Greetings MMM friends!
After a particularly rough day at my job as a chair moistener in an IT department for a major retailer, I humbly turn to the MMM community for sage advice in putting my assets to work for me.
I certainly don't have an FU stache yet, but I'd like to think that sometime in the next 10 years I could politely inform my job that I just want to be friends. However, I have a feeling that I am not properly putting my stache to work for me, and my mismanagement of said stache could be adding extra years to my corporate servitude.
Between my wife and I, we have a number of Roth IRAs, rollover IRAs, traditional IRAs, and 401ks from various jobs. I was hoping for some advice to see if consolidating and changing some investment allocations could help grow the stache, or at least put it to work more effectively.
Life Situation: Me, main wage earner (age 39), wife (age 38) has a couple side hustles but is primarily a stay at home Mom to our lovely daughter (age 4).
Retirement timeline: If I get laid off or outsourced at any time, I'm retiring from the IT racket. If I can stay employed, I'd like to retire within 10 years max.
Gross Salary/Wages: ~$130k a year
Current major debt: No debt except for mortgage, we owe ~$179k at 2.875%, we have 11 years left in a 15 year loan. Our household expenses are fairly low, we enjoy the simple life.
Assets: ~$650k invested, and this is the meat of my question, I am wondering if I should consolidate some of these accounts or change any investment options:
Investments:
This 401k is from my previous employer is at ~$385k. I left the job in 2013 and have just let the money sit in the 401k. It is managed by Fidelity.
Allocation:
AGGRESSIVE LS Tier 1 - Life Strategy 18.87% $72,695.61 $51,146.40 0.39%
LARGE COMPANY IDX Large-Cap Stocks 14.78% $56,930.80 $30,900.91 0.15%
INTL STOCK MKT IDX International Stocks 14.66% $56,477.11 $51,124.75 -1.92%
TOTAL STOCK MKT IDX Domestic Stocks 14.02% $54,006.62 $30,184.36 -0.53%
REIT IDX 12/28/2007 Real Estate 13.96% $53,761.79 $27,797.59 2.66%
SMALL-CAP VALUE IDX Small-Cap Stocks 9.99% $38,491.69 $23,213.74 -0.97%
SMALL-CAP GROWTH IDX Small-Cap Stocks 8.45% $32,536.05 $18,992.14 -8.18%
IBM STOCK Company Stock 5.27% $20,300.94 $18,570.65 8.46%
I see that I have a lot of overlap, before I think about rolling this into Vanguard, should I do something like re balance it all into the life strategy fund?
Current 401k:
~$54k invested in Fidelity Spartan 500 Index Inv
Vanguard Accounts:
Roth IRA, ~$77k invested in VTTHX Vanguard Target Retirement 2035 Fund
Rollover tIRA, ~$35k nvested in VTTHX Vanguard Target Retirement 2035 Fund (rolled over from pension from previous job)
Wife:
Roth IRA at Vanguard, ~$8.5k invested in:
50% in VEIEX Vanguard Emerging Markets Stock Index Fund Investor Shares
50% in VTRIX Vanguard International Value Fund
American Funds tIRA:
~$20k Invested in New Perspective Fund. (I'm considering liquidating this and rolling it over to a Vanguard tIRA invested in VTSAX)
Fidelity Rollover IRA from her job before our child was born:
~$56k invested in FIDELITY FREEDOM 2045.
We've got about $13k left over in ESPP plans, a 529 plan, and a brokerage account for speculation (gambling) stock. Not too worried about these monies.
So what do you think friends? Are there are any easy pickings here to optimizing our stache? Should I roll over my old 401k into something at Vanguard? Since my longest timeline to retirement is 10 years, and the earliest is tomorrow, should I be re-balancing into more income producing allocations?
Thanks!