Please review my portfolio/asset allocation

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Please review my portfolio/asset allocation

Postby HonoluluGator » Sun Jan 27, 2013 9:10 am

Here we go, I hope I didn't miss anything.

Emergency funds- 3 to 6 months

Debt- 500k mortgage 4%
100k HELOC 6%
50k misc school loans, car 4-5%
500k commercial property 5%- I am now a partner in my business, most principal partners own the real estate, and our rent pays the mortgage + 10% extra principal a month
The HELOC was mostly paid off, but used to pay the 20% down on the commercial property

Tax filing status- Married filing jointly
Tax rate 35% now, 39.6 possible in 2013, 2014 as wife may be increasing income
State of residence- Florida (no state income tax)
Ages- His early 40's, hers early 30's
Desired Asset Allocation 60/40 to 70/30 stock/bond, 15-20% international stock
Size of portfolio- mid 6 figure

Current assets;

Taxable
Vanguard Value ETF (VTV, ER 0.1%) 1%
Dominion (D) 5%

His 401k
Black Rock S&P 500 (MASRX, ER 0.3%) 30%
Columbia Small Cap Index (NMSAX, ER 0.47%) 4%
Franklin Strategic Income (FRSTX, ER 0.9%) 4%
Delaware Diversified Income (DPDFX, ER 0.92%) 4%

His tIRA
Vanguard Total International ETF (VXUS, ER 0.18%) 17%
Vanguard Intermediate Bond ETF (BIV, ER 0.11%) 10%

His Roth
Vanguard REIT ETF (VNQ, ER 0.1%) 5%
Vanguard Total Bond EFT (BND, 0.1%) 2%
Vanguard Intermediate Bond ETF (BIV, ER 0.11%) 4%
AAPL 1%

Her Roth
AAPL 3%
Vanguard REIT ETF (VNQ, ER 0.1%) 3%
Vanguard Intermediate Bond ETF (BIV, ER 0.11%) 1%

HSA
Amana Growth FUnd (AMAGX, ER 1.13%) 6%

Current Allocations;
50% US stock
17% International Stock
25% Bonds
8% REIT

Yearly Contributions;
$50k his 401 k, current contributions 70/10/10/10 in MASRX/NMSAX/FRSTX/DPDFX as listed above
his 401k is maxed, and the "company" match and funds is actually part of his overhead as a partner
her 401k to be determined
5.5k his tIRA
5.5k her backdoor Roth
6450 HSA (we use his primarily as a retirement account with good health so far)
Utah 529 for our toddler, $7k now, $5k added per year now
taxable- not adding much here, aggressively paying down HELOC first, then mortgage

401k funds available
Ready Assets (MRAXX, ER .69%)
American Funds World Growth (RWICX, 1.1)
BR Global Allocation (MDLOX, 1.16)
BR Health Sciences (SHSAX, 1.32)
BR high Yield Bond (BHYAX, .93)
Franklin Strat Income (FRSTX, .91)
Goldman Sachs Real Estate (GREAX 1.44)
GS Short Dur Gov't (GSSDX, 0.84)
MFS Conservative Allocation (MACFX, 1.03)
Oppenheimer Developing Markets (ODMAX, 1.36)
Oppen. Int'l Bond (OIBAX, .98)
Victory Established Value (VETAX, 1.08)
Prudential Jennison Mid Cap (PEEAX, 1.06)
Delaware Diversified Income (DPDFX, .92)
Columbia Small Cap (NMSAX, 0.47)
RS Global Resources (RSNRX, 1.45)
Invesco American Value (MSAVX, 1.32)
Black Rock S&P 500 (MASRX, 0.31)
American Funds New Prospective (RNPCX, 1.12)


Comments-
My biggest challenge is that my largest contribution every year is 401k, but the funds here have the highest ER's. I tried to make this as Bogleish as possible.
The HSA and the individual stocks are holdovers of pre-Bogle days
I tried to model things with a heavy dose of Swensen and Bernstein, and get rid of the slice and dice, although there is still a bit of slice and dice. The last "slimming" of the portfolio got rid of short term bonds, focusing more on intermediate, and got rid of small cap value and growth ETF's.
We have recently renewed our focus on spending less, and are aggressively paying down debt. We have paid off about 50% of our house in about 5 years.
I think I should contribute more to bonds in my 401k to "catch-up" my underweight total bond allocation.

Questions-
1. Should I simplify or change my 401k contributions?
2. I have not been in a high deductible insurance plan the last few years (no HSA contributions), but will be again this year. Should I start a new HSA with lower fees, and if so, can I roll the old one into it?

Any other recommendations would be appreciated! I have tried to simplify, but think I need a nudge to simplify further. Thank you for your time.
Last edited by HonoluluGator on Mon Jan 28, 2013 7:36 am, edited 1 time in total.
HonoluluGator
 
Posts: 91
Joined: Fri Apr 20, 2012 2:04 pm

Re: Please review my portfolio/asset allocation

Postby YDNAL » Sun Jan 27, 2013 10:11 am

HonoluluGator wrote:Tax rate 35% now, 39.6 possible in 2013, 2014 as wife may be increasing income
State of residence- Florida (no state income tax)
Ages- His early 40's, hers early 30's
Desired Asset Allocation 60/40 to 70/30 stock/bond, 15-20% international stock
Size of portfolio- mid 6 figure

Current assets;

Taxable
Vanguard Value ETF (VTV, ER 0.1%) 1% <-- you don't want Large Value Funds in taxable, especially at the top tax bracket
Dominion (D) 5%


Comments in blue.
HonoluluGator wrote:His 401k
Black Rock S&P 500 (MASRX, ER 0.3%) 30%
Columbia Small Cap Index (NMSAX, ER 0.9%) 12%
Franklin Strategic Income (FRSTX, ER 0.9%) 4%
Delaware Diversified Income (DPDFX, ER 0.92%) 4%


His tIRA
Vanguard Total International ETF (VXUS, ER 0.18%) 17%
Vanguard Intermediate Bond ETF (BIV, ER 0.11%) 27%

His Roth
Vanguard REIT ETF (VNQ, ER 0.1%) 5%
Vanguard Total Bond EFT (BND, 0.1%) 2%
Vanguard Intermediate Bond ETF (BIV, ER 0.11%) 4%
AAPL 1%

Vanguard Total International ETF (VXUS, ER 0.18%) 12%

Her Roth
AAPL 3%
Vanguard REIT ETF (VNQ, ER 0.1%) 3%

Vanguard Intermediate Bond ETF (BIV, ER 0.11%) 7%

HSA
Amana Growth FUnd (AMAGX, ER 1.13%) 6%

Yearly Contributions;
$50k his 401 k, current contributions 70/10/10/10 in MASRX/NMSAX/FRSTX/DPDFX as listed above
his 401k is maxed, and the "company" match and funds is actually part of his overhead as a partner
her 401k to be determined
5.5k his tIRA <-- is this NON deductible? Do you also backdoor Roth IRA?
5.5k her backdoor Roth
6450 HSA (we use his primarily as a retirement account with good health so far)
Utah 529 for our toddler, $7k now, $5k added per year now
taxable- not adding much here, aggressively paying down HELOC first, then mortgage
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
YDNAL
 
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Re: Please review my portfolio/asset allocation

Postby JW Nearly Retired » Sun Jan 27, 2013 11:13 am

HonoluluGator,
I was going to suggest filling the low cost TIRA with bonds too ............... YDNAL's suggestions cover it well.

One other comment,
Columbia Small Cap Index (NMSAX, ER 0.9%) <---- I think this is 0.47% like you listed in your "401k funds available" section. That's more palatable.
JW
Retired Summer 2013
JW Nearly Retired
 
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Joined: Sun Dec 16, 2007 1:25 pm

Re: Please review my portfolio/asset allocation

Postby HonoluluGator » Mon Jan 28, 2013 7:38 am

YDNAL- Thank you for your suggestions. You don't think it is worthwhile to have holdings in a REIT ETF?
HonoluluGator
 
Posts: 91
Joined: Fri Apr 20, 2012 2:04 pm

Re: Please review my portfolio/asset allocation

Postby HonoluluGator » Mon Jan 28, 2013 7:39 am

JW Nearly Retired- thank you, correction made.
HonoluluGator
 
Posts: 91
Joined: Fri Apr 20, 2012 2:04 pm


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