Personal Investments • Portfolio Review Request: Expecting First Child. Thank You!!

We are arts-subject high school teachers in the Los Angeles area, and we're expecting our first child in May and would like a general check-up.

Our incomes will be reduced by 30-40% while we are on leave, which I'm pretty concered about.
- him: 8 weeks (4 paychecks)
- her: 20 weeks (10 paychecks)

Basic Details
Ages:
- Him: 35
- Her: 33

Incomes:
~ $110k Gross (no bonuses, etc.)
~ $89k Gross (no bonuses, etc.)

Rent:
~$3,600

Approximate size of your total portfolio:
$590,000
- $24k, Emergency Fund (in high yield savings)
- $49k, “Cash” (car fund + regular expense accounts - in high yield saving, some will be used to fund her Roth IRA in 2025)
- $335k, Retirement accounts (403(b)s and Roths)
- $185k, Taxable

Debt:
None (but looking at buying a car)

Tax Filing Status:
Married Filing Jointly (MFJ)

Tax Rate:
- Federal: 24%
- State: 9.3% (CA)

Desired Asset Allocation:
100% Stocks
~80% US
~20% EXUS
0% Bonds

Current Assets
His Taxable*: ~35%;
- 6.43%, ITOT (iShares Core S&P Total US Stock Market ETF, 0.03%)
- 8.20%, IXUS (iShares Core MSCI Total International Stock ETF, 0.07%)
- 7.55%, VT (Vanguard Total World Stock ETF, 0.07%)
- 2.73%, VTI (Vanguard Total Stock Market Index Fund ETF, 0.03%)
- 0.57%, SPY (SPDR S&P 500 ETF Trust, 0.0945%).
*Includes ~$50,000 inheritance (12 years ago) and taxable contributions (never at the expense of 403(b) or Roths).

Her Taxable:
- None

His 403(b)*: ~28.95%;
- 28.14%, FXAIX (Fidelity 500 Index Fund, 0.015%)
- 2.14%, FSSNX (Fidelity Small Cap Index Fund, 0.025%, no longer contributing)
- 0.79%, FSPSX (Fidelity® International Index Fund, 0.035%).
*5% employer contribution (not a match).

Her 403(b): ~9.21%
- 4.50%, VSMAX (Vanguard Small Cap Index Fund Admiral Shares 0.05%)
- 2.37%, VFIAX (Vanguard 500 Index Fund Admiral Shares, 0.04%)
- 2.25%, VIMAX (Vanguard Mid-Cap Index Fund Admiral Shares, 0.05%).

His Roth IRA: ~11.48%
- 10.92%, FZROX (Fidelity ZERO® Total Market Index Fund, 0%)
- 0.28%, FBTC (Fidelity Wise Origin Bitcoin Fund, 0.25%)
- 0.28%, VTI (Vanguard Total Stock Market Index Fund ETF, 0.03%).

Her Roth IRA: ~6.80%
- 6.80%, FZROX (Fidelity ZERO® Total Market Index Fund, 0%).

Her SRP: ~0.67% (No longer contributing; former employer)
- 0.67%, VFFVX (Vanguard Target Retirement 2055 Fund, 0.08%).

Her SIP: ~4.73% (No longer contributing; former employer)
- 4.73%, LIZKX (BlackRock LifePath® Index 2060 Fund Class K Shares, 0.14%).

Her Stock: ~0.66% (No longer buying; unlikely to sell)
- 0.66%, DIS (Disney).

Current Allocation
- 70.4%, Total US
- 12.0%, EXUS
- 6.6%, Small-Cap US
- 5.4%, Target Date
- 2.4%, Large-Cap US
- 2.2%, Mid-cap US
- 0.7%, Disney
- .3%, Bitcoin

Contributions
New Annual Contributions

• 403(b):
  - He plans to continue maxing 403(b) each year:
  - 80% Fidelity 500 (FXAIX)
  - 20% Fidelity International (FSPSX)
  - She may cut back in 2025 due to the upcoming baby but plans to contribute to the company match.
• Roth IRA: Plan to max for 2025 ASAP.

Questions/Comments
1. Looking for a general check-up.
2. First child expected in May 2025, any thoughts on preparing here?
3. We've started a 529 (only has about $250), with about $100 a month going to it.
4. Her 403(b) is somewhat sliced and diced... hoping to move to just VFIAX (Vanguard 500 Index Fund) in the new year.
5. I'm worried we won't have enough cash flow if we max out both out 403(b)s next year. So I think we may need to reduce her contributions.
6. We need to purchase a car. We have approximately $30,000 in cash reserved for this.
7. We're looking at moving to a hopefully cheaper apartment this summer.
8. **As noted above, our incomes will be reduced by 30-40% while we are on leave (him: 8 weeks; her 20 weeks)

Statistics: Posted by Cranberry44 — Sat Dec 21, 2024 12:30 pm

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