Tuesday, February 28, 2017

Assets and Liabilities buckets

Here are some details behind what goes into our Assets and Liabilities columns.

Assets

Retirement bucket
  • 401(k) accounts
- We both have 401(k) accounts at our respective jobs, with all of our old accounts from previous jobs rolled over into our current accounts [this is, by far, the heaviest bucket]
- W has a Roth 401(k) at work [very small component, not contributing anymore]
  • Roth IRA
   *A note about why fund a Roth IRA - The Madfientist has a detailed article on why traditional IRA is better than Roth IRA. We agree. The reason we still fund a Roth IRA is because we are currently under the income limits where we can contribute to Roth IRA. In a few years our MAGI (Modified Gross Adjust Income) will cross this level. We will stop funding the Roth IRAs at that point.

- We both have individual Roth IRA accounts with Vanguard
- M has a Roth IRA account with CapitalOneInvesting, an old account that doesn't receive any new funds (but reluctant to roll over to Vanguard, just "playing around" money).
  • Pension
- M has a fully vested pension from current employer [small component in the overall scheme of things]


529 college bucket
We have a 529 college account with Utah Educational Savings Plan, for our child. We also have different accounts for our nieces and nephews but those are not included in our assets column.


Bank Accounts bucket
Pretty self explanatory. Only checking and savings accounts. We do not currently have any CDs.


Investments bucket
  • Individual taxable brokerage accounts with 
- Vanguard
Computershare
- Loyal3.
This is mainly "playing around" money. Computershare offers DRIP in major companies, a lot of them with no fee on buying. Loyal3 is a commission free online brokerage platform, which also allows ordinary investors to take part in IPOs.
Update 5/31/2017: Loyal3 closed down and moved all accounts to FolioFirst. FolioFirst also offers commission free trades, on a larger number of stocks. They charge $5 monthly maintenance fee which is waived till August. We'll see what we do.
  • W has a HSA account from work
- We don't technically use this as an investment account, as in we fund this monthly and take money out as and when we need it for medical expenses.


Bonds
A bunch of Treasury bonds given as present from grandparents. We let them go till final maturity.


House
Our primary residence. The valuation of $300k is from 2015 when we refinanced. We know there has been appreciation but we don't factor that in.

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Liabilities

Mortgage
30-year fixed at 3.875% (~$238k on Feb 28, 2017)

Car loan
5-year fixed at 0.9% (~$21k on Feb 28, 2017)

Student loans
Government loan at 6.21% (~12k on Feb 28, 2017)
Private loan at 4.99% (~15k on Feb 28, 2017)

Credit Cards
We do NOT have any credit card debts. We use our cards for any and all purchase, for any amount, where ever they are accepted without any additional fee, and we pay off the full balance every month.


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