#676: Ally:How can I optimize my asset allocation and Roth contributions now that Iโm over $1 million in assets? Iโm 45, single, never married, with about $1.2 million in assets. Roughly $100,000 is in stocks, which might scare some people. Hereโs my breakdown: Vanguard brokerage account: VTSAX $132,000, ISCV $5,000, VOO $5,000 Vanguard Rollover IRA: VTSAX $65,000, IVV $25,000, VOO $62,000 Vanguard Roth IRA: VTSAX $228,000, ISCV $6,000 Pre-tax 401(k): Active stock fund $218,000 (0.01% expense ratio), Equity dividend fund $55,000 (0.01% expense ratio) Russell 1000: $270,000 (0% expense ratio) HSA: $9,000 in the Russell 1000 and Russell 2000 ESPP: $90,000 Savings account: $12,000 I view my brokerage accounts as savings, where I can sell assets if I need cash, as well as sell my company shares. My questions: How far am I from the efficient frontier? How efficient is my asset allocation? Iโve mostly been a โVTSAX and chillโ type. If I rebalance, whatโs the best way to do it without incurring taxes? Next year, Iโll make more than $150,000, even after contributing $24,500 to my pre-tax 401(k) in 2026. Can I still do a backdoor Roth, given that I already have an IRA balance? I was told it could be complicated. Am I out of luck investing in a Roth next year? Also, should I roll over my 401(k) into my existing Rollover IRA to gain more investment options, even though the 401(k) fees are very low? Iโve reached over $1 million in assets, but Iโm not confident my first million was invested efficiently. I want to correct it before reaching my next million. Emma: Can We Split a Dependentโs Tax Status Midyear to Maximize Health Insurance Subsidies? Weโre a family of four with two adults and two children, ages 15 and 21. Our 21-year-old is a full-time university student and is expected to graduate in May 2026. The hope is that sheโll secure a full-time job after graduation. Our health care broker told us that we could claim her as a dependent for half of the year and then have her claim herself for the second half. According to the broker, this would allow her to stay on our health insurance and help us qualify for a larger premium subsidy. Is it actually possible to split a dependentโs tax status this way within a single year, or is this a misunderstanding? Anonymous: Is It Wise to Hold Some Investments Outside the U.S. for Geopolitical Diversification? Iโve always believed that โthis time isnโt different,โ but lately Iโm feeling uneasy. Iโm increasingly concerned about what seems like a slow erosion of institutional trust in the U.S., especially regarding agencies and structures that support our financial system. From leadership changes at key government institutions to growing political influence over economic policy, Iโm starting to wonder if itโs prudent to hold a small portion of assets physically and legally outside the U.S. Iโm not talking about exotic offshore schemes. I mean legitimate ways to invest in broad index funds or ETFs through a brokerage account based abroadโas a form of geopolitical diversification and personal contingency planning. Iโd love to hear your perspective. Share this episode with a friend, colleagues, your brokerage rep: https://affordanything.com/episode676 Learn more about your ad choices. Visit podcastchoices.com/adchoices
