Portfolio Review and Advice
Posted: Thu Jan 19, 2017 7:33 am
I've been reading the site for a few years now and have done all the basics that are recommended but am looking for some additional guidance on whether I'm in the right investments and how to be as tax efficient as I can. I feel like I'm making great progress with large thanks to this forum and am hopeful with some additional tweaks I can leave my portfolio alone and know it's efficiently invested so I can focus my time elsewhere.
Emergency funds: Six months of expenses
Debt: $620K 30 year mortgage at 3.25%. Currently in first couple months of mortgage
Tax Filing Status: Married Filing Jointly
Tax Rate: 33% Federal, 6.37% State
State of Residence: NJ
Age: Me - 34, Wife - 30 (currently not working with our first child
Desired Asset allocation: 75% stocks / 25% bonds
Desired International allocation: ?% of stocks
Overall investments:
64% in equities
21% in Bonds
15% in cash (excluding emergency)
Taxable through TD Ameritrade (~60% of portfolio)
22% in VTI
10% in VEU
13% in BND
15% in cash - just bought a house so this is partially set aside for furnishing but will be looking to invest most of this
For my 401K (~40% of portfolio) - I've listed out only the low cost funds, there are additional including target dates at higher Expense Ratios:
0 in VEMIX (.12%) Vanguard Emerging Mkts Stock Idx I
10% in VTSNX (.10%) Vanguard Total Intl Stock Index Instl
10% in VSCIX (.07%) Vanguard Small Cap Index Instl
10% in VMCIX (.07%) Vanguard Mid Cap Index Ins
0 in VINIX (.04%) Vanguard Institutional Index Instl
0 in VBIRX (.09%) Vanguard Short-Term Bond Index Adm
10% VBTIX (.05%) Vanguard Total Bond Market Index Inst
I have not itemized my wife's 403B, our HSA or my Lending Club account which make up roughly 5% of our portfolio.
New annual Contributions
$36K in my his 401k (which is 1/2 made of my company match)
$5.5K into backdoor Roth (in 1st year of contributing)
$5.5k into her backdoor Roth (in 1st year of contributing)
$6.75K into family HSA
Questions:
1. How do I maximize my retirement savings beyond my current approach? I am planning on looking into a 529 in the near future. Any other thoughts on areas to invest in?
2. Am I properly invested in the right products/proportion?
3. How do I maximize tax advantages across the accounts? Do I need to re-balance or should I just focus future investments towards more equity in taxable and more bonds in 401K? (Updated question as had these reversed)
Thanks again and I look forward to further discussions!
Emergency funds: Six months of expenses
Debt: $620K 30 year mortgage at 3.25%. Currently in first couple months of mortgage
Tax Filing Status: Married Filing Jointly
Tax Rate: 33% Federal, 6.37% State
State of Residence: NJ
Age: Me - 34, Wife - 30 (currently not working with our first child
Desired Asset allocation: 75% stocks / 25% bonds
Desired International allocation: ?% of stocks
Overall investments:
64% in equities
21% in Bonds
15% in cash (excluding emergency)
Taxable through TD Ameritrade (~60% of portfolio)
22% in VTI
10% in VEU
13% in BND
15% in cash - just bought a house so this is partially set aside for furnishing but will be looking to invest most of this
For my 401K (~40% of portfolio) - I've listed out only the low cost funds, there are additional including target dates at higher Expense Ratios:
0 in VEMIX (.12%) Vanguard Emerging Mkts Stock Idx I
10% in VTSNX (.10%) Vanguard Total Intl Stock Index Instl
10% in VSCIX (.07%) Vanguard Small Cap Index Instl
10% in VMCIX (.07%) Vanguard Mid Cap Index Ins
0 in VINIX (.04%) Vanguard Institutional Index Instl
0 in VBIRX (.09%) Vanguard Short-Term Bond Index Adm
10% VBTIX (.05%) Vanguard Total Bond Market Index Inst
I have not itemized my wife's 403B, our HSA or my Lending Club account which make up roughly 5% of our portfolio.
New annual Contributions
$36K in my his 401k (which is 1/2 made of my company match)
$5.5K into backdoor Roth (in 1st year of contributing)
$5.5k into her backdoor Roth (in 1st year of contributing)
$6.75K into family HSA
Questions:
1. How do I maximize my retirement savings beyond my current approach? I am planning on looking into a 529 in the near future. Any other thoughts on areas to invest in?
2. Am I properly invested in the right products/proportion?
3. How do I maximize tax advantages across the accounts? Do I need to re-balance or should I just focus future investments towards more equity in taxable and more bonds in 401K? (Updated question as had these reversed)
Thanks again and I look forward to further discussions!