Portfolio Review

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Portfolio Review

Postby DHDrew » Thu Jan 31, 2013 12:30 pm

Portfolio Review

I have followed the forum periodically for about 7 years but this is my first post. I have tried to follow the investing strategies posted on this forum and in the Bogleheads Guide to Investing book. I appreciate in advance any comments and advice. I am recently divorced and interested in getting myself on the right track for retirement.

Key Points:
1. Total Portfolio and overall Net Worth is in the low 6 figures.

2. I am interested in possibly adding a REIT fund for more diversification. My 401k offers the Invesco Real Estate fund (can't find ticker symbol) which has returned 12% over last 10 years. It has a 1.3% expense ratio.

3. I don't mind doing some rebalancing each year if the recommendation is to exit the target date fund and move into a few other Vanguard index funds. Is is worth the extra possible return if I am willing to do the rebalancing?

Emergency funds: 9 months of expenses.
Debt: no credit card or loan debt, renting a condo for $1150/mo, $1450 alimony/child support for 8 more years
Tax Filing Status: Single
Tax Rate: 25% Federal, 7% State
State of Residence:SC
Age:46 , one child
Desired Asset allocation: 60% stocks / 40% bonds

Current assets:

10K in I-Bonds
40K in 4 yr CD
70K cash in savings (will use some for house down payment within 1 year)
6K in Scottrade taxable account - "play money"

Roth IRA at Vanguard
100% Vanguard Target Retirement 2030 (VTHRX) (0.17%)

Rollover 401k at Vanguard
100% Vanguard Target Retirement 2030 (VTHRX) (0.17%)

401k-Hartford Retirement Services (just purchased by Mass Mutual)
100% SSgA Dow Jones Target 2035 Sec Lend (can't find ticker symbol- SSgA is State Street Global Advsors) (overall expenses 0.45%)
consists of:
Dow Jones Equity CMAC 79%
Barclays Capital Bond CGI 17%
Short Term Investment 4%

Roth 401k plan
100% SSgA Target Retirement 2030 SL Series II (0.17% expense ratio)

New annual Contributions
I contribute the full 401k contribution up to company match, which is 7% of salary
$5,500 to Vanguard Roth IRA
$1200 to company Roth 401k

Available funds in 401k (name-ticker-expense ratio)
Invesco Real Estate - REINX - 1.3%
American Funds EuroPacific Growth - REREX - 0.55%
Baron Small Cap - BSFIX - 1.31%
Munder MidCap Core Growth - MGOAX - 1.07%
Pyxis Premier Growth Equity - HPEAX - 1.11%
Hartford Dividend & Growth IHGIX - 0.67%
SSgA S&P 500 Index - SVSPX - 0.03%
Victory Diversified Stock - VDSCX - 1.11%
Oakmark Equity & Income - OAKBX - 0.77%
Pimco Real return - PRRIX - 0.7%
Pimco Total Return - PTTRX - 0.85%
there are 5 different SSgA target date funds: target 2015, 2025, 2035, 2045, and Today - I can't locate the tickers - all have 0.45% expense ratio

Thank you in advance for your feedback!
DHDrew
 
Posts: 3
Joined: 31 Jan 2013

Re: Portfolio Review

Postby Mill » Thu Jan 31, 2013 2:25 pm

Looks good to me. Or at least I dont see any un-Boglehead flaws in your course. That is kind of a lot of cash to hold, but you said you would use some on a house purchase. Speaking of which, with the size of your portfolio, I dont see any need to add REITs (exposure to real estate) if you are going to be buying a house.

:sharebeer
Mill
 
Posts: 207
Joined: 22 Dec 2009
Location: Arkansas

Re: Portfolio Review

Postby linuxuser » Thu Jan 31, 2013 2:57 pm

You write Roth 401k plan - 100% SSgA Target Retirement 2030 SL Series II (0.17% expense ratio)
but then further on down you write there are 5 different SSgA target date funds: target 2015, 2025, 2035, 2045, and Today - I can't locate the tickers - all have 0.45% expense ratio.

Why 0.17% for one Target fund and 0.45% on the others?
User avatar
linuxuser
 
Posts: 1107
Joined: 24 Jan 2011

Re: Portfolio Review

Postby DHDrew » Fri Feb 01, 2013 12:43 pm

linuxuser, it is confusing. The funds appear very similar in name between the SSgA Target Date funds in the Roth 401k and the traditional 401k. For some reason the ones in the Roth do have a lower expense ratio. Also in the traditional plan the target year end in 5s (2015, 20125) and for the Roth they are 2020, 2030, etc..

Thanks for your response and Mill makes a good point on holding off on a REIT if I'm buying a house soon.
DHDrew
 
Posts: 3
Joined: 31 Jan 2013


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