First time poster...had a question....
Briefly, I came into a windfall 5 years ago, luckily a friend's dad helped me invest the $. Similar mindset to what is suggested on here. He recommended a # of ishare ETFs at the time... and I have the following Asset allocation...at the time given my age (21), and future earning potential (medicine) he didn't see the need for bonds. I have no debt.
40% US
- 10% small cap
15% med cap
15% large cap
- 20% Emerging
20% Developed
- 10% GLD
10% Natural Resources
I'm now a resident and making $46k a year. I could potentially fully fund a 403b (no match) and IRA, but I think it'd be tight and it might warrant selling some of my taxable account.
1) Is it worth it to fund tax-efficient accounts?
2) For my IRA, I'm thinking of going with vanguard and just doing, for simplicity:
40% VGTSX
20% VBMFX
40% VTSMX
I have an old IRA that I am going to rollover so I hope to be able to fund each of these, if not I guess I'll do one at a time.
Thoughts? Would ETFs be better?
3) The 403b seems less than stellar....a lot of the funds have high expense ratios... here they are as follows:
Stock-Based
Eaton Vance Structured Emerging Mkts 1.36
Harbor Intl Inst. .85
Oppenheimer GLobal A 1.27
Cohen & Steers Realty Shares 1.06
Baron Growth Retail 1.35
Lord Abbett Small Cap Value 1.24
Columbia small cap Value 1.32
Columbia Acorn select 1.24
RS Value A 1.41
Hotchkis and Wiley Mid cap Value 1.40
Calvert Social Investment Equity 1.28
American Funds Growth FUnd of AMer R4 0.7
Vanguard Inst. index 0.05
Hartford Capital Appreciation 0.72
American Funds Washington Mutual 0.69
Bond-based
Principal High Yield 0.95
PIMCO Total Return 0.89
Cash and Stable value investments
Lincoln stable value separate account
Vanguard Prime Money Market Inv 0.25
So far I have split up my 403B accordingly, now that I'm older, decided to add more bonds:
25% Eaton Vance Structured Emerging Mkts 1.36
15% Harbor Intl Inst. .85
15% PIMCO Total Return 0.89
15% Vanguard Inst. index 0.05
15% American Funds Growth FUnd of AMer R4 0.7
10% Lord Abbett Small Cap Value 1.24
5% Principal High Yield 0.95
3) Thoughts on this asset allocation?
Thank you for your time.