Even though it seems impossible, my goal is to keep my family networth with 20% of total AFTER TAX networth in home equity. This means I need to carefully stick to contributions and growth in my other funds (after tax values) to hit my savings goals (my goal is $5M of after tax networth by 50.) This assumes an increase of 5% in home value per year for next 6 years. This does not make any assumptions for stock gains, it just notes how much I would need to have in each bucket to keep the target asset allocation.
The first chart before is of my after tax goals for the next 6 years. Below this chart are my current actuals (and gaps that need to be fixed by end of 2020.)
The below notes that in order to be on track for 2021, I need the following adjustments/additions:
- $35k more saved (allocated based on goals)
- US bond fund and developed market fund need more investment
*note, this does not include emergency fund cash or expenses
| 1 | 2 | 3 | 4 | 5 | 6 | ||
| 37 | 38 | 39 | 40 | 41 | 42 | ||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | ||
|
Target Post Tax
|
|||||||
| Home Equity | 20% | $254,160 | $303,036 | $355,356 | $411,292 | $471,024 | $534,743 |
| Company Stock | 10% | $127,080 | $151,518 | $177,678 | $205,646 | $235,512 | $267,372 |
| Large Cap US | 29% | $368,532 | $439,402 | $515,266 | $596,373 | $682,985 | $775,378 |
| Small Cap US | 4% | $50,832 | $60,607 | $71,071 | $82,258 | $94,205 | $106,949 |
| Developed | 24% | $304,992 | $363,643 | $426,427 | $493,550 | $565,229 | $641,692 |
| Emerging | 4% | $50,832 | $60,607 | $71,071 | $82,258 | $94,205 | $106,949 |
| Bond US | 6% | $76,248 | $90,911 | $106,607 | $123,387 | $141,307 | $160,423 |
| Bond Int | 3% | $38,124 | $45,455 | $53,303 | $61,694 | $70,654 | $80,212 |
| $1,270,800 | $1,515,180 | $1,776,779 | $2,056,458 | $2,355,121 | $2,673,717 | ||
|
Actual Post Tax
|
TARGET | GAP | TARGET V | DIFF | |||
| Home Equity | 20.00% | $254,160 | 20% | 0% | $254,160 | $0 | |
| Company Stock | 12.35% | $156,887 | 10% | -2% | $127,080 | $29,807 | |
| Large Cap US | 29.02% | $368,845 | 29% | 0% | $368,532 | $313 | |
| Small Cap US | 4.30% | $54,601 | 4% | 0% | $50,832 | $3,769 | |
| Developed | 21.48% | $272,924 | 24% | 3% | $304,992 | -$32,068 | |
| Emerging | 4.96% | $63,003 | 4% | -1% | $50,832 | $12,171 | |
| Bond US | 0.87% | $11,074 | 6% | 5% | $76,248 | -$65,174 | |
| Bond Int | 4.22% | $53,665 | 3% | -1% | $38,124 | $15,541 | |
| Missing | 2.80% | $35,641 | 0 | -2.80% | $35,641 | ||
| $1,270,800 |
