, you want an AA of 80% stocks, 20% bonds (a little low for your ages), with 20% of stocks in international. That breaks down to 64% US stocks, 16% international stocks, and 20% bonds. Here is a possible retirement portfolio:His 401k -- $111K -- 43%
) Vanguard Institutional Index Fund Institutional Shares (0.04%)
) Principal MidCap S&P 400 Index Fund (0.06%)
) Principal SmallCap S&P 600 Index Fund (0.06%) <-- Roughly 80% large caps (in 401k, 403b, 457b, 457f) plus 20% mid/small caps makes up the total US stock market. (See Approximating Total Stock Market).0% (PTTRX) PIMCO Total Return Fund Institutional Class (0.46%) <-- If/when needed in the future.His 457b -- $3K -- 1%
) Vanguard 500 Index Fund Signal Shares (0.05%)His 457f -- $21.5K -- 8%
) Vanguard 500 Index Fund Signal Shares (0.05%)His 403b -- $11.5K -- 4% <-- Is this from a former employer? If so, can it be rolled into His 401k?
) Transamerica Partners Institutional Stock Index Fund (0.30%)His Roth IRA at Vanguard -- $34.5K -- 13%
) Vanguard Total Stock Market Index Fund Admiral Shares (0.06%)
) Vanguard Total International Stock Index Fund Admiral Shares (0.16%)
) Vanguard Total Bond Market Index Fund Investor Shares (0.22%) <-- Higher to meet fund minimums.Her Roth IRA at Vanguard -- $31K -- 12%
) Vanguard Total International Stock Index Fund Admiral Shares (0.16%)Her Rollover IRA at Vanguard -- $49.5K -- 19%
) Vanguard Total Bond Market Index Fund Admiral Shares (0.10%)
Keep the international at Vanguard. You have very inexpensive alternates for US stock, and a reasonable alternate for bonds in the employer plans, but nothing good for international.
DrPeppaPig wrote:A Roth 401k option was recently added. I’m not sure if I should contribute to that or a traditional 401k. I’ve read quite a few articles on it and can convince myself both options are the way to go. Any thoughts?
In general, the higher the tax bracket you're in now, the better the traditional 401k option is. Check out these two articles written by tfb
who frequently posts here:
The Case Against Roth 401(k)Roth 401(k) for People Who Contribute the Max
Something to think about.