It has become painfully obvious that our current asset allocation is a mess due to naively selecting random funds (many redundant in structure) and making poor investment decisions throughout the years. I have been reluctant to ask for help, but if we are to hit our ER target date, then its time to get our portfolio structured in a way that will be more tax efficient and conducive to early retirement.
Any advice on steps to take to simplify our AA based on what we have available to us will be greatly appreciated!
Stats:
Age: 39
Target Retirement Age: 54
Current Liquid and Invested Assets: $1.2M
Currently max out 401K (last 3 out of 4 years I received distributions due to our plan being "top heavy")
Currently max out HSA.
Available funds to invest monthly - $5,000+ after 401K and HSA contributions
Notes:
Current Asset Allocation
Employer 401K - 7.2% of portfolio
HYSA - 21.8% of portfolio
Any advice on steps to take to simplify our AA based on what we have available to us will be greatly appreciated!
Stats:
Age: 39
Target Retirement Age: 54
Current Liquid and Invested Assets: $1.2M
Currently max out 401K (last 3 out of 4 years I received distributions due to our plan being "top heavy")
Currently max out HSA.
Available funds to invest monthly - $5,000+ after 401K and HSA contributions
Notes:
* An unusually high amount in HYSA and Money Market due to the good interest rates.
** I have historically chased high dividend paying funds and target funds in my brokerage account, but now understand that they are not tax efficient.
*** We will start contributing to Traditional IRA this year since we cannot perform backdoor ROTH due to the rollover IRA.
Current Asset Allocation
Employer 401K - 7.2% of portfolio
- FXNAX Fidelity Freedom Index 2050 Premier - 4%
- FSSNX Fidelity Large Cap Value Index - 14.7%
- FSMDX Fidelity Mid Cap Index - 15.2%
- FLCOX Fidelity Small Cap Index - 20.71%
- FRLPX Fidelity US Bond Index - 45.31%
- VMFXX - Money Market - 82.3% (currently dollar cost averaging at $4,000 monthly into the vanguard funds below)
- VDADX - Vanguard Dividend Appreciation Index Admiral - 2.8%
- VIGAX - Vanguard Growth Index Admiral - 2.8%
- VTIVX - Target Retirement 2045 - 2.8%
- VTSAX - Total Stock Market - 2.8%
- Single Stocks - 6.5%
- VFIFX - Target Retirement 2050 - 100%
- Money Market - 12%
- VLXVX - Target Retirement 2065 - 32%
- VSEQX - Strategic Equity Investor - 23%
- Stocks - 33%
- Money Market - 32.3%
- FFIJX - Target Retirement 2065 - 14.3%
- FFOPX - Target Retirement 2050 - 13.2%
- FITLX - Sustainability Index - 4.5%
- FMDE - Enhanced Mid Cap ETF - 4.5%
- FSKAX - Total Market Index - 1.9% (Just started a few months ago)
- Stocks - 29.3%
HYSA - 21.8% of portfolio