My present situation:
- ~ $18,800 in 401k (see funds below)
- ~ $20,800 in IRA
- ~ $5,000 in Roth IRA
- ~ $3,000 in taxable account
- ~ $20,000 in savings account --> $46,000 at time of quitting
With that in mind, I have $47,600 to construct a permanent portfolio with. $3000 of this is in a taxable account and the rest is in tax advantaged accounts, of which $18.8k (almost 40%) is in my 401k, which is where the issues come in.
These are the available funds in my 401k.
- A bunch of target date funds
- Vanguard S&P 500 ETF (VOO)
- Vanguard Russell 1000 Growth ETF (VONG)
- Vanguard Total International Bond ETF (BNDX)
- Vanguard Inflation protected Sec Adm (VAIPX)
- Vanguard Total International Stock ETF (VXUS)
- Vanguard FTSE Emerging Markets ETF (VWO)
- Vanguard Total Bond Market ETF (BND)
- Vanguard Prime Money Market Inv (VMMXX)
- Vanguard Mid-Cap Value ETF (VOE)
Based on the book, I'm to fill assets into tax advantaged accounts in the following order:
- 1. Bonds
2. Cash
3. Stocks
4. Gold
Here's what I was thinking:
First, I can fulfill the bond allocation in my IRA. No problem.
Next, I was thinking VMMXX might be a decent temporary substitute to fill in for cash. If this is the case, I can fill that in my 401k.
Next, I don't see any Gold funds in my 401k so I'd have to use stocks in there. I'd fill the remaining $6,900 of my 401k with VOO.
Of the remaining $5,000 for stocks I could put $3,000 into my taxable account.
Then, the $2,000 remaining could go into one of my IRAs.
This leaves Gold, which I can do in my IRAs.
So...
- 11,900 LTT Bonds in IRA
- 11,900 Cash in VMMXX in 401k
- 6,900 stocks in VOO in 401k
- 3,000 stocks in taxable
- 2,000 stocks in IRA
- 11,900 gold in IRA
This seems to be the best I can do, unless I've missed something. Does anyone have a better suggestion or think this is ok? And, not to revive the other thread, but could some of that cash be put to better use while I'm not using it? It feels odd to tie it up for a year when I have a constant withdrawal rate that I know ($3k/mo).