1.04 ER): 10%
5. American Funds Europacific Growth R6 - RERGX (0.50 ER): 30%
6. Cohen & Steers Instl Realty Shares - CSRIX (0.75 ER): 10%
Get rid of everything except VITSX. Put all international in Spouse's 401k. If you have a decent low-cost bond fund you may want to add it here.
Spouse 401(k) (funds below are what is available in the choice of funds) - 50% of total investment accounts
1. Vanguard Institutional 500 Index Trust - VFINX (0.015 ER): 25%
2. Fidelity OTC Portfolio Class K - FOCKX (0.70 ER): 20%
3. Vanguard Mid-Cap Index Fund Institutional Plus - VMCPX (0.04 ER): 10%
4. Vanguard Small-Cap Index Fund Institutional - VSCIX (0.05 ER): 10%
5. Vanguard Institutional Total International Stock Market Index Trust - VTSNX (0.065 ER): 20%
6. Vanguard International Growth Fund Admin Shares - VWILX (0.32 ER): 15%
Put the desired international stock AA in VTSNX. Use VFINX and VSCIX (4 to 1 ratio) to fill in the remainder of the space. If there is a decent low-cost bond fund you may want to add it here.
My Roth at Vanguard - 5% of total investment accounts
1. Vanguard Real Estate Index Fund Admiral Shares - VGSLX (0.12 ER): 100%
This is fine.
Spouse Roth at Vanguard - 5% of total investment accounts
1. Vanguard Total Stock Market Index Fund Admiral Shares - VTSAX (0.04 ER): 50%
2. Vanguard Small-Cap Index Fund Institutional - VSMAX (0.05 ER): 50%
You don't need to add small-caps to total market. Just VTSAX is fine. Or, since you want 10% REITs, just VGSLX is fine.
HSA - 4% of total investment accounts
1. Vanguard 500 Index Admiral - VFIAX (0.04 ER) - 100%
This is fine.

Topic Author
minnlaw
Posts: 6
Joined: Thu Sep 05, 2019 10:30 am

Re: Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by minnlaw » Tue Sep 10, 2019 11:29 am

tenkuky wrote:
Thu Sep 05, 2019 2:11 pm
Welcome!
You are doing very well but I have some comments in red below.
minnlaw wrote:
Thu Sep 05, 2019 10:58 am
Hi Everyone:

Looking for insights from folks on my current asset allocation/investment strategy. Got out of law school at 27 and have been working at a firm in MN for last 5 years. Married. Kids. 1 income family. We spent a long time (2 years) half-heartedly investing/paying down student loans, but 3 years ago we went aggressive on student loans and paid them off 12/31/2018. Since then we've been maxing out 401(k), HSA and Roth accounts and sending around $300/month to a 529.

Currently we have 2 401(k) accounts - 1 for me at current employer, 1 for spouse from former employer (working in the home now corralling the kids). Also have 2 Roth IRA accounts, 1 529 account, 1 HSA.

Desired asset allocation something to the effect of the following (would welcome comments/thoughts on overall asset allocation):
1. 60% US Stocks (40% Large Cap/Total Market, 20% Small Cap), with tilt toward growth funds
2. 30% International Stocks (Total Market)
3. 10% REITs
I am concerned you have no bond allocation (assume you are early to mid 30s based on your post). Are you that aggressive? Perhaps a 10-15% allocation to bonds, that's what I'd do. YMMV.

Yes, right now I'm 100% in equities. We have a mortgage on our home at 4% which I'm thinking of as an "inverse" bond, so I guess the 100% equity exposure doesn't trouble me (though I may need to revisit this). My original thought was to skew into a bond allocation more as my principal balance is paid down on the home mortgage.

Current allocations within the funds are as follows:
My 401(k) (funds below are what is available in the choice of funds) - 36% of total investment accounts
1. Vanguard Total Stock Market Index I - VITSX (0.04 ER): 20%
2. T. Rowe Price Growth Stock I - PRUFX (0.52 ER): 20%
3. Victory Sycamore Small Company Opp I - VSOIX (0.88 ER): 10%
4. Baron Small Cap Institutional - BSFIX (1.04 ER): 10%
5. American Funds Europacific Growth R6 - RERGX (0.50 ER): 30%
6. Cohen & Steers Instl Realty Shares - CSRIX (0.75 ER): 10%
Get rid of PRUFX, VSOIX, BSFIX. All overlap with VITSX and are too high ERs. Re-allocate either to VITSX or that plus a total bond if you agree with my above premise.

Thanks for this. I didn't realize there was so much overlap and the ERs are very high compared to VITSX. Any thoughts on trying to put a larger weight on small cap stocks when the only option in the 401(k) is the total stock market index? Perhaps go 100% on VITSX in the 401(k) and then look for a small-cap index fund option in spouse's 401(k) or our Roths? If I'm targeting 40% large-cap and 20% small-cap, how do you factor in something like VITSX when it's the total market and not broken down into large-, medium- and small-cap?

Spouse 401(k) (funds below are what is available in the choice of funds) - 50% of total investment accounts
1. Vanguard Institutional 500 Index Trust - VFINX (0.015 ER): 25%
2. Fidelity OTC Portfolio Class K - FOCKX (0.70 ER): 20%
3. Vanguard Mid-Cap Index Fund Institutional Plus - VMCPX (0.04 ER): 10%
4. Vanguard Small-Cap Index Fund Institutional - VSCIX (0.05 ER): 10%
5. Vanguard Institutional Total International Stock Market Index Trust - VTSNX (0.065 ER): 20%
6. Vanguard International Growth Fund Admin Shares - VWILX (0.32 ER): 15%
Get rid of FOCKX and VWILX, again overlap with your VG funds with high ERs, put the VWILX into the VTSNX, and the othes into the break-up of VFINX, VMCPX, VSCIX.

Thanks. Any reason to move VWILX into VTSNX? Doesn't have both index funds (with relatively small ERs) help with diversity? I should have mentioned above that I lean towards a small preference going to small-cap and growth funds, but would be interested in feedback here.

My Roth at Vanguard - 5% of total investment accounts
1. Vanguard Real Estate Index Fund Admiral Shares - VGSLX (0.12 ER): 100%

Spouse Roth at Vanguard - 5% of total investment accounts
1. Vanguard Total Stock Market Index Fund Admiral Shares - VTSAX (0.04 ER): 50%
2. Vanguard Small-Cap Index Fund Institutional - VSMAX (0.05 ER): 50%

HSA - 4% of total investment accounts
1. Vanguard 500 Index Admiral - VFIAX (0.04 ER) - 100%

We've also got 3 months of expenses in cash and the 529 invested in the best US overall market index fund available in our state's 529 program.
MN has a $3000 per year tax deduction for joint filers. So absolutely to that level. Above that depends on whether you prioritize a taxable account now or not.

Right now we're just maxing out 401(k) ($19,000), 2 Roths ($12,000) and HSA ($7,000), and putting $3,500/year into the 529. We hope to increase the 529 savings this next year with a salary bump and also get out emergency fund to 6 months. With that said, we also would like to set up a brokerage account at some point so we can make charitable donations from appreciated shares, but really we're in the early stages of investing aggressively (at least aggressive to our minds).
What appreciated shares? I didn't see you have a taxable account so far.

No brokerage account right now. I want to set one up at some point so we can make donations out of it.

ANY THOUGHTS ON THE ABOVE ALLOCATIONS OR PLAN?
You are doing well.

Thanks everyone,
MinnLaw

Topic Author
minnlaw
Posts: 6
Joined: Thu Sep 05, 2019 10:30 am

Re: Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by minnlaw » Tue Sep 10, 2019 11:38 am

mbt863 wrote:
Thu Sep 05, 2019 4:30 pm
Congrats on paying off your loan. All about low ERs in my view--go low and index. I'd vote you set up a 529 plan for each child vs. just one (easier to track savings for each individual child and to change investment depending on the age of each and your time horizon before college starts). If it were me I'd push more money into college savings vs. turning to a taxable account (granted I have one in college in two in high school so that is on the mind these days but $ we put in when our little ladies were small has made all the difference).

Here is a curve ball--what about thinking about in-house counsel positions? Five years out is a good sweet spot as you have enough experience and not in the full press for partnership (I made the move in my mid-30s when I saw partners were working crazy hours and climbing the ranks did not mean less work only more). I've found it a much better quality of life (plus working for a mega corporation might open up the mega back door roth option--which I have access to). Good job---keep fully funding your HSA and invest it and pay medical out of pocket.
Thanks, mbt863. Law practice vs. in-house is certainly something on the radar. Lots of recent colleagues have made that jump, but what have been some unexpected positives and negatives from when you made the jump??? One immediate thing is the total lack of a 401(k) match in law practice (I don't know how this is industry practice, but seems standardized across the board), whereas many of the companies I've heard about recently for in-house counsel roles are doing 5-8% match and/or grant, which would be a significant top-line add-on to total comp.

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ruralavalon
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Location: Illinois

Re: Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by ruralavalon » Tue Sep 10, 2019 3:08 pm

Welcome to the forum :) .

Congratulations on paying off the student debt. Its great that you are making maximum contributions to your tax-advantaged accounts.


Diversification.
minnlaw wrote:
Thu Sep 05, 2019 10:58 am
]ANY THOUGHTS ON THE ABOVE ALLOCATIONS OR PLAN?
You have no fixed income allocation, such as a bond fund.

A diversified portfolio requires a bond allocation.

At age 32 I suggest about 20% in bonds or other fixed income investments (like CDs, savings accounts, money market fund). This is expected to substantially reduce portfolio volatility (risk), with only a relatively modest decrease in portfolio return. Graph, "An Efficient Frontier: the power of diversification". Please see:
1) Wiki article Bogleheads® investment philosophy, part 3 "Never bear too much or too little risk";
2) Wiki article, "Asset allocation".; and
3) Morningstar (8/10/2019), "The Best Diversifiers for Your Equity Portfolio".

You could reexamine your assumptions about bond performance. Don't be too certain that stocks will significantly outperform bonds. Morningstar (01/10/2019), "Experts Forecast Long-Term Stock and Bond Returns: 2019 Edition ". The author says that the forecasts "suggest that bonds will give U.S. equities a run for their money over the next decade."




Low expenses are critical.
Low expense ratios are critical to long-term investing performance. Seemingly small annual fees have a large cumulative impact over time. Here is a calculator you could use to estimate the impact of investing expenses. Bankrate.com, "Mutual fund fees calculator".

Also, low expense ratios are the best predictor of future performance. Morningstar, 8/9/10 . “If there's anything in the whole world of mutual funds that you can take to the bank, it's that expense ratios help you make a better decision. In every single time period and data point tested, low-cost funds beat high-cost funds.” “Investors should make expense ratios a primary test in fund selection. They are still the most dependable predictor of performance.”

"The expense ratio is the most proven predictor of future fund returns." "There are many other things to consider, but investors should make expense ratios their first or second screen." Morningstar, 5/5/18.

minnlaw wrote:
Thu Sep 05, 2019 10:58 am
current allocations within the funds are as follows:
My 401(k) (funds below are what is available in the choice of funds) - 36% of total investment accounts
1. Vanguard Total Stock Market Index I - VITSX (0.04 ER): 20%
2. T. Rowe Price Growth Stock I - PRUFX (0.52 ER): 20%
3. Victory Sycamore Small Company Opp I - VSOIX (0.88 ER): 10%
4. Baron Small Cap Institutional - BSFIX (1.04 ER): 10%
5. American Funds Europacific Growth R6 - RERGX (0.50 ER): 30%
6. Cohen & Steers Instl Realty Shares - CSRIX (0.75 ER): 10%
I would drop all high expense funds.


minnlaw wrote:
Thu Sep 05, 2019 10:58 am
Spouse 401(k) (funds below are what is available in the choice of funds) - 50% of total investment accounts
1. Vanguard Institutional 500 Index Trust - VFINX (0.015 ER): 25%
2. Fidelity OTC Portfolio Class K - FOCKX (0.70 ER): 20%
3. Vanguard Mid-Cap Index Fund Institutional Plus - VMCPX (0.04 ER): 10%
4. Vanguard Small-Cap Index Fund Institutional - VSCIX (0.05 ER): 10%
5. Vanguard Institutional Total International Stock Market Index Trust - VTSNX (0.065 ER): 20%
6. Vanguard International Growth Fund Admin Shares - VWILX (0.32 ER): 15%
I would drop all high expense funds.

An S&P 500 index fund is good enough by itself for domestic stocks.

For domestic stocks I suggest using a total stock market index fund where available; otherwise an S&P 500 index fund is good enough by itself for domestic stocks. "In a 401(k) plan with limited choices one might very well opt for an S&P 500 index fund to serve as the domestic stock component of a three-fund portfolio." Wiki article, Three-fund portfolio, "Other considerations".

In my opinion in a plan that lacks a total stock market index fund, a S&P 500 index fund is good enough by itself for a domestic stock allocation. A S&P 500 index fund covers 82% of the U.S. stock market, investing in stocks of selected large-cap and mid-cap U.S. companies. In the 27 years since the creation of the first total stock market index fund the performance of the two types of funds has been almost identical. Morningstar, "growth of $10k" graph (1992 – 2019), VTSAX vs VFIAX. In the first 10 years the S&P 500 fund did better, in the last 10 years the they have been about the same (on a $10,000 investment the difference was $13 a year), and over the 27 years the total market fund gave a little more return. So it seems that adding a little in mid/small cap stocks trying to mimic the holdings of a total stock market fund has historically made little difference in performance.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

mbt863
Posts: 8
Joined: Sat Aug 31, 2019 6:02 am

Re: Portfolio Advice (32 y.o.) First Post on Bogleheads

Post by mbt863 » Wed Sep 11, 2019 2:43 pm

[/quote]

Thanks, mbt863. Law practice vs. in-house is certainly something on the radar. Lots of recent colleagues have made that jump, but what have been some unexpected positives and negatives from when you made the jump??? One immediate thing is the total lack of a 401(k) match in law practice (I don't know how this is industry practice, but seems standardized across the board), whereas many of the companies I've heard about recently for in-house counsel roles are doing 5-8% match and/or grant, which would be a significant top-line add-on to total comp.
[/quote]

I'm sure it depends on the in-house gig but I'd say most larger corporations have a 401K match (8% in my case), stock options, educational reimbursement--I ended up getting a LLM mostly paid for, and some offer a 401K plan which allows for a mega-back door Roth. Admittedly, at 32 the mega back door would have been interesting to me but largely in theory since my priority at your age was pushing hard on funding our 529 plans for three children and maxing out my 401K. However, if you eventually make a decision to go in-house I'd ask if the 401K plan allows for the mega back door Roth as it is a fantastic option to sock away a lot of Roth dollars for tax diversification down the line.

I think there is a way to send along a private message on this platform so if you want to talk more on the pros/cons of in-house life feel free to ping me and we can chat (on balance more positives--certainly quality of life but corporate BS is real but manageable).

Good luck and keep reading the forum as I've learned a lot and wish I found it at 32! :sharebeer

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