Debt: Mortgage ($126,700 left, 29 years left, 4.375% rate = 4.4638% APR)
Tax Filing Status: Married Filing Jointly (no children yet)
Tax Rates: 28% 25% Federal, 6% State
State of Residence: Minnesota
Ages: 27 (Him), 25 (Her)
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 30% of stocks
Portfolio Size: $350,000
Current Retirement Assets (percentages total 97% due to rounding)
Our Taxable at Wells Fargo
No retirement assets.
His 401k / Profit Sharing Program @ Merrill Lynch (100% vested)
25% of this account is Roth
75% of this account is tax-deferred
14% MDLHX Blackrock Large Cap Growth ER: 1.26% Turnover: 132%
12% IEDAX ING Large Cap Value ER: 1.22% Turnover: 84%
11% MDILX Blackrock International ER: 1.39%
9% GREAX Goldman Sachs Real Estate ER: 1.51% Turnover: 40%
4% SASMX Clearbridge Small Cap Growth ER: 1.32% Turnover: 14%
4% WMGYX Ivy Mid Cap Growth ER: 1.30% Turnover: 29%
2% FRVLX Franklin Small Cap Value ER: 1.28% Turnover: 5%
3% EKWAX Wells Fargo Precious Metals ER: 1.15% Turnover: 4%
3% MVCAX MFS Mid Cap Value ER: 1.29% Turnover: 52%
This allocation comes from the "Goalmanager Aggressive Model". See the Available Funds section for details.
His Roth IRA at Wells Fargo
8% VFIFX Vanguard Target 2050 ER: 0.18%
4% WBGAX Wells Fargo Tactical Equity
His U.S. Savings Bonds
7% Series I, Issued 10/2000, 3.60% Fixed Rate
His HSA - Investments at Charles Schwab
6% PEOPX Dreyfus S&P 500 ER: 0.51%
Her 401k / Profit Sharing Program @ Wells Fargo (only vested money counted)
96% of this account is Roth
4% of this account is tax-deferred
7% WFQFX Wells Fargo DJ Target 2050 ER: 0.52% Turnover: 19%
Her Roth IRA at Wells Fargo
3% VFIFX Vanguard Target 2050 ER: 0.18%
Contributions (2013 estimated)
$22,000 His 401k / PSP (Employer Profit Sharing, tax-deferred)
$ 5,500 His Roth IRA
$ 5,500 Her Roth IRA
$17,500 Her 401k / PSP (Roth)
$ 1,600 Her 401k / PSP (Employer Match / Profit Sharing / Vesting, tax-deferred)
Available Funds
Funds available in his 401k:
The Goalmanager Aggressive Model has the following policy (with quarterly rebalancing to target):
22% MDLHX Blackrock Large Cap Growth ER: 1.26% Turnover: 132%
20% MDILX Blackrock International ER: 1.39%
Not available to me outside of goalmanager
18% IEDAX ING Large Cap Value ER: 1.22% Turnover: 84%
14% GREAX Goldman Sachs Real Estate ER: 1.51% Turnover: 40%
6% WMGYX Ivy Mid Cap Growth ER: 1.30% Turnover: 29%
6% SASMX Clearbridge Small Cap Growth ER: 1.32% Turnover: 14%
6% EKWAX Wells Fargo Precious Metals ER: 1.15% Turnover: 4%
4% FRVLX Franklin Small Cap Value ER: 1.28% Turnover: 5%
4% MVCAX MFS Mid Cap Value ER: 1.29% Turnover: 52%
Stock Funds (other than those listed above):
MDSPX Blackrock Value Opportunities ER: 1.30% Turnover: 45%
NEIAX Columbia Large Cap Index ER: 0.45% Turnover: 6%
NTIAX Columbia Mid Cap Index ER: 0.68% Turnover: 15%
Bond Funds:
BHYAX Blackrock High Yield Bond ER: 1.01% Turnover: 69%
PIOBX Pioneer Bond ER: 1.03% Turnover: 21%
Allocation Funds:
MDLOX Blackrock Global Allocation ER: 1.16% Turnover: 39%
ACEIX Invesco Equity and Income ER: 0.81% Turnover: 21%
Self-Directed Brokerage Option
$125/year (Employer will pay this fee.)
Stocks: $29.95/trade + $0.03/share (over 1000 shares)
Funds: $49.95/trade
Many fund families available without a fee. Vanguard funds are subject to the transaction fees. Some Fidelity funds are not, but the Spartan funds have the fees, and the Spartan Advantage share classes are not available at all.
Funds available in his HSA:
All funds are no load or have the load waived.
MDDVX Blackrock Equity Dividend ER: 0.99%
HWLAX Hotchkis & Wiley Value ER: 1.30%
IFAFX American Funds Income ER: 0.64%
CVTRX Calamos Growth & Income ER: 1.09%
ITHAX Hartford Capital Appreciation ER: 1.16%
MGRIX Marsico Growth ER: 1.35%
CVGRX Calamos Growth ER: 1.29%
GFAFX American Funds Growth ER: 0.68%
NBGNX Neuberger Berman Genesis ER: 1.03%
DCCAX Delaware Small Cap Core ER: 1.45%
FKASX Federated Kaufmann Small Cap ER: 2.31%
FAIDX Fidelity Advisor Int'l ER: 1.34%
SGOVX First Eagle Overseas ER: 1.17%
NTIAX Columbia Mid Cap Index ER: 0.68%
NAESX Vanguard Small Cap Index ER: 0.24%
PTTDX Pimco Total Return ER: 0.75%
PLDDX Pimco Low Duration ER: 0.75%
FHAIX Franklin High Income ER: 0.78%
NREAX Neuberger Berman Real Estate ER: 1.52%
PCRDX Pimco Commodity Real Return ER: 1.35%
GGSAX Goldman Sachs Growth ER: 1.38%
GOIAX Goldman Sachs Growth & Income ER: 1.38%
GIPAX Goldman Sachs Balanced ER: 1.31%
Funds available in her 401k:
PTRAX PIMCO Total Return Admin ER: 0.71% Turnover: 584%
WGSDX Wells Fargo Government ER: 0.68% Turnover: 327%
WOTDX Wells Fargo DJ Target Today ER: 0.45% Turnover: 46%
WFOAX Wells Fargo DJ Target 2010 ER: 0.48% Turnover: 43%
WFOBX Wells Fargo DJ Target 2020 ER: 0.50% Turnover: 35%
WFOOX Wells Fargo DJ Target 2030 ER: 0.51% Turnover: 26%
WFOSX Wells Fargo DJ Target 2040 ER: 0.52% Turnover: 20%
WFQFX Wells Fargo DJ Target 2050 ER: 0.52% Turnover: 19%
BOSOX Boston Trust Small Cap ER: 1.00% Turnover: 31%
HDMBX Hartford Small Company ER: 0.96% Turnover: 110%
MLAIX MainStay Large Cap Growth ER: 0.79% Turnover: 60%
PAFDX T. Rowe Price Equity Income ER: 0.92% Turnover: 16%
WFIOX Wells Fargo Index ER: 0.25% Turnover: 9%
SSMVX Wells Fargo Small Cap Value ER: 1.35% Turnover: 16%
REREX American Funds EuroPacific Gr ER: 0.85% Turnover: 24%
TEMWX Templeton World ER: 1.09% Turnover: 19%
Questions:
- Should I change away from the automatic goalmanager program in my ("his") 401k? Perhaps the best I can do is go self-directed and buy a Fidelity target date fund. Or, buy Vanguard ETFs once a year to reduce the effect of commissions?
- Should I change the asset allocation in the HSA? I'm presently treating it as a stealth IRA (which is why I'm listing it here), but it does have additional advantages (the ability to use for health care) over a traditional IRA.
- I'm thinking I should sell the WBGAX for VFIFX. It was my first fund, but I'm not sure the active fund approach pays off long-term (which is why I'm here at Bogleheads).
- Should I make any changes in the interest of tax efficiency?