Portfolio Help

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Mauricegreg
Posts: 13
Joined: Sun Sep 01, 2013 5:49 pm

Portfolio Help

Post by Mauricegreg » Sun Sep 01, 2013 6:13 pm

Goal: Save for retirement. I am 53 and want to retire at 65. My asset mix target is 60/40. I live in California and I am in the highest tax bracket.

I have a rather simple portfolio. In the wife and I IRA, I have one fund for each of our accounts:
1. Vanguard Balanced Index Admiral Class.

In my taxable account, I have three funds all Admiral Class:
1. Vanguard Total Stock Index (40%)
2. Vanguard Total International (20%)
3. Vanguard California Intermediate (40%)

In my 401(k) and Deferred Compensation Plan (two different accounts), I have one fund in each of them:
1. Northern Trust 500 Index Fund

I dollar cost average every pay period into my three taxable funds and into my 401(k) and Deferred Compensation Plan. My taxable account in the aggregate is larger than my non-taxable accounts and will remain so given stock options. My only concern was the lack of small cap exposure and whether a the Tax Managed International is a better choice than Total International Index.

Grt2bOutdoors
Posts: 16967
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Portfolio Help

Post by Grt2bOutdoors » Sun Sep 01, 2013 8:13 pm

Hello and welcome to the forum!

You have a nice portfolio, low cost, highly diversified and easy to manage.
The portfolio does have small cap exposure through Total Stock Market Index (about 10% small cap). Are you contemplating adding more and are asking what fund to use for it?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Mauricegreg
Posts: 13
Joined: Sun Sep 01, 2013 5:49 pm

Re: Portfolio Help

Post by Mauricegreg » Sun Sep 01, 2013 8:16 pm

I was wondering if I should add a small cap. If I did, I would possibly add Tax Managed Small Cap

Grt2bOutdoors
Posts: 16967
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Portfolio Help

Post by Grt2bOutdoors » Sun Sep 01, 2013 8:22 pm

Mauricegreg wrote:I was wondering if I should add a small cap. If I did, I would possibly add Tax Managed Small Cap


You didn't list the percentage each of your holdings represent as a percentage of total portfolio, so unable to calculate what your small cap exposure as percentage of equities is today.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Mauricegreg
Posts: 13
Joined: Sun Sep 01, 2013 5:49 pm

Re: Portfolio Help

Post by Mauricegreg » Sun Sep 01, 2013 9:46 pm

Balanced Index 42%
Total Stock Index 15%
California Muni 15%
Northern Trust Index 16%
Total International 12%

Grt2bOutdoors
Posts: 16967
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Portfolio Help

Post by Grt2bOutdoors » Sun Sep 01, 2013 10:08 pm

Mauricegreg wrote:Balanced Index 42%
Total Stock Index 15%
California Muni 15%
Northern Trust Index 16%
Total International 12%


Morningstar shows your current stats as: 25 26 26
6 6 6
2 2 2

The Total Stock Market Index is: 23 25 24
6 6 7
3 3 3

You could add some Tax Mgd Small Cap, if you wish to get closer to VTSAX - not sure what that amount would be in percentage, though.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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