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!
@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.
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.