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I'm looking for some advice on rebalancing and changing my allocation for my 403b plan. Here's my info:
Emergency funds: Yes, 2 months
Debt: credit card ($4500 @ 0%); student loan ($8200 @ 4%); car ($22,000 @ 2.39%)
Tax Filing Status: Married Filing Jointly
Tax Rate: ? % Federal, 3% State
State of Residence: PA
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 25% of stocks
Current 403b holdings (as recommended by a financial planner):
Vanguard High-Yield Fund (VWEHX): 9.47%
Vanguard Inflation-Protected Securities Fund (VIPSX): 8.57%
Vanguard Long-Term Investment-Grade Fund: (VWESX): 9.31%
Vanguard Wellington Fund (VWELX): 15.1%
Vanguard International Explorer Fund (VINEX): 19.49%
Vanguard Selected Value Fund (VASVX): 10.65%
Vanguard Small-Cap Growth Index Fund (VISGX): 11.05%
Vanguard Windsor II Fund (VWNFX): 16.36%
I'm tempted to rebalance (and change future allocations) to a much simpler allocation:
Vanguard Total Stock Mkt Idx: 60%
Vanguard Total Intl Stock Idx: 20%
Vanguard Total Bond Mkt Idx: 20%
Is there any reason why I should stick with the funds I currently hold and not simplify things??
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rcg1977 wrote:Is there any reason why I should stick with the funds I currently hold and not simplify things??
No. The proposed "simpler allocation" is much better and probably a little cheaper.
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Simpler still would be the Life Strategy Growth fund. And they will throw in rebalancing.
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- Joined: 4 Aug 2009
I would agree that you could simplify. I would suggest keeping the inflation protected securities fund VIPSX just to maintain some inflation protection on the bond side. For me, the three you propose plus the TIPs fund would be my ideal portfolio.
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- Location: Lake Wobegon
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