AA suggestions

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AA suggestions

Postby jsbmoney » Tue Jul 16, 2013 8:24 pm

Greetings. I've been considering moving my accounts (IRA, Roth, 401K) from Edward Jones to Vanguard for some time but have been stuck on what my proper asset allocation should be given the current environment. I've reviewed my overall portfolio (https://docs.google.com/file/d/0B2nh1TI ... sp=sharing) and believe I'm currently roughly 85/15. I was thinking about going 75/25, and splitting bonds 10% intermediate term investment grade and 15% intermediate term bond index fund. I am 41 and concerned about prolonged lower returns from bonds. Please advise. Thanks.
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Re: AA suggestions

Postby widestance » Tue Jul 16, 2013 8:39 pm

Your spreadsheet isn't sharing properly.
You can also plug in your funds using Morningstar's X-ray tool to help you determine what your actual AA is.
From there, post up your portfolio in accordance to the guidelines posted above.
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Re: AA suggestions

Postby LadyGeek » Tue Jul 16, 2013 9:02 pm

I was able to view and download the spreadsheet. (Try enabling browser cookies.)

Remember that you only need to get your allocations to within 5%, so perhaps some of those funds could be combined. Widestance is referring to Asking Portfolio Questions. The format makes you look at the big picture while providing the information we need to help answer your questions.

Do you have a sufficient emergency fund? I see some funds in the money market accounts but am wondering if it's enough. (BTW, I see your data in Column E.)
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Re: AA suggestions

Postby ruralavalon » Tue Jul 16, 2013 9:10 pm

You can't just transfer the 401k to Vanguard, unless you are no longer with that employer or are eligible for an in-service transfer. In general moving the rest from EJ to Vanguard is an excellent idea.

That portfolio is awfully complex. I can understand why you don't know for sure what your current asset allocation is.

In trying to decide on a desired asset allocation, please see for general background:
Wiki article link: Asset Allocation ; and
Wiki article link: Bogleheads® investment philosophy .
Last edited by ruralavalon on Tue Jul 16, 2013 9:12 pm, edited 1 time in total.
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Re: AA suggestions

Postby widestance » Tue Jul 16, 2013 9:11 pm

LadyGeek wrote:I was able to view and download the spreadsheet. (Try enabling browser cookies.)


Whoops, wasn't logged in.
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Re: AA suggestions

Postby jsbmoney » Wed Jul 17, 2013 12:11 am

The 401k is from a former employer. I probably do not have enough in emergency funds (or non-emergency funds for that matter ;)) it is something I'm aware of and working on.

Thanks for the heads-up LadyGeek, here is a new link: https://docs.google.com/file/d/0B2nh1TI ... sp=sharing
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Re: AA suggestions

Postby LadyGeek » Wed Jul 17, 2013 4:31 pm

I don't see what changed, but I think you've got the general idea.

Having an emergency fund in-place is important enough that we suggest one be established before you get serious with your investments. Here's the big picture: Financial planning

Your future investment contributions should go towards an emergency fund until you've got this firmly in place. Then, contribute to your investments.

In the meantime, you can work on transferring / consolidating your funds into Vanguard.
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