PERAdvantage Fixed Income Fund, er = 0.50%, described as "[t]he fund combines actively managed core plus and passive core styles, thereby providing style diversification. The fund is managed by PIMCO (targeted at 75 percent of the portfolio) and BlackRock (targeted at 25 percent of the portfolio)", has good managers in my opinion, and looks like an intermediate term bond fund benchmarked to Barclays Capital Aggregate Bond Index, credit grade not available but lots of government bonds, Account Fact Sheet
. The Barclays index mentioned is the same as used by Vanguard's Total Bond Market Index Fund.
I think it would be better to use PERAdvantage Fixed Income Fund rather than the PERAdvantage Income Fund mentioned earlier. Being pure bonds, it will make it much easier for you to keep track of your asset allocation.
The desired asset allocation using index funds is:
60% domestic stocks
20% international stocks.
The idea is to try for a good combination of broad diversification (to reduce your risk) and low cost (to increase your net gain), with good tax-efficiency. Wiki article link: Principles of Tax-Efficient Fund Placement
. Bonds need to go in some kind of tax protected account. Start by picking the better choices in the 457b/DC account where the choices are limited. The better expense ratios available in that account are: first the US Large cap Fund; and second the Fixed Income Fund. Both have good diversification. For International you can get a much better expense ratio (0.44% less) and better diversification using a Vanguard fund elsewhere.
You asked for "thoughts on the best and most efficient portfolio for me", and "[m]ostly the best way to break up my TR and LS funds into single funds, and what to make of my 457B/DC plan".
To get your desired asset allocation at the start
here is what you could switch to, then adding $26k/yr
with most going into the 457b/DC account you can easily adhere to your desired asset allocation. This suggestion mimics the very well diversified three fund portfolio, to the extent possible given what is offered in your 457b/DC account. Wiki article link: Three-fund portfolio
; and Forum Discussion, The Three Fund Portfolio
. The portfolio is very diversified, and the weighted overall expense ratio of the portfolio as a whole at the start is about 0.09%. All percentages and amounts given are rounded off, so may not add up exactly.Taxable @ Vanguard
(17% of current portfolio; add ~ $4.4/yr; ~ 17% of annual contributions)
17%, VTIAX (Total International), er = 0.16%, <= very diversified, low cost, very tax efficient 457b/DC
(09% of current portfolio; add ~ $16.1k/yr; ~ 62% of annual contributions, most to US Large Cap)
00%, PERAdvantage Fixed Income Fund, er = 0.50%, <= add later to keep to desired stock/bond allocation, as necessary
09%, PERAdvantage for US Large Cap Stk, er = 0.36%, <= most new 457b/DC account contributions here, to keep to your desired stock/bond allocationRoth IRA @ Vanguard
(60% of current portfolio; add $5.5k/yr; ~ 21% of annual contributions)
37%, VTSAX (Total Stock Market), er = 0.05%
20%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX), er = 0.10%, <= most new IRA contributions here
03%, VTIAX (Total International), er = 0.16%Rollover IRA @ Vanguard
(14% of current portfolio)
14% VTSAX (Total Stock Market), er = 0.05%
If in future years you find that you can add more than $26k/yr to investing, then add that to the 457b/DC account.
You will need to rebalance periodically, to adhere to your desired asset allocation. Wiki article link: Rebalancing
. The Roth IRA is currently your largest account and will be recieving future contributions. Set up this way with all 3 asset types in the Roth IRA, you can do all of your rebalancing inside that account, and inside the 457b (which will recieve large future contributions) to keep to your stock/bond allocation.
You could use this outline on what to do with future contributions, ~ $26k/yr:
1. larger contributions (say around $4.4k/yr = ~ 17% of annual contributions) to taxable to help keep your int'l where you want it, and with a low expense ratio;
2. max out the IRA at $5.5k/yr = ~ 21% of annual contributions;
3. in the 457b/DC plan contribute ~ $16.1k, ~ 62% of annual contributions and use:
PERAdvantage Fixed Income Fund, er = 0.50%, and
PERAdvantage for US Large Cap Stk, er = 0.36%. <= most new 457b/DC account contributions here
I hope that this helps.