From a tax planning strategy, I think I am going to do the following.
I’m going to slightly nudge my traditional 401k/Roth 401k split from 50%/50% to roughly 40/60%. I will be realizing a lot of capital gains in TY2019 but in 2020 I think I will be holding on to things, so not much cap gains in 2020, and given my 2018 taxes were significantly lower than the prior year, I think the same will be true in 2020. So for 2020, I’m going to try pay more income taxes up front and put slightly more in a Roth 401k and defer less to a traditional 401k.
I will increase my maximum 401k contribution mainly into the Roth 401k with the new 2020 limits.
My passive index fund accounts were rebalanced to roughly 30% domestic stock 20% international 25% bonds and 25% cash/money market and that won’t change for now. will continue drip investing about $4.5k/month split roughly 1/2 into a 529k college plan and half into my own post tax index fund account. Asset allocation has been changed to be the same in 401k
I don’t need spectacular returns in 2020. prefer more consistency over the longer term at this point.
