Looking for insight from people here that are more into the details that I am. I have always been a passive investor... consistently putting money in each month for the last 20 years and have done very well because I didnt pay attention and just didnt look at my accounts. Right now I am thinking I may need to change my allocations so I can stop working in <5 years.
Current situation: Myself and partner (40) and two kids (elementary age). $800k in taxable assets, $2M in retirement. $100k in 529s/UTMAs for the kids. $350k remaining on mortgage of $1.8M home. Live in HCOL location. Currently everything is in Vanguard ETFs and although there is a lot of overlap, it is basically 70/30 US/Intl. (I did Betterment for a while and then pulled it into Vanguard and saw that it just bought ETFs basically).
Total household income is around $300k per year, $230k from my full time job (just took a new job that might be very lucrative and 2x the income at year end but just started so being conservative) and $70k from my partners part time job. Health care is with their job for the kids and they like what they do so would likely continue to work for a while where if I wasnt working I could hold the health care.
Our overall expenses are around $90-$100k per year for everything except investing/saving.
Wrinkle: We both come from, I'd say, middle class boomer families that invested well and didnt over spend. I am an only child, parents are recently divorced, each with a NW of around $4M. Partner is one of three, her parents probably have a NW of $5M or more (they are very private on their NW, but classic cheap boomers that saved and invested their entire life and prob have gold buried in the back yard or something). All ages are 75-79. I want them to live forever, but thinking realistically there will be a $2-$4M windfall in the next ten years with total of up to $10M in 20 years when we are 60. It's super morbid and I have never relied on a potential inheritance but just trying to think realistically.
Ideally I would like to stop working at 45 at the latest. I know I don't have enough to retire on my own, especially with 2/3 of my investments tied up for another 20 years.
Does it make sense in this situation to keep everything in what is essentially VT or does it make sense to pull some out at the expense of capital gains to bonds? Should we keep maxing out 401ks? Looking for some other opinions. I dont really talk to friends about this because we have just been better earners and savers and gotten lucky with jobs and housing that has allowed us to get to this point, so the next best thing is talking to strangers on the internet lol.
Appreciate any insight from this group.