I live with family so my monthly expenses are pretty low. That $20k will get me through at least 9 months of expenses.Thanks for re-posting with the form.
Some initial comments / questions:
Emergency Funds: How many months of expenses will 20K take you? I would not have any less than 3 mos. and preferably 6 mos. to handle extended job loss / other.
Debt: awesome...a critical accelerator for accumulating wealth. Importantly, as you grow in your career, make sure you are always living beneath your means...always. Of course, lifestyle inflation is a thing (like going out more often and / or more expense food, etc.). This is fine...just make sure you are thoughtful about it and are increasing your savings as your income grows.
Desired Asset Allocation: 90/10 is perfectly fine for your age with the important assumption that you know yourself and can handle the volatility and avoid bad behaviors like selling in a panic when it gets choppy. In regard to bonds / fixed income, I have found bonds more complex than stocks and strongly encourage you to start educating yourself now so you are prepared when you shift a larger part of your portfolio in that direction.
The current guidance for International is no less than 20% and not more than 40%.
Current Retirement Assets:
* What percentage of your salary is being saved?
* Do you have an HSA available to you?
* Do you have Mega Backdoor Roth available to you?
Thus far, I've had more tax advantaged space available to me than I have money to fill them all. Consequently, I have had no interest to have anything in a taxable account until those spaces are filled.
Your Questions
1. I don't know if I would call anything you have done "reckless", but you have a great opportunity to make improvements.
- Managed Portfolio: No one cares more about your money than you do. You are giving money away...get rid of the advisor as you can absolutely managed it yourself, along with support from this community.
- Investments: You want / need a simple, diversified portfolio that matches your tolerance for risk and will endure for the long term. Furthermore, do not underestimate the value of simplicity...you need very few investments to have a solid portfolio. Easy to understand and manage for the win.
Typical portfolio:
Total US Stock Market (VTI)
Total Intl Stock Market (VXUS)
Total US Bonds (BND) / other fixed income
Your Roth account should hold the investments which will have the greatest potential to increase in value.
2. You have done well for your age thus far, but whether it is $650K or $2M, the advice I would give you will be similar (barring any special circumstances). Appears the advisor fills your head with nonsense with the aim of benefiting himself. Say goodbye.
3. As mentioned, I have not yet had a taxable account...others may provide some guidance here.
Many of us discovered this forum later in life. You have had the good fortune to find if sooner...learn and enjoy!
Best wishes.
As for asset allocation I am doing some research on alternatives to a regular bond fund like BND, like Treasury funds or state-specific bond funds to avoid some taxes, as my fixed income portion would need to be in taxable accounts. Is there anything in particular I should know about these options?
For your questions:
* When you factor in both earned and unearned income, I am investing about 14% of my total income.
* No I don't have an HSA available to me.
* No I don't have a mega backdoor Roth available to me.
Statistics: Posted by LongTermRequest — Sun Feb 02, 2025 8:19 pm