Wife(40) and I(35) have saved $609k, despite two kids(5/3). We own our house (worth $420k, $320k mortgage 4.25%), own two cars (one outright/one $15k loan @1.9%), and an investment apartment (worth $140k, $107k mortage @4.5% and rent>monthly costs). All that seems fine to me, and perhaps even Moustachian.
But I have less confidence in the balance of our retirement/investment accounts. We max out our 401ks, contribute to 529s for both kids, and put away post-tax money too.
We have $236k in post-tax index fund investments with Vanguard:
-500 Index $51k
-Emerging Markets Stock Index $58k
-Pacific Stock Index $29k
-Total Bond Market Index $2k
-Total International Stock Index $43k
-Value Index $53k
We each have an active retirement account:
-Fidelity: $175k (Freedom 2035)
-TSP: $86k (Small Cap Index $45k, International Stock Index $41k)
We each have a 401k from a previous employer, which I'd like to roll into Vanguard IRAs for ease and lower fees.
-Lincoln Financial: $12k (Bond Fund $3k, American Growth $3k, Small Cap $3k, Social Awareness $3k)
-TRowePrice: $100k (Growth Stock $8k, Mid Cap $10k, Developing Markets $46k, Small Cap Stock $36k)
And we put away $7200/kid/year in 529s, half S&P index and half age-appropriate funds. We’ll shift the S&P index 529s into more conservative investments later on.
So our $609k in retirement and post-tax balances as follows:
International: $217k/36% (including $104k/17% emerging markets)
Domestic Large/Mid-Cap: $128k/21%
Domestic Small Cap: $84k/14%
Bonds: $5k/<1%
Target Date/Pre-Balanced: $175k/29%
The $112k in rollovers from our past 401ks is what makes me want to get the balance right – it seems like a good chance to correct any big-picture imbalance that’s there now. (I previously had used them rather than the post-tax accounts to buy small cap funds, to avoid lots of taxable events.) I recognize that our overall investments are pretty heavy on international, but that’s my instinct and frankly they’ve performed well over the decade that we’ve held them.
Am I right to want to roll these old 401(k)s over into Vanguard? What kinds of funds would folks recommend we roll them into? What other rebalancing would you recommend? More bonds even though I'm young(ish)?
And am I at the point where I should find a fixed-fee adviser/consultant for these questions?