Requesting help with portfolio restructuring

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BaseballOnTheRadio
Posts: 14
Joined: Thu Mar 28, 2013 2:24 pm

Requesting help with portfolio restructuring

Post by BaseballOnTheRadio » Thu Mar 28, 2013 3:13 pm

Hi Everyone,

New to the site but somewhat familiar with the basic concepts of the Bogle philosophy. I'd like to simplify and improve my portfolio along those lines. Hopefully this is formatted right.

EMERGENCY FUNDS: 45K, 0.8% APY
DEBT: Spouse's graduate student loans, 34K, 6.55% fixed. One car loan: $5,900, 2.49% fixed.
Tax Filing Status: Married, one child age ~2
Tax Rate: 25% federal, might be able to push it down to 15% level this year, I'm right on the bubble with our AGI. 8% state
State of Residence: CA
Age: 34, wife is 33
Desired Asset allocation: 65-70% stocks / 30-35% bonds (I have a question about this below)
Desired International allocation: 30% of stocks

Current size of portfolio: 100K

Current retirement assets

Taxable - $0

His 403B
Fidelity Global Balanced - 27% of total (I know this is not a Bogleish one, I am looking to switch out of it)
No employer match

His Roth IRA
Vanguard Wellington Fund - 28% of total (0.25% ER)

His Traditional IRA
In a money market, waiting to figure out what fund to put in to - 10% of total

Her Traditional IRA
T. Rowe Price Retirement 2040 - 17% of total (0.78%)

Remainder of Portfolio:
1) Spouse profit sharing plan - no control over investment, but it seems to be conservatively invested based upon the statements we've received in the past. She has no other employer retirement plan.
2) My pension - Yep, I'm one of those last remaining folks in a defined benefit plan. Here is the current status:

At the end of the year, I will vest in and it will be worth a cashout value of ~$88,000 or ~$600 a month if I retire at 65 (I can retire earlier or later). I don't know exactly how it curves with additional years of service, but right after vesting it seems like it goes up by about $15 per month and $1,200 in cashout value at 65 for each additional month I work. I'm guessing I won't log more than 7 years with the employer, which would make it worth $844/mo or $123,000 in lump sum...but you never know, it could be more. Right now I have about a $225 mandatory paycheck withholding as an employee contribution to the pension. If I worked here until I was 55 I could cash out of the pension with $2,100/mo for the rest of my life and have enough of a cushion to go pursue a second career in something else, that has appeal too. So bottom line, I'm not sure how the pension will shake out in terms of its impact on the total retirement portfolio.

Contributions

New annual Contributions (this is our current contribution rate, I'm not sure if we'll be able to sustain it but we're trying)
$17,500 to his 403B
$5,500 to his Roth IRA
$5,500 to her Traditional IRA
$0 to taxable

Available funds in his 403B (get ready, there are a bunch)

FID FIFTY (FFTYX) 09/17/1993 Stock Investments Large Cap Growth 0.94%
FID FOCUSED STOCK (FTQGX) 11/12/1996 Stock Investments Large Cap Growth 0.93%
FID LARGE CAP GROWTH (FSLGX) 11/15/2001 Stock Investments Large Cap Growth 0.88%
FID LC GRO ENH INDX (FLGEX) 04/19/2007 Stock Investments Large Cap Growth 0.47%
FID NASDAQ COMP INDX (FNCMX) 09/25/2003 Stock Investments Large Cap Growth 0.58%
FID NEW MILLEN (FMILX) 12/28/1992 Stock Investments Large Cap Growth 0.96%
FID SEL CONS DISCR (FSCPX) 06/29/1990 Stock Investments Large Cap Growth 0.89%
FID SEL LEISURE (FDLSX) 05/08/1984 Stock Investments Large Cap Growth 0.86%
FID SEL RETAILING (FSRPX) 12/16/1985 Stock Investments Large Cap Growth 0.90%
FID TREND (FTRNX) 06/16/1958 Stock Investments Large Cap Growth 0.89%
FID 130/30 LG CAP (FOTTX) 03/31/2008 Stock Investments Large Cap Blend 2.52%
FID FOUR IN ONE IDX (FFNOX) 06/29/1999 Stock Investments Large Cap Blend 0.23%
FID LARGE CAP STOCK (FLCSX) 06/22/1995 Stock Investments Large Cap Blend 1.03%
FID LC CORE ENH INDX (FLCEX) 04/19/2007 Stock Investments Large Cap Blend 0.46%
FID MEGA CAP STOCK (FGRTX) 12/28/1998 Stock Investments Large Cap Blend 0.76%
FID SEL CONS STAPLES (FDFAX) 07/29/1985 Stock Investments Large Cap Blend 0.83%
FID SEL INDUST EQUIP (FSCGX) 09/29/1986 Stock Investments Large Cap Blend 0.84%
FID SEL INDUSTRIALS (FCYIX) 03/03/1997 Stock Investments Large Cap Blend 0.87%
FID BLUE CHIP VALUE (FBCVX) 06/17/2003 Stock Investments Large Cap Value 0.77%
FID LC VAL ENH INDX (FLVEX) 04/19/2007 Stock Investments Large Cap Value 0.47%
FID STKSEL LGCAP VAL (FSLVX) 11/15/2001 Stock Investments Large Cap Value 0.57%
FID MID CAP ENH INDX (FMEIX) 12/20/2007 Stock Investments Mid-Cap Blend 0.63%
FID SEL AIR TRANSPRT (FSAIX) 12/16/1985 Stock Investments Mid-Cap Blend 0.96%
FID SEL DEFENSE (FSDAX) 05/08/1984 Stock Investments Mid-Cap Blend 0.86%
FID SEL TRANSPORT (FSRFX) 09/29/1986 Stock Investments Mid-Cap Blend 0.88%
FID MID CAP VALUE (FSMVX) 11/15/2001 Stock Investments Mid-Cap Value 0.88%
FID SMALL CAP GROWTH (FCPGX) 11/03/2004 Stock Investments Small Cap Growth 1.03%
FID SM CAP DISCOVERY (FSCRX) 09/26/2000 Stock Investments Small Cap Blend 1.07%
FID SM CAP ENH INDX (FCPEX) 12/20/2007 Stock Investments Small Cap Blend 0.76%
FID SMALL CAP STOCK (FSLCX) 03/12/1998 Stock Investments Small Cap Blend 1.12%
FID STK SEL SM CAP (FDSCX) 06/28/1993 Stock Investments Small Cap Blend 1.07%
FID SMALL CAP VALUE (FCPVX) 11/03/2004 Stock Investments Small Cap Value 1.13%
FID WORLDWIDE (FWWFX) 05/30/1990 Stock Investments World 1.11%
FID CANADA (FICDX) 11/17/1987 Stock Investments Foreign 0.77%
FID INTL CAP APPREC (FIVFX) 11/01/1994 Stock Investments Foreign 1.22%
FID INTL ENH INDEX (FIENX) 12/20/2007 Stock Investments Foreign 0.63%
FID INTL GROWTH (FIGFX) 11/01/2007 Stock Investments Foreign 1.28%
FID INTL SM CAP OPP (FSCOX) 08/02/2005 Stock Investments Foreign 1.47%
FID INTL VALUE (FIVLX) 05/18/2006 Stock Investments Foreign 1.13%
FID TOTAL INTL EQ (FTIEX) 11/01/2007 Stock Investments Foreign 1.16%
FID EMEA (FEMEX) 05/08/2008 Stock Investments Diversfd Emerging Mkts 1.37%
FID PACIFIC BASIN (FPBFX) 10/01/1986 Stock Investments Diversfd Pacific/Asia 1.28%
FID EUROPE (FIEUX) 10/01/1986 Stock Investments Europe 0.83%
FID EUROPE CAP APP (FECAX) 12/21/1993 Stock Investments Europe 0.95%
FID NORDIC (FNORX) 11/01/1995 Stock Investments Europe 1.08%
FID JAPAN (FJPNX) 09/15/1992 Stock Investments Japan 1.09%
FID JAPAN SMALL CO (FJSCX) 11/01/1995 Stock Investments Japan 1.05%
FID LATIN AMERICA (FLATX) 04/19/1993 Stock Investments Latin America 1.02%
FID CHINA REGION (FHKCX) 11/01/1995 Stock Investments Pacific/Asia ex-Japan 1.04%
FID EMERGING ASIA (FSEAX) 04/19/1993 Stock Investments Pacific/Asia ex-Japan 0.94%
FID INTL REAL ESTATE (FIREX) 09/08/2004 Stock Investments Specialty 1.19%
FID REAL ESTATE INC (FRIFX) 02/04/2003 Stock Investments Specialty 0.90%
FID REAL ESTATE INVS (FRESX) 11/17/1986 Stock Investments Specialty 0.84%
FID SEL AUTOMOTIVE (FSAVX) 06/30/1986 Stock Investments Specialty 0.90%
FID SEL BANKING (FSRBX) 06/30/1986 Stock Investments Specialty 0.88%
FID SEL BIOTECH (FBIOX) 12/16/1985 Stock Investments Specialty 0.83%
FID SEL BROKERAGE (FSLBX) 07/29/1985 Stock Investments Specialty 1.52%
FID SEL CHEMICALS (FSCHX) 07/29/1985 Stock Investments Specialty 0.85%
FID SEL COMM EQUIP (FSDCX) 06/29/1990 Stock Investments Specialty 0.90%
FID SEL COMPUTERS (FDCPX) 07/29/1985 Stock Investments Specialty 0.86%
FID SEL CONSTR/HOUSE (FSHOX) 09/29/1986 Stock Investments Specialty 0.96%
FID SEL CONSUMER FIN (FSVLX) 12/16/1985 Stock Investments Specialty 0.95%
FID SEL ELECTRONICS (FSELX) 07/29/1985 Stock Investments Specialty 0.84%
FID SEL ENERGY (FSENX) 07/14/1981 Stock Investments Specialty 0.83%
FID SEL ENERGY SVCS (FSESX) 12/16/1985 Stock Investments Specialty 0.82%
FID SEL ENV ALT ENGY (FSLEX) 06/29/1989 Stock Investments Specialty 1.01%
FID SEL FINANCIAL (FIDSX) 12/10/1981 Stock Investments Specialty 0.90%
FID SEL GOLD (FSAGX) 12/16/1985 Stock Investments Specialty 0.90%
FID SEL HEALTHCARE (FSPHX) 07/14/1981 Stock Investments Specialty 0.80%
FID SEL INSURANCE (FSPCX) 12/16/1985 Stock Investments Specialty 0.89%
FID SEL IT SERVICES (FBSOX) 02/04/1998 Stock Investments Specialty 0.91%
FID SEL MATERIALS (FSDPX) 09/29/1986 Stock Investments Specialty 0.85%
FID SEL MED EQ & SYS (FSMEX) 04/28/1998 Stock Investments Specialty 0.84%
FID SEL MEDICAL DEL (FSHCX) 06/30/1986 Stock Investments Specialty 0.86%
FID SEL MULTIMEDIA (FBMPX) 06/30/1986 Stock Investments Specialty 0.90%
FID SEL NATURAL GAS (FSNGX) 04/21/1993 Stock Investments Specialty 0.86%
FID SEL NATURAL RES (FNARX) 03/03/1997 Stock Investments Specialty 0.84%
FID SEL PHARMACEUTCL (FPHAX) 06/18/2001 Stock Investments Specialty 0.89%
FID SEL SOFTWARE (FSCSX) 07/29/1985 Stock Investments Specialty 0.82%
FID SEL TECHNOLOGY (FSPTX) 07/14/1981 Stock Investments Specialty 0.82%
FID SEL TELECOMM (FSTCX) 07/29/1985 Stock Investments Specialty 0.90%
FID SEL UTILITIES (FSUTX) 12/10/1981 Stock Investments Specialty 0.86%
FID SEL WIRELESS (FWRLX) 09/21/2000 Stock Investments Specialty 0.90%
FID TELECOM & UTIL (FIUIX) 11/27/1987 Stock Investments Specialty 0.75%
FID ASSET MGR 20% (FASIX) 10/01/1992 Blended Investments* Asset Allocation 0.54%
FID ASSET MGR 30% (FTANX) 10/09/2007 Blended Investments* Asset Allocation 0.59%
FID ASSET MGR 40% (FFANX) 10/09/2007 Blended Investments* Asset Allocation 0.59%
FID ASSET MGR 50% (FASMX) 12/28/1988 Blended Investments* Asset Allocation 0.70%
FID ASSET MGR 60% (FSANX) 10/09/2007 Blended Investments* Asset Allocation 0.78%
FID ASSET MGR 70% (FASGX) 12/30/1991 Blended Investments* Asset Allocation 0.77%
FID STRAT REAL RET (FSRRX) 09/07/2005 Blended Investments* Asset Allocation 0.75%
FID GLOBAL BALANCED (FGBLX) 02/01/1993 Blended Investments* World 1.04%
FID GLOBAL STRAT (FDYSX) 10/31/2007 Blended Investments* World 1.21%
FID CONVERTIBLE SEC (FCVSX) 01/05/1987 Blended Investments* Convertibles 0.76%
FID ASSET MGR 85% (FAMRX) 09/24/1999 Blended Investments* Large Cap Growth 0.82%
FID STRAT DIV & INC (FSDIX) 12/23/2003 Blended Investments* Large Cap Value 0.81%
FID GNMA (FGMNX) 11/08/1985 Bond Investments Intermed Government 0.45%
FID INTM GOVT INCOME (FSTGX) 05/02/1988 Bond Investments Intermed Government 0.45%
FIDELITY GOVT INCOME (FGOVX) 04/04/1979 Bond Investments Intermed Government 0.45%
FID INFLAT PROT BOND (FINPX) 06/26/2002 Bond Investments Short Government 0.45%
FID INST SH INT GOVT (FFXSX) 11/10/1986 Bond Investments Short Government 0.45%
FID INTERMED BOND (FTHRX) 05/23/1975 Bond Investments Intermediate-Term 0.45%
FID INVST GR BD (FBNDX) 08/06/1971 Bond Investments Intermediate-Term 0.45%
FID MORTGAGE SEC (FMSFX) 12/31/1984 Bond Investments Intermediate-Term 0.45%
FID TOTAL BOND (FTBFX) 10/15/2002 Bond Investments Intermediate-Term 0.45%
FID SHORT TERM BOND (FSHBX) 09/15/1986 Bond Investments Short-Term 0.45%
FID ULTRASHORT BOND (FUSFX) 08/29/2002 Bond Investments Ultrashort 0.45%
FID CAPITAL & INCOME (FAGIX) 11/01/1977 Bond Investments High-Yield 0.77%
FID FLOAT RT HI INC (FFRHX) 08/16/2000 Bond Investments High-Yield 0.71%
FID FOCUSED HIGH INC (FHIFX) 09/08/2004 Bond Investments High-Yield 0.82%
FID HIGH INCOME (SPHIX) 08/29/1990 Bond Investments High-Yield 0.76%
FID STRATEGIC INCOME (FSICX) 05/01/1998 Bond Investments Multisector 0.70%
FID NEW MARKETS INC (FNMIX) 05/04/1993 Bond Investments Emerging Markets 0.87%
CALVERT MONEY MKT A (CSIXX) 10/21/1982 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.84%
FID CASH RESRVE (FDRXX) 05/10/1979 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.38%
FID GOVT MMKT (SPAXX) 02/05/1990 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.42%
FID MONEY MARKET (SPRXX) 01/23/1989 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.42%
FID RET GOVT MM (FGMXX) 12/16/1988 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.42%
FID RETIRE MMKT (FRTXX) 12/02/1988 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.42%
FID SEL MONEY MARKET (FSLXX) 08/30/1985 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.30%
FID US GOVT RES (FGRXX) 11/03/1981 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.32%
FID US TREA MM (FDLXX) 01/05/1988 7 day yield as of 02/28/2013   0.01% Short-Term Investments N/A 0.42%
VANG FTSE SOC IDX IS (VFTNX) 01/14/2003 Stock Investments Large Cap Growth 0.16%
VANG SM CAP IDX INST (VSCIX) 07/07/1997 Stock Investments Small Cap Blend 0.08%
DFA EMERGING MARKETS (DFEMX) 04/25/1994 Stock Investments Diversfd Emerging Mkts 0.61%
VANG REIT IDX INST (VGSNX) 12/02/2003 Stock Investments Specialty 0.08%
DREY TR PRIME CASH I (DIRXX) 12/27/1988 7 day yield as of 02/28/2013   0.00% Short-Term Investments N/A 0.22%
CALVERT EQUITY I (CEYIX) 11/01/1999 Stock Investments Large Cap Growth 0.68%
CALVERT SOC INDEX I (CISIX) 06/30/2000 Stock Investments Large Cap Growth 0.51%
FID BLUE CHIP GR K (FBGKX) 12/31/1987 Stock Investments Large Cap Growth 0.74%
FID CONTRAFUND K (FCNKX) 05/17/1967 Stock Investments Large Cap Growth 0.63%
FID EXPORT & MULTI K (FEXKX) 10/04/1994 Stock Investments Large Cap Growth 0.65%
FID FUND K (FFDKX) 04/30/1930 Stock Investments Large Cap Growth 0.43%
FID GROWTH CO K (FGCKX) 01/17/1983 Stock Investments Large Cap Growth 0.77%
FID GROWTH DISC K (FGDKX) 03/31/1998 Stock Investments Large Cap Growth 0.64%
FID INDEPENDENCE K (FDFKX) 03/25/1983 Stock Investments Large Cap Growth 0.66%
FID MAGELLAN K (FMGKX) 05/02/1963 Stock Investments Large Cap Growth 0.43%
FID OTC K (FOCKX) 12/31/1984 Stock Investments Large Cap Growth 0.77%
FID STK SEL ALL CP K (FSSKX) 09/28/1990 Stock Investments Large Cap Growth 0.61%
CALV LG CAP CORE I (CMIIX) 04/15/1998 Stock Investments Large Cap Blend 0.87%
FID CAP APPREC K (FCAKX) 11/26/1986 Stock Investments Large Cap Blend 0.81%
FID DISCIPLND EQ K (FDEKX) 12/28/1988 Stock Investments Large Cap Blend 0.39%
FID DIVIDEND GR K (FDGKX) 04/27/1993 Stock Investments Large Cap Blend 0.77%
FID GROWTH & INC K (FGIKX) 12/30/1985 Stock Investments Large Cap Blend 0.54%
FID VALUE DISCOV K (FVDKX) 12/10/2002 Stock Investments Large Cap Blend 0.68%
SPTN 500 INDEX INST (FXSIX) 02/17/1988 Stock Investments Large Cap Blend 0.05%
SPTN TOT MKT IDX INS (FSKTX) 11/05/1997 Stock Investments Large Cap Blend 0.07%
FID EQ DIV INCOME K (FETKX) 08/21/1990 Stock Investments Large Cap Value 0.54%
FID EQUITY INCOME K (FEIKX) 05/16/1966 Stock Investments Large Cap Value 0.53%
CALVERT CAP ACC I (CCPIX) 02/26/1999 Stock Investments Mid-Cap Growth 0.88%
FID GROWTH STRAT K (FAGKX) 12/28/1990 Stock Investments Mid-Cap Growth 0.48%
FID MID CAP STOCK K (FKMCX) 03/29/1994 Stock Investments Mid-Cap Growth 0.69%
FID STK SEL MID CAP (FSSMX) 02/20/1996 Stock Investments Mid-Cap Growth 0.59%
FID LEVERGD CO STK K (FLCKX) 12/19/2000 Stock Investments Mid-Cap Blend 0.69%
FID LOW PRICED STK K (FLPKX) 12/27/1989 Stock Investments Mid-Cap Blend 0.76%
FID VALUE STRAT K (FVSKX) 12/31/1983 Stock Investments Mid-Cap Blend 0.71%
SPTN EXT MKT IDX ADV (FSEVX) 11/05/1997 Stock Investments Mid-Cap Blend 0.07%
SPTN MID CAP IDX ADV (FSCKX) 09/08/2011 Stock Investments Mid-Cap Blend 0.22%
FID VALUE K (FVLKX) 12/01/1978 Stock Investments Mid-Cap Value 0.54%
CALVERT SMALL CAP I (CSVIX) 04/29/2005 Stock Investments Small Cap Blend 1.03%
SPTN SM CAP IDX ADV (FSSVX) 09/08/2011 Stock Investments Small Cap Blend 0.30%
CALVERT INTL EQ I (CWVIX) 02/26/1999 Stock Investments Foreign 1.11%
FID DIVERSIFD INTL K (FDIKX) 12/27/1991 Stock Investments Foreign 0.84%
FID INTL DISCOVERY K (FIDKX) 12/31/1986 Stock Investments Foreign 0.84%
FID INTL SMALL CAP (FISMX) 09/18/2002 Stock Investments Foreign 1.36%
FID OVERSEAS K (FOSKX) 12/04/1984 Stock Investments Foreign 0.51%
SPTN GLB XUS IDX ADV (FSGDX) 09/08/2011 Stock Investments Foreign 0.28%
SPTN INTL INDEX INS (FSPNX) 11/05/1997 Stock Investments Foreign 0.10%
FID EMERGING MKTS K (FKEMX) 11/01/1990 Stock Investments Diversfd Emerging Mkts 0.87%
SPTN EM MKTS IDX ADV (FPMAX) 09/08/2011 Stock Investments Diversfd Emerging Mkts 0.35%
FID GLB COMDTY STK (FFGCX) 03/25/2009 Stock Investments Specialty 1.10%
SPTN REAL ES IDX ADV (FSRVX) 09/08/2011 Stock Investments Specialty 0.20%
CALVERT BALANCED I (CBAIX) 02/26/1999 Stock Investments Asset Allocation 0.85%
FID BALANCED K (FBAKX) 11/06/1986 Blended Investments* Asset Allocation 0.48%
FID FREEDOM K 2000 (FFKBX) 07/02/2009 Blended Investments* Asset Allocation 0.39%
FID FREEDOM K 2005 (FFKVX) 07/02/2009 Blended Investments* Asset Allocation 0.46%
FID FREEDOM K 2010 (FFKCX) 07/02/2009 Blended Investments* Asset Allocation 0.50%
FID FREEDOM K 2015 (FKVFX) 07/02/2009 Blended Investments* Asset Allocation 0.51%
FID FREEDOM K 2020 (FFKDX) 07/02/2009 Blended Investments* Asset Allocation 0.54%
FID FREEDOM K 2025 (FKTWX) 07/02/2009 Blended Investments* Asset Allocation 0.58%
FID FREEDOM K 2030 (FFKEX) 07/02/2009 Blended Investments* Asset Allocation 0.59%
FID FREEDOM K 2035 (FKTHX) 07/02/2009 Blended Investments* Asset Allocation 0.62%
FID FREEDOM K 2040 (FFKFX) 07/02/2009 Blended Investments* Asset Allocation 0.62%
FID FREEDOM K 2045 (FFKGX) 07/02/2009 Blended Investments* Asset Allocation 0.63%
FID FREEDOM K 2050 (FFKHX) 07/02/2009 Blended Investments* Asset Allocation 0.64%
FID FREEDOM K INCOME (FFKAX) 07/02/2009 Blended Investments* Asset Allocation 0.39%
FID PURITAN K (FPUKX) 04/16/1947 Blended Investments* Asset Allocation 0.48%
SPTN LT TR IDX ADV (FLBAX) 12/20/2005 Bond Investments Long Government 0.10%
SPTN INT TR IDX ADV (FIBAX) 12/20/2005 Bond Investments Intermed Government 0.10%
SPTN ST TR IDX ADV (FSBAX) 12/20/2005 Bond Investments Short Government 0.10%
CALVERT BOND I (CBDIX) 03/31/2000 Bond Investments Intermediate-Term 0.56%
FID CORPORATE BOND (FCBFX) 05/04/2010 Bond Investments Intermediate-Term 0.45%
SPTN US BOND IDX IS (FXSTX) 03/08/1990 Bond Investments Intermediate-Term 0.07%
FID CONSV INC BD (FCONX) 03/03/2011 Bond Investments Ultrashort 0.40%
FID GLB HIGH INCOME (FGHNX) 05/11/2011 Bond Investments High-Yield 1.07%


Questions:
1. I know that a lot of people will probably tell me to pay down the graduate school debt as soon as possible since it's a high fixed interest rate. My hesitation in doing that is that I'd like accumulate additional cash in the short term so that we can buy a house (would like to accumulate another $20k in cash savings), and I don't want to drastically reduce retirement contributions because I feel like we're a bit behind for our mid 30s. Is that a terrible plan?

2. I would like to consolidate to a simple lazy portfolio of perhaps four funds. However, I have had Wellington for a very long time gradually accumulating in my Roth, and I'd like to keep it. I like the low ER for an actively managed fund with a good historic track record, I feel like the two thirds stock/one third bond balance is about right for my age, and I like the tilt toward US value. So I was thinking of leaving Wellington in my Roth and building out the remainder of the portfolio with four index funds with a roughly equivalent asset allocation. Is that a reasonable approach? I know it will muddy up the ability to get an exact percentage on asset classes a bit.

3. If I want to do some type of lazy four fund portfolio with Wellington on the side, what would you recommend given my 403B options above, as well as my need to park my traditional IRA somewhere and move my wife's tIRA in to something with a lower expense ratio?

Thanks very much for any and all suggestions, and I apologize for the long post.

BaseballOnTheRadio
Posts: 14
Joined: Thu Mar 28, 2013 2:24 pm

Re: Requesting help with portfolio restructuring

Post by BaseballOnTheRadio » Thu Mar 28, 2013 7:08 pm

Oh, forgot to add Q #4 as well: Should I be more aggressive with my AA since part of my retirement picture is a defined benefit plan? Or should I not let that factor in to the risk analysis until I have more years of service and it becomes a more sizable chunk of money? Thanks.

DaveS
Posts: 1308
Joined: Fri Jun 15, 2007 9:42 am
Location: Reno, NV

Re: Requesting help with portfolio restructuring

Post by DaveS » Fri Mar 29, 2013 12:24 am

For all that typing you deserve more response than you have been getting. Here are some general observations. You might consider the fact you have a defined benefit plan as making retirement less of a risk, so maybe you can afford to have less in bonds. I am kind of the reverse. I worry about the long term prospects of any company or govt. that still has a defined benefit plan after such plans devastated the steel and auto industries and some cities like Vallejo. I don't have a problem with your saving for the down payment before you pay down the debt. You could use half the emergency funds for the down payment on that house now while rates and prices are favorable. Just a thought. I did not look to closely at all the 403 options because so many are high cost. I am thinking your portfolio could just have the Spartan total market, Spartan International index, FID TIPS and Intermediate bond, and Vanguard small cap fund and Wellington. Your wife really should roll the IRA to Vanguard where she can get the same target retirement for about .5% less a year in costs. That .5% adds up to a lot of lost appreciation over 30 years. So using the FIDO and Vanguard funds a 4 fund plus Wellington might look like this. FIDO TIPS 10%, FIDO Intermediate Bond 20%, Vanguard Small Cap - preferably Small Value 10%, Spartan Total Market and Wellington 35%, Spartan International 25% The exact placement would vary with whether your going to roll the IRA's to Vanguard. Note that the percentages I mentioned are about the same as a 2040 target retirement. I would make the total market about equal to the amounts in Wellington which may mean shrinking the amount in Wellington for a while. Dave

User avatar
tyler_cracker
Posts: 309
Joined: Sat Dec 03, 2011 2:50 pm
Location: sending out the kicking team

Re: Requesting help with portfolio restructuring

Post by tyler_cracker » Fri Mar 29, 2013 1:06 am

hi botr! i'm kind of a noob but i'll take a crack at your questions.
BaseballOnTheRadio wrote:1. I know that a lot of people will probably tell me to pay down the graduate school debt as soon as possible since it's a high fixed interest rate. My hesitation in doing that is that I'd like accumulate additional cash in the short term so that we can buy a house (would like to accumulate another $20k in cash savings), and I don't want to drastically reduce retirement contributions because I feel like we're a bit behind for our mid 30s. Is that a terrible plan?
the tough love answer is that if you can't afford to both pay down the debt and save for a house, then you can't afford a house. one could also argue the wisdom of accruing more debt when you owe a third of your portfolio in student loans and have a growing mouth to feed.

that said, the happiness value of owning a home may outweigh the financial hit. especially if, say, one of you expects to advance in your career in the next few years and start earning more. or if a mortgage payment would be only a little more than you pay in rent.

personally, i'd probably split the difference: pay down some of the debt and save a few more months for the down payment.
2. I would like to consolidate to a simple lazy portfolio of perhaps four funds. However, I have had Wellington for a very long time gradually accumulating in my Roth, and I'd like to keep it. I like the low ER for an actively managed fund with a good historic track record, I feel like the two thirds stock/one third bond balance is about right for my age, and I like the tilt toward US value. So I was thinking of leaving Wellington in my Roth and building out the remainder of the portfolio with four index funds with a roughly equivalent asset allocation. Is that a reasonable approach? I know it will muddy up the ability to get an exact percentage on asset classes a bit.
i don't think there's anything wrong with this plan, but if your stated goal is have a "simple lazy portfolio", then just owning four funds is simpler and lazier than trying to keep four funds in sync with a fifth fund.
3. If I want to do some type of lazy four fund portfolio with Wellington on the side, what would you recommend given my 403B options above, as well as my need to park my traditional IRA somewhere and move my wife's tIRA in to something with a lower expense ratio?
using these as two of the pillars seems like a slam dunk:
SPTN US BOND IDX IS (FXSTX) 03/08/1990 Bond Investments Intermediate-Term 0.07%
SPTN TOT MKT IDX INS (FSKTX) 11/05/1997 Stock Investments Large Cap Blend 0.07%
BaseballOnTheRadio wrote:Oh, forgot to add Q #4 as well: Should I be more aggressive with my AA since part of my retirement picture is a defined benefit plan? Or should I not let that factor in to the risk analysis until I have more years of service and it becomes a more sizable chunk of money? Thanks.
this is basically a risk tolerance question, so it's really up to you. one way to approach it might be to assign a conservative probability that you'll actually get the money in your pension, and add that percentage of your pension's value to the bond segment of your portfolio. it'll basically be a guess today, but as you stay with (or leave!) your current job and time goes on you'll have a better idea.

i would treat it like i do social security: assume it won't be there at all, then be pleasantly surprised if it's still there in 25 years and rejigger accordingly.

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Duckie
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Re: Requesting help with portfolio restructuring

Post by Duckie » Fri Mar 29, 2013 1:14 am

BaseballOnTheRadio, you want an AA of 65-70% stocks, 30-35% bonds, with 30% of stocks in international. I'll pick 70/30 just because of your ages. That breaks down to roughly 49% US stocks, 21% international stocks, and 30% bonds. Here are two possible retirement portfolios (with and without Wellington):

Portfolio #1

His 403b -- 33%
10% (FSKTX) Spartan Total Market Index Fund Institutional Class (0.07%)
0% (FSGDX) Spartan Global ex U.S. Index Fund Advantage Class (0.28%)
5% (FSRVX) Spartan Real Estate Index Fund Advantage Class (0.20%)
18% (FXSTX) Spartan U.S. Bond Index Fund Institutional Class (0.07%)

His Roth IRA at Vanguard -- 34%
34% (VWELX) Vanguard Wellington Fund Investor Shares (0.25%) <-- At 65% stocks, 35% bonds that breaks down to 22% US stocks, 12% bonds.)

His Traditional IRA at Vanguard -- 12%
12% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.06%)

Her Traditional IRA at Vanguard -- 21%
21% (VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.16%)

Portfolio #2

His 403b -- 33%
0% (FSKTX) Spartan Total Market Index Fund Institutional Class (0.07%)
0% (FSGDX) Spartan Global ex U.S. Index Fund Advantage Class (0.28%)
5% (FSRVX) Spartan Real Estate Index Fund Advantage Class (0.20%)
28% (FXSTX) Spartan U.S. Bond Index Fund Institutional Class (0.07%)

His Roth IRA at Vanguard -- 34%
13% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.06%)
21% (VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.16%)

His Traditional IRA at Vanguard -- 12%
12% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.06%)

Her Traditional IRA at Vanguard -- 21%
21% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.06%)

My comments:
-- Although they are assets, this ignores the $18K in the profit-sharing plan and pension because you have no control over them and cannot use them for rebalancing. The percentages are refigured.
-- This assumes by "four fund portfolio" you mean TSM, TISM, TBM, and REITs. Or do you mean TIPS not REITs? At your ages you don't really need TIPS yet. Actually you don't need a separate REIT fund either because they are already contained in TSM at the market weight.
-- Move Her TIRA to Vanguard for much cheaper options.
-- Do not be more aggressive with your AA because of the potential pension, at least not now. Lots of things can change.

Something to think about.

BaseballOnTheRadio
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Re: Requesting help with portfolio restructuring

Post by BaseballOnTheRadio » Fri Mar 29, 2013 7:09 pm

Thanks for the feedback everyone, I really appreciate it.

I will respond more to some other points raised in a bit, but on the subject of a pension...I totally get what you're saying. I too worry about the long term solvency and the fact that I don't get to control it like I do with my other investments.

That said, I feel like it's pretty solid as far as pensions go. I'm a UC employee (funny that I saw a couple of other UC posts in this thread when I signed up). Before I came to work there, the pension had these really absurd assumptions about what interest they would earn over the long haul. And as a consequence, they considered it "overfunded" and actually had a moratorium on contributions I believe, though I could be wrong. That frustrates a lot of people of my generation who came in later.

But I don't want to go off on a political tangent. Recently they reintroduced employee contributions. The UC pension system is allegedly a lot more solid than the Calpers system. I feel like if it does go south the most likely impact will simply be another increase in employer contributions. And that wouldn't be ideal, of course, but I don't worry as much about the pension not being there at all...I do worry that the cost/benefit may decrease thouh. Maybe I lack all the information but that's my assessment so far.

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