Mind taking a peek at our retirement plan?

[Slyder22]

first off, thank you for taking time to look over our numbers. I would consider myself a novice at FIRE. This site and FIRE are my new addiction.

35 years old plan on working 15-20 more years. (Started late: from a dirt poor family, changed old habits late in the game.)

Debt free minus the mortgage: 13 years left on a 15 year mortgage @ 3%

457 maxed
55% in fstvx Fidos equivalent to vanguard vtsax (fidelity total market index)
20% in ftipx fidos equivalent to vanguard vtiax  ( fidelity total international index)
25% in fsitx fidos equivalent to vanguard vbtlx (fidelity total bond index fund)

401 maxed
75% fstvx ( fidelity total market index)
25% fsitx ( fidelity total bond fund)

My Roth maxed
100% vtsax ( vanguard total stock mkt index)

Spousal Roth
25% vgslx  ( vanguard REIT index fund)
25% vbtlx (vanguard total bond index fund)
50% vtsax (vanguard total stock mkt index)

Have 75k in savings beyond our 12 month emergency fund.
Pension that kicks in at 53 that will pay 63k a year till death.
Yearly expenses 45-50k

Questions: are we diversified enough?
Should we start a taxable account or start paying down mortgage? (I know, highly debatable)
Considering rental property fund.
Would love any suggestions.
Sorry if I missed any info that is needed.

[Roland of Gilead]

$63k a year pension in today's dollars?  When your expenses are projected to be $45k? 

If it holds up, anything else you do will just be gravy.

[Slyder22]

Depends where my salary is at the end of my career but I am projected to get a benefit of 55-67k.
I try and pretend like the pension is not there. As pensions are getting cut left and right.

[SuperSecretName]

Calculate your allocation across all accounts and post that. Without seeing true %s there is no way to know the overall picture. Don't get hung up on the tax issue.

Seems OK though.

Yes taxable. Don't pay off the mortgage.

[aceyou]

What's the objective of entering the rental game?

I ask because you say you want to FIRE in 15 to 20 years, and it seems like if you just keep pumping it all into 457s/Roths/401k's, along with your pension, you'll likely be double or triple FI in 20 years.  And all that stuff is 100% passive. 

What's your goal, with rentals, to become 4x's FI by 55, or to significantly push up your FIRE date, or something else? 

We are basically twins, FYI:)  I'm 33 years old, married with two young kids.  Pension kicks in at 48, but putting money into 457s/roths/403's as much as possible.  But I have no intention of adding landlord to the resume.  13 years left on 15 year mortgage. 

[Slyder22]

Wow, we are in very similiar situations. The idea with real estate was to move the FIRE date sooner. Passive income to bridge the gap till retirement. Also just so I don't have every penny relying on the stock market. Kind of a mental thing.

[Slyder22]

Overall AA is approx:
Vtsax and fstvx 65%
Vbtlx and fsitx 20%
Vtiax and ftipx 12%
Vgslx 3%

[Slyder22]

thank you very much for that information. I was not aware of that. Hmmmm..... well that takes a load off my mind. Lol

[SuperSecretName]

Overall AA is approx:
Vtsax and fstvx 65%
Vbtlx and fsitx 20%
Vtiax and ftipx 12%
Vgslx 3%

is your international that low for a reason?  even vanguard is up to at least 30 in target funds.

your reit is also really low.  either get rid of it to simplify or take it up to 10%. 

[Slyder22]

It's low as I subscribe to the theory that if you have a lot of us index funds like vtsax, you also have their international dealings. Reits are just for fun in that one account.

[MDM]

Questions: are we diversified enough? Yes.
Should we start a taxable account or start paying down mortgage? (I know, highly debatable) With a 3% mortgage, pay the minimum and invest the rest.
Considering rental property fund. Up to you.  Some decide they like doing it, some decide they hate doing it.
Would love any suggestions. What do the simple "Time to FIRE?" chart in the case study spreadsheet, and any of Best and/or Recommended Retirement Calculators say about your situation?

[COEE]

What does your IPS tell you to do?

https://www.bogleheads.org/wiki/Investment_policy_statement

Do that.

[DirtDiva]

Looks rational and simple to me.  You are in a great position, congratulations!

After a lot of debate, we are saving in a taxable account instead of paying down our mortgage.  We could potentially use that money to purchase a rental if the right deal comes along.

[aceyou]

Wow, we are in very similiar situations. The idea with real estate was to move the FIRE date sooner. Passive income to bridge the gap till retirement. Also just so I don't have every penny relying on the stock market. Kind of a mental thing.

If it moves your FIRE date up significantly, then I gotta say go for it.  Does your gut tell you that you can actually pull the cord before you hit your pension years?  I will likely be FI around 42 according to my excel files and 5% returns between now and then, but I doubt I RE...I'm almost certain the golden handcuffs will suck me in till I'm 48.  If you can't emotionally pull the cord on the pension 4 years early, there won't be a benefit. 

[retired?]

Sounds A-ok.  My only caution is whether the pension is from employment in a state like CA or IL which are not too financially sound.

At the federal level, with social security, they can hide reducing the benefit by inflating away the value (printing money).  At the state level, when push comes to shove, they may have to reduce benefits if

Just a note....same thing applies with pensions offered by companies and life insurance.  The quality of the benefit is the same as the financial soundness of the org offering it.

At local level, even more uncertainty.

[PizzaSteve]

Sounds A-ok.  My only caution is whether the pension is from employment in a state like CA or IL which are not too financially sound.

At the federal level, with social security, they can hide reducing the benefit by inflating away the value (printing money).  At the state level, when push comes to shove, they may have to reduce benefits if

Just a note....same thing applies with pensions offered by companies and life insurance.  The quality of the benefit is the same as the financial soundness of the org offering it.

At local level, even more uncertainty.

Not sure why CA pensions are being called out.  Their funding levels are not all that horrible, and the state's revenue potential, given the size of the state economy, is likely well able to address the issues.  Reminds me of when i was able to snag muni bonds at .75 on the dollar in 2009.  The state automatic renenue increases from property values were not factored in.  Some of these BBB- bonds were soon over funded, called and refinanced at AAA rates.

[aceyou]

Sounds A-ok.  My only caution is whether the pension is from employment in a state like CA or IL which are not too financially sound.

At the federal level, with social security, they can hide reducing the benefit by inflating away the value (printing money).  At the state level, when push comes to shove, they may have to reduce benefits if

Just a note....same thing applies with pensions offered by companies and life insurance.  The quality of the benefit is the same as the financial soundness of the org offering it.

At local level, even more uncertainty.

Not sure why CA pensions are being called out.  Their funding levels are not all that horrible, and the state's revenue potential, given the size of the state economy, is likely well able to address the issues.  Reminds me of when i was able to snag muni bonds at .75 on the dollar in 2009.  The state automatic renenue increases from property values were not factored in.  Some of these BBB- bonds were soon over funded, called and refinanced at AAA rates.

People vary greatly on their trust in pensions on this site, which is normal and understandable.  I don't know how much trust I have in my pension (michigan), but there's nothing worrying will do about it.  I'm not going to quit teaching just because I don't know the future of it.  All we can do is save enough to be fine either way, then stay optimistic because it's a happier way to live, right?