Portfolio Review - Early Accumulator

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StartedAt22
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Portfolio Review - Early Accumulator

Post by StartedAt22 »

Greetings Bogleheads! You can call me D.

I am hopeful to just get some general feedback on the questions at the bottom. I've provided the information I thought necessary to give a reasonably robust response.
_______________________________________________________________

Emergency funds: 3x [edit: monthly] living expenses. Single, 29M. No dependents. Good job stability + career advancement prospects. Gross income is maybe 1.3x current expenses including taxes

Debt: None. Credit cards paid in full each month.

Tax Filing Status: Single

Tax Rate: 22% Federal, 5% State

State of Residence: MA

Age: 29

Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 20% of stocks

Please note my portfolio is about 5x current annual expenses (edit: including taxes)

Taxable
7.7% VXUS (0.08%)
4.2% VTI (0.03%)
0.3% BRK.B (0%)
0.2% BTC (0%)

His Roth IRA at Schwab
22.6% SCHF (0.06%)
0.6% SCHD (0.06%)
0.1% BA (0%)

His Rollover IRA at Schwab
57.3 % SCHB (0.03%)
7% SCHF (0.06%)

_______________________________________________________________

Contributions

New annual Contributions
$0 his 401k (match 100% up to 1% of salary)
$7000 his IRA/Roth IRA
$12000 taxable <target>

Available funds

Funds available in his 401(k)
Ticker Fund Name
MXLZX Great-West Lifetime 2015 Fund Svc (0.90%)
MXAHX Great-West Lifetime 2020 Fund Svc (0.92%)
MXFLX Great-West Lifetime 2025 Fund Svc (0.95%)
MXAUX Great-West Lifetime 2030 Fund Svc (0.96%)
MXLLX Great-West Lifetime 2035 Fund Svc (0.99%)
MXBEX Great-West Lifetime 2040 Fund Svc (1.00%)
MXRLX Great-West Lifetime 2045 Fund Svc (1.01%)
MXXLX Great-West Lifetime 2055 Fund Svc (1.02%)
MXBQX Great-West Lifetime 2050 Fund Svc (1.02%)
MXCPX Great-West Conservative Profile Fund Inv (0.77%)
MXDPX Great-West Mod Cons Profile Fund Inv (0.83%)
MXMPX Great-West Moderate Profile Fund Inv (???)
MXBPX Great-West Mod Aggr Profile Fund Inv (1.01%)
MXAPX Great-West Aggressive Profile Fund Inv (1.16%)
RERCX American Funds EuroPacific Gr R3 (1.12%)
HEMZX Virtus Vontobel Emerging Markets Opp A (1.48%)
GSAOX Goldman Sachs Small Cap Gr Insights A (???)
MXISX Great-West S&P SmCap 600 Index Fund Inv (0.56%)
UBVAX Undiscovered Mgrs Behavioral Value A (1.24%)
MXMGX Great West T Row Price MdCp Gr Fund Inv (1.02%)
SMVTX Virtus Ceredex Mid-Cap Value Equity I (1.02%)
RGACX American Funds Growth Fund of Amer R3 (0.94%)
LBSAX Columbia Dividend Income A (0.90%)
MXVIX Great West S&P 500 Index Fund Inv (0.51%)
PABGX T.Rowe Price Blue Chip Growth Adv (0.97%)
SENCX Touchstone Large Cap Focused A (1.02%)
OARBX Oakmark Equity & Income Service (????)
MXLMX Great West Multi Sector Bond Investor (0.90%)
TGTRX Templeton Global Total Return A (1.16%)
WAPAX Western Asset Core Plus Bond A (0.82%)

Had some trouble finding information on a few of them. If needed, I will look more carefully online. I haven't signed up for the 401k through Empower yet, so I'm using a printout + google search. I was mindful of the different class of shares and associated expense ratios. Pretty bad selection above IMO. I was hopeful for MXVIX to have a low(er) ER. Still, I know there may be significant tax benefits, so need to consider, at least.

edit: additional service fee 0.65% / yr applies to all funds

Questions:

1. My "buckets" for NW are filled as such: 22.4% Roth, 61.9% Trad IRA, 12.0% Taxable, and my emergency fund is 3.7%. How can I optimize forward knowing I want to retire by 50? I hit my 401k hard early but pulled back because of fear I was locking all my monies away. I'm familiar with some , but not all, methods to access my 401k early with or without penalty (72t is really the one I've heard the most about, but also I know it has "limitations")

2. I think (though I haven't crunched numbers in any capacity) it would be very beneficial to deploy 401k contributions, despite fears of money being tied up later. I think the tax benefits are big $ wise, and, the fear of not withdrawing easily is overblown. Curious to your thoughts given the information above.

3. In general, what do you think regarding AA? Target 100% equities (for now). Target AA 80/20 (US / ex-US), getting there with new contributions

4. Any other big blind spots you note? To me, SS is a question mark. I think I'll easily hit the second bend, even if I retire earlier than 50. Maybe a boglehead can give this lazy, young milennial a quick TL;DR on bend points etc :)...

Thank you in advance for your attention and time.
Last edited by StartedAt22 on Mon Jul 08, 2024 8:23 pm, edited 2 times in total.
A task begun is nearly half complete | Enough is as good as a feast | Risk: Ensure your goals can be met even under worst case scenario and be realistic.
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dogagility
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Re: Portfolio Review - Early Accumulator

Post by dogagility »

StartedAt22 wrote: Fri Jun 28, 2024 3:52 pm I hit my 401k hard early but pulled back because of fear I was locking all my monies away.
Yes, invest in your 401k. Follow this prioritization strategy: https://www.bogleheads.org/wiki/Priorit ... nvestments.
3. In general, what do you think regarding AA?
It's a fine strategy for a young accumulator like yourself. Just don't panic sell...
4. Any other big blind spots you note?
I think you should consider whether or not you're investing too much in a taxable account at the expense of funding your 401k, IRA, and HSA (if available). You know you, but it may be that you won't retire at age 50.
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brightlightstonight
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Re: Portfolio Review - Early Accumulator

Post by brightlightstonight »

Agreed with dogagility...

Yes, you should be in the 401k (but only with the lower expense options - S&P 500, SmCap 600).

Yes, 100% stocks is fine for now, though (A) you absolutely have to be committed to that especially if there's a painful bear market and (B) be prepared to put a *hard* move away from 100% if you're getting near your FIRE "number".

The only major note: you're 29 and single. The odds that you really know now what you'll want at 50 are slim. Not that this changes anything about what you're doing now.
sailaway
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Re: Portfolio Review - Early Accumulator

Post by sailaway »

Not only should you be using your 401k, but you should also be looking into the Mega Backdoor Roth.

You should also make yourself familiar with: https://www.madfientist.com/how-to-acce ... nds-early/

We were at least 95% equities until just shy of our leanest FI number. That is when it became hard to picture going backwards and we switched to 70/30, where we have been comfortable since.
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StartedAt22
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Re: Portfolio Review - Early Accumulator

Post by StartedAt22 »

dogagility wrote: Fri Jun 28, 2024 4:01 pm
StartedAt22 wrote: Fri Jun 28, 2024 3:52 pm I hit my 401k hard early but pulled back because of fear I was locking all my monies away.
Yes, invest in your 401k. Follow this prioritization strategy: https://www.bogleheads.org/wiki/Priorit ... nvestments.
3. In general, what do you think regarding AA?
It's a fine strategy for a young accumulator like yourself. Just don't panic sell...
4. Any other big blind spots you note?
I think you should consider whether or not you're investing too much in a taxable account at the expense of funding your 401k, IRA, and HSA (if available). You know you, but it may be that you won't retire at age 50.
Thank you, dogagility.

I will redeploy 401k contributions. Seems a clear answer, and perhaps one I already knew.. Like last time, I'll start high with contributions, monitor, and adjust to optimize.

I'm confident I won't panic sell but as the portfolio grows, I understand emotions can become more irrational. I do have an IPS it very clearly states that changes to AA need to be tactile and based on changes to life circumstances or goals, not movements and noises in markets. It remains a challenge for someone particularly interested in markets in general. I've totally internalized the random walk theory, so, fingers crossed :sharebeer

As brightlightstonight noted -- I'm not sure what will happen at 50. Planning for my goals as they are now, knowing that they are always in flux as life changes season.
A task begun is nearly half complete | Enough is as good as a feast | Risk: Ensure your goals can be met even under worst case scenario and be realistic.
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StartedAt22
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Re: Portfolio Review - Early Accumulator

Post by StartedAt22 »

brightlightstonight wrote: Fri Jun 28, 2024 4:11 pm Agreed with dogagility...

Yes, you should be in the 401k (but only with the lower expense options - S&P 500, SmCap 600).

Yes, 100% stocks is fine for now, though (A) you absolutely have to be committed to that especially if there's a painful bear market and (B) be prepared to put a *hard* move away from 100% if you're getting near your FIRE "number".

The only major note: you're 29 and single. The odds that you really know now what you'll want at 50 are slim. Not that this changes anything about what you're doing now.
Thanks, brightlightstonight. See my other comment. I'm trying to save as much as possible to avoid the decision in scenario (B) above entirely. I'm optimistic, I guess; though I understand hope is no strategy. I'm not concerned with market fluctuations - my convictions there are strong re: panic selling.

And, as you note, I'm 29. Not sure where life will take me, just enjoying the ride and trying to be grateful.
A task begun is nearly half complete | Enough is as good as a feast | Risk: Ensure your goals can be met even under worst case scenario and be realistic.
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StartedAt22
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Re: Portfolio Review - Early Accumulator

Post by StartedAt22 »

sailaway wrote: Fri Jun 28, 2024 4:15 pm Not only should you be using your 401k, but you should also be looking into the Mega Backdoor Roth.

You should also make yourself familiar with: https://www.madfientist.com/how-to-acce ... nds-early/

We were at least 95% equities until just shy of our leanest FI number. That is when it became hard to picture going backwards and we switched to 70/30, where we have been comfortable since.
Thanks, sailaway.

Interesting link which I skimmed and immediately found informative. I enjoyed the graphics, and immediate thought is the roth conversion could take place while drawing on funds from taxable post-50? I checked the plan document I have, and I found that I can't make after-tax 401k contributions, so currently the MBR(megabackdoor roth) is a no-go. In addition, I discovered a 0.65% annual service fee from the 401k custodian for accts with balances under $150,000! :oops:
A task begun is nearly half complete | Enough is as good as a feast | Risk: Ensure your goals can be met even under worst case scenario and be realistic.
brightlightstonight
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Re: Portfolio Review - Early Accumulator

Post by brightlightstonight »

StartedAt22 wrote: Fri Jun 28, 2024 4:23 pm
brightlightstonight wrote: Fri Jun 28, 2024 4:11 pm Agreed with dogagility...

Yes, you should be in the 401k (but only with the lower expense options - S&P 500, SmCap 600).

Yes, 100% stocks is fine for now, though (A) you absolutely have to be committed to that especially if there's a painful bear market and (B) be prepared to put a *hard* move away from 100% if you're getting near your FIRE "number".

The only major note: you're 29 and single. The odds that you really know now what you'll want at 50 are slim. Not that this changes anything about what you're doing now.
Thanks, brightlightstonight. See my other comment. I'm trying to save as much as possible to avoid the decision in scenario (B) above entirely. I'm optimistic, I guess; though I understand hope is no strategy. I'm not concerned with market fluctuations - my convictions there are strong re: panic selling.

And, as you note, I'm 29. Not sure where life will take me, just enjoying the ride and trying to be grateful.
Yeah, my 29-year-old-self would NOT have guessed my current 50-something life! Definitely enjoy it!

One book I'd recommend reading is William Bernstein's Ages of the Investor - less than $5 as an eBook - https://www.amazon.com/Ages-Investor-Cr ... B008CM2T2A (the rest of the series is great too). He'll make the point far better than I can, but with anything other than truly absurd over-savings (50x desired income or even more), a 100% stock portfolio is far too risky for an early retirement (unless you're willing to get back into the job market years after retiring). At some point, if you've won the game, you need to stop playing. Which is the (B) scenario.
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StartedAt22
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Re: Portfolio Review - Early Accumulator

Post by StartedAt22 »

brightlightstonight wrote: Fri Jun 28, 2024 4:38 pm
StartedAt22 wrote: Fri Jun 28, 2024 4:23 pm
brightlightstonight wrote: Fri Jun 28, 2024 4:11 pm Agreed with dogagility...

Yes, you should be in the 401k (but only with the lower expense options - S&P 500, SmCap 600).

Yes, 100% stocks is fine for now, though (A) you absolutely have to be committed to that especially if there's a painful bear market and (B) be prepared to put a *hard* move away from 100% if you're getting near your FIRE "number".

The only major note: you're 29 and single. The odds that you really know now what you'll want at 50 are slim. Not that this changes anything about what you're doing now.
Thanks, brightlightstonight. See my other comment. I'm trying to save as much as possible to avoid the decision in scenario (B) above entirely. I'm optimistic, I guess; though I understand hope is no strategy. I'm not concerned with market fluctuations - my convictions there are strong re: panic selling.

And, as you note, I'm 29. Not sure where life will take me, just enjoying the ride and trying to be grateful.
Yeah, my 29-year-old-self would NOT have guessed my current 50-something life! Definitely enjoy it!

One book I'd recommend reading is William Bernstein's Ages of the Investor - less than $5 as an eBook - https://www.amazon.com/Ages-Investor-Cr ... B008CM2T2A (the rest of the series is great too). He'll make the point far better than I can, but with anything other than truly absurd over-savings (50x desired income or even more), a 100% stock portfolio is far too risky for an early retirement (unless you're willing to get back into the job market years after retiring). At some point, if you've won the game, you need to stop playing. Which is the (B) scenario.
Thanks for the link! Holy cow! Wade Pfau's review on the book alone is a compelling reason for purchase. If I can continue my income growth , I may be able to get to 50x. That's my stretch goal :) Just 45x to go!!!! :) There is also a very strong likelihood of inheriting (half of) a house and more, which would be very significant. That said, it's not something I account for.

It cannot be overstated though, I'm 29 and single. I could be married at 33 with a kid on the way and throw the whole darn FIRE thing away. But, in that event, I know I'll be happy sleeping well with a suitably funded retirement. Thanks again for all the help.
A task begun is nearly half complete | Enough is as good as a feast | Risk: Ensure your goals can be met even under worst case scenario and be realistic.
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retired@50
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Re: Portfolio Review - Early Accumulator

Post by retired@50 »

StartedAt22 wrote: Fri Jun 28, 2024 3:52 pm ... I want to retire by 50?
... I hit my 401k hard early but pulled back because of fear I was locking all my monies away.
Well, like the other posters in this thread, I think you should be putting the max into your 401k and your Roth IRA, and then worry about your taxable account. That's what I did, and since I was able to save so much in taxable after maxing the retirement accounts, it became 2/3 of my portfolio. All of which is what allowed me to retire at 50.

Also, pay attention to income taxes.

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
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StartedAt22
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Re: Portfolio Review - Early Accumulator

Post by StartedAt22 »

retired@50 wrote: Fri Jun 28, 2024 4:59 pm
StartedAt22 wrote: Fri Jun 28, 2024 3:52 pm ... I want to retire by 50?
... I hit my 401k hard early but pulled back because of fear I was locking all my monies away.
Well, like the other posters in this thread, I think you should be putting the max into your 401k and your Roth IRA, and then worry about your taxable account. That's what I did, and since I was able to save so much in taxable after maxing the retirement accounts, it became 2/3 of my portfolio. All of which is what allowed me to retire at 50.

Also, pay attention to income taxes.

Regards,
Thanks, retired@50. I ran some numbers a bit more meticulously last night, and, even with fees etc in the 401k, the tax deference / temporary avoidance is significant such that I cant contribute almost $1500 / month to my 401k with only about a $1000 difference in take home pay (give or take ~100 or so). Truly too large an opportunity to give up. Though I do think I may struggle with maxing my 401k, Roth, and then getting some into taxable, given how much my COL has increased. Just more fuel to keep increasing income!

Thanks again!
A task begun is nearly half complete | Enough is as good as a feast | Risk: Ensure your goals can be met even under worst case scenario and be realistic.
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retired@50
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Re: Portfolio Review - Early Accumulator

Post by retired@50 »

StartedAt22 wrote: Sat Jun 29, 2024 5:38 am
retired@50 wrote: Fri Jun 28, 2024 4:59 pm
StartedAt22 wrote: Fri Jun 28, 2024 3:52 pm ... I want to retire by 50?
... I hit my 401k hard early but pulled back because of fear I was locking all my monies away.
Well, like the other posters in this thread, I think you should be putting the max into your 401k and your Roth IRA, and then worry about your taxable account. That's what I did, and since I was able to save so much in taxable after maxing the retirement accounts, it became 2/3 of my portfolio. All of which is what allowed me to retire at 50.

Also, pay attention to income taxes.

Regards,
Thanks, retired@50. I ran some numbers a bit more meticulously last night, and, even with fees etc in the 401k, the tax deference / temporary avoidance is significant such that I cant contribute almost $1500 / month to my 401k with only about a $1000 difference in take home pay (give or take ~100 or so). Truly too large an opportunity to give up. Though I do think I may struggle with maxing my 401k, Roth, and then getting some into taxable, given how much my COL has increased. Just more fuel to keep increasing income!

Thanks again!
About those high fees in the 401k plan...

Two things come to mind.
1. Endure them until you get a new job, with a better 401k.

2. Persuade management to improve the plan, which would benefit all plan participants, even management.
For more on the persuasion, see the wiki: https://www.bogleheads.org/wiki/How_to_ ... 01(k)_plan

Many people, possibly including the people who selected your plan, don't understand the devastating impact of high fees and expense ratios for a lifetime. Maybe part of the persuasion will be educating certain individuals at your company.
More about fees in the links below.
https://www.bogleheads.org/wiki/Expense_ratios
https://www.bogleheads.org/wiki/How_muc ... y_years%3F

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
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StartedAt22
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Re: Portfolio Review - Early Accumulator

Post by StartedAt22 »

retired@50 wrote: Sat Jun 29, 2024 9:20 am
StartedAt22 wrote: Sat Jun 29, 2024 5:38 am
retired@50 wrote: Fri Jun 28, 2024 4:59 pm
StartedAt22 wrote: Fri Jun 28, 2024 3:52 pm ... I want to retire by 50?
... I hit my 401k hard early but pulled back because of fear I was locking all my monies away.
Well, like the other posters in this thread, I think you should be putting the max into your 401k and your Roth IRA, and then worry about your taxable account. That's what I did, and since I was able to save so much in taxable after maxing the retirement accounts, it became 2/3 of my portfolio. All of which is what allowed me to retire at 50.

Also, pay attention to income taxes.

Regards,
Thanks, retired@50. I ran some numbers a bit more meticulously last night, and, even with fees etc in the 401k, the tax deference / temporary avoidance is significant such that I cant contribute almost $1500 / month to my 401k with only about a $1000 difference in take home pay (give or take ~100 or so). Truly too large an opportunity to give up. Though I do think I may struggle with maxing my 401k, Roth, and then getting some into taxable, given how much my COL has increased. Just more fuel to keep increasing income!

Thanks again!
About those high fees in the 401k plan...

Two things come to mind.
1. Endure them until you get a new job, with a better 401k.

2. Persuade management to improve the plan, which would benefit all plan participants, even management.
For more on the persuasion, see the wiki: https://www.bogleheads.org/wiki/How_to_ ... 01(k)_plan

Many people, possibly including the people who selected your plan, don't understand the devastating impact of high fees and expense ratios for a lifetime. Maybe part of the persuasion will be educating certain individuals at your company.
More about fees in the links below.
https://www.bogleheads.org/wiki/Expense_ratios
https://www.bogleheads.org/wiki/How_muc ... y_years%3F

Regards,
Retired@50,

I am happy to report that over the long weekend I reviewed all the documents available to me. Today, I requested all other plan documentation, with the hopes to begin reviewing and preparing my plea to improve our selections! They told me nobody has ever so far as asked about anything beyond, "do we have a 401k?"

This is good, I needed something stimulating to do at night after watching re-runs of Twilight Zone :mrgreen:
A task begun is nearly half complete | Enough is as good as a feast | Risk: Ensure your goals can be met even under worst case scenario and be realistic.
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retired@50
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Re: Portfolio Review - Early Accumulator

Post by retired@50 »

StartedAt22 wrote: Mon Jul 08, 2024 4:03 pm
retired@50 wrote: Sat Jun 29, 2024 9:20 am
StartedAt22 wrote: Sat Jun 29, 2024 5:38 am
retired@50 wrote: Fri Jun 28, 2024 4:59 pm
StartedAt22 wrote: Fri Jun 28, 2024 3:52 pm ... I want to retire by 50?
... I hit my 401k hard early but pulled back because of fear I was locking all my monies away.
Well, like the other posters in this thread, I think you should be putting the max into your 401k and your Roth IRA, and then worry about your taxable account. That's what I did, and since I was able to save so much in taxable after maxing the retirement accounts, it became 2/3 of my portfolio. All of which is what allowed me to retire at 50.

Also, pay attention to income taxes.

Regards,
Thanks, retired@50. I ran some numbers a bit more meticulously last night, and, even with fees etc in the 401k, the tax deference / temporary avoidance is significant such that I cant contribute almost $1500 / month to my 401k with only about a $1000 difference in take home pay (give or take ~100 or so). Truly too large an opportunity to give up. Though I do think I may struggle with maxing my 401k, Roth, and then getting some into taxable, given how much my COL has increased. Just more fuel to keep increasing income!

Thanks again!
About those high fees in the 401k plan...

Two things come to mind.
1. Endure them until you get a new job, with a better 401k.

2. Persuade management to improve the plan, which would benefit all plan participants, even management.
For more on the persuasion, see the wiki: https://www.bogleheads.org/wiki/How_to_ ... 01(k)_plan

Many people, possibly including the people who selected your plan, don't understand the devastating impact of high fees and expense ratios for a lifetime. Maybe part of the persuasion will be educating certain individuals at your company.
More about fees in the links below.
https://www.bogleheads.org/wiki/Expense_ratios
https://www.bogleheads.org/wiki/How_muc ... y_years%3F

Regards,
Retired@50,

I am happy to report that over the long weekend I reviewed all the documents available to me. Today, I requested all other plan documentation, with the hopes to begin reviewing and preparing my plea to improve our selections! They told me nobody has ever so far as asked about anything beyond, "do we have a 401k?"

This is good, I needed something stimulating to do at night after watching re-runs of Twilight Zone :mrgreen:
Good for you. Twilight Zone re-runs might be interesting chit-chat around the water cooler, but I'd rather have a 401k plan with low fees.

If you really want to do a deep dive on your particular plan, see the Department of Labor Form 5500 search function (linked below). All 401k plans have to submit this document annually. You might learn more about your plan than you ever thought possible, like who's raking in all those fees... :shock:

See DOL Link: https://www.efast.dol.gov/5500Search/

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
HomeStretch
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Re: Portfolio Review - Early Accumulator

Post by HomeStretch »

Is your entire portfolio for retirement or are you saving in your Taxable account for non-retirement goals such as a car, house, wedding, etc.?

Your emergency fund is 3x living expenses. Does this mean you can cover living expenses for 3 weeks, 3 month, 3 years?
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Re: Portfolio Review - Early Accumulator

Post by StartedAt22 »

HomeStretch wrote: Mon Jul 08, 2024 4:52 pm Is your entire portfolio for retirement or are you saving in your Taxable account for non-retirement goals such as a car, house, wedding, etc.?

Your emergency fund is 3x living expenses. Does this mean you can cover living expenses for 3 weeks, 3 month, 3 years?
Hi HomeStretch!

I don't have any non-retirement financial goals at the moment. (I'm wondering to myself now; Is that weird..?)

I'll end up buying a new (to me) car in cash or cash flow a small loan depending on rates / other circumstances. I don't foresee myself determining whether I want to buy a house within the next 5 years given my personal life. I'm single, so no intention to put money aside for a wedding I'm not sure will happen.

When I said 3x living expenses, I should've clarified that is 3x monthly. Updated post to reflect that.
A task begun is nearly half complete | Enough is as good as a feast | Risk: Ensure your goals can be met even under worst case scenario and be realistic.
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retiredjg
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Re: Portfolio Review - Early Accumulator

Post by retiredjg »

Started at 22, you asked me to look at this to see if you are saving too much in your tax-deferred accounts. Here are a few thoughts.
Good job stability + career advancement prospects.
You are 29 years old and feel like you have good advancement propspects. This is one argument to use more Roth or taxable now (while in a lower tax bracket) and more tax-deferred after you move up the career ladder.

Taxable
7.7% VXUS (0.08%)
4.2% VTI (0.03%)
0.3% BRK.B (0%)
0.2% BTC (0%)

His Roth IRA at Schwab
22.6% SCHF (0.06%)
0.6% SCHD (0.06%)
0.1% BA (0%)

His Rollover IRA at Schwab
57.3 % SCHB (0.03%)
7% SCHF (0.06%)
This is not particularly lopsided. There is no problem to "fix" at this point.

Contributions

New annual Contributions
$0 his 401k (match 100% up to 1% of salary)
$7000 his IRA/Roth IRA
$12000 taxable <target>
Is Roth 401k available to you? That would be preferable to taxable.


Your 401k plan is mediocre to poor. The match makes up for something though.

How can I optimize forward knowing I want to retire by 50?
If you are able to retire at 50, it is highly unlikely you will have "too much in tax-deferred" because you will have many years to convert to Roth.

You also don't have too much in tax-deferred at the present time. However, considering that you expect promotions which are likely to bring higher tax brackets later on, consider using Roth 401k (if available) for 2024 and 2025 before tax rates go up in 2026 (if that actually happens as is currently scheduled). As your tax bracket goes up, increase your use of tax-deferred 401k and keep using Roth IRA.

Bottom line...no you don't have a problem in my opinion, but it is good to keep it in mind for the future. Early retirement could eliminate the possibility of that problem entirely.
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