Portfolio review and advice

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
swingandmiss
Posts: 6
Joined: Thu Apr 20, 2017 11:26 am

Portfolio review and advice

Postby swingandmiss » Thu Apr 20, 2017 12:55 pm

Hi all. New to the forum but have been reading a while. He's my not quite normal scenario.

Wife and I are early 40's. I work in technology. She owned a business for the last ten years. We sold it last year. Admittedly we haven't managed our assets well. We were too busy building the business. It paid off but I now know how we missed a lot of things along the way. Will do better next time.

I still have a job but recently changed. So rolling over the 401k. Income between my job and new business purchased will be in the 250k range this year. Down from around 700k due to the sell. Should be back over 300k next year. And then over 400k in a couple years when long term incentives kick in. I took a significant hit with the job transfer due to much better long term potential.

Taxable
Cash: $430,000
Stock: $10,000 (old company stock)

Nontaxable
His rollover 401k at fidelity: $400,000
34% FSTVX
33% FTIPX
33% FSITX
His Roth at etrade: $5,000
Her Roth at etrade: $5,000
Her 401k rollover at etrade: $25,000

Real estate assets
Primary: $900,000
Secondary: $680,000
Rental: $450,000

Debt
Primary: $700,000 at 4.125%
Rental: $170,000 at 3.875%
Student loans: $35,000 at 3%

Secondary home has no mortgage and is on the market right now, but could rent if it made sense.

Rental is being renovated right now. Will rent for $2,300 very soon.

401k just finished rolling over and allocated as stated above.

Goals:
-flexibility in where I work
-leave a legacy for kids
-income to support retirement someday

Risk tolerance: Not sure how to answer this. I had 7 figures wrapped up in our company for many years. We easily could have lost it all but we kept pushing it. I lost out on over $500k due to timing of sale and it doesn't bother me. We had all sorts of ups and downs with swings of hundreds of thousands along the way. But right now, I don't want to lose what I've banked. But I also won't be satisfied with a "safe" 3%. I prefer to mitigate risk through options I can control.

I'm not focused on "retirement" because I will always be doing something. I do want flexibility to do what I want to do.

I tend to be attracted to non traditional investments where risk isn't priced in well. But I also want to put some money away and generally not think about it except to rebalance.
Last edited by swingandmiss on Thu Apr 20, 2017 3:48 pm, edited 3 times in total.

dwickenh
Posts: 527
Joined: Sun Jan 04, 2015 9:45 pm
Location: Illinois

Re: Portfolio review and advice

Postby dwickenh » Thu Apr 20, 2017 2:27 pm

You may want to revisit your Asset Allocation from your 401K before you rolled it over. Was it an allocation you could live with and not sell on downturns in the market? Most people here would invest the money immediately if it was invested recently before the rollover. Check the Wiki(upper right hand corner of this page) for information on investing a windfall as this likely qualifies as a windfall amount based on your net worth.

More qualified people will respond once you read the information on the Wiki and rephrase your questions.

Best to you,

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

zuma
Posts: 257
Joined: Thu Dec 29, 2016 12:15 pm

Re: Portfolio review and advice

Postby zuma » Thu Apr 20, 2017 3:12 pm

swingandmiss wrote:So summary is I need advice on where to put about $1.4M in cash.

What are your investment goals?

Have you thought about what an appropriate asset allocation might be?

Does a three-fund portfolio appeal to you?

I'd also recommend digging into the wiki, which covers these topics well, then come back and edit your post by adding a little more detail on your objectives, risk tolerance, funds you currently hold, and so on.

swingandmiss
Posts: 6
Joined: Thu Apr 20, 2017 11:26 am

Re: Portfolio review and advice

Postby swingandmiss » Thu Apr 20, 2017 3:33 pm

Thanks. Old portfolio was terrible because the 401k options were all high fee. I was thinking of going three fund with Fidelity rollover 401k

34% FSTVX
33% FTIPX
33% FSITX

I thought about altering the ratios but I'm much better at making money than investing it.

I'm keeping a significant portion of powder dry in anticipation of a bubble sometime. Probably 250k.

I am also investing another 250k in a few business ideas.

So with the other 500k, what to do with it? Just go strait into an in taxable account with the three fund portfolio?

swingandmiss
Posts: 6
Joined: Thu Apr 20, 2017 11:26 am

Re: Portfolio review and advice

Postby swingandmiss » Thu Apr 20, 2017 3:49 pm

I added more info to the first post.

zuma
Posts: 257
Joined: Thu Dec 29, 2016 12:15 pm

Re: Portfolio review and advice

Postby zuma » Fri Apr 21, 2017 2:16 pm

My 2 cents: I'd go with a 70/30 three-fund portfolio, or maybe 60/40. There's really no need to make it more complicated than that. The key thing is to decide what asset allocation you want.

Think of your portfolio as a whole and put as much of your bond allocation as possible in your tax-advantaged accounts. Total stock index funds are more tax efficient, so you'll want those in the taxable account.

https://www.bogleheads.org/wiki/Tax-eff ... _placement

swingandmiss
Posts: 6
Joined: Thu Apr 20, 2017 11:26 am

Re: Portfolio review and advice

Postby swingandmiss » Fri Apr 21, 2017 3:37 pm

I moved the rollover 401k into the 34/33/33 portfolio. I had to split the total international into two because of the $100k limit with FTIPX. The rest I put into FSIVX.

I will reallocate as an entire portfolio when I decide what to do with the taxable money.


Return to “Investing - Help with Personal Investments”

Who is online

Users browsing this forum: joemama919, Lindrobe, njboater74, Raabe34, retiredjg, snackdog, wishful_thinking and 76 guests