Been lurking here the past few weeks, figure it is time to post! I'm currently 51.5, married and DH is 55. 2 kids; 1 just finished his 2nd year of college, daughter will be a Sr in HS next year.
Been with the same company for 29 years and always thought I’d work forever, that is until my position was eliminated in February 2016. I ended up finding a role within the same company but 3 things changed 1)I had to quickly figure out all my retirement and stock benefits/holdings 2)I faced reality that the company has no loyalty to me and 3)I’m not really loving the role I landed in but am realizing I don’t have the desire to find one I would love. The best part of this all was #1. I consciously made the decision years ago to stick with the defined benefit plan that has the rule of 85 and since they froze the plan 2 years ago I now know exactly what my pension benefit will be.
I am very much a set it and forget it investor but I also have a bad habit of picking stock funds over bond funds so I need to balance now.
Currently we have the following assets:
401k: $1.1M (currently: $68% Index 500, 20% Ext Mkt Index, 12% Total bond index)
Vanguard: $212k (VIGAX:$182k, VBTLX:$30k)
Other mutual funds: $200k (6 different accts I probably should consolidate, mainly stock funds, ~$30 in IRA)
Savings acct*: $300k
Company stock value: $600k
Health Savings Plan: $35k (50% VIIX, 50% VIGIX)
Overall we are at ~ $2.5M, 80% stock, 7% bond and 13% cash
House currently valued around $800k (Zillow says $880), we owe $215k. I have not included house value in any calcs. We live outside of Seattle.
Currently saving annually:
Roth 401k: $6k
Co match: ~$10k
Company stock purchase (discounted 15%):$13k
Income in retirement:
Pension (@55): $87k annual
SS (@ 67): $35k annual
DH SS (@67): $17k
Current plan for next few years: try to ratchet back discretionary spending some (eat out too much, consume too much stuff…), pay for some of the kids college ($150k remaining, over next 3-4 years), retire when I hit rule of 85 (1/1/21). Husband will most likely retire at same time or maybe continue to work part time for next few years. Financially I am assuming he will retire.
I have not been good at tracking our actual spending (starting that now) but I am assuming at high side we will spend $150k/year. I have put all this into the FIRE calc and show a 100% chance of success assuming we live to age 85+. First question is should I believe that
Next biggest question is related to what should I do with about $200k that is sitting in savings now? I started to think I should put it all in a bond fund, to get my asset allocation a little closer to “recommended” but then I read that you should keep your bond funds in tax advantaged accounts and use stock funds for taxable accounts; is that correct?
My husband is self employed and I have started looking into a solo 401k for him. Would it be better to do a traditional or Roth? I did some tax estimates this week and I am leaning towards traditional.
I realized this week that I could increase my ESPP up to $20k/yr (from $13k), should I?
Just forcing myself to put together the above has helped me! But I am still being a little too impulsive and leaning too much towards stocks! For example, until today I didn’t realize I could invest my Health Savings acct and I immediately put it into stock index funds when I probably should have waited a few days to post this and get some feedback!
Thanks for any feedback and sorry this got so long!