Debt:
~12 k Autoloan @ 2%
~ 35k loan from relative @ 0%
Currently renting no mortgage
Tax Filing Status: Married Filing Jointly
Tax Rate: 33% Federal, 0% State
State of Residence: TN
Age: 31 his 32 her
Desired Asset allocation: 90% stocks / 10% bonds
Desired International allocation: 30% of stocks
Current portfolio
~ 13k
Current retirement assets
Taxable
None
His 401k
Currently none
His Roth IRA at Vanguard
75% Vanguard Target Date 2050 VFIFX 0.19%
Her 403b
25% small ~3k portfolio in target dated fund from old employer
We are leaving it there rather than rolling over to IRA to utilize back door IRA, no administrative fees with previous employer
Contributions
New annual Contributions
$18k his 401k (also specify any employer matching contributions)
Employer 1: 17.4k
Employer 2: 0.6k
$5.5k his Roth IRA (bak door)
$18 k his 457b (will plan to maximize it with goal of 18k, however, may be able to contribute less than that or none especially will start saving for house downpayment)
$5.5k her Roth IRA (back door)
$0 taxable (for retirement, not short term goals)
Available funds
( I work for two employers : major portion of my salary comes from Employer 1)
Employer 1 # 401k
Employer 2 #401k, 457b, ORP (optional retirement plan - 401a)
Funds available in his 401(k) - Employer 1 - (will contribute 17.4k to it)
(+0.20 annual account maintenance fees regardless of choice of fund)
- Wilmington/MetLife Stable Class 25 W3M5425 0.62
Prudential Total Return Bond Z PDBZX 0.58
DFA US Core Equity 1 DFEOX 0.19
Parnassus Core Equity Instl PRILX 0.67
Vanguard Total Stock Mkt Idx Adm VTSAX 0.05
Columbia Select Large Cap Growth UMLGX 0.65
Vanguard Selected Value Inv VASVX 0.44
ClearBridge Mid Cap Core IS SBMAX 1.25
Pioneer Select Mid Cap Growth Y GROYX 0.76
Vanguard Small Cap Value Index Admiral VSIAX 0.09
DFA US Small Cap I DFSTX 0.37
Hartford Small Cap Growth Y HSLIX 0.81
Hartford International Opportunities Y IHOIX 0.74
American Funds New World R6 RLLGX 0.65
(+0.25 annual account maintenance fees regardless of choice of fund)
- Vanguard institutional Target Retirement Income Inv Asset Allocation 0.1 VILVX
Vanguard institutional Target Retirement 2010 Inv Asset Allocation 0.1 VIRTX
Vanguard institutional Target Retirement 2015 Inv Asset Allocation 0.1 VITVX
Vanguard institutional Target Retirement 2020 Inv Asset Allocation 0.1 VITWX
Vanguard institutional Target Retirement 2025 Inv Asset Allocation 0.1 VRIVX
Vanguard institutional Target Retirement 2030 Inv Asset Allocation 0.1 VTTWX
Vanguard institutional Target Retirement 2035 Inv Asset Allocation 0.1 VITFX
Vanguard institutional Target Retirement 2040 Inv Asset Allocation 0.1 VIRSX
Vanguard institutional Target Retirement 2045 Inv Asset Allocation 0.1 VITLX
Vanguard institutional Target Retirement 2050 Inv Asset Allocation 0.1 VTRLX
Vanguard institutional Target Retirement 2055 Inv Asset Allocation 0.1 VIVLX
DFA International Value I International 0.43 DFIVX
Fidelity International Discovery International 0.91 FIGRX
Brown Capital Small Company Inv Small Cap 1.26 BCSIX
Invesco Van Kampen Small Cap Value Y Small Cap 0.89 VSMIX
Janus Enterprise Fund Mid Cap 0.71 JDMNX
Columbia Mid Cap Value Z Mid Cap 0.92 NAMAX
Allianz NFJ Large Cap Value Instl Large Cap 0.76 ANVIX
Fidelity Contrafund Large Cap 0.64 FCNTX
Fidelity OTC Portfolio Large Cap 0.83 FOCPX
Voya Growth and Income I Large Cap 0.58 IIVGX
Vanguard Institutional Index I Large Cap 0.04 VINIX
Fidelity Puritan Balanced 0.56 FPURX
Tennessee Treasury Managed Fund Balanced
Vanguard Total Bond Market Index Inst Bond 0.06 VBTIX
Western Asset Core Plus Bond IS Bond 0.43 WAPSX
Voya Fixed Fund Fixed
TD Ameritrade SDB Money Market Brokerage
TD Ameritrade SDB Securities Brokerage
(ORP has 3 provider choices: VALIC VOYA and TIAA - I can chose only one group and funds within that group)
(+0.25 annual account maintenance fees regardless of choice of fund)
VALIC
- American Funds EuroPacific Growth R6 RERGX 0.49
Vanguard Total Intl Stock Idx Institutional VTSNX 0.12
American Funds Capital World Growth and Income R6 RWIGX 0.44
Vanguard REIT Index Admiral VGSLX 0.12
Vanguard Small Cap Growth Index Inv VISGX 0.23
Vanguard Small Cap Index Admiral VSMAX 0.09
Vanguard Small Cap Value Index Inst VSIIX 0.08
Morgan Stanley Institutional Mid Cap Growth Portfolio MPEGX 0.75
Vanguard Mid Cap Index Inst VMCIX 0.08
Vanguard Selected Value Inv VASVX 0.44
American Funds The Growth Fund of America R6 RGAGX 0.33
American Funds Fundamental Investors R6 RFNGX 0.31
Vanguard Institutional Index Inst VINIX 0.04
American Funds American Mutual R6 RMFGX 0.3
Wells Fargo Advantage Dow Jones Target 2050 R6 WFQFX 0.37
Wells Fargo Advantage Dow Jones Target 2040 R6 WFOSX 0.36
Wells Fargo Advantage Dow Jones Target 2030 R6 WFOOX 0.35
Wells Fargo Advantage Dow Jones Target 2020 R6 WFOBX 0.3
Vanguard Total Bond Market Index Inst VBTIX 0.06
PIMCO Total Return Instl PTTRX 0.46
Western Asset Inflation Indexed Plus Bond Inst WAIIX 0.41
Vanguard Prime Money Market VMMXX 0.16
Fixed Interest Option FB124 N/A
- Stable Value Option - 0.75
Vanguard® Inflation-Protected Securities Fund - Investor Shares- VIPSX 0.1
PIMCO Total Return Fund - Institutional Class PTTRX 0.46
Vanguard® Total Bond Market Index Fund - Signal Shares VBTSX 0.07
Vanguard® Wellington Fund - Investor Shares VWELX 0.18
Vanguard® 500 Index Fund - Signal Shares VIFSX 0.05
Vanguard® Equity Income Fund - Investor Shares VEIPX 0.2
Vanguard® Windsor II Fund - Investor Shares VWNFX 0.28
The Growth Fund of America® - Class R-6 RGAGX 0.33
Vanguard® Mid-Cap Index Fund - Signal Shares VMISX 0.09
Vanguard® Small-Cap Index Fund - Investor Shares NAESX 0.09
Vanguard® Explorer Fund - Investor Shares VEXPX 0.36
Vanguard® Small-Cap Value Index Fund – Investor Shares VISVX 0.23
American Beacon International Equity Index Fund – Institutional Class AAIEX 0.2
EuroPacific Growth Fund® - Class R-6 RERGX 0.49
- American Funds EuroPacific Growth Fund® Class R-4 REREX 0.84%
Columbia Small Cap Value Fund I Class Z CSCZX 1.09%
CREF Bond Market Account (R3) QCBMIX 0.37%
CREF Equity Index Account (R3) QCEQIX 0.29%
CREF Global Equities Account (R3) QCGLIX 0.38%
CREF Growth Account (R3) QCSCIX 0.32%
CREF Inflation-Linked Bond Account (R3) QCILIX 0.32%
CREF Money Market Account (R3) QCMMIX 0.32%
CREF Social Choice Account (R3) QCSCIX 0.33%
CREF Stock Account (R3) QCSTIX 0.37%
Eaton Vance Large-Cap Value Fund Class I EILVX 0.76%
PIMCO Total Return Fund Administrative Class PTRAX 0.71%
Prudential Jennison Mid Cap Growth Fund Class Z PEGZX 0.77%
Sentinel Small Company Fund Class I SIGWX 0.86%
Templeton Global Bond Fund Advisor Class TGBAX 0.65%
TIAA Real Estate Account QREARX 0.87%
TIAA-CREF Lifecycle 2010 Fund (Institutional) TCTIX 0.39%
TIAA-CREF Lifecycle 2015 Fund (Institutional) TCNIX 0.40%
TIAA-CREF Lifecycle 2020 Fund (Institutional) TCWIX 0.41%
TIAA-CREF Lifecycle 2025 Fund (Institutional) TCYIX 0.43%
TIAA-CREF Lifecycle 2030 Fund (Institutional) TCRIX 0.44%
TIAA-CREF Lifecycle 2035 Fund (Institutional) TCIIX 0.45%
TIAA-CREF Lifecycle 2040 Fund (Institutional) TCOIX 0.46%
TIAA-CREF Lifecycle 2045 Fund (Institutional) TTFIX 0.46%
TIAA-CREF Lifecycle 2050 Fund (Institutional) TFTIX 0.46%
TIAA-CREF Lifecycle 2055 Fund (Institutional) TTRIX 0.46%
TIAA-CREF Lifecycle Retirement Income Fund (Institutional) TLRIX 0.38%
TIAA-CREF Mid-Cap Value Fund (Institutional) TIMVX 0.41%
Objective:
1.My priorities as follows: emergency fund --> 401k ---> pay off relative (on regular mothly basis) ---> backdoor roth ---> 457b/saving for house.
Tentative Plan
Here are the two portfolio options based on wiki and other resources
( I have treated 457b and 401k from employer 2 together due to same fund choices and relatively very small percentage of contribution is in 401k in employer 2)
Portfolio 1
(Pros: lower average weighted ER
Cons: Roth will be all international)
His and Her Roth 17.0%: VFWIX Vanguard FTSE All-World ex-US Index Fund Investor Shares (0.29-->0.14 with admiral/ETF option once eligible)
His ORP Valic 8.4%: VTSNX Vanguard Total Intl Stock Idx Institutional (0.12+0.25)
His 457b/401k_2 1.4%: DFIVX DFA International Value I International (0.43+0.25)
18.6%: VINIX Vanguard Institutional Index I Large Cap (0.04+0.25)
10%: VBTIX Vanguard Total Bond Market Index Inst Bond (0.06+0.25)
His 401k_1: 39.5%: VTSAX Vanguard Total Stock Mkt Idx Adm VTSAX (0.05+0.20)
4.7%: VSIAX Vanguard Small Cap Value Index Admiral (0.09+0.20)
Portfolio 2
(Pros: Roth will be total stock market
Cons: slightly higher weighted ER)
His and Her Roth 17.0%:VTSMX Vanguard Total Stock Market Index Fund Investor Shares (0.17-->0.05 once eligible for Admiral Share VTSAX)
His ORP Valic 8.47%: VTSNX Vanguard Total Intl Stock Idx Institutional (0.12+0.25)
His 457b/401k_2 18.5%: DFIVX DFA International Value I International (0.43+0.25)
1.6%: VINIX Vanguard Institutional Index I Large Cap (0.04+0.25)
10%: VBTIX Vanguard Total Bond Market Index Inst Bond (0.06+0.25)
His 401k_1: 44.2%: VTSAX Vanguard Total Stock Mkt Idx Adm VTSAX (0.05+0.20)
Questions:
1. Any alternate portfolio recommendations?
1. Which portfolio looks better between these two, any modifications?
3. Is it reasonable "assumption" that in Portfolio with VTSAX Total stock in Roth opposed to all international VFWIX, I may end up with larger Roth portion of the portfolio with 30 year horizon. If so, does it justify slightly higher weighted average ER (mainly due to larger portion of DFIVX in 457b). I feel the difference in weighted ER is probably small enough to ignore it.
Appreciate your time helping me, thank you.
darkhorse