For reference, here is our prior post. http://www.bogleheads.org/forum/viewtopic.php?f=1&t=109349
Emergency Funds: Covered
Debt: 326K primary mortgage - 15 year note @ 4.375%; 2 years into it - Plan to refinance. Appraisal when bought was 500K; paid 455K. UPDATE: Debt 326K primary mortgage - Refinancing pending, Closing end of March. 10 year @ 2.75%; done by local Wells Fargo, closing costs about 3K
Tax Filing Status: Married filing jointly
Tax Rate: 35% federal, 0% State
Age: Me - 32, Her 31
Portfolio Size: Mid Six Figures
Desired Assest Allocation: 68% Stocks / 32% Bonds (We used the Age idea)
Desired International Allocation: 20% (We like the 'core 4' model which has a slight tilt)
Desired Allocation Overall: Bonds: 32%, US Stock: 40%, Int Stock: 20, Tilt: 8%
Current Actual Allocation: Bonds: 32.33%, US Stock: 36.33%, Int Stock: 19.88%, Tilt: 7.81%, Cash 3.6%HER TAXABLE:
3.6% CASH - Her Company Stock we sold, and being sent to us and intend to send this to Vanguard and put in US Total Index. This more will place are allocations above on target.
9.32% Vanguard Total International Stock Index Fund Admiral Shares
7.39% Vanguard Total Stock Market Index Fund Admiral Shares HIS TAXABLE:
7.91% Vanguard Total International Stock Index Fund Admiral Shares
7.91% Vanguard Total Stock Market Index Fund Admiral Shares
0.96% Vanguard Money Market - Intend to use this as 'play' with random stocksHIS Roth 401K
- Original Company no longer worked for, currently held with 'Northwestern Bank'. I probably should roll this to my actual Vanguard account.
2.67% Vanguard Total International Stock Index Fund HIS Roth IRA
- No longer qualify to contribute to this.
2.18% Vanguard Mid-Cap Index Fund Admiral Shares HIS Traditional IRA
- I cannot do a backdoor because I fully fund a Sep IRA.
5.97% Vanguard Total Stock Market Index Fund Admiral Shares
2.90% Vanguard Small-Cap Index Fund Admiral Shares HIS SEP IRA
- This is my primary retirement vehicle at this point and time
13.24% Vanguard Total Stock Market Index Fund Admiral Shares
3.51% Vanguard Total Bond Market Index Fund Admiral Shares
1.77% Vanguard REIT Index Fund Admiral Shares HER Traditional IRA
- We are discussing with our accountant about rolling this over to a Roth.
1.82% Vanguard Total Stock Market Index Fund Admiral Shares HER 401K
- Primary Investment vehicle by her current company; there is a match and we fund this fully.
20.17% Fidelity US Fixed Income 0.05%
8.64% Fidelity US TIPS Bond Index 0.07%Other options for HER 401K
Fidelity Target Dates 2015, +5 years up to 2055. Net Exp Ratio is 0.09%
Equity Index Growth 0.04%
Equity Index Value 0.04%
Intl Equity Index 0.09%
Russell 2000 Index 0.04%
S&P 500 Index 0.02%
Emergency Markets Index 0.18%
US Fixed Income 0.05%
US Fixinc Short Dur 0.05%
US TIPS Bond Index0.07%
World Government Bond Index 0.07%
HER Company Stock 0.02%Thoughts/Questions:
First of all a big Thank You as we have learned much and have dumped a lot of money into the markets over the past couple weeks. We hope we can stay the course and follow all the bogleheads advice we have read about. I dont think we will have any issue.
So we made MANY changes if you look at our prior post and are just about where I think we need to be and just wanted to get another good once over by the experts on here. A few partciular questions we have...
1.) On HER 401K, is splitting up part of our Bonds Allocation into those TIPS a good idea? Or is it better to be in all US Fixed Income?
2.) We wanted an 8% Tilt, originally our idea was all REIT. I talked to my CPA who also gives independent financial advice; he liked our plans here but said we really needed some mid and small cap funds. Were we appropiate to buy the Vanguard Small Cap and Mid Cap Index funds and include those in our 'Tilt' calculations? I see there are also Small/Mid Growth and Value Funds. Are we in the right one, or should we be elsewhere..such as the Growth or Value Fund?
3.) Did we allocate correctly for tax purposes? I think we did, but I could have missed something. I am happy to move things around if needed.
As far as rebalancing in her 401K, I am not certain if this is such a great idea as this is NOT with Vanguard and we prefer to stick with Vanguard. I posted her avalible funds above; its with Fidelity. We went with ALL Bond allocation in that one account because those two funds seemed to be the best for her account? Let me know if somehow my thinking is flawed.
On rebalancing, I will continue to fully fund my SepIRA and her the 401K. Going forward, I think we can always use her 401K to buy those bond funds, and my SepIRA has the more flexiblity for rebalancing and such?
Points taken on not tinkering too much. Call me hard headed, but I really do want to keep a tilt for a while anyways. I am going to look at ditching the small and mid cap index into one small value index.