Help with my portfolio

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gsr5000
Posts: 5
Joined: Mon May 01, 2017 6:02 pm

Help with my portfolio

Postby gsr5000 » Sun May 14, 2017 2:26 pm

Hello All,

We are a family of four (43, 43, 15, 12) with 65 years being the projected retirement year for my wife and myself (Fed – 16%; state – 6.5% tax on gross income. No debt). Could you please review my current portfolio and recommend any changes? We are looking to maximize our assets and minimize unnecessary high-fee funds using Boglehead approach. I do really appreciate your help!

Current Investments:
401k (Mine):
Holding Value Expense Ratio
VEXAXVanguard Extended Market Index Fund Admiral Shares $ 1,782.10 0.09%
VTIAXVanguard Total International Stock Index Fund Admiral Shares $ 8,834.41 0.12%
TRMCXT. Rowe Price Mid-Cap Value Fund $ 14,219.05 0.80%
RSPYXVictory RS Partners Fund Class Y $ 23,015.00 1.12%
VITLXVanguard Institutional Target Retirement 2045 Fund Institutional Shares $ 74,979.49 0.10%
VINIXVanguard Institutional Index Fund Institutional Shares $ 79,864.43 0.04%
DODFXDodge & Cox International Stock Fund $ 76,540.00 0.64%
DODGXDodge & Cox Stock Fund $ 84,198.00 0.52%

401k (Wife):
Holding Value Expense Ratio
RSPYXVictory RS Partners Fund Class Y $ 3,284.00 1.12%
VITFXVanguard Institutional Target Retirement 2035 Fund Institutional Shares $ 76,156.99 0.10%
DODFXDodge & Cox International Stock Fund $ 20,435.00 0.64%
DODGXDodge & Cox Stock Fund $16,654.00 0.52%

401k choices for both (same employer):
VICTORY RS PARTNERS CL FD Y 1.17%
AMG TIMESSQUARE MID CAP GRTH Z 1 1.04%
T ROWE PRICE MID CAP VAL 0.80%
JANUS RESEARCH FUND CL I 0.77%
DODGE & COX INTERNATIONAL ST 0.64%
WELLS FARGO STABLE RETURN FD C 0.57%
DODGE & COX STOCK FUND 0.52%
PIMCO TOTAL RETURN PORT. INSTL 0.46%
VANGUARD TOTAL INTL STOCK ADM 0.12%
VANGUARD 2020 INSTL TARGET RET 0.10%
VANGUARD 2025 INSTL TARGET RET 0.10%
VANGUARD 2030 INSTL TARGET RET 0.10%
VANGUARD 2035 INSTL TARGET RET 0.10%
VANGUARD 2040 INSTL TARGET RET 0.10%
VANGUARD 2045 INSTL TARGET RET 0.10%
VANGUARD 2050 INSTL TARGET RET 0.10%
VANGUARD 2055 INSTL TARGET RET 0.10%
VANGUARD 2060 INSTL TARGET RET 0.10%
VANGUARD EXTENDED MKT INDX ADM 0.09%
VANGUARD 2015 INSTL TARGET RET 0.09%
VANGUARD INCM INSTL TARGET RET 0.09%
VANGUARD TTL BD MRKT INDX ADM 0.06%
VANGUARD INSTITUTIONAL INDEX 0.04%

Old 401k (wife):
Holding Value Expense Ratio
VBTIXVanguard Total Bond Market Index Fund Institutional Shares $636.66 0.05%
VMCIXVanguard Mid-Cap Index Fund Institutional Shares $2,676.06 0.07%
VSCIXVanguard Small-Cap Index Fund Institutional Shares $4,622.66 0.07%
FIXED INTEREST OPTION $9,853.32 $97.00

Roth IRA (Mine):
Holding Value Expense Ratio
VNQVanguard REIT ETF $ 474.28 0.12%
ADREBLDRS Emerging Markets 50 ADR Index Fund $ 847.16 0.30%
XSLVPowerShares S&P SmallCap Low Volatility Portfolio $1,531.67 0.25%
VOOGVanguard S&P 500 Growth Index Fund $ 2,141.74 0.15%
EFAiShares MSCI EAFE ETF $ 2,148.57 0.33%
VOVanguard Mid-Cap Index Fund ETF Shares $ 2,308.75 0.08%
VTVVanguard Value Index Fund ETF Shares $ 4,128.98 0.08%
CASH $ 11,111.00 0.00%

Roth IRA (Wife):
Holding Value Expense Ratio
FTYiShares Real Estate 50 ETF $ 360.14 0.48%
EEMViShares Edge MSCI Min Vol Emerging Markets ETF $ 677.66 0.25%
IJRiShares Core S&P Small-Cap ETF $ 885.85 0.12%
BIVVanguard Intermediate Term Bond ETF $ 1,745.22 0.09%
SCHGSchwab US Large-Cap Growth ETF $ 1,832.08 0.07%
VEAVanguard MSCI EAFE ETF $ 1,899.79 0.09%
SCHMSchwab US Mid Cap ETF $ 2,503.00 0.07%
IUSViShares Core Russell U.S. Value ETF $ 3,235.50 0.08%
CASH $11,110.00

HSA:
Holding Value Expense Ratio
MUXAXVictory S&P 500 Index Fund Class A $ 1,173.10 0.62%
HRVIXHeartland Value Plus Fund Investor Class $ 3,363.47 1.16%
SGOVXFirst Eagle Overseas Fund Class A $ 3,911.84 1.16%
FREAXNuveen Real Estate Securities Fund Class A $ 4,163.84 1.30%
CWGFXAmerican Funds Capital World Growth and Income Fund® Class F-1 $ 6,586.36 0.81%
MDDVXBlackRock Equity Dividend Fund Investor A Shares $ 6,744.00 0.97%
TAGRXJohn Hancock Fundamental Large Cap Core Fund Class A $ 15,387.95 1.05%

HSA choices:
Fund Name Ticker Symbol Expense Ratio (%)
American Funds Capital World Gr&Inc F13 CWGFX 0.83
American Funds Growth Fund of Amer F13 GFAFX 0.71
BlackRock Equity Dividend Inv A3 MDDVX 0.97
BlackRock Small Cap Index A3 MDSKX 0.5
Federated Kaufmann Small Cap A3 FKASX 2.1
First Eagle Overseas A3 SGOVX 1.14
Franklin Income A2 FKINX 0.61
Goldman Sachs Balanced Strategy A3 GIPAX 1.44
Goldman Sachs Growth & Inc Strat A3 GOIAX 1.42
Goldman Sachs Growth Strategy A3 GGSAX 1.44
Hartford Capital Appreciation A3 ITHAX 1.1
Heartland Select Value Investor3† HRSVX 1.23
JHancock Fundamental Large Cap Core A3 TAGRX 1.06
JHancock High Yield A3 JHHBX 0.98
JHancock Money Market A3 JHMXX 0.86
JPMorgan Equity Index I HLEIX 0.46
JPMorgan Small Cap Equity A3 VSEAX 1.28
Nuveen Real Estate Securities A3 FREAX 1.3
PIMCO Total Return A3 PTTAX 0.86
Principal MidCap R41 PMBSX 0.97
Victory S&P 500 Index A2 MUXAX 0.58

Questions:
1. I did set up 529 plans for my kids, but so far the contributions are limited. We have a balance of $25000 between both of them. My state has a deduction for the contributions to this plan. We do want to be able to fund kids’ college education if there is a need. Should I contribute more to these plans?
2. I do 7% pre-tax and 7% post-tax contributions to my 401k and my wife contributes 18% (pre-tax) of her gross. Employer contributes 6% for both of us. I am thinking that I can roll-over after-tax contributions into a Roth IRA at some time. Any thoughts or suggestions on this?
3. We have around 300k in savings that we would like to invest. Any suggestions on a good mix of funds?
4. Any suggestions on non-traditional investment opportunities such as real estate private lending, etc.?

I do appreciate you sharing your feedback or ideas to be able to build our assets for the long term. Thank you.

User avatar
nedsaid
Posts: 7232
Joined: Fri Nov 23, 2012 12:33 pm

Re: Help with my portfolio

Postby nedsaid » Sun May 14, 2017 4:30 pm

gsr5000 wrote:Hello All,

We are a family of four (43, 43, 15, 12) with 65 years being the projected retirement year for my wife and myself (Fed – 16%; state – 6.5% tax on gross income. No debt). Could you please review my current portfolio and recommend any changes? We are looking to maximize our assets and minimize unnecessary high-fee funds using Boglehead approach. I do really appreciate your help!

Nedsaid: My impression is that you are doing most things right. Take a minute and congratulate yourself. It appears to me that you have made good fund choices but I see some overlap. You will get suggestions on how to improve your portfolio but it isn't a disaster. In fact, it looks better than what we see from investors who use investment advisors. Not bad.

Current Investments:
401k (Mine):
Holding Value Expense Ratio
VEXAXVanguard Extended Market Index Fund Admiral Shares $ 1,782.10 0.09%
VTIAXVanguard Total International Stock Index Fund Admiral Shares $ 8,834.41 0.12%
TRMCXT. Rowe Price Mid-Cap Value Fund $ 14,219.05 0.80%
RSPYXVictory RS Partners Fund Class Y $ 23,015.00 1.12%
VITLXVanguard Institutional Target Retirement 2045 Fund Institutional Shares $ 74,979.49 0.10%
VINIXVanguard Institutional Index Fund Institutional Shares $ 79,864.43 0.04%
DODFXDodge & Cox International Stock Fund $ 76,540.00 0.64%
DODGXDodge & Cox Stock Fund $ 84,198.00 0.52%

Nedsaid: Not bad, but I see overlap here. You also seem to be pursuing an active/passive strategy. The biggest overlap are all the funds you have plus the Vanguard Target Date Retirement 2045 Fund. The Target Date fund is designed to be an all-in-one investment. You could just put all the funds into the Target Date 2045 fund.

401k (Wife):
Holding Value Expense Ratio
RSPYXVictory RS Partners Fund Class Y $ 3,284.00 1.12%
VITFXVanguard Institutional Target Retirement 2035 Fund Institutional Shares $ 76,156.99 0.10%
DODFXDodge & Cox International Stock Fund $ 20,435.00 0.64%
DODGXDodge & Cox Stock Fund $16,654.00 0.52%

Nedsaid: Again, you are holding a Target Date Fund in addition to the other funds. You could put it all in the Target Date 2035 Fund.

401k choices for both (same employer):
VICTORY RS PARTNERS CL FD Y 1.17%
AMG TIMESSQUARE MID CAP GRTH Z 1 1.04%
T ROWE PRICE MID CAP VAL 0.80%
JANUS RESEARCH FUND CL I 0.77%
DODGE & COX INTERNATIONAL ST 0.64%
WELLS FARGO STABLE RETURN FD C 0.57%
DODGE & COX STOCK FUND 0.52%
PIMCO TOTAL RETURN PORT. INSTL 0.46%
VANGUARD TOTAL INTL STOCK ADM 0.12%
VANGUARD 2020 INSTL TARGET RET 0.10%
VANGUARD 2025 INSTL TARGET RET 0.10%
VANGUARD 2030 INSTL TARGET RET 0.10%
VANGUARD 2035 INSTL TARGET RET 0.10%
VANGUARD 2040 INSTL TARGET RET 0.10%
VANGUARD 2045 INSTL TARGET RET 0.10%
VANGUARD 2050 INSTL TARGET RET 0.10%
VANGUARD 2055 INSTL TARGET RET 0.10%
VANGUARD 2060 INSTL TARGET RET 0.10%
VANGUARD EXTENDED MKT INDX ADM 0.09%
VANGUARD 2015 INSTL TARGET RET 0.09%
VANGUARD INCM INSTL TARGET RET 0.09%
VANGUARD TTL BD MRKT INDX ADM 0.06%
VANGUARD INSTITUTIONAL INDEX 0.04%

Old 401k (wife):
Holding Value Expense Ratio
VBTIXVanguard Total Bond Market Index Fund Institutional Shares $636.66 0.05%
VMCIXVanguard Mid-Cap Index Fund Institutional Shares $2,676.06 0.07%
VSCIXVanguard Small-Cap Index Fund Institutional Shares $4,622.66 0.07%
FIXED INTEREST OPTION $9,853.32 $97.00

Roth IRA (Mine):
Holding Value Expense Ratio
VNQVanguard REIT ETF $ 474.28 0.12%
ADREBLDRS Emerging Markets 50 ADR Index Fund $ 847.16 0.30%
XSLVPowerShares S&P SmallCap Low Volatility Portfolio $1,531.67 0.25%
VOOGVanguard S&P 500 Growth Index Fund $ 2,141.74 0.15%
EFAiShares MSCI EAFE ETF $ 2,148.57 0.33%
VOVanguard Mid-Cap Index Fund ETF Shares $ 2,308.75 0.08%
VTVVanguard Value Index Fund ETF Shares $ 4,128.98 0.08%
CASH $ 11,111.00 0.00%

Roth IRA (Wife):
Holding Value Expense Ratio
FTYiShares Real Estate 50 ETF $ 360.14 0.48%
EEMViShares Edge MSCI Min Vol Emerging Markets ETF $ 677.66 0.25%
IJRiShares Core S&P Small-Cap ETF $ 885.85 0.12%
BIVVanguard Intermediate Term Bond ETF $ 1,745.22 0.09%
SCHGSchwab US Large-Cap Growth ETF $ 1,832.08 0.07%
VEAVanguard MSCI EAFE ETF $ 1,899.79 0.09%
SCHMSchwab US Mid Cap ETF $ 2,503.00 0.07%
IUSViShares Core Russell U.S. Value ETF $ 3,235.50 0.08%
CASH $11,110.00

HSA:
Holding Value Expense Ratio
MUXAXVictory S&P 500 Index Fund Class A $ 1,173.10 0.62%
HRVIXHeartland Value Plus Fund Investor Class $ 3,363.47 1.16%
SGOVXFirst Eagle Overseas Fund Class A $ 3,911.84 1.16%
FREAXNuveen Real Estate Securities Fund Class A $ 4,163.84 1.30%
CWGFXAmerican Funds Capital World Growth and Income Fund® Class F-1 $ 6,586.36 0.81%
MDDVXBlackRock Equity Dividend Fund Investor A Shares $ 6,744.00 0.97%
TAGRXJohn Hancock Fundamental Large Cap Core Fund Class A $ 15,387.95 1.05%

HSA choices:
Fund Name Ticker Symbol Expense Ratio (%)
American Funds Capital World Gr&Inc F13 CWGFX 0.83
American Funds Growth Fund of Amer F13 GFAFX 0.71
BlackRock Equity Dividend Inv A3 MDDVX 0.97
BlackRock Small Cap Index A3 MDSKX 0.5
Federated Kaufmann Small Cap A3 FKASX 2.1
First Eagle Overseas A3 SGOVX 1.14
Franklin Income A2 FKINX 0.61
Goldman Sachs Balanced Strategy A3 GIPAX 1.44
Goldman Sachs Growth & Inc Strat A3 GOIAX 1.42
Goldman Sachs Growth Strategy A3 GGSAX 1.44
Hartford Capital Appreciation A3 ITHAX 1.1
Heartland Select Value Investor3† HRSVX 1.23
JHancock Fundamental Large Cap Core A3 TAGRX 1.06
JHancock High Yield A3 JHHBX 0.98
JHancock Money Market A3 JHMXX 0.86
JPMorgan Equity Index I HLEIX 0.46
JPMorgan Small Cap Equity A3 VSEAX 1.28
Nuveen Real Estate Securities A3 FREAX 1.3
PIMCO Total Return A3 PTTAX 0.86
Principal MidCap R41 PMBSX 0.97
Victory S&P 500 Index A2 MUXAX 0.58

Nedsaid: I see bits and pieces of stuff, but do you have a plan? How much do you want to have in stocks and how much in bonds? How much of your stocks do you want to have in International investments? Do you want International Bonds at all? International Bonds in my opinion are entirely optional. The point is to have a rational allocation of your assets, pretty much how much in stocks and how much in bonds?

Do you know what your asset allocation is right now?

What I recommend is to write up an Investment Policy Statement. The Wiki has a good article and the Morningstar website has a good worksheet in .pdf form. Get a plan, Stan. It really helps to get your thoughts and your plan into writing.


Questions:
1. I did set up 529 plans for my kids, but so far the contributions are limited. We have a balance of $25000 between both of them. My state has a deduction for the contributions to this plan. We do want to be able to fund kids’ college education if there is a need. Should I contribute more to these plans?

Nedsaid: Your one son is 15 and this is the right age to work with the school counselors regarding college. See what scholarships are available and start applying for them. It can be time consuming but after a while you can start cranking the applications out. Pretty much, the sophomore year in high school is a good time to get the process rolling. Also, you can start working on the FAFSA form and start looking to see what financial aid, if any, might be available. One family member largely got her Bachelors' Degree financed through scholarships and also through aid through her College. Applying for scholarships was time consuming but ultimately very rewarding. The key is minimizing any loans your children might have to take out.

Yes, I would probably keep contributing but have your kids start working on the scholarship angle. There are some amazing things out there.


2. I do 7% pre-tax and 7% post-tax contributions to my 401k and my wife contributes 18% (pre-tax) of her gross. Employer contributes 6% for both of us. I am thinking that I can roll-over after-tax contributions into a Roth IRA at some time. Any thoughts or suggestions on this?

Nedsaid: If you have a Roth 401k, that can be rolled into a Roth IRA easily. Not sure about after-tax contributions to a Traditional 401(k). Someone will see this and answer.

3. We have around 300k in savings that we would like to invest. Any suggestions on a good mix of funds?

Nedsaid: Seeing that you have a family, keep lots of liquid emergency cash. Six months of living expenses is probably enough, work it up to a year's worth of living expenses by the time you reach fifty. I would invest the remainder in the broad index funds: Total Stock Market Index, Total International Stock Index, and Total Bond Index. If you are in a high enough tax bracket, you could put the bond portion in a low cost muni fund. The very broad Stock indexes are pretty tax efficient in a taxable account.

4. Any suggestions on non-traditional investment opportunities such as real estate private lending, etc.?

Nedsaid: Pretty much "non-traditional" means illiquid. Though I am pretty much a buy and hold type of guy, I want investments that I can turn to cash with the press of a button. Liquid investments trade daily, so you always know what they are worth. Illiquid investments are harder to value and of course you have a problem if you want access to your money. I would shy away from non-traditional investments. If you get these type of investments through an advisor, the commissions can be steep. There are other things like non-traded REITs and private equity that I would stay away from.

There are people out there who are good with rental real estate. That would be one of the few non-traditional investments that I think one could consider. It really helps if you are handy. But again, this is a relatively illiquid investment. I know people who have done well with this.


I do appreciate you sharing your feedback or ideas to be able to build our assets for the long term. Thank you.
A fool and his money are good for business.

gsr5000
Posts: 5
Joined: Mon May 01, 2017 6:02 pm

Re: Help with my portfolio

Postby gsr5000 » Sun May 14, 2017 8:53 pm

Nedsaid, Thank you very much for your kind words, encouragement, and your feedback. I will check out the Investment Policy worksheet and build a strategy soon. I use Personal Capital free dashboard option. Based on it, my mix is US Stocks (64%), International Stocks (22%), US Bonds (2%), International Bonds (1%), Alternatives (2%), and the rest is unclassified (?) and cash. Please let me know if you have any additional thoughts based on these details. I do hope other Gurus on the board would share their thoughts as well. Thank you all.

User avatar
nedsaid
Posts: 7232
Joined: Fri Nov 23, 2012 12:33 pm

Re: Help with my portfolio

Postby nedsaid » Mon May 15, 2017 11:46 am

gsr5000 wrote:Nedsaid, Thank you very much for your kind words, encouragement, and your feedback. I will check out the Investment Policy worksheet and build a strategy soon. I use Personal Capital free dashboard option. Based on it, my mix is US Stocks (64%), International Stocks (22%), US Bonds (2%), International Bonds (1%), Alternatives (2%), and the rest is unclassified (?) and cash. Please let me know if you have any additional thoughts based on these details. I do hope other Gurus on the board would share their thoughts as well. Thank you all.


Thanks for giving me your asset allocation. That really is what I am interested in, that is the big picture.

As a young investor, I started out pretty conservative. When the stock market crash hit in October of 1987, I lost hundreds of dollars and was emotionally devastated. My grandmother listened to my tale of woe and then said something very wise. She said, "It sounds to me like it is still worth more than what you paid for it." It seems silly now as my losses were relatively small, even back then. But emotionally, the losses may as well have been in the billions.

By the time early 2000 rolled around, I was 40 years old and have about 94% of my retirement in stocks. Pretty much pedal to the metal. I went a long way from the guy who was devastated over the loss of a few hundred dollars. Pretty much, a very strong bull market turned me from a zero to a hero. In those days, I listened to Bob Brinker who was warning about the stock market being terrifically overvalued. I was also learning about portfolio theory. So I went to an 80/20 asset allocation before everything crashed and I am glad that I did. I gradually worked to a 70/30 allocation where I pretty much have been for years. Right now, I am at 67/33.

What I am trying to say is I think you need to dial down the risk a bit and have more bonds in the portfolio. Your projected retirement date is about 2040. Let's look at the Vanguard Target Date Retirement 2040 to see what asset allocation Vanguard recommends for somebody your age. Pretty much, they are recommending an 85% stocks/15% bonds portfolio. Here is the breakdown from Morningstar: 51.30% US Stocks, 33.72% International Stocks, 12.62% bonds, 1.22% other, and 1.14% cash. The portfolio is 52% Total US Stock Market Index, 35% Total International Stock Index, 9% Total US Bond Index, and 4% Total International Bond Index. Vanguard wants its investors to be invested all over the globe so 40% of stocks and 30% of bonds are in International investments.

What I would recommend for your personally is 80% stocks/20% bonds. Anywhere between 20% and 50% of your stocks in International is fine, and my belief is that International Bonds are entirely optional. I think Vanguard's guidelines for International investments as outlined above are good.

My personal International allocation is 25% for stocks and about 7% for bonds. Don't have to do what I am doing, I am just disclosing what I do personally.

Again, as far as your $300K in cash, I wouldn't be in a huge rush to invest that seeing that you have two kids to get through college. Work the scholarships through the school counselors as much as you can and see how much of your kid's college educations you can get paid for.
A fool and his money are good for business.

gsr5000
Posts: 5
Joined: Mon May 01, 2017 6:02 pm

Re: Help with my portfolio

Postby gsr5000 » Tue May 16, 2017 9:04 pm

Thanks again for sharing your thoughts. Let me know if you have any suggestions to get to 80/20 mix, especially on the bonds end. You suggest I readjust my 401k or another account to have more in the funds that are bonds or any other bond recommendations?

Also, I am hoping to invest the cash in our Roth IRAs in some funds. I can possibly invest in some bonds? Any other thoughts? Do you think I need to just put the cash in my money market account in a CD rather than investing in the market now? I may probably need those funds in 4-5 years. Thanks a lot!

2pedals
Posts: 76
Joined: Wed Dec 31, 2014 12:31 pm

Re: Help with my portfolio

Postby 2pedals » Tue May 16, 2017 9:40 pm

gsr5000 wrote:Thanks again for sharing your thoughts. Let me know if you have any suggestions to get to 80/20 mix, especially on the bonds end. You suggest I readjust my 401k or another account to have more in the funds that are bonds or any other bond recommendations?

Also, I am hoping to invest the cash in our Roth IRAs in some funds. I can possibly invest in some bonds? Any other thoughts? Do you think I need to just put the cash in my money market account in a CD rather than investing in the market now? I may probably need those funds in 4-5 years. Thanks a lot!


For your 401K plan I would suggest

55% VANGUARD INSTITUTIONAL INDEX 0.04%
25% VTIAX Vanguard Total International Stock Index Fund Admiral Shares 0.12%
20% VANGUARD TTL BD MRKT INDX ADM 0.06%

Also you could do something similar with your IRA accounts 55% TSM (total stock market index), 25% total international (ex-us) and 20% total bonds. There are many good index fund to pick from when creating your portfolio Three Fund Portfolio, just think passive index funds with low ER ratios. No need to have a "boat load" of funds to diversify. Don't try to time the market. It has not worked for me in the long run. You may win sometimes but expect that in long run you will not. Simply simply and stay with a long term plan. As you get older you should shift from 80/20 to something like 60/40 or even 30/70 stocks/bonds.

gsr5000
Posts: 5
Joined: Mon May 01, 2017 6:02 pm

Re: Help with my portfolio

Postby gsr5000 » Thu May 18, 2017 7:05 am

Thank you! I will review these recommendations and rebalance accordingly. I really appreciate any additional thoughts on short-term investing choices for the cash that I may need in 4-5 years.

User avatar
nedsaid
Posts: 7232
Joined: Fri Nov 23, 2012 12:33 pm

Re: Help with my portfolio

Postby nedsaid » Fri May 19, 2017 7:07 pm

gsr5000 wrote:Thank you! I will review these recommendations and rebalance accordingly. I really appreciate any additional thoughts on short-term investing choices for the cash that I may need in 4-5 years.


For monies you need in 4-5 years, I wouldn't go any riskier than Investment Grade Intermediate Term bonds. US Total Bond Market would fit the bill. You might even consider a Short-Term Bond Fund if it is Investment Grade. With stocks, you need a horizon of at least 10 years, and even then that is not a guarantee you won't lose money. Also FDIC Insured Certificates of Deposit would be excellent.
A fool and his money are good for business.

User avatar
nedsaid
Posts: 7232
Joined: Fri Nov 23, 2012 12:33 pm

Re: Help with my portfolio

Postby nedsaid » Fri May 19, 2017 7:17 pm

gsr5000 wrote:Thanks again for sharing your thoughts. Let me know if you have any suggestions to get to 80/20 mix, especially on the bonds end. You suggest I readjust my 401k or another account to have more in the funds that are bonds or any other bond recommendations?

Also, I am hoping to invest the cash in our Roth IRAs in some funds. I can possibly invest in some bonds? Any other thoughts? Do you think I need to just put the cash in my money market account in a CD rather than investing in the market now? I may probably need those funds in 4-5 years. Thanks a lot!


Your ROTH IRAs are retirement accounts and thus should me more aggressively invested. These should be invested just like your other retirement accounts. For someone your age, 80/20 would be appropriate. Again, check the Target Date Retirement Funds at Vanguard, Fidelity, and T. Rowe Price to give you an idea of how an investor your age should be invested for retirement. Look at their stock/bond allocations and how much of those allocations are International. That is more important than the actual funds that they use.

You have a family (thus a need for larger emergency funds) and college bills on the horizon, so you want to keep a big chunk of money conservatively invested. You probably also have some other shorter term goals.
A fool and his money are good for business.

gsr5000
Posts: 5
Joined: Mon May 01, 2017 6:02 pm

Re: Help with my portfolio

Postby gsr5000 » Sat May 20, 2017 4:29 pm

Thanks again for taking the time and sharing your recommendations.


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