Could you review my portfolio?

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Topic Author
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Could you review my portfolio?

Post by igghy »

Thank you.

Emergency funds = 3 months of expenses

Debt: none

Tax Filing Status: Married filing Jointly

Tax Rate: 35% Federal 3% State State of Residence

Age: 68, 62

Desired Asset allocation: 50/50

Intl allocation: 30% of stocks

Currently, we own;

Fixed Income

10% in 403b - fixed annuities (9%) short term bonds (1%)
10% in Roth - Vanguard intemediate term ivestment grade bonds (VFICX)
25% in taxable account - tax exempt intermediate term bonds (20%), inflation protected bonds VIPSX (5%)
5% cash

12% foreign stocks - 3% Lazard Emerging (LZEMX), 9% Fidelity Spartan Foreign Index (FSIIX)
25% Large Cap - Vangurad Growth Index VIGRX (2%), S&P 500 (5%), Vanguard Total Stock Index (16%), other managed funds (7%)
6% Mid Cap
3% Small Cap
3% REITs
2% Commodities

Questions

1. How could I improve the portfolio?
2. Shall I keep REITs and Commodities?
Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: COuld you review my portfolio?

Post by Johm221122 »

Too many funds
http://www.bogleheads.org/wiki/Three-fund_portfolio
Were is reit?would make that 5% and drop commodities
tax placement
http://www.bogleheads.org/wiki/Principl ... _Placement
Also,here is a better way to post
http://www.bogleheads.org/wiki/Asking_p ... _questions
Good luck
John
Topic Author
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Re: COuld you review my portfolio?

Post by igghy »

REITs is in the taxable account. The funds have sizable gains that I can't liquidate yet.
Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: COuld you review my portfolio?

Post by Johm221122 »

igghy wrote:REITs is in the taxable account. The funds have sizable gains that I can't liquidate yet.
You can take distributions in cash
Topic Author
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Re: COuld you review my portfolio?

Post by igghy »

I am.

Could I do 5 fund portfolio with domestic stocks split among large cap/mid cap/small cap? I already own funds in mid-cap and small-cap. I have to wait before I can liquidate.
Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: COuld you review my portfolio?

Post by Johm221122 »

igghy wrote:I am.

Could I do 5 fund portfolio with domestic stocks split among large cap/mid cap/small cap? I already own funds in mid-cap and small-cap. I have to wait before I can liquidate.
Yes that's good,it is when you get 12 or more its just unnecessary
livesoft
Posts: 86076
Joined: Thu Mar 01, 2007 7:00 pm

Re: Could you review my portfolio?

Post by livesoft »

It is unclear to me what kind of accounts the OP currently has. Is it really:
10% Roths
10% 403(b)
80% joint taxable accounts
??

While REITs have done well this year, you may wish to avoid taxes on them. You can contribute all shares to a donor-advised charitable fund.
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Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: Could you review my portfolio?

Post by Johm221122 »

You should use asking portfolio question link, it is hard to understand
http://www.bogleheads.org/forum/viewtop ... f=1&t=6212
Topic Author
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Re: Could you review my portfolio?

Post by igghy »

They are all individual accounts. I just combined them since we file taxes jointly. In many cases, they duplicate each other.

I did follow the link about asking questions. Just crossed out a few items that I thought didn't apply to me. I am sorry it is hard to understand.
livesoft
Posts: 86076
Joined: Thu Mar 01, 2007 7:00 pm

Re: Could you review my portfolio?

Post by livesoft »

OK, if you could start from scratch without any tax consequences, what would your desired portfolio look like today?

Maybe just 4 funds?
35% TotalStockMarket
15% TotalInt'lStockMarket
20% TotalBondMarket
30% TaxExemptBondMarket

without more info, what else could one say?
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Topic Author
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Re: Could you review my portfolio?

Post by igghy »

livesoft wrote:OK, if you could start from scratch without any tax consequences, what would your desired portfolio look like today?

Maybe just 4 funds?
35% TotalStockMarket
15% TotalInt'lStockMarket
20% TotalBondMarket
30% TaxExemptBondMarket

without more info, what else could one say?
That sound good to me. Not sure how to get there.
Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: Could you review my portfolio?

Post by Johm221122 »

igghy wrote:
livesoft wrote:OK, if you could start from scratch without any tax consequences, what would your desired portfolio look like today?

Maybe just 4 funds?
35% TotalStockMarket
15% TotalInt'lStockMarket
20% TotalBondMarket
30% TaxExemptBondMarket

without more info, what else could one say?
That sound good to me. Not sure how to get there.
Which funds have big capital gains? Losses?any that have none or little sell now and buy what you want.Try to match gains with loses and sell
Topic Author
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Re: Could you review my portfolio?

Post by igghy »

I already sold what I could. What's left have gains except commodities. If I sell commodities with losses, i can use the losses to cancel gains from selling REITs or one or two other funds. That still leaves me with funds in each class. I could keep them and try to emulate index funds as well as I can. Since I own emerging market funds, I could buy developed market funds to mirror Total International market. I think i am better off in large cap with S&P index, VIGRX, DODGX and VTSMX. Do the same for mid-cap and small-cap or leave them as is that will tilt to mid-value/small value? Would that work? That would be 20% large cap, 5% mid-cap, 5% mid-value, 5% small cap.
livesoft wrote:It is unclear to me what kind of accounts the OP currently has. Is it really:
10% Roths
10% 403(b)
80% joint taxable accounts
??

While REITs have done well this year, you may wish to avoid taxes on them. You can contribute all shares to a donor-advised charitable fund.
Yes, there two Roths accounts, two 403's and two taxable accounts, 10% roth total, 10% 403 combined, and 80% taxable. What would be a better way to avoid taxes on REITs? Move them to Roth or sell them?
livesoft
Posts: 86076
Joined: Thu Mar 01, 2007 7:00 pm

Re: Could you review my portfolio?

Post by livesoft »

Give the REITs away to charity if they have long-term gains. That would avoid taxes on them and give you a tax deduction.
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Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: Could you review my portfolio?

Post by Johm221122 »

Any combination your happy with will work, but the simpler the better. Without numbers it is hard to tell.If you post numbers some people are really good at this. I'm not that good
Good luck
John
Topic Author
igghy
Posts: 61
Joined: Sun May 20, 2012 7:13 am

Re: Could you review my portfolio?

Post by igghy »

Do you mean dollar amounts?
Johm221122
Posts: 6393
Joined: Fri May 13, 2011 6:27 pm

Re: Could you review my portfolio?

Post by Johm221122 »

igghy wrote:Do you mean dollar amounts?
If you want someone (probably not me,I'm not that good) to give you best answer yes(you can round or be close)
http://www.bogleheads.org/forum/viewtop ... f=1&t=6212
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