RE-Fin-54321
Dryer sheet wannabe
- Joined
- May 6, 2007
- Messages
- 18
Hi All - Very long time lurker seeking advice from the brilliant folks here. DW and I set our finance plans on auto pilot when joining the workforce 16 years ago and it has served us well during the accumulation phase. Your standard Bogglehead investing principles and LBYM lifestyle.
We are starting to hit the point where we are [maybe] FI, but struggling with how to think about financially transitioning out of accumulation mode to setup a portfolio that could support our version of ER. It’s a weird feeling like we’ve “won the game”, but don’t have a good strategy to lock things in.
Two primary questions looking for advice:
#1 Recommended research topics/sources about setting up post accumulation phase and ER? What should I be thinking about now while we still have working years in front of us? E.g things that run through my mind but I struggle with a starting point are: structuring portfolio for early withdrawals & tax efficiency ... Roth conversions (now or just hold to salary’s are lower)... asset allocations that de-risk but account for longer time horizon, other things I need on my radar?
#2 We’ve recently paid off mortgage and have kids moving out of daycare soon. This will open $3-$4K per month in cash flow. I don’t want to overthink the Bogglehead approach, but I can’t shake the thought I should consider diversifying completely outside the markets (yes high values scare me) and use extra cash flow to fill up on something totally different (e.g. gold, crypto, real estate, etc)
Our key facts are:
We are starting to hit the point where we are [maybe] FI, but struggling with how to think about financially transitioning out of accumulation mode to setup a portfolio that could support our version of ER. It’s a weird feeling like we’ve “won the game”, but don’t have a good strategy to lock things in.
Two primary questions looking for advice:
#1 Recommended research topics/sources about setting up post accumulation phase and ER? What should I be thinking about now while we still have working years in front of us? E.g things that run through my mind but I struggle with a starting point are: structuring portfolio for early withdrawals & tax efficiency ... Roth conversions (now or just hold to salary’s are lower)... asset allocations that de-risk but account for longer time horizon, other things I need on my radar?
#2 We’ve recently paid off mortgage and have kids moving out of daycare soon. This will open $3-$4K per month in cash flow. I don’t want to overthink the Bogglehead approach, but I can’t shake the thought I should consider diversifying completely outside the markets (yes high values scare me) and use extra cash flow to fill up on something totally different (e.g. gold, crypto, real estate, etc)
Our key facts are:
- DW and I are 38. 2 younger kids 4 & 6
- 2 mega Corp jobs - stable. Combined $350k. Happy, but neither of us are overly motivated at this point - starting to look at options for cutting back and/or improving flexibility to take advantage of financial situation.
- 401ks = $1.35M
- Roths = $340K
- Taxable Brokerage = $360K (VG Emerging Markets + Value Index funds to balance asset allocation weights across entire portfolio)
- Company Stock = $440K ($40K in DH F100 stock; $400k with DW employee owned company shares - grows significantly every year)
- HSA = $132K (Save it, target date funds, never spend - how high do people let these accounts get?)
- 529s = $148K (plan to go to about $250 in total for our kids)
- Cash = $300K (online savings accounts)
- No debt/mortgage. Own ~$450K home. High annual RE tax unfortunately
- Spending: ~$6500-7,000/mos + 1-2 vacations per year ($8-10k total)