30 Yr Old Checkup

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
mustang11
Posts: 19
Joined: Thu Nov 11, 2021 8:58 pm

30 Yr Old Checkup

Post by mustang11 »

Thanks in advance for any advice! I'm turning 30 this year, and looking for advice on our investing approach. We feel pretty comfortable with everything, but want to make sure we're not missing anything major.

My Wife is 29, and we have twin boys (18 mo). We maintain 6 months emergency funds in I Bonds, and save for other near-term (w/i 5 years) known costs (pre-school, travel, etc.) in high-yield savings accounts. No debt aside from our mortgage (15 yr). I'm a CPA (no, I don't do taxes!) working full-time in corporate finance and, my Wife works part time outside the home. Thankfully, neither of our employers were adversely affected by COVID shut-downs in 2020. I think we have sufficient insurance in place on all fronts (home, auto, term life, ID theft, medical, dental, vision, disability). We have basic estate docs in place (Wills, POAs, etc.). We feel all of these things allow as to take a more aggressive investing approach combined with our long investing horizon.

Our current AA:
85% Equities (all low-cost index ETFs/Mutuals)
- 67% US
- 16% Int'l
- 2% REIT

15% Cash & Bonds (checking, savings, I Bonds, SVF Pension)
- 11% Cash
- 4% I Bonds

These dollars are spread across our Roth IRAs, 401k, HSA, Taxable Account, 529s, and SVF Pension.
"An investment in knowledge always pays the best interest." - John C. Bogle
Outer Marker
Posts: 2183
Joined: Sun Mar 08, 2009 8:01 am

Re: 30 Yr Old Checkup

Post by Outer Marker »

I'd skip the small sub-allocation to REIT. Otherwise, without knowing any of the particulars, looks fine on the surface.
Topic Author
mustang11
Posts: 19
Joined: Thu Nov 11, 2021 8:58 pm

Re: 30 Yr Old Checkup

Post by mustang11 »

Outer Marker wrote: Tue Jan 11, 2022 3:43 pm I'd skip the small sub-allocation to REIT. Otherwise, without knowing any of the particulars, looks fine on the surface.
Thanks for the feedback. This is my plan going forward. No longer feeding this allocation.
"An investment in knowledge always pays the best interest." - John C. Bogle
Late2Brake
Posts: 30
Joined: Wed Jul 07, 2021 3:32 pm

Re: 30 Yr Old Checkup

Post by Late2Brake »

That's a great start. I wish I asked those questions when I was 30.

What are you future contributions? 401K, IRA, HSA etc.

Try this format. I know its a lot for you to cover but it will lead you to thinking way past what you presented so far.

https://www.bogleheads.org/wiki/Asking_ ... _questions
Topic Author
mustang11
Posts: 19
Joined: Thu Nov 11, 2021 8:58 pm

Re: 30 Yr Old Checkup

Post by mustang11 »

Late2Brake wrote: Thu Jan 13, 2022 4:49 pm What are you future contributions? 401K, IRA, HSA etc.

Try this format. I know its a lot for you to cover but it will lead you to thinking way past what you presented so far.

https://www.bogleheads.org/wiki/Asking_ ... _questions
@Late2Brake

To answer your first question, we're contributing:
- 401k - 8%, employer matches 8% (my contribution increases 1% annually), so $14,800/yr 50% of which is employer match (fully vested)
- Roth IRAs - Max annual contribution, so $12,000/yr
- HSA - Max annual contribution, so $7,300/yr
- 529s - $1,200/yr in each, so $2,400 total/yr

Here's most of the information in the requested format:

Emergency funds: 6 months emergency fund. 50% in I Bonds (illiquid until Dec 2022) and 50% in HYS at Ally. Balance in HYS is sufficient to cover deductibles on all our insurance were something catastrophic to occur in 2022.

Debt: 15 yr Mortgage @ 2.5%. Nothing else.

Tax Filing Status: Married Filing Jointly with 2 dependent children (18 mo/old twins)

Tax Rate: 22% Federal, 0% State

State of Residence: TX

Age: 30 (Wife 29)

Desired Asset allocation: 85-90% stocks / 15-10% bonds/cash
Desired International allocation: 20% of stocks
We're currently 85% equities & 15% Cash/Bonds (includes our emergency fund)

Portfolio size: ~$500k

Current retirement assets

Taxable at Vanguard
10% IWB - 0.15% ER
3% IVOO - 0.10% ER
2% VIOO - 0.10% ER
2% VNQ - 0.12% ER
2% VEA - 0.05% ER
1% VWO - 0.10% ER

His 401k at Fidelity
13% FZROX - 0.0% ER
3% FZILX - 0.0% ER
Employer matches 8%

His Pension at Fidelity
8% Cash
SVF Plan, Employer contributes 15% of His salary annually

His HSA at Fidelity
Just started contributing max annual this year, so very little built up at this point
0.6% Cash
0.22% FXAIX - 0.02% ER
0.03% FSMDX - 0.03% ER
0.01% FSSNX - 0.03% ER
0.05% FSPSX - 0.04% ER
Employer contributes $1k/yr

His Roth IRA at Vanguard
19% VTI - 0.03% ER
5% VXUS - 0.08% ER

Her Roth IRA at Vanguard
15% VTI - 0.03% ER
4% VXUS - 0.08% ER

Current college assets

Twin A 529 at Vanguard
4% VTSAX (529 equivalent with higher ER) - 0.12% ER
1% VTIAX (529 equivalent with higher ER) - 0.16% ER

Twin B 529 at Vanguard
4% VTSAX (529 equivalent with higher ER) - 0.12% ER
1% VTIAX (529 equivalent with higher ER) - 0.16% ER

UTMA Accounts - not included in our portfolio %'s
Twin A - $7k VT 0.14% ER
Twin B - $7k VT 0.14% ER
Purpose is to cover down payment on first home purchase in mid/late 20s
_______________________________________________________________
"An investment in knowledge always pays the best interest." - John C. Bogle
Post Reply