Is my portfolio too risky or am I good?

Hey everyone, I’m a 31-year-old firefighter/paramedic. Right now, I’m maxing out my Roth 457b with $23k/year and my Roth IRA with $7k/year. I have about $100k in my Roth 457b (BSPIX) and $70k in my Roth IRA (VOO). On top of that, I’ve got $75k in a HYSA earning 4.6% APR and around $300k in equity in my house.

I’m not planning to retire for 25 years, but I’m wondering if my portfolio is too risky or if it’s okay since I have time on my side. Appreciate any advice!

You’ve got plenty of time to ride out any ups and downs. Keep at it, you’re doing great.

Parker said:
You’ve got plenty of time to ride out any ups and downs. Keep at it, you’re doing great.

Agreed! Stick to your plan and keep pushing forward.

Why do you think it’s risky?

Remington said:
Why do you think it’s risky?

I guess it’s because I don’t have any money in bonds or other ‘safer’ investments, but maybe my HYSA counts? Posting here made me think more about it.

@Lyle
Your HYSA is like a bond since it’s essentially cash. You’re actually in line with a typical retirement portfolio for your age. Vanguard’s 2050 fund, for example, has about 10% in bonds.

Sterling said:
@Lyle
Your HYSA is like a bond since it’s essentially cash. You’re actually in line with a typical retirement portfolio for your age. Vanguard’s 2050 fund, for example, has about 10% in bonds.

That’s true, but I wouldn’t count home equity as part of your investments. If you remove that, you might be even closer to the ‘average’ allocation.

Sterling said:
@Lyle
Your HYSA is like a bond since it’s essentially cash. You’re actually in line with a typical retirement portfolio for your age. Vanguard’s 2050 fund, for example, has about 10% in bonds.

Just a note—OP doesn’t have a target date fund, they have two S&P 500-based funds (BSPIX and VOO).

@Lyle
VOO is an index fund, so you’re already diversified across the S&P 500. Bonds aren’t critical this far from retirement unless you’re very risk-averse.

Why not put some of that $75k in the HYSA into the market? You don’t need that much sitting in cash.

Hero said:
Why not put some of that $75k in the HYSA into the market? You don’t need that much sitting in cash.

Do you have a specific reason for keeping that much cash? If not, putting more into stocks or ETFs could help with long-term growth.

If you can’t retire with that setup, society probably collapsed. Relax.

Ash said:
If you can’t retire with that setup, society probably collapsed. Relax.

I could technically retire at 49, but I want to make smart investments now before starting a family.

Ash said:
If you can’t retire with that setup, society probably collapsed. Relax.

Most people don’t even have $100k saved for retirement, so you’re doing much better than average.

Is the HYSA your emergency fund? If so, six months of expenses should be enough. You could invest the rest in a brokerage account.

Skyler said:
Is the HYSA your emergency fund? If so, six months of expenses should be enough. You could invest the rest in a brokerage account.

Yes, the HYSA is my emergency fund. I’ll look into taxable brokerage accounts.

You’re holding too much cash for your age. Keep 3-6 months of expenses in cash and put the rest to work. Also, you’re heavily concentrated in large-cap U.S. stocks. Consider adding small-cap and international exposure to diversify.

Do you have a taxable brokerage account? You could move some of that HYSA money into ETFs like VOO or others.

Vic said:
Do you have a taxable brokerage account? You could move some of that HYSA money into ETFs like VOO or others.

Can you explain how taxable accounts work? Would this be like buying VOO on Robinhood?

@Lyle
Exactly, but I’d recommend using Vanguard or Fidelity. They’re more established and offer great resources.