Tax Filing Status: Single
Tax Rate: 25% Federal, 6.37% State
State of Residence: NJ
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 30% of stocks
Total retirement portfolio: 425K
Current retirement assets
23% American Funds EuroPacific Growth Fund - Class R-6 (RERGX) (0.5%)
23% Fidelity Contrafund - Class K (FCNKX) (0.58%)
22% Loomis Sayles Small Cap Growth Fund - Class N (LSSNX) (0.83%)
22% Fidelity Low-Priced Stock Fund - Class K (FLPKX) (0.78%)
7% Cohen & Steers Institutional Realty Shares (CSRIX) (0.76%)
Employer contributes 66 2/3 cents for every dollar saved as Traditional pre-tax or after-tax Roth contributions on the first 6% of eligible pay.
Roth IRA at Vanguard
3% Vanguard Total Bond Market Index Fund (VBTLX) (0.06%)
New Annual Contributions
$18000 Traditional 401k
$4833 Traditional 401k (employer matching contributions)
$5500 Roth IRA
$15500 taxable (starting next year, once emergency savings goal is met)
Funds available in 401(k) as of June 1, 2017
- -- State Street U.S. Bond Index Non-Lending Series Fund - Class C (CMCZ2) (0.06%)
- -- State Street Russell Small/Mid Cap Index Non-Lending Series Fund - Class C (CMZ12) (0.06%)
-- SSGA S&P 500 Index Fund - Class N (SVSPX) (0.03%)
- -- DFA Global Equity Portfolio Institutional Class (DGEIX) (0.6%)
-- State Street Global Equity ex-U.S. Fund - Class K (SSGLX) (0.11%)
- -- Managed Income Portfolio II Class 2 (?) (0.47%)
- -- Fidelity Investments Money Market Government Portfolio - Class I (FIGXX) (0.21%)
-- Fidelity Money Market Trust Retirement Government Money Market II Portfolio (FRTXX) (0.42%)
- -- BlackRock LifePath Index 2035 Non-Lendable Fund (?) (0.1%)
-- Remainder of options are other target date funds
- -- Fidelity BrokerageLink
As of June 1, my employer is changing all of the investment options in their 401k plan and reducing the number by half. My asset allocation historically has been 100% stocks (23% large cap, 23% mid cap, 23% small cap, 23% international, 8% real estate). I started adding bonds to the mix in recent years by funding a Vanguard Roth IRA, which currently accounts for 3% of my retirement portfolio. I think this would be a good time, however, to reevaluate my asset allocation.
1. Is 80/20 too aggressive at age 45? I am single with no dependents and no debt.
2. Since I will have a relative dearth of 401k investment options as of June 1, I am inclined to go with a three-fund portfolio—bonds, domestic and global stocks—in order to focus on the best of those asset classes.
- -- 20% State Street U.S. Bond Index Non-Lending Series Fund - Class C (CMCZ2) (0.06%)
-- 55% SSGA S&P 500 Index Fund - Class N (SVSPX) (0.03%)
-- 25% DFA Global Equity Portfolio Institutional Class (DGEIX) (0.6%)
3. A few years ago my employer added the Roth option to their 401k plan. All of my contributions thus far have been Traditional pre-tax. Should I consider splitting future contributions between Traditional and Roth?