Hello all, about 6 months ago I got some great advice here http://www.bogleheads.org/forum/viewtopic.php?f=1&t=98314
on my asset allocation, and I implemented the strategy you guys helped me lay out. Now as I look at where things stand, I think another adjustment may be in order as my bond allocation is a little low and VG Total International is a little high. New money contributions will only continue to push things further out of whack, and even more-so now that the Roth IRA limit has increased to $5500...which we're planning on maxing...and currently my Roth is made up of 100% international. Here are the numbers:
CURRENT ALLOCATIONSHis 401k
SP500 Index (ER 0.17): $11257.32 (26.6%)
SV Kennedy Fund (ER 0.90): $8666.75 (20.5%)
Bond Index Fund (ER 0.22): $5427.44 (12.8%)Her 401k
at Mass Mutual:
Select Index Equity Fund (SP500) (ER 0.43): $4424.30 (10.4%)His Roth IRA
Vanguard Total International (ER 0.32): $12578.60 (29.7%)
Overall: 57.5/29.7/12.8 US/Int/Bonds
Stocks: 66/34 US/Int
US Stocks: 64/36 Large/SCV
NEW MONEY CONTRIBUTIONSHis 401k:
SP500 Index (ER 0.17): $3074.24 (21.3%)
SV Kennedy Fund (ER 0.90): $2235.81 (15.5%)
Bond Index Fund (ER 0.22): $1676.86 (11.6%)Her 401k:
Select Index Equity Fund (SP500) (ER 0.43): $1980.00 (13.7%)His Roth IRA:
Vanguard Total International (ER 0.32): $5500 (38.0%)
Overall: 58.4/38.0/11.6 US/Int/Bonds
Stocks: 57/43 US/Int
US Stocks: 69/31 Large/SCV
So our new money contributions will push high on international and low on bonds, which will only push things further away from where we want them (85/15 stocks/bonds with stocks 70/30 US/Int). So easy solution...add more bonds and pare back on international. I'm looking for recommendations on exactly how to do this...what funds to add and where to add them. The bond fund in His 401k is pretty decent so maybe there will be a way to add SCV into my Roth and add more of His 401k bond fund? I don't think that things are so out of whack that I need to fully rebalance...but perhaps just an adjustment to new money contributions is needed?
If there are any other considerations or anything I need to look at please let me know.
Thanks in advance for the advice!!