Portfolio Review: Age 42, $38M+ NW, 80% Concentrated Position, Seeking Bond/Bucket Strategy Advice
Emergency funds: $1.5M in VUSXX (covers \~3 years of expenses).
Debt: 2.3m mortgage at 2.125%
Tax Filing Status: Married Filing Jointly
Tax Rate: 37% Federal, 9.3% State
Age: 42 (Target retirement: 51).
Desired Asset Allocation: Seeking advice on fixed income/bucket strategy.
Current Assets: \~$38.5M Total.
Current Holdings:
\* Concentrated Position: $30M Berkshire Hathaway (BRK.A/B) - Inherited. Low cost basis (will get step up on some once parents pass)
\* Taxable Equities: $7M (Balanced between VTI/VXUS).
\* Cash/Cash Equivalents: $1.5M (Vanguard Treasury Money Market - VUSXX).
Questions:
\* I am planning for a 9-year horizon until retirement. My goal is to build a "bond bucket" of \~$3.5M to cover years 4–10 of retirement expenses, protecting against sequence of return risk. I can shift these into tax sheltered accounts.
\* Given the goal of a "true buffer" against market crashes, is VGIT (Intermediate-Term Treasury) superior to BND (Total Bond Market) for this specific role?
\* With such a high concentration in BRK, should my fixed-income portion be even more conservative?