I am a 51 yo professional in Los Angeles, single, have no dependents. Early on in my investing career I had a somewhat disorganized investing strategy but for the last 15 years have invested solely in ETFs, self managed.
Here is a snapshot of my finances:
Current income: $300,000/year
Yearly expenses including everything except taxes: $150,000
Debt: None.
Own primary residence worth $1.8 million free and clear
Tax Rate (marginal): 28% Federal (AMT), 9.3% State
State of Residence: CA
Total funds including taxable, retirement, ROTH is $6,124,000 Breakdown is as follows:
Taxable account: Total is $2,865,000 of which $450,000 would be subject to capital gains tax if shares sold
Individual 401k: Total is $3,062,000
Roth IRA at Schwab Total is $197,000
Allocation:
Large Cap equity 36.3 %
Small Cap equity 11.1 %
International Equity 16.1 %
Fixed income 35.2 %
Cash 0.3 %
Other 1.0 %
Questions:
1. Any thoughts on my asset allocation? Right now its 65/35 stocks/fixed income. I could move to 80% bonds for extra safety but it seems I can afford some risk. I would love to hear thoughts on this.
3. Best guesses and comments on how safe I am cutting back to $200k/year until age 60? Or, what about retiring completely now? If I stop working now, I am probably unable to return to any decent working situation, so I do not want to toss in the towel prematurely. One thing that is a concerning unknown for me is healthcare costs, as I have no health insurance benefits and have to purchase an individual policy.
4. Any comments on how I should plan to take SS benefits, and general strategy for how I would plan to use funds for living expenses in the event I retire even earlier than 60, for example next year?
Many thanks in advance.
Here is a snapshot of my finances:
Current income: $300,000/year
Yearly expenses including everything except taxes: $150,000
Debt: None.
Own primary residence worth $1.8 million free and clear
Tax Rate (marginal): 28% Federal (AMT), 9.3% State
State of Residence: CA
Total funds including taxable, retirement, ROTH is $6,124,000 Breakdown is as follows:
Taxable account: Total is $2,865,000 of which $450,000 would be subject to capital gains tax if shares sold
Individual 401k: Total is $3,062,000
Roth IRA at Schwab Total is $197,000
Allocation:
Large Cap equity 36.3 %
Small Cap equity 11.1 %
International Equity 16.1 %
Fixed income 35.2 %
Cash 0.3 %
Other 1.0 %
Questions:
1. Any thoughts on my asset allocation? Right now its 65/35 stocks/fixed income. I could move to 80% bonds for extra safety but it seems I can afford some risk. I would love to hear thoughts on this.
3. Best guesses and comments on how safe I am cutting back to $200k/year until age 60? Or, what about retiring completely now? If I stop working now, I am probably unable to return to any decent working situation, so I do not want to toss in the towel prematurely. One thing that is a concerning unknown for me is healthcare costs, as I have no health insurance benefits and have to purchase an individual policy.
4. Any comments on how I should plan to take SS benefits, and general strategy for how I would plan to use funds for living expenses in the event I retire even earlier than 60, for example next year?
Many thanks in advance.
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