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CactusGuy
Posts: 12
Joined: Sat Feb 15, 2014 6:48 pm

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Post by CactusGuy » Sun Mar 02, 2014 12:24 pm

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Last edited by CactusGuy on Mon Apr 21, 2014 11:54 am, edited 1 time in total.

kerplunk
Posts: 772
Joined: Sun Apr 17, 2011 9:58 pm

Re: Novice Needs Help Creating Balanced Portfolio!

Post by kerplunk » Sun Mar 02, 2014 6:38 pm

This is the traditional Boglehead 3-fund, total market portfolio, using your parameters. (75/25 AA, 30% international stocks)


Adjust current portfolio to:

His 401k @ JP Morgan (42%)
25% BlackRock US Debt Index-T
17% Fidelity Spartan 500 Index-Adv

Her 401k @ Fidelity (11%)
11% VANGUARD INST INDEX

His Roth IRA @ Vanguard (11%)
11% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)

Her Roth IRA @ Vanguard (11%)
11% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)

Taxable @ Vanguard (25%)
18.9% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
5.6% Vanguard Extended Market Index Fund Admiral Shares (VEXAX)
0.5% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)


New contributions should be:

His 401k @ JP Morgan
$18,500 BlackRock US Debt Index-T
$7,000 Fidelity Spartan 500 Index-Adv

Her 401k @ Fidelity
$17,500 VANGUARD INST INDEX

His Roth IRA @ Vanguard
$5,500 Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)

Her Roth IRA @ Vanguard
$5,500 Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)

Taxable @ Vanguard
$9,450 Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
$5,650 Vanguard Total International Stock Index Fund Admiral Shares (VTIAX)
$4,900 Vanguard Extended Market Index Fund Admiral Shares (VEXAX)

(Assuming $20,000 is the new "Taxable" account contribution.)

Laura
Posts: 7973
Joined: Mon Feb 19, 2007 7:40 pm

Re: Novice Needs Help Creating Balanced Portfolio!

Post by Laura » Sun Mar 02, 2014 10:32 pm

kerplunk's recommendation is excellent. If you want to streamline a little further you can skip the extended market index in taxable. I prefer the Total Stock Market but if you compare a TSM fund to the S&P 500 they are almost identical.

Laura
The views presented are my own and not necessarily those of the Department of State or the U.S. Government.

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