I've been lurking but now would like some opinions on what my best options might be with the resources I have to set up my investments proper. So, first off, here's my general outline as per the "Asking Portfolio Questions" topic.ETA: I've edited the percentages below so that they represent my total investment, rather than per-account investment.The DataEmergency Funds
: 4 months living expenses in a 5-year CD ladder with plans to grow it slowly to 6 months living expenses as the CDs mature and are reinvested.Debt
: None. My credit cards are paid off in full every month.Tax Filing Status
: SingleTax Rate
: 28% Federal, 10.23% StateState of Residence
: 33(Seeking opinion on an asset allocation. I am comfortable with aggressive growth strategies)Desired Asset Allocation
: 90-95% Stocks / 5-10% BondsDesired International Allocation
: 20-30% of StocksThe AccountsMy 401(k)
(30% of total)
30% Vanguard Target Retirement 2050 Inv (VFIFX) (0.18%)Taxable Schwab Brokerage
(70% of total)Bonds (10.5%)
5.25% Schwab GNMA Fund (SWGSX) (0.55%)
5.25% Schwab Treasury Inflation Protected Securities Fund (SWRSX) (0.29%)International (10.5%)
3.5% Schwab Fundamental Emer Mkt Large Co Index (SFENX) (0.61%)
7% Schwab Intl Index Fund (SWISX) (0.19%)US Market (31.5%)
10.5% Schwab S&P 500 Index Fund (SWPPX) (0.09%)
10.5% Schwab Total Stock Mkt Index (SWTSX) (0.09%)
14% Schwab Small Cap Index Fund (SWSSX) (0.17%)Real-Estate (14%)
14% Schwab Global Real Estate Fund (SWASX) (1.05%)By Category (approximate)
30% LifeCycle / Unknown
24.5% Large Cap Equity
17.5% Small Cap Equity
17.5% International Equity
10.5% Fixed IncomeAbout the 401(k)
My employer matches 20% of my contribution to a maximum of $3,500 total match value, which works out to be exactly 20% of $17,500, this year's 401(k) contribution limit. Contributions can only be made by paycheck deduction and I am contributing enough to max out for the year. The plan allows contributions to be made either pre-tax into a traditional 401(k) or post-tax into a Roth 401(k).Funds offered in the planVanguard Target Retirement funds from 2010-2055 and "Target Retirement Income I"Large-Company Stock Funds
LSV Value Equity (LSVEX) (0.66%)
MainStay Large Cap Growth I (MLAIX) (0.79%)
Vanguard Institutional Index I (VINIX) (0.04%)Small/Mid Co. Stock Funds
Champlain Small Company Adv (CIPSX) (1.4%)
Vanguard Extended Market Idx I (VIEIX) (0.12%)International Stock Funds
Dodge & Cox International Stock (DODFX) (0.64%)
Vanguard FTSE All-World ex-US Index (VFWSX) (0.12%)Bond Funds
PIMCO Total Return Instl (PTTRX) (0.46%)
SSgA US Aggregate Bond Market Index (No symbol) (uknown Net ER)Capital Preservation Funds
Vanguard Prime Money Market Instl (VMRXX) (0.09%)
Wells Fargo Stable Return (No symbol) (0.48%)
Despite the fact that there are Vanguard options in every category, the plan is run by Schwab.
The 401(k) is my only tax-advantaged account. My income is such that I am excluded from making deductible contributions to a traditional IRA, or any contributions to a Roth IRA.About my Taxable Account @ Schwab
When building this I decided to go entirely with Schwab funds, preferring funds on the Select List. All are no-load / no-fee. I've since learned that it may be ill-advised to have fixed-income (particularly TIPS) and real-estate funds in this account. I'm also feeling like I'd like to switch from index funds to ETFs for this account, and maybe mix in some individual stocks as well. I'm in the process of learning about trading and want to have an active hand in some small % of the over-all. But I'm also fine saying that, say, 80% will be in index funds / ETFs and the rest is for play.Questions
1. A little over a month ago I did put $2,000 into a Roth IRA. I did not list it above because I need to close it. "Things happened" and now I am ineligible to put anything into it.. I will
exceed the income limit for contributing to a Roth IRA for this year, so all $2,000 plus whatever the funds in it have earned (about $40 so far) will be in excess. I added them to year 2013. I would like advice on what I should do here. Just pull it out now and just deal with the $4-$5 in penalties? Leave it until year end? I'm confused here. My 2012 income was low enough to be able to put in a full $5,000 for _that_ year. I did not contribute to 2012 because by the time I learned about this, I had already done my taxes for TY2012. This is a poor excuse, but I really am unsure what I can do right now. I've been negligent when it came to investing but I'm trying to fix that now.
Can I contribute to TY2012 now and deal with it on next year's tax return?
2. Should I move the fixed-income/bond portion of my investments to be housed entirely in my 401(k)?
3. What about real-estate? There are no REITs in the 401(k) plan and I feel like I should have some money in a real-estate fund.
3. What's the deal with those funds in my 401(k) plan which have no symbol?
4. I have about $10,000 ready to invest right now. It's sitting in a high-yield savings account awaiting instructions. I'm seeking ideas on how to invest it.
Stock goes up, stock goes down. Stock goes up, stock goes down. -- Homer J. Simpson (paraphrased)