Age 30, married, help w/ overall portfolio

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sighchological
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Age 30, married, help w/ overall portfolio

Post by sighchological » Tue Jul 26, 2016 5:45 pm

I asked for help on our overall portfolio on my previous post, but I did not use the correct formatting. So here it is:

Several years ago, I chose my funds and my wife funds separately with the help of people on this forum, but did not consider our overall portfolio while doing so.

I realized my error and want to view both our portfolios as one entire portfolio.

Would you recommend any changes? Thanks in advance.


Emergency funds:

$21k in total

1)$11K of VSGBX in a Roth IRA; contributed in 2015.
2) 10K in savings account.

Debts:

1) $30k personal loan, 0% interest rate.
2) $4K Home Equity Loan, 3% interest rate.
3) $167K mortgage, 4% interest rate.

Tax Filing Status: Married Filing Jointly
Tax Rate: 25% Federal, 6.65 % State
State of Residence: New York
Age: 30, wife 29
Desired Asset allocation: 80% stocks / 20% bonds. Please let me know if you think otherwise )
Desired International allocation: (not sure how to figure this out) % of stocks

My 457B; $24,839.93 total, No Company match

International Equity Fund - Index Portfolio, Ticker Not Available, ER = 0.20%

Balance: $4,469.50, Percentage of Portfolio = 7.89%

VANGUARD Small Cap Index Fund - Institutional Plus Shares (VSCPX), ER = 0.08%

Balance: $5,096.29, Percentage of Portfolio =9.00%

Vanguard(R) Institutional Index Fund - Institutional Plus Shares (VIIIX), ER = 0.02%

Balance: $10,586.38, Percentage of Portfolio =18.70%

Vanguard(R) Total Bond Market Index Fund - Institutional Plus Shares (VBMPX), ER =0.05%

Balance: $4,687.76, Percentage of Portfolio = 8.28%

Her 403b: $31,774.54 total, 5% company match

CREF Stock R2 (QCSTPX ), ER: = 0.46%

Balance: $23,710.12, Percent of Portfolio = 41.88%

TIAA Traditional (Guaranteed 3%), ER = 0.49%??

Balance: $4,720.07 Percent of Portfolio = 8.34%

TIAA Real Estate (QREARX
), ER = 0.87%

Balance: $3,344.35, Percent of Portfolio 5.91%

Total of All Accounts Together: $56,614.47

Annual Contributions

$18K to my 457B
$5462.16 to her 403b + Employer match of 5462.16 = ($10,924.32)

(Not sure this year’s amount) to both our IRA/Roth IRA

Funds available in my 457 B

Stable Income Fund

The Stable Income Fund (No Ticker), ER = 0.35%

Bond Funds

Federated Total Return Government Bond Fund – Institutional (FTRGX), ER = 0.50%

Vanguard Total Bond Market Index Fund - Institutional Plus Shares (VBMPX), ER = 0.05%

Balanced Funds - Socially Responsible

Pax World Institutional Balanced Fund (PAXIX), ER = 0.68%

Balanced Funds


Vanguard Wellington Fund - Admiral Shares (VWENX), ER = 0.18%

Large-Cap Funds


Davis New York Venture Fund A (NYVTX), ER=0.86%

Hartford Capital Appreciation HLS - IA Class (HIACX), ER = 0.66%

Vanguard Institutional Index Fund - Plus Shares (VIIIX), ER = 0.02%

Fidelity OTC Portfolio (FOCPX), ER = 0.83%

Principal Large Growth (PGLIX). ER = 0.65%

Vanguard PRIMECAP Fund - Admiral Shares (VPMAX), ER = 0.35%

T. Rowe Price Equity Income Fund (PRFDX), ER = 0.66%

Mid-Cap Funds


Vanguard Mid Cap Index - Institutional Plus (VMCPX), ER = 0.06%

Vanguard Capital Opportunity Fund - Admiral Shares (VHCAX), ER = 0.40%

Small-Cap Funds

Wells Fargo Small Cap Value Inst (WFSVX) ., ER = 0.99%

Vanguard Small Cap Index - Institutional Plus (VSCPX), ER = 0.06%

Columbia Acorn USA Fund - Class Z (AUSAX), ER = 1.08%

Federated Clover Small Value – Institutional (VSFIX), ER = 1.14%

International Stock Funds - Established Markets

International Equity Fund - Active Portfolio ( No Ticker ), ER = 0.60%

International Equity Fund - Index Portfolio ( No Ticker ), ER = 0.20%

International Stock Funds - Emerging Markets

MSIF Emerging Markets Portfolio - IS Shares (MMMPX), ER = 1.10%

Funds available in her 403(b) (TIAA-CREF)


Equities

TIAA-CREF Mid-Cap Growth Fund (Institutional) (TRPWX), ER = 0.47%

TIAA-CREF Large-Cap Value Fund (Institutional) (TRLIX), ER = 0.42%

TIAA-CREF Small-Cap Equity Fund (Institutional) (TISEX), ER = 0.42

TIAA-CREF Social Choice Equity Fund (Institutional) (TISCX), ER = 0.18%

TIAA-CREF Real Estate Securities Fund (Institutional) (TIREX), ER = 0.52%

Vanguard Institutional Index Fund Institutional (VINIX), ER = 0.04%

TIAA-CREF Growth & Income Fund (Institutional) (TIGRX), ER = 0.43%

TIAA-CREF Mid-Cap Value Fund (Institutional) (TIMVX), ER = 0.42%

American Funds EuroPacific Growth Fund - R6 (RERGX), ER = 0.50%

CREF Growth Account (R2) (QCGRPX), ER = 0.42%

CREF Stock Account (R2) QCSTPX, ER = 0.49%

CREF Global Equities Account (R2) (QCGLPX), ER = 0.48%

CREF Equity Index Account (R2) (QCEQPX), ER = 0.37%

Fixed Income

CREF Bond Market Account (R2) (QCBMPX), ER = 0.46%

CREF Inflation-Linked Bond Account (R2) (QCILPX), ER = 0.39%

Multi Asset

CREF Social Choice Account (R2) (QCSCPX), ER = 0.43%

Money Market

CREF Money Market Account (R2) (QCMMPX), ER = 0.38%

Real Estate

TIAA Real Estate Account (QREARX), ER = 0.89%

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Duckie
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Re: Age 30, married, help w/ overall portfolio

Post by Duckie » Tue Jul 26, 2016 7:56 pm

sighchological wrote:Would you recommend any changes?
The best options is his 457b are:
  • Vanguard Institutional Index Fund (VIIIX) 0.02% -- Large caps, 80% of US stocks
  • Vanguard Mid Cap Index (VMCPX) 0.06% -- Mid caps, 6% of US stocks
  • Vanguard Small Cap Index (VSCPX) 0.06% -- Small caps, 14% of US stocks
  • International Equity Fund Index 0.20% -- International developed markets only
  • Vanguard Total Bond Market Index Fund (VBMPX) 0.05% -- US bonds
The best options in her 403b are:
  • Vanguard Institutional Index Fund (VINIX) 0.04%
  • CREF Equity Index Account (R2) 0.37% -- Almost complete US stocks
  • CREF Stock Account (R2) 0.49% -- About 70% US stocks, 30% international stocks
  • American Funds EuroPacific Growth Fund R6 (RERGX) 0.50% -- International stocks
  • CREF Bond Market Account (R2) 0.46% -- US bonds
Age: 30, wife 29
Desired Asset allocation: 80% stocks / 20% bonds. Please let me know if you think otherwise )
This is reasonable for your ages.
Desired International allocation[/b]: (not sure how to figure this out) % of stocks
You figure how much of your stock allocation you want to be international. Let's say you want 30% of your stock allocation to be international. That is your % of stocks. Since your AA is 80% stocks and 20% bonds, if you choose 30% of stocks to be international that will break down to 56% US stocks, 24% international stocks, and 20% bonds. The reason I picked 30% is that Vanguard has found between 20% and 40% of stocks in international to be the "sweet spot". See the Vanguard paper link and the discussion. I usually split the difference and recommend 30% of stocks.

With an AA of 56/24/20 you could have an overall retirement portfolio of:

His 457b -- $25K -- 37%
9% (VSCPX) Vanguard Small-Cap Index Fund Institutional Plus Shares (0.06%)
8% (N/A) International Equity Fund - Index Portfolio (0.20%)
20% (VBMPX) Vanguard Total Bond Market Index Fund Institutional Plus Shares (0.04%)

Her 403b -- $32K -- 47%
47% (VINIX) Vanguard Institutional Index Fund Institutional Shares (0.04%)

Someone's Roth IRA at Vanguard -- $11K -- 16%
16% (VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.12%)

Something to think about.

knicknut
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Re: Age 30, married, help w/ overall portfolio

Post by knicknut » Wed Jul 27, 2016 9:25 am

Duckie's response is excellent. The only thing I'd add is you seem to list your Roth IRA under "emergency funds." Given the penalties inherent in withdrawing from these early (and the complexity of borrowing from them), I wouldn't consider anything in an IRA to be emergency funds, regardless of the relative safety of the underlying investment.

investor1
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Re: Age 30, married, help w/ overall portfolio

Post by investor1 » Wed Jul 27, 2016 12:08 pm

knicknut wrote:Duckie's response is excellent. The only thing I'd add is you seem to list your Roth IRA under "emergency funds." Given the penalties inherent in withdrawing from these early (and the complexity of borrowing from them), I wouldn't consider anything in an IRA to be emergency funds, regardless of the relative safety of the underlying investment.
It is a Roth IRA. They can take out the contributions anytime they wish.

What stuck out to me was that the OP didn't list any ongoing contributions to either his or her Roth IRA.

His 457b have decent stock options that may be used to simulate a total stock market fund. There is certainly nothing wrong with doing that, but it adds complexity where it may be much more simple to contribute to an IRA (Roth or otherwise) and buy a total stock market fund.

Her 403b has VINIX and some other funds (at meh ERs), but she is only contributing enough to get the match which makes sense.

My biggest piece of advice is to invest more if you can. Your IRAs seem like a good vehicle for this. The funds in these accounts may make it much easier to form the portfolio you are looking for. Beyond that, Duckie gave solid advice as usual.

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sighchological
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Re: Age 30, married, help w/ overall portfolio

Post by sighchological » Wed Jul 27, 2016 4:48 pm

Thanks Duckie for your detailed response J It’s very helpful. Some questions:

Part of my emergency fund is $11K in VSGBX my Roth IRA. You used that emergency fund as part of my asset allocation. Is it okay to use volatile funds (you suggested VTIAX) as an emergency fund? If it’s OK to do so I’ll move on to the next question…..

Currently the Roth IRA ($11K) is split in two accounts between my wife and I (5.5K in each account), contributed in 2015. If I can only put in $5.5K max per year in the Roth IRA, how do I purchase VTIAX if there’s a $10K minimum investment?

You wrote “(VBMPX) Vanguard Total Bond Market Index Fund Institutional Plus Shares (0.04%)”, in my 457B it has a different expense ratio, at 0.05%. Why is that?

What is the best way to purchase the funds that you suggested? Since I have to sell some of my funds, are there ways to avoid selling fees?

Currently I am maxing out my 457B and my wife is contributing $10,924.32 a year to her 403B after employer match. We can’t afford it now, but still have $12,537.84 to potentially contribute ($18K minus her contribution of $5462.16) to her 403B. As our contributions should start increasing (until we have kids…)but we cannot max out both our tax advantage accounts and Roth IRA yet, what is the best way to set up percentages of future contributions for both of us?

Thanks Investor1; yes, I contributed 11K last year between my wife and I to a Roth IRA at the end of the year and was planning to do so this year. Is it better to contribute per paycheck then in just one lump sum?

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Duckie
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Re: Age 30, married, help w/ overall portfolio

Post by Duckie » Wed Jul 27, 2016 6:04 pm

sighchological wrote:Part of my emergency fund is $11K in VSGBX my Roth IRA. You used that emergency fund as part of my asset allocation. Is it okay to use volatile funds (you suggested VTIAX) as an emergency fund?
If it really is a second tier of your emergency fund then VSGBX would be perfect. I would consider it part of your bond AA so you would have fewer bonds and more international in His 457b.
Currently the Roth IRA ($11K) is split in two accounts between my wife and I (5.5K in each account), contributed in 2015. If I can only put in $5.5K max per year in the Roth IRA, how do I purchase VTIAX if there’s a $10K minimum investment?
You use (VGTSX) Vanguard Total International Stock Index Fund Investor Shares (0.19%) until you have $10K in an account. Then change to VTIAX.
You wrote “(VBMPX) Vanguard Total Bond Market Index Fund Institutional Plus Shares (0.04%)”, in my 457B it has a different expense ratio, at 0.05%. Why is that?
Vanguard is charging 0.04% for VBMPX. Your employer plan is adding an extra 0.01% in costs. I should have put it as 0.05% in my example, but I missed it.
What is the best way to purchase the funds that you suggested? Since I have to sell some of my funds, are there ways to avoid selling fees?
There are no selling fees at Vanguard. Are there any in your two employer plans? Usually there are not.
Currently I am maxing out my 457B and my wife is contributing $10,924.32 a year to her 403B after employer match. We can’t afford it now, but still have $12,537.84 to potentially contribute ($18K minus her contribution of $5462.16) to her 403B. As our contributions should start increasing (until we have kids…)but we cannot max out both our tax advantage accounts and Roth IRA yet, what is the best way to set up percentages of future contributions for both of us?
Put enough in your employer plans to get the full match, then max the Roth IRAs. Then start setting aside taxable money for your emergency fund so the Roth IRAs can become strictly for retirement.
I contributed 11K last year between my wife and I to a Roth IRA at the end of the year and was planning to do so this year. Is it better to contribute per paycheck then in just one lump sum?
If you can afford to do it lump-sum it's a little better (and easier) that way, especially if the contribution is early in the year. If you can't afford it, then it's not that big of a deal.

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sighchological
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Re: Age 30, married, help w/ overall portfolio

Post by sighchological » Thu Jul 28, 2016 4:29 pm

Thanks Duckie.

I’m having a hard time wrapping my mind around what to do since we have multiple accounts, disparity in income (Wife’s salary is 2x mine) leading to varying percentages of contributions, and my contributions to our retirement plans fluctuate with how much we can afford.

Can you explain:

1) The steps to make my current portfolio 56/24/20 to the funds that you suggested.

2) How to set up my future contributions so that the percentages align with 56/24/20?

3) Is there any way to track the funds so that I can stay at 56/24/20?

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Duckie
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Re: Age 30, married, help w/ overall portfolio

Post by Duckie » Thu Jul 28, 2016 5:23 pm

sighchological wrote:Can you explain:

1) The steps to make my current portfolio 56/24/20 to the funds that you suggested.
While the Roth IRAs are part of your emergency fund you could have:

His 457b -- $25K -- 37%
9% (VSCPX) Vanguard Small-Cap Index Fund Institutional Plus Shares (0.06%)
24% (N/A) International Equity Fund - Index Portfolio (0.20%)
4% (VBMPX) Vanguard Total Bond Market Index Fund Institutional Plus Shares (0.05%)

Her 403b -- $32K -- 47%
47% (VINIX) Vanguard Institutional Index Fund Institutional Shares (0.04%)

His Roth IRA at Vanguard -- $5.5K -- 8%
8% (VSGBX) Vanguard Short-Term Federal Fund Investor Shares (0.20%)

Her Roth IRA at Vanguard -- $5.5K -- 8%
8% (VSGBX) Vanguard Short-Term Federal Fund Investor Shares (0.20%)
2) How to set up my future contributions so that the percentages align with 56/24/20?
Contributions will be as follows:
  1. Her 403b will be 100% VINIX.
  2. The two Roth IRAs will be 100% VSGBX. Once you have more taxable money in your emergency fund so the Roth IRAs can be strictly for retirement use VTIAX in the Roth IRAs and adjust His 457b.
  3. His 457b will be 24% VSCPX, 65% International Equity, and 11% VBMPX at least to start. You will need to adjust these later.
3) Is there any way to track the funds so that I can stay at 56/24/20?
Once or twice a year (or once a quarter if you're picky) add up all the dollar amounts, then figure the current percentages, then swap things around in His 457b to get the percentages where you want them. All rebalancing will be done in His 457b. But you will never stay at 56/24/20 for long. It will always be shifting from each contribution and market changes. So don't worry about it. Close enough is good enough.

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sighchological
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Re: Age 30, married, help w/ overall portfolio

Post by sighchological » Wed Aug 03, 2016 4:40 pm

Thanks again Duckie for all your help.

Couple questions:

I was told to viewtopic.php?f=2&t=187151&p=2847879#p2847879, max out the Roth IRA before contributing to the 457B/403B.

This year we’ll probably contribute around $23K before taxes towards our 457B /403B and between $5K-$11K to our Roth IRA. Let’s assume that next year we’ll contribute $30K. If I first max out our Roth IRA, which only consists of VSGBX , I will have $11K in VSGBX (bonds). I will have $19K to contribute to the 457B and 403B (mostly stocks).

Also, even If I max out our 457B/403 and max out our Roth IRA, it will amount to$11K of VSGBX and $1980 of VBMPX (11% of 18K in my 457B). $11K + $1980 = 12980.

$12,980 / $47K (max 457B/403 + both Roth IRA’s) is 28% of bonds.

In both scenarios, won’t the percentages of bonds be a lot higher than my desired AA of 80% stocks, 20% bonds?

Also, since my wife get’s a 5% match of around $5.4K (and 10% match in 1.5 years), while I don’t get an employer match, her 403B which consists of only VINIX will potentially be larger than my contributions in my 457B. Won’t this affect the asset allocation of our overall portfolio?

When you say “The two Roth IRAs will be 100% VSGBX. Once you have more taxable money in your emergency fund so the Roth IRAs can be strictly for retirement use VTIAX in the Roth IRAs and adjust His 457b”, are you saying to:

1) Continue to contribute $5.5K each year for my wife and I to VSGBX until I have a taxable e-fund.
2) Convert all of the VSGBX to VTIAXX.
3) Since approx. 16% of VSGBX in Roth IRA is now gone, adjust VBMPX in 457B to desired bond percentage.

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Duckie
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Re: Age 30, married, help w/ overall portfolio

Post by Duckie » Wed Aug 03, 2016 6:57 pm

sighchological wrote:I was told to max out the Roth IRA before contributing to the 457B/403B.
Since she gets a match in her 403b, contributing enough for the match takes priority over IRA contributions.
In both scenarios, won’t the percentages of bonds be a lot higher than my desired AA of 80% stocks, 20% bonds?
Yes they will. You could:
  • Contribute less to your employer plans and get that taxable emergency fund going so you can use VTIAX in the Roth IRAs.
  • Contribute less to your Roth IRAs adding to your taxable emergency fund.
  • Put VTIAX in the Roth IRAs and hope it doesn't crash if you have an emergency.
  • Accept the higher bond AA temporarily.
Also, since my wife get’s a 5% match of around $5.4K (and 10% match in 1.5 years), while I don’t get an employer match, her 403B which consists of only VINIX will potentially be larger than my contributions in my 457B. Won’t this affect the asset allocation of our overall portfolio?
It will. You just have to adjust in His 457b every now and then.
When you say “The two Roth IRAs will be 100% VSGBX. Once you have more taxable money in your emergency fund so the Roth IRAs can be strictly for retirement use VTIAX in the Roth IRAs and adjust His 457b”, are you saying to:

1) Continue to contribute $5.5K each year for my wife and I to VSGBX until I have a taxable e-fund.
2) Convert all of the VSGBX to VTIAX.
3) Since approx. 16% of VSGBX in Roth IRA is now gone, adjust VBMPX in 457B to desired bond percentage.
You've got it. If VSGBX becomes VTIAX then you'll need more bonds and less international in his 457b.

gclancer
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Re: Age 30, married, help w/ overall portfolio

Post by gclancer » Wed Aug 03, 2016 7:26 pm

sighchological wrote:I was told to viewtopic.php?f=2&t=187151&p=2847879#p2847879, max out the Roth IRA before contributing to the 457B/403B.
You didn't provide quite as many details in your prior thread. Using a Roth IRA as a "second tier" emergency fund makes a lot of sense in your situation. However, you have good investment options in your employer plans, and with an effective federal and state tax rate of 31.65% prioritizing a Roth isn't a slam dunk. Especially considering that if your wife takes time off work when you have kids your income could drop. Personally, I wouldn't prioritize Roth for the time being. Is your 457b a governmental plan?

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sighchological
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Re: Age 30, married, help w/ overall portfolio

Post by sighchological » Thu Aug 04, 2016 4:29 pm

Thanks Duckie!

There’s so much information; I’m not sure how to proceed. Is this correct?

1) 457B: To be 24% VSCPX, 65% International Equity, and 11% VBMPX, sell/buy funds (currently $26.4K) to be:

$6.3K of VSCPX, $17.2K of International Equity, and $2.9K of VBMPX.

2) 403B: To be 100% of VINIX , sell all funds (currently $32.3K) and buy $32.K of VINIX.

3) RothIRA: To be 100% VSGBX, keep current funds of $11K of VSGBX. (Is the VSGBX in the Roth IRA still acting as an emergency fund?)

4) Change investment elections in 457B to be 24% VSCPX, 65% International Equity, and 11% VBMPX.

5) Change investment elections in 403B to be 100% of VINIX.

6) Change contributions from paycheck so that we will max out 457/403B ($36K) after 1 year. ($700 per bi weekly paycheck 26X a year for me, $750 per bi weekly paycheck 24X for wife)

7) Set up automatic deductions from bank to Roth IRA to contribute $6.5K to VSGBX after 1 year, $125 a week for 52 weeks.

If I max out 457/403B ($36K), I will have $1980 of VBMPX.

$6.5K VSGBX + $1,980 of VBMPX = $8480 Bonds. $8480/ yearly contribution of $42.5K is approximately 20% Bonds.

8) If I cannot afford to save as much, cut contributions towards 457B/403B and Roth IRA by the same percentage. For example, if I want to cut contributions by 50%, I will now contribute $350 per bi weekly paycheck for me, $375 per bi weekly for wife, $62.50 each week towards Roth IRA.

9) If I can save more than $42.5K next year, contribute the rest towards a taxable emergency fund.

10) When taxable e-fund is established, convert all of the VSGBX to VTIAX in Roth IRA.

11) Since approx. 16% of VSGBX in Roth IRA is now gone, adjust VBMPX in 457B to desired bond percentage.

Thanks Gclancer. Yes, the 457B is a govt. plan. I work with New York State.

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Duckie
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Re: Age 30, married, help w/ overall portfolio

Post by Duckie » Thu Aug 04, 2016 4:57 pm

sighchological wrote:Is this correct?
It looks okay if overly complicated. One change I would make is to change the investment elections in the 457b and 403b plans first, then a couple of days later change the current assets to the new AA. So do 4 and 5 before you do 1 and 2. (The reason is that in the past I have shifted funds in an employer plan and then changed the investment election, but when a contribution settled between the two processes I ended up having to shift some more to correct things. This can be avoided.)

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sighchological
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Re: Age 30, married, help w/ overall portfolio

Post by sighchological » Fri Aug 05, 2016 5:10 pm

Thanks for the info Duckie :happy

I didn’t realize my steps were so complicated. What would you do to make it more simple?

I’ll take your advice about doing points 4 and 5 before 1 and 2. Should I just call the plan and ask them to take care of it for me?

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Duckie
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Re: Age 30, married, help w/ overall portfolio

Post by Duckie » Fri Aug 05, 2016 5:16 pm

sighchological wrote:I didn’t realize my steps were so complicated. What would you do to make it more simple?
You're using my example numbers as if they're etched in stone. Things don't have to be that precise. Give yourself some wiggle room.
I’ll take your advice about doing points 4 and 5 before 1 and 2. Should I just call the plan and ask them to take care of it for me?
If you have online access just do it yourself.

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sighchological
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Re: Age 30, married, help w/ overall portfolio

Post by sighchological » Wed Aug 10, 2016 7:37 pm

Thanks Duckie for all your help!

Is the VSGBX in the Roth IRA still acting as an emergency fund?

Any thing else I need to watch out for?

Thanks!

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Duckie
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Re: Age 30, married, help w/ overall portfolio

Post by Duckie » Mon Aug 15, 2016 2:58 pm

sighchological wrote:Is the VSGBX in the Roth IRA still acting as an emergency fund?
It is until you have a real emergency fund.

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sighchological
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Re: Age 30, married, help w/ overall portfolio

Post by sighchological » Thu Aug 18, 2016 4:30 pm

Thanks Duckie!

I did the transactions like you suggested. I was not allowed to move funds out of the TIAA traditional (They said I could only move it 1X a year for the next 10 year) so I just left it as is.
---------------------------------------------------------------------------------
As of 8/17/16 my portfolio is the following: (The end percentage is the % of the portfolio)

stocks:

(VSCPX) Vanguard Small-Cap Index Fund Institutional Plus Shares (0.06%): $6,808.40, 9.39%
(VINIX) Vanguard Institutional Index Fund Institutional Shares (0.04%): $28,428.00, 39.19%

international stocks:

(N/A) International Equity Fund - Index Portfolio (0.20%): $18,287.64; 25.21%

bonds:

(VBMPX) Vanguard Total Bond Market Index Fund Institutional Plus Shares (0.04%): $3,086.44, 4.25%
(VSGBX) Vanguard Short-Term Federal Fund Investor Shares (0.20%):$11,057.06 , 15.24%
TIAA Traditional:$4,870.52, 6.71% (Bond?)
---------------------------------------------------------------------------------
Should I go 100% stocks (not international, just VSCPX and VINIX) until I am a bit closer to the desired 56% of stocks? Also, if I count the TIAA Traditional as a bond, I'm farther from my desired 20% bonds.

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Duckie
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Re: Age 30, married, help w/ overall portfolio

Post by Duckie » Thu Aug 18, 2016 5:21 pm

sighchological wrote:Should I go 100% stocks (not international, just VSCPX and VINIX) until I am a bit closer to the desired 56% of stocks?
Do you mean go 100% stocks for contributions in His 457b? That's fine.
Also, if I count the TIAA Traditional as a bond, I'm farther from my desired 20% bonds.
Yes, count TIAA Traditional as a bond. You can drop VBMPX from His 457b for now. That'll help your AA.

You could have:

His 457b -- $28K -- 39%
5% (VIIIX) Vanguard Institutional Index Fund Institutional Plus Shares (0.02%)
10% (VSCPX) Vanguard Small-Cap Index Fund Institutional Plus Shares (0.06%)
24% (N/A) International Equity Fund - Index Portfolio (0.20%)

Her 403b -- $33K -- 45%
38% (VINIX) Vanguard Institutional Index Fund Institutional Shares (0.04%)
7% (N/A) TIAA Traditional (0.49%)

His Roth IRA at Vanguard -- $5.5K -- 8%
8% (VSGBX) Vanguard Short-Term Federal Fund Investor Shares (0.20%)

Her Roth IRA at Vanguard -- $5.5K -- 8%
8% (VSGBX) Vanguard Short-Term Federal Fund Investor Shares (0.20%)

Just some possibilities.

User avatar
sighchological
Posts: 153
Joined: Sat Feb 02, 2013 12:12 pm

Re: Age 30, married, help w/ overall portfolio

Post by sighchological » Wed Aug 24, 2016 4:53 pm

Thanks Duckie.

What I meant was just leaving the portfolio as it is currently, and contributing 100% stocks until it reaches around the desired 56% stocks?

I would be:

100% of (VSCPX) Vanguard Small-Cap Index Fund Institutional Plus Shares (0.06%) in my 457

100% of (VINIX) Vanguard Institutional Index Fund Institutional Shares (0.04%) in the 403B

If I did this, I would contribute the following til the end of 2016:

$6,450.13 of VSCPX towards my 457.
$12,740.72of VINIX towards my 403B.

If there were no portfolio movement, at the end of the year I would be (last % is percentage of portfolio):

stocks:

(VSCPX) Vanguard Small-Cap Index Fund Institutional Plus Shares (0.06%): $13,258.53, 14.45%
(VINIX) Vanguard Institutional Index Fund Institutional Shares (0.04%): $41,168.72, 44.88%

international stocks:


(N/A) International Equity Fund - Index Portfolio (0.20%): $18,287.64; 19.94%

bonds:

(VBMPX) Vanguard Total Bond Market Index Fund Institutional Plus Shares (0.04%): $3,086.44, 4.25%
(VSGBX) Vanguard Short-Term Federal Fund Investor Shares (0.20%):$11,057.06 , 12.05%
TIAA Traditional:$4,870.52, 5.31%

JSDNJ
Posts: 186
Joined: Wed Feb 04, 2015 5:17 pm

Re: Age 30, married, help w/ overall portfolio

Post by JSDNJ » Wed Aug 24, 2016 5:14 pm

Is your wife a teacher? That's pretty sweet that she gets matching out of a 403b.

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