mruizesparza wrote: ↑Sat Jan 21, 2023 7:23 pm
Currently retired as of 5/1/2021.
Household income: Withdrawing $6000/month,$72k annually, withdrawals coming from brokerage account
Emergency funds: $15k cash
Debt: $166K Mortgage
Tax filing status: Married filing jointly
Tax rate: 15% federal, 5% state
State of residence: NC
Age: 61; wife: 59
Social Security: we will both apply at age 67
Our Current assets $1,308MM: 10% stocks / 30% bonds and 60% cash. Self-Managed at Fidelity
Fidelity Monte Carlo with returns significantly below avg returns show ending balance of $254 at age 90 for my wife and I
Bonds $579K, 36%, Par $614K (65/35 Treasuries/Corp), YTM 4.5%
52 individual bonds, $190K current value, $210K YTM 4.12% (For example: WASTE MANAGEMENT INC COMPANY GUARNT GLB 02.000% JUN 01 2029 Market Value includes $23.77 of accrued interest)and Treasuries are in a 2 year ladder
ETFs & Stocks, 8%
Vanguard Health Care ETF, $10K, 0.10%
Vanguard High Yield ETF, $54K, 0.06%
CASH $381K, 56% Fidelity Premium Money Market 4.27% 7 day Yield
ETF & Stocks $7K, 53%
Vanguard High Yield, $4K. 0.06%
Morgan Stanley, $2.4K
Constellation Brands, $3.5
CASH $11.5K, 47% Fidelity Money Market 4.15% 7 day Yield
Bonds $74K, 45%, Par $74K (Treasuries), YTM 4.5%
Treasuries are in a 2 year ladder
ETFs & Stocks, $16K 10%
Vanguard Health Care ETF, $2K, 0.10%
Vanguard High Yield ETF, $10K, 0.06%
New Annual Contributions
CASH $73K, 45% Fidelity Premium Money Market 4.27% 7 day Yield
Our Brokerage Account Taxable Funds
Stocks $11K, 15%
ALPHABET INC SHS $11,762 16%
Cash $72K, 86%
Deferred Income $28K
Blackrock 2030 Target fund
100% Blackrock target date 2030
On 9/27/22, I panicked and sold most of our holdings. We were in 60/40 equity to bond allocation. I regret it now. I missed the Q4 run in the market. I am withdrawing cash from brokerage account for living expenses. Our goal is to be fully invested at a 50/50 allocation to equities and bonds by year end. As the bonds, mature I plan on moving them into iShares 1-3 Year Treasury Bond ETF.
My main concern is earnings risk that is not priced into the market and I do not want to buy at high.
1. Should begin dollar cost averaging in April as Q1 earnings season report out or wait till June?
2. Do the following allocations and investments make sense for my wife and my IRA? Here are the allocations and investments:
- 50% iShares 1-3 Year Treasury Bond ETF, SHY, 0.15%
- 43.5% Vanguard Value Trust, VTV, 0.06%
- 2% iShares S & P small cap, IJR, 0.06%
- 2% iShares S & P mid cap, IJH, .05%
- 2% iShares Core MSCI Emerging Mkts, IEMG, 0.09%
.5% Vanguard Materials, VAW, 0.10%
3. Does the standard Boglehead 3 fund portfolio (42/18 /40 approach; US/International/Bonds) still work and is it a better option?
4. Is my retirement plan compromised?
I greatly appreciate any feedback and insights from this community on anything regarding the plan.