Portfolio sanity check please

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Topic Author
grossbg
Posts: 12
Joined: Wed Apr 10, 2013 5:26 pm

Portfolio sanity check please

Post by grossbg »

I've been a member of this site for a few years now and follow the forum daily. I know this goes against the Boglehead 3 fund philosophy and I don't own my age in bonds but I feel like 100% stocks is right in my situation being young. Me and my wife look at our retirement accounts as untouchable and I just don't see the need for any bonds. I dollar cost average the Roth TSP because it comes straight out of my paycheck but usually end up lump summing into the IRA's with our tax refund and my reenlistment bouses. I figure I get the retirement accounts booming while I'm young and then maybe later I can worry about paying off the mortgage and SOME of kids college debt(if they bust their little butts, work hard and graduate in a timely matter). Please beat me up and tell me where I'm wrong.


Age: 28
Debt: 30 year fixed @ 3.75% $218,000
Emergency/ savings : 3 months (high demand military job that won't get cut so I don't see a need for 6 months)
Income after taxes: $74,508
Usually 15% tax bracket because I deploy each year

His Roth IRA:
500 index admiral shares: $65,615 (contribute with reenlistment bonuses and tax refund)

Her Roth IRA:
500 index admiral shares: $42,017 (contribute with reenlistment bonuses and tax refund)

His Roth TSP: (contribute $1,458 monthly to max the allowed 17,500)
C fund(500 index): $39,526
Stan Dup
Posts: 776
Joined: Fri May 10, 2013 10:25 am

Re: Portfolio sanity check please

Post by Stan Dup »

What are the expense ratios of the funds?

If you have them at Vanguard, you would be better off in their Total Market Fund instead of just the 500 fund. More diversity.
"The tyranny of compounding expenses is the eighth deadly sin." - George Sisti
Topic Author
grossbg
Posts: 12
Joined: Wed Apr 10, 2013 5:26 pm

Re: Portfolio sanity check please

Post by grossbg »

Vanguard 500 index admiral shares (VFIAX) expense ratio: .05%
TSP C fund expense ratio: .029%
trueblueky
Posts: 2365
Joined: Tue May 27, 2014 3:50 pm

Re: Portfolio sanity check please

Post by trueblueky »

If you want to be 100% in stocks, recommend your TSP include 75-80% C and 20-25% S to reflect their portion of the U.S. stock market. Right now, your money is all on large US stocks. Recommend you also consider adding I Fund (international) as a piece of your portfolio.
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MN-Investor
Posts: 560
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Location: Twin Cities

Re: Portfolio sanity check please

Post by MN-Investor »

What is your 3 month emergency fund invested in? Not stock, I assume.
The key to success - Save early, save often, invest well.
Topic Author
grossbg
Posts: 12
Joined: Wed Apr 10, 2013 5:26 pm

Re: Portfolio sanity check please

Post by grossbg »

Emergency fund is in USAA money market
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Zeppcoustic
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Location: South Texas

Re: Portfolio sanity check please

Post by Zeppcoustic »

Plan sounds reasonable to me
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midareff
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Location: Biscayne Bay, South Florida

Re: Portfolio sanity check please

Post by midareff »

trueblueky wrote:If you want to be 100% in stocks, recommend your TSP include 75-80% C and 20-25% S to reflect their portion of the U.S. stock market. Right now, your money is all on large US stocks. Recommend you also consider adding I Fund (international) as a piece of your portfolio.

+1 .. My thinking is more along these lines to diversify equity risk into more market segments, although the S&P500 by itself is not a problem either. At age 28 you can be extremely aggressive but keep in mind there have been extended period when bonds outperformed equities. Knowing what I know now if I wanted to be extremely aggressive I would still keep no less than 10% to 25% in intermediate term treasuries as opportunity money for when the market's black swan comes to visit.
Topic Author
grossbg
Posts: 12
Joined: Wed Apr 10, 2013 5:26 pm

Re: Portfolio sanity check please

Post by grossbg »

Ok finally made up my mind. Portfolio is as follows...

Roth IRA's : 90% Total stock market index admiral /10% Total international stock index admiral

TSP: 70% C / 20% S / 10% I

Does the equities in my 70 C / 20 S / 10 I TSP allocation represent the total stock market well or am I overweight anywhere when comparing my 2 fund 90 TSM /10 TIS Roth allocation?
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