On the way wrote:I forgot to mention my pension at 65 of $13,800/yr (edited orginal post). Would you lower your bond requirement based on this?
It's not a requirement, it's a suggestion, but no. Some people think of a pension as a (potential) bond which means they feel they can take more risks and therefore hold fewer actual bonds. Some think of it as a reliable income stream which means they have less need for risk and therefore hold fewer stocks. I've always thought of my pension as an income stream which lessens my need to pull money from my other retirement assets, but it doesn't affect my AA either way. In your case it's a future benefit but right now you can't use it for rebalancing or anything else.
My wife is not employed so I do not think she qualifies for a roth.
I am going to try to set this up by the end of the year (need to save the minimum to open an account).
She qualifies for a "Spousal IRA" either Roth or traditional. See here
. (This publication was for 2012 so the limit is $5,500 now.) If you use a Target Retirement
fund the minimum is only $1,000. It'll do for a start. (If you choose a TR fund pick by the AA inside, not the date in the title.)
The HSA is funded at $7,450, with $5,000 going to current medical expenses.
Given that, I'm not going to consider the HSA part of the retirement portfolio. Is the PIMCO fund the best/cheapest bond/stable value option in the HSA?
The gradual move started in 2006 from about 85/15 stock/bond ratio to the current 75/25, mostly with new contributions, but in 2012 I started to move money in the small increments. I just felt more comfortable moving slowly.
Well, I can understand comfort level. But don't drag it out too long. You're pretty low on fixed income for your age. That's a little risky.
I count the stable value fund as part of the bond allocation. Is this correct?
I assume you mean the Retirement Savings Trust
. It is part of the fixed income allocation which includes bonds, so basically yes. But 0.51% is a high e.r. when TBM is only 0.10%.
Would you count the mortgage prepayment towards the bond allocation?
No. Paying debt is not the same as buying or not buying bonds. They are two totally separate things.
I know some of my existing funds contain international stocks. Does this contribute to the total international allocation?
Per Morningstar (and I don't know how accurate that is) Primecap has about 12% international and Wellington has about 10%. Yes they do add to the international, but they're managed funds with mixed assets (US stocks, international stocks, bonds). Using them makes it harder to keep your AA straight and harder to rebalance. They're also a little more expensive than the index funds.