I've come a long way since my initial posts - trying to soak in as much knowledge as I can. Thanks to this site, I'd like to think I have a concrete foundation of this personal finance concept. Been slowly cleaning my accounts up and now finally would like your input. I'll try and respond tonight, but if not, will follow up tomorrow! Thanks in advance!
Emergency funds: One year emergency fund sitting in Vanguard Treasury MM (VUSXX) in brokerage account
Debt: Car lease for another two years (regretting it after this forum but will purchase an older car once our lease is up)
Tax Filing Status: Single, but newly engaged.
Tax Rate: 24% Federal, 9.3% State
State of Residence: CA
Desired Asset allocation: 100% stocks / 0% bonds (slowly exchanging bonds to stocks)
Desired International allocation: 20-30% of stocks (slowly buying more to achieve desired %)
Current total portfolio: low six-figures (note percentages are from our combined savings)
Joint Taxable - Vanguard
21% cash (Vanguard Federal MM - VMFXX - savings for wedding/down payment)
His 401k at TRowe - both just started new jobs and old 401k's have been rolled over
3% Vanguard Inst Index, Plus S&P 500 - VIIIX (.02%)
Company match? - 6%
His Roth IRA at Vanguard
14% Vanguard 500 Index Admiral - VFIAX (0.04%)
6% Vanguard Total Int'l Stock - VTIAX (0.11%)
14% Vanguard Total Stock -VTSAX (0.04%)
His Rollover IRA at Vanguard
2% Vanguard REIT - VGSLX (0.12%)
11% Vanguard Total Bond Market - VBTLX (0.05%)
16.0% Vanguard Total Stock - VTSAX (0.04%)
Her 401k at TRowe
1% Schwab S&P 500 - SWPPX (0.02%)
Company match? - 6%
Her Roth IRA at Vanguard
2% Vanguard Target Date 2065 - VLXVX (0.15%) - will move to VTSAX once we have the minimum for the mutual fund
Her Rollover IRA at Vanguard
9% Vanguard Total Bond Market - VBTLX (0.05%)
2% Vanguard Total Stock -VTSAX (0.04%)
New annual Contributions - we're looking to max out the contributions, but with our new jobs, not sure what our adjusted MAGI will be for the income limits (question below re: backdoor)
$19.5K + $6K match his 401k
$19.5K + $6K match her 401k
$6K his IRA/Roth IRA
$6K her IRA/Roth IRA
$1.2K his HSA
$0.24K her HSA
+ anything we can throw into taxable post-wedding contributions.
I didn't list the available funds in our 401k as these were the best options based off the diversification and expense ratio. If needed, please let me know and I will list them.
1a. Could you critique my portfolio as it stands? More specifically:
- Our short-term savings in the money market account? Once we hit $50K, we'll put it under Vanguard Treasury MM (VUSXX). Is there a better place for this?
My REITs fund
My slow conversion (DCA) of bonds to VTSAX (I feel like I'm kinda timing the market, but trying to convert $1K/mo)
2a. Based off what I've learned, is the following order of buckets correct for my situation?
- Max 401k's first
Max IRA (roth)
HSA (follow up question below)
3. With a new job, we received bonuses + relocation so I've been worried about contributing to a Roth IRA. I know we can simply reclassify my contributions, if needed, but is there a deadline? Going into 2020, should I contribute monthly and reclassify later, if needed, or wait until the end of the year and contribute the full amount? Any pros and cons outside of time?
I have so many other questions around roth conversion ladders, doing my own taxes, my parents finances, etc but I think this should be enough for now as a gutcheck on my own progress. Will post those other questions in the new year! Have a safe NY!