Hi All,
Absolute newbie on this forum and in the world of investing as well , so decided to reach out for any helpful suggestions folks can provide :happy
My profile
33 years old , working as an engineer in Topeka , KS ,29 year old wife working and studying part time , no kids yet, no significant investments yet.Only recently made up my mind to settle in the US of A
Gross Salary (joint)- 93k
No other income sources at present.
Monthly expenses - 2500 to 3000 approx.Only life expenses including medical , no car loans/expensive vacations/manicures. Only indulgences are eat outs couple of times a week and my gym membership costing 480 dollars every month.Biggest expense is rent , montly 839 dollars.
Goals : Retirement at an age of 60, but no idea of the amount that I would be requiring ( just approximating it as 6000 dollars per month , taking into account inflation).Kids are also wanted in the future :happy
Investment Policy/ Risk profile: Willing to take above average market risk for aggressive portfolio growth. Comfortable with market volatility and long drawn out sideways/bear markets
Insurance: Have health and short term disability insurance for self and spouse , no life insurance policies taken just yet
Credit Card Debt :Zero
Home:Currently rent , and no plans for buying a home in the next 5-7 years
Spouse:Currently working a part-time job , as well as being an MBA student
IRS Filing Status : Joint
Asset Allocation for Retirement: 90% stock/10% bonds for now , with periodical rebalancing. A 70/30 split between US/International Stocks
Liabilities - None
Investment options:
a) 401(k) plan : My employer offers a 401(k) plan with 5% matching.I contribute just enough to get the 5% matching. The investment options are shown below
1)JP Morgan Mid Cap Value (Select Sh)
2)Artisan International Fund (Investor)
3)Dodge & Cox International Stock Fd
4)Vanguard Extended Market Index Inst
5)BlackRock Inflation Protected Bond Inst
6)Harbor Capital Appreciation (Instl)
7)AB Global Bond I
8)AllianzGI NFJ Small Cap Value Fund Inst.
9)Vanguard Equity Income Adm
10)AMG TimesSquare Small Cap Growth Instl
11)Wells Fargo Stable Return Fund N
12)Schwab Managed Retirement Tr Fd Inc IV
13)Schwab Managed Retirement Tr Fd 2010 IV
14)Schwab Managed Retirement Tr Fd 2015 IV
15)Schwab Managed Retirement Tr Fd 2020 IV
16)Schwab Managed Retirement Tr Fd 2025 IV
17)Schwab Managed Retirement Tr Fd 2030 IV
18)Schwab Managed Retirement Tr Fd 2035 IV
19)Schwab Managed Retirement Tr Fd 2040 IV
20)Schwab Managed Retirement Tr Fd 2045 IV
21)Schwab Managed Retirement Tr Fd 2050 IV
22)Schwab Managed Retirement Tr Fd 2055 IV
23)Vanguard Institutional Index I
24)Vanguard Total Bond Market Index Admiral
25)Vanguard Total Intl Stock Index Admiral
Other Investing Accounts
b) Traditional IRA ( in my name) : Opened at Vanguard when I rolled over my old 401(k)
c)Roth IRA (in my name): Also opened at Vanguard
d)Roth IRA ( in my spouse's name): Opened at E-Trade
What I invest in and why
1)Traditional IRA : In the Vanguard Target Retirement 2045 fund , an age appropriate mix of US and International Stocks and Bonds.I prefer a target date fund approach
2)Roth IRA (mine) : Vanguard REIT Index fund , where I can reinvest dividends in a tax-advantaged way and take advantage of compounding in a major asset class
3)Roth IRA(my wife): T Rowe Price Retirement 2050 fund , an age appropriate mix of US and International Stocks and Bonds for her retirement
1) 401(k) : Exclusively in the Dodge and Cox International Stock Fund, inspite of the presence of much cheaper share classes of Vanguard Index Funds. I did so because : a) I did not want overlap with my existing Vanguard Funds b) Dodge & Cox International Fund is one of the few active funds that has impressed me with the fund house philosophy and the fund's risk adjusted performance record. The fact that it is currently closed to new investors also biased me favorably.
All the investment accounts above ,contain amounts in the low thousands of dollars.I also plan to invest in a smallcap value index fund or actively managed microcap fund.Im comfortable with accepting the risk for above average returns over a couple of decades.
I apologise for the length of this post , but wanted to give people a clear overall picture.Let me know if you need any more details.
Eagerly awaiting advice/suggestions/criticism :D