Portfolio review please

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zadie
Posts: 218
Joined: Fri Aug 22, 2014 6:06 am

Portfolio review please

Post by zadie » Sat Apr 02, 2016 5:21 am

Portfolio review please

Emergency funds: six months of expenses
Debt: 0
Tax Filing Status: Married Filing Jointly
Tax Rate: 39% Fed. Unsure about state tax rate, but I'm sure we're in the highest bracket
State of Residence: MA
Age: 40
Desired Asset allocation: 75% stocks / 25% bonds
Desired International allocation: 30-35% of stocks
Total portfolio value: low 7 figures

We contribute approx $300k per year in taxable and max out contributions in 401ks.


% of portfolio Investment Name Symbol ER

His Taxable
20% Vanguard 500 Index Fund Admiral Class VFIAX 0.05
12% Vanguard Total International Stock Index Fund Admiral Shares VTIAX 0.14
3% VANGUARD SMALL CAP ETF VBR 0.09
3% Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares VWIUX 0.12
2% iShares Core S&P Total U.S. Stock Market ETF ITOT .03% (small acct at Fidelity)
3% Individual Bonds (6) bought by previous broker- when they mature will put in VWIUX above

His IRA
10% VANGUARD TOTAL BOND MARKET ETF BND 0.07

His Roth IRA
1% Vanguard Total International Stock Index Fund Admiral Shares VTIAX 0.14

His 401k
3% Vanguard Target Retirement 2040 Fund VFORX 0.18
{it's a 401k through Vanguard]

Her Taxable
10% Vanguard Total International Stock Index Fund Admiral Shares VTIAX 0.14
1% Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares VWIUX 0.12
3% USAA S&P 500 USSPX 0.25
10% Vanguard Total Stock Market Index Fund Admiral Shares VTSAX 0.05
1% PRIMECAP Odyssey Aggressive Growth Fund POAGX 0.62
1% BRISTOL MYERS SQUIBB COMPANY BMY
2% Individual Bonds (5) bought by previous broker waiting until they mature then will put in VWIUX

Her Rollover IRA
4% VANGUARD REIT INDEX ETF VNQ 0.12
2% VANGUARD TOTAL BOND MARKET ETF BND 0.07
1% VANGUARD SMALL CAP VALUE ETF VBR

Her Roth IRA
1% VANGUARD RUSSELL 2000 VALUE INDEX FD VTWV 0.20

Her 401k
3% Great-West Bond Index MXBIX 0.5

Other Info
1. This was a portfolio of over 150 securities that a broker bought over the last 10 years. It was a mess. I fired him last year and consolidated it as best I could.
2. Our income is too high to contribute to IRA/Roths, so new retirement contributions are in 401k
3. Her 401k options are very poor, the Great West Bond Index, is the best of the options
4. My 401k is in a Target Date fund, b/c I figured I had enough funds to worry about as it is.
5. We contribute regularly in taxable accts, usually adding to VFIAX & VTIAX

Questions:
1) Overall how does this look?
4) I also want to make sure this is setup for tax efficiency - any recommendations
5) Any other feedback is welcomed.

-Goals: A low cost, tax efficient, diversified portfolio is the goal slight tilt to SCV and REITS

Thank you very much!

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David Jay
Posts: 5470
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Portfolio review please

Post by David Jay » Sat Apr 02, 2016 6:21 am

Looks like great progress.

The tax advantaged space looks really good. Obviously you still have a few things in Taxable that are less than optimal, but those moves need to be done carefully to keep tax consequences under control.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

MPAndy222
Posts: 42
Joined: Thu Mar 31, 2016 6:26 pm

Re: Portfolio review please

Post by MPAndy222 » Sat Apr 02, 2016 6:26 am

It appears your allocation is skewed toward domestic stock. You need a little more bonds and international to meet your requested allocation. I would simplify the taxable accounts with just total stock, S&P 500, or international index funds. Get rid of the bond funds and individual stocks. You'll be more tax efficient with the bonds in the retirement accounts. You may want to try to see if her 401k custodian would take her rollover IRA. You could then consider a backdoor Roth IRA

zadie
Posts: 218
Joined: Fri Aug 22, 2014 6:06 am

Re: Portfolio review please

Post by zadie » Sun Apr 03, 2016 4:53 am

MPAndy222; When I review the account in Portfolio Watch, it indicates 33% international, and Fixed Income is 24%. Why do you say I'm underweight in these?

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