Hi,
I am a newbie investor. I have been conservative so far in life. Keeping money mostly in bank savings account in fear of losing money. Have been reading a lot about personal finance lately. I write this post in hopes of getting some advice so I can start investing systematically.
Emergency funds: Yes. 6months.
Debt: Car loan - $8,000 balance @4%interest
Tax Filing Status: Married. Wife is homemaker and 1yr old daughter.
Tax Rate: 28% Federal, 9.3% State
State of Residence: California
Age: 35
Desired Asset allocation: Unsure. Suggestions welcome.
Desired International allocation: Unsure. Suggestions welcome.
Current total portfolio: 125,000 ( 55k in 401k, 5k in IRA, 65k in company stocks)
Current assets:
A) Taxable Total - 95k 80k - Kept in savings account for home purchase down payment. Intend to purchase house 2-3 yrs from now. It is in Chase and BoA. No interest being earned. Want to keep this money safe. I would prefer to invest amount I earn from salary going forward.
15k - invested in 8-10 individual stocks since year using Robinhood. As of now this portfolio is in balance. No profit, no loss. Keeps dancing between +- 2%.
B) My 401k
Total - 55k
46% - VANG LG CP STOCK IDX - ER - 0.04%
42% - DODGE & COX BALANCED (DODBX) - ER - 0.53%
12% - FID EXT MKT IDX PR (FSEVX) -ER - 0.07%
Company match? Yes
C) Wife`s Traditional IRA at Scottrade Total: $5k
1k - iShares Gold Trust (IAU) (ER - 0.25%)
4k - Cash (uninvested)
D) Company stocks: $65k
Contributions going forward $18,000 - 401k (my contribution)
$4,500 - 401k - Employer contribution
$5,500 - Wife`s IRA account
$20,000 taxable - want to invest it for retirement / kid education.
$4,000 - company stocks ( i would want to sell them and invest elsewhere going forward)
Questions: i) Help me build a portfolio. Open to suggestions. Point out my mistakes. I don`t know my risk tolerance honestly. I have never been in stock market before and never experienced a down phase in life money-wise or jobwise yet.
ii) As of now, below is what I am thinking. Suggestions welcome. I would love to know reasons as well if you can provide. If I go with this plan, I don`t know how to stick to my allocation since these funds are not available in my 401k options.
30% - Domestic Equity . Vanguard Total Stock Market ETF (VTI) - (ER - 0.04%)
10% - Tech fund . PowerShares QQQ Trust (QQQ) - (ER-0.20%)
20% - International Equity . Vanguard Total International Stock ETF (VXUS) - (ER - 0.11%)
20% - REITS - Vanguard REIT ETF (VNQ) - (ER-0.12%)
10% - Gold - iShares Gold Trust (IAU) . (ER - 0.25%)
10% - Bond - Vanguard Total Bond Market ETF (BND) - (ER - 0.05%)
iii) Also seeking Suggestions on: Medi insurance - Have it with current company. Should I take any from outside?
Life insurance - Have 200k Life insurance provided by employer. Should I take any from outside?
Disability Insurance - Have 200k Disability insurance provided by employer. Should I take any from outside?
Liability insurance - is it recommended?
Identity Theft protection - is it recommended?
Submitted June 28, 2017 at 04:34AM by coolwave1515 http://ift.tt/2ugV0dY
