Thanks to everyone's help on the board, it took some time to finally get to a point that I am now diversified in a simple manner with investments and custodian risk. However due to recent job loss, I have rolled over my 401K and needed a portfolio review. At this time, I would like to seek your guidance on my portfolio. Please see below and thanks in advance for your help.
Emergency funds: 18 Months
Debt: 7-Year ARM Mortgage at 3.25% (6.5 years left)
Tax Filing Status: Married Filing Separately
Tax Rate: 28% Federal, 9% State
State of Residence: CA
Desired Asset allocation: 50% stocks / 50% bonds
Desired International allocation: 50% of stocks
Taxable at Vanguard
25% Vanguard Total Stock Market Index - Admiral (0.06%)
25% Vanguard Total International Stock Market Index - Admiral (0.16%)
Taxable at Fidelity
25% Spartan Short-Term Treasury Bond Index Fund - Advantage (0.10%)
Roth IRA at Fidelity
10% Spartan Inflation-Protected Bond Index Fund - Advantage (0.10%)
Rollover IRA at Fidelity
15% Spartan Inflation-Protected Bond Index Fund - Advantage (0.10%)
1. Am I too conservative on my emergency fund? Given my job loss situation, I think there's enough to cover through finding the next job. It just seems like a bad tradeoff for cash liquidity earning zero, but at the same time a hassle to chase small yields opening additional accounts. The EM fund is sitting in savings account earning .2%. Should I check into places like Ally's to put them in something like No Penalty CD?
2. What do you think about my 100% TIPs allocation in tax advantage space? I've struggled with either to put it all in Total Bonds or do the 50/50 split with TIPs. However, my goal is to ultimately to preserve capital and taking risk on the equity side. Hence, my allocation to international is 50%. Is 100% TIPs and short term treasury still a good combo for today's market? I'm not second guessing since all the bad news on TIPs and treasuries these days.
3. What would you do differently, if any (dialing down equity or international %s, change allocation mix, change funds, etc.)? Give my situation, is this portfolio safe enough to sleep at night? I guess I am looking for reassurance.
4. Does it even make sense to pay some portion of my mortgage off? Now without a job, I am hesitate to do so, but always been on the back of my mind.