Bogleheads

[pingo]

Edit: In an effort to be thorough, I listed pretty much all available funds to our 401(k), etc.. However, I've decided to remove any funds with ER above 1%.

Emergency funds = 6 1/2 months of expenses (not part of our investment/retirement asset allocation)

Debt: 30 yr fixed mortgage @ 4.875%; 30 years remaining. No other debt.

Tax Filing Status: Married filing Jointly

Tax Rate: 25% Federal; 9.3% California

Ages: 37 and 35

Desired Stock/Bond allocations: 90/10

International stock allocations: 20%

We do not currently intend to have a Value, Growth, or Small Cap bias. We like total market stuff just fine. However our extremely rare, opportunistic stock purchases, and 401(k) & 457(b) options may create a value/small bias which is perfectly okay.

Current portfolio (not including emergency) just passed the $100k mark--oh, wait, it went under...okay it's back up again. (Woo hoo!)

No taxable accounts….yet. (sigh.)

My Vanguard Roth IRA:
Vanguard 2040 Target Fund (VFORX) (ER 0.19) 11.29% of our total combined portfolio.
Vanguard Brokerage Account: Berkshire-Hathaway (BRK.B) ($30/yr brokerage account fee) 6.43% of our total combined portfolio.
Vanguard Prime MMMF Brokerage Sweep Account (VMMXX) (ER 0.28%) 5.91% of total combined portfolio.

Her ING Sharebuilder Roth IRA brokerage account (no annual account fee):
Markel [MKL] (small-cap stock) 4.67% of our total combined portfolio.
Money Market Sweep Account (BDMXX) (ER unknown) 0.15% of our total combined portfolio.

Her Janus Traditional IRA:
Janus Enterprise Fund (JAENX) (ER 0.92%) 0.46% of our total combined portfolio.
Janus Contrarian Fund (JSVAX) (ER 1.00%) 0.85% of our total combined portfolio.
Janus Orion Fund (JORNX) (ER 0.94%) 2.81% of our total combined portfolio.

My LA County 457(b) (total annual administration fees: $52.13):
LA County Horizons Target 2045 Fund (no ticker; see description below) (Portfolio Operating Expenses or “POE” 0.48%) 11.39% of our total combined portfolio.
LA County Horizons Non-US Equity Fund of funds (no ticker; see description below) (POE 0.47%) 11.10% of our total combined portfolio.
Dodge & Cox Balanced (DODBX) (POE 0.53%) 10.51% of our total combined portfolio.

My LA Unified School District Alternate Retirement System 457(b):
Union Bank of California cash account (no ticker) (unknowable ER) 5.29% of our total combined portfolio. LAUSD ''matches'' 3.5% of my wages with no payroll contribution on my part. No other fund option available in this 457(b).

Her 401(k):
Principal Lifetime 2040 Fund Separate Account-R6 (closest ticker PTDPX?) 32.09% of our total combined portfolio.
Total Investment Expense-Gross (TIEG) 0.97%
Total Investment Expense-Net (TIEN) 0.97% *My understanding is that if a TIEN is different/lower than the TIEG, it means that a lower ratio has been negotiated for this account.
--U.S. Stock 54.62%, Non-U.S. Stock 23.89%, U.S. Bonds 11.85%, Cash 6.09%, Preferred 2.12%, Non-U.S. Bonds 1.16%, Other 0.24%, Convertibles 0.03%

Principal Lifetime 2050 Fund Separate Account-R6 (closest ticker PTEFX?) 3.16% of our total combined portfolio.
TIEG 1%
TIEN 1%
--U.S. Stock 58.20%, Non-U.S. Stock 26.22%, U.S. Bonds 8.08%, Cash 4.96%, Preferred 1.52%, Non-U.S. Bonds 0.78%, Other 0.22%, Convertibles 0.02%

Total of All Accounts Together (not each account individually) equals 100%

New annual contributions:
--My LAUSD 457(b): $200 from LAUSD’s 3.5% ''match'' (no payroll contribution on my part).
--My LA County 457(b): pre-tax payroll contribution 9% ($6,662.88 ) + 4% match ($2,937.84) = 13% ($9,600.72).
--My LA County Employee Retirement Administration (LACERA) retirement plan: No contributions. LACERA will provide 100% medical and 58% of my working salary upon retirement in 25 years (as opposed to 70.53% of my salary if I contribute 7.37% annually—but if I leave County service, I only take my contributions+earnings—there's no match, per se.) We figure I focus my limited resources on the 457(b) where I can take my contributions+4 % County match+earnings with me if necessary.
--Her Company 401(k): 11% pre-tax payroll contribution ($3282.15) + 4% match ($1193.56) = 15% ($4475.71) total annually; her hours worked may decrease or disappear next year (we just had a baby).

Funds available in his LA County 457(b):
SSgA S&P 500 Index Fund (SVSPX) Portfolio Operating Expenses (POE) 0.05%

LA County Horizons Mid Cap Equity Fund of funds (no ticker), POE 0.59%, rebalanced quarterly to the following target allocations:
--SSgA Index Fund/Buffer (SVSPX) 5%
--Artisan Mid Cap Growth (ARTMX?) 25%
--Denver Investment Advisors Mid Cap Growth (no ticker) 23.8%
--WEDGE Capital Management L.L.P. Mid Cap Value (no ticker) 23.8%
--Sasco Capital Mid Cap Value (no ticker) 23.8%

LA County Horizons Small Cap Equity Fund of funds (no ticker), POE 0.65%, rebalanced quarterly to the following target allocations:
--SSgA Index Fund/Buffer (SVSPX) 5%
--Brandywine Small Cap Value (no ticker) 47.5%
--Peregrine Capital Small Cap Growth Equity (no ticker) 23.8%
--NorthPointe Capital Small Cap Growth Equity (no ticker) 23.8%

LA County Horizons Non-U.S. Equity Fund of funds (no ticker), POE 0.47%, rebalanced quarterly to the following target allocations:
--Causeway International Value Equity Fund (CIVIX) 50%
--Capital Guardian International (no ticker) 50%

Dodge & Cox Balanced fund (DODBX) POE 0.53%
--69.2% Stocks, 28.1% Fixed Income Securities, 2.7% Cash Equivalents

Loomis, Sayles & Company, L.P Core Plus Full Discretion bond fund (can't find ticker!!) POE 0.34%

LA County Horizons Stable Income Fund (no ticker) POE 0.22%

LA County Horizons 2025-2045 Target Date Funds (no ticker) POE 0.48% consisting of the following funds that are rebalanced quarterly to the following allocations:
--SSgA S&P 500 Index Fund (SVSPX) 34%
--LA County Horizons Non-U.S. Equity Fund (see preceding description) 26%
--LA County Horizons Mid Cap Equity Fund (see preceding description) 7.5%
--LA County Horizons Small Cap Equity Fund (see preceding description) 7.5%
--PIMCO All Asset Fund (probably ticker PAAIX) 5%
--JPMorgan Property Fund (ticker?) 5%
--Mellon Global Alpha I (ticker?) 7.5%
--Wellington Unconstrained Themes (ticker?) 7.5%

LA County Horizons Retirement Income Fund of funds (no ticker) POE 0.63%, rebalanced quarterly to the indicated allocation:
--LA County Horizons Stable Income Fund (no ticker) 17.5%
--Loomis, Sayles & Company, L.P Core Plus Full Discretion bond fund (ticker?) 17.5%
--SSgA S&P 500 Index Fund (SVSPX) 7%
--LA County Horizons Non-U.S. Equity Fund (see preceding description) 5%
--LA County Horizons Mid Cap Equity Fund (see preceding description) 1.5%
--LA County Horizons Small Cap Equity Fund (see preceding description) 1.5%
--PIMCO High Yield (probably PHIYX) 5%
--PIMCO All Asset Fund (probably PAAIX) 15%
--JPMorgan Property Fund (ticker?) s15%
--Mellon Global Alpha I (ticker?) 7.5%
--Wellington Unconstrained Themes (ticker?) 7.5%

LA County/Schwab Personal Choice Retirement Account (PRCA), a self-directed brokerage account allowing me to select from numerous mutual funds, stock and bonds, etc. outside of the LA County Horizons offerings. I would actually become a Schwab client/account holder. As such, there is $50 annual administrative fee deducted from LA County Horizons offerings to participate in Schwab PRCA, in addition to any other applicable transaction fees. I have to maintain a minimum LA County Horizons balance of $25,000. Payroll deductions are not permitted, rather $1,000 minimum transfers from other LA County 457(b) funds (except the Stable Income Fund). It's difficult to tell if using this option would be worthwhile in order to gain access to Schwab index funds or Vanguard ETFs--and now I read that Schwab will permit commission-free trading of their ETFs to Schwab clients.

Bank Depository Fund--FDIC insured up to $250K. To transfer money out of other funds into the BDF incurrs a 5% transfer fee! Payroll contributions are fee exempt.

Washington Mutual Bank Fund--NOT FDIC insured. To transfer money out of other funds into WaMuBF incurrs a 5% transfer fee!

LA Unified School District Public Alternate Retirement System 457(b): No ticker; 100% cash in Union Bank of California. LAUSD ''matches'' 3.5% of my wages with no payroll contribution necessary on my part. No other option available in this 457(b).


Funds available in her 401(k):
Principal LargeCap S&P 500 Index Separate Account-R6 (closest ticker PLFPF?)
Total Investment Expense-Gross (TIEG) 0.31%
Total Investment Expense-Net (TIEN) 0.31%
--U.S. Stocks 97.45%, Cash 2.35%, Other 0.11%, Non-U.S. Stocks 0.09%

Principal MidCap Blend Separate Account-R6 (closest ticker PMBPX?)
TIEG 0.81%
TIEN 0.81%
--U.S. Stocks 94.26%, Cash 1.32%, Non-U.S. Stocks 4.42%

Principal SmallCap Blend Separate Account (closest ticker PSBPX?)
TIEG 0.91%
TIEN 0.91%
--U.S. Stock 95.64%, Cash 2.65%, Non-U.S. Stock 1.47%, Other 0.24%

Principal SmallCap Value Separate Account (closest ticker PPKPX?)
TIEG 0.91%
TIEN 0.91%
--U.S. Stock 97.45%, Cash 1.05%, Non-U.S. Stock 1.05%

Principal Money Market Separate Account-R6
TIEG 0.56%
TIEN 0.56%

Principal Lifetime 2050 Fund Separate Account-R6 (closest ticker PTEFX?)
TIEG 1%
TIEN 1%
--U.S. Stock 58.20%, Non-U.S. Stock 26.22%, U.S. Bonds 8.08%, Cash 4.96%, Preferred 1.52%, Non-U.S. Bonds 0.78%, Other 0.22%, Convertibles 0.02%

Principal Lifetime 2040 Fund Separate Account-R6 (closest ticker PTDPX?)
TIEG 0.97$%
TIEN 0.97%%
--U.S. Stock 54.62%, Non-U.S. Stock 23.89%, U.S. Bonds 11.85%, Cash 6.09%, Preferred 2.12%, Non-U.S. Bonds 1.16%, Other 0.24%, Convertibles 0.03%

Principal Lifetime 2030 Fund Separate Account-R6 (closest ticker PTCPX?)
TIEG 0.95%
TIEN 0.95%
--U.S. Stock 49.62%, Non-U.S. Stock 20.68%, U.S. Bonds 17.20%, Cash 7.62%, Preferred 2.87%, Non-U.S. Bonds 1.69%, Other 0.28%, Convertibles 0.04%

Principal Lifetime 2020 Fund Separate Account-R6 (closest ticker PTBPX?)
TIEG 0.92%
TIEN 0.92%
--U.S. Stock 41.95%, Non-U.S. Stock 24.18%, U.S. Bonds 17.69%, Cash 10.09%, Preferred 3.36%, Non-U.S. Bonds 2.35%, Other 0.34%, Convertibles 0.04%

Principal Lifetime Strategic Income Separate Account-R6 (closest ticker PLSPX?)
TIEG 0.76%
TIEN 0.76%
--U.S. Stock 15.07%, Non-U.S. Stock 5.88%, U.S. Bonds 47.16%, Cash 23.19%, Preferred 3.77%, Non-U.S. Bonds 4.42%, Other 0.45%, Convertibles 0.06%

Unless you really want me to list EVERY Target Fund variation that is available through our plans, I’ll assume the ones listed are sufficient.

It kind of feels like we're all over the place with our funds. It'd be nice to not be so. As well, here are some other questions/considerations:

1. In 2010 we plan to rollover/transfer her Traditional IRA (the Janus funds) to Vanguard and convert them to a Roth IRA.
2. Seeing as how we are not currently able to max out all tax-advantaged options, should we be contributing to my 457(b) (and she to her 401(k)) only up to the match, and then contribute as much as we can to our Roth IRAs? (Is the answer too obvious for the question to be asked?)
3. We continue to slowly build on our Emergency Savings now that we purchased a home. We are fairly comfortable with our Emergency Savings, but we would like to continue to build a larger cushion. Assuming we are unable to max out both Roth IRAs for retirement purposes for now, do you think it is a good idea to deposit Emergency Saving money into a Money Market Fund within our Roth IRAs to max out our allowable contributions for each year? The Emergency portion of our contributions would NOT be placed in stocks, and would NOT count as retirement assets. But this way we don’t miss out on any opportunity to contribute as much as possible to our Roths in any given year. Money we contribute to taxable Emergency Savings would continue to build, albeit even slower now, but as taxable Emergency reserves increase, we could then safely repurpose Roth Emergency contributions from previous tax years to add to our retirement assets. This way we don’t lose out on the chance to have the most Roth contributions possible. And if we were to need to withdraw Emergency money from the Roth (contributions only, of course), it wouldn't have hurt to try right?. Do I explain myself?
4. Assuming (hoping) the day arrives when we do max out all tax-advantaged accounts and have some left over to start allocating to taxable accounts, is their a method to go about it? Is it just a matter of beginning to invest in tax-efficient assets in a taxable account while gradually rebalancing tax-advantaged accounts to tax-inefficent assets?

Thank you for your input. I'm sure we can do better and be simpler.

[YDNAL]

[retcaveman]

For what it's worth, at your age, I would prefer 70/30 or 60/40 over 90/10.
I am not saying it's wrong, just more risk than I would want. Mr. Bogle and many on this forum use "your age in bonds" as a general guide.

Re ER's I won't even look at a fund with more than a 1% ER. There are just too many alternatives and with index funds, you shouldn't come anywhere close to that.

Good luck.
_________________
"The wants of mortals are containers that can never be filled." (Socrates)

[pingo]

Thank you. I'll take your suggestions and reconsider my portfolio allocations.