Tax Filing Status: Married Filing Jointly
Tax Rate: 35% Federal, 0% State
State of Residence: WA
Age: 32m / 37f
Savings Rate: >50%
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 38% (MSCI weighted)
Current portfolio - mid six figures
Current retirement assets
12% Vanguard Total Stock Market Index (VTSAX) (0.04%)
15% Vanguard Total International Stock Market Index (VTIAX) (0.11%)
1.5% Tesla (TSLA)
4% Vanguard Total Stock Market Index (VTSAX) (0.04%)
4% Fidelity Total market Index (FSKAX) (0.015%)
16% Fidelity US Bond Index (FXNAX) (0.025%)
Self-employed 401k (Keogh) (I rollover previous employer accounts here)
His Simple IRA
3% Fidelity Total market Index (FSKAX) (0.015%)
1.5% Fidelity US Bond Index (FXNAX) (0.025%)
I just left this employer and will be rolling into SE 401k once 2 year time frame has passed from account opening (13 more months)
His Roth IRA
9% Vanguard Total Stock Market Index (VTSAX) (0.04%)
Her 401k Company A (old)
6.5% Fidelity Freedom Index Fund 2040 (FBIFX) (0.12%)
Need to roll this over to her spousal SE 401k - slacking
Her 401k Company B (active)
13.5% Vanguard Target Retirement 2040 (VIRSX) (0.09%)
After Tax (plan doesn’t allow in-plan ROTH conversions, will convert once she changes jobs):
7.5% Vanguard Target Retirement 2040 (VIRSX) (0.09%)
Her Roth IRA
6.5% Vanguard Total Stock Market Index (VTSAX) (0.04%)
I am starting a new job in the next couple weeks. My new employer has Vanguard 401k (institutional shares of core funds) with 50% match to IRS limit and after tax in-plan ROTH conversions. We will continue to max 401k (both tax-deferred and after-tax), HSA, Roth IRAs (via backdoor once I roll Simple IRA into SE401k).
I am changing jobs and we are moving from the mid-west to Washington. I am seeking advice related to this change. It was previously suggested I convert tax-advantaged US stock holdings to S&P 500 index for TLH purposes. I will probably do that soon.
- We will be in the 35% tax bracket, whereas we were previously in 22%. Are there any considerations you think I should start accounting for?
- RSUs will be roughly 40% of my compensation, with shares vesting monthly. This is a very successful/profitable company, which already has a high weighting in VTSAX. While I believe the company will continue to do very well, I don’t see a reason to hold these shares as it puts too many eggs in one basket. I plan to sell these immediately and buy VTSAX or VTIAX in taxable account.
- We are starting to get the point where our portfolio growth will accelerate and tax consequences of mistakes will be more severe. It is already starting to get a little complicated with SE401k, backdoor, etc. I am considering getting some fee-based consultation to make sure we aren’t missing anything from tax planning or asset protection strategies. We carry proper insurance and umbrella. I am a pretty avid DIYer in general, and will read dozens of books to come up to speed on a subject. However, I know you cannot always substitute this for the expertise of an experienced professional. If you have any suggestions on this, please let me know. Should I be looking at a CPA and/or other types of professionals if I decide to seek advice?
- Overall advice based on portfolio and situation. Anything I am missing, etc.