Need advices cleaning up my portfolio

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Topic Author
sugarandspice
Posts: 30
Joined: Sat Jun 27, 2015 12:22 pm

Need advices cleaning up my portfolio

Post by sugarandspice »

Hi everyone,

We are a couple approaching 40s now and just started setting up our retirement accounts few years ago. Before that we were saving up a lot for house down payment and used most of our saving for that (we live in CA so houses are really expensive here). Anyway, in the past few years we’ve been doing well in terms of catching up with the retirement fund. But I have been making some changes to my portfolio and now it’s pretty messy (though the return is still good) and would like to get some advices on how to adjust it.

Here is the info:

Emergency Funds: 1 year
Debt: Mortgage 4.6% interest
Tax Rate: 28% Federal 9.30% CA
Age: Late 30s
Portfolio size: low six figures
Desired Asset allocation: 75% stocks / 25% bonds
Desired International allocation: I am not really sure here. I personally don't like international allocation but I know I should have some.

His 401K 31% of portfolio
- 100% Fidelity Freedom® Index 2040 (FFIZX) (0.16%)

Her 401K 43% of portfolio
- 100% Dreyfus S&P Index ( PEOPX) (0.52)
Company match 4%

His Roth IRA 11% of portfolio
- 100% Vanguard Balanced Index Fund (VBIAX) (0.07%)

Her Roth IRA 15% of portfolio
- 67% Vanguard Balanced Index Fund (VBIAX) (0.07%)
- 16.5% Vanguard Health Care (VGHCX) (0.37%)
- 16.5% Vanguard Total Bond Market Index (VBMFX) (0.15%)

One issue is that most options on Her 401k have very high expense. PEOPX is the cheapest one on there. So I was wondering if it’s possible to just leave Her 401K with PEOPX and try to adjust the balance with other accounts.

We are contributing 15,xxx to His 401K, 14,xxx to Her 401K and 5,500 each to His and Her Roth IRA yearly.

Other options on Her 401K:
http://profile.morningstar.com/isr/Morn ... traGroupVA

Other options on His 401K:
Fidelity® Growth Company Fund (FGCKX) (0.66%)
Fidelity® Contrafund (FCNKX) (0.58%)
Fidelity® 500 Index Fund (FXSIX) (0.035%)
MFS Value Fund (MEIJX) (0.61%)
T. Rowe Price Mid-Cap Value Fund (TRMCX) (0.8%)
Vanguard Extended Market Index Fund (VEXAX) (0.08%)
American Beacon Small Cap Value Fund (VFIX ) (0.84%)
Victory Munder Mid-Cap Core Growth Fund (MGOYX) (1.06%)
Fidelity Freedom® Index 2045 Fund (FFOLX) (0.16%)
Fidelity Freedom® Index 2040 Fund (FFIZX) (0.16%)
Fidelity Freedom® Index 2035 Fund (FFEZX) (0.16%)
Fidelity Freedom® Index 2050 Fund (FFOPX) (0.16%)
Fidelity Freedom® Index 2055 Fund (FFLDX) (0.16%)
Wells Fargo Small Company Growth Fund (WSCGX) (1.01%)
Fidelity Freedom® Index 2030 Fund (FEGX) (0.16%)
Fidelity Freedom® Index 2025 Fund (FFEDX) (0.16%)
Fidelity Freedom® Index 2020 Fund (FIWTX) (0.16%)
Fidelity Freedom® Index 2015 Fund (FIWFX) (0.16%)
Fidelity Freedom® Index 2010 Fund (FFWTX) (0.17%)
Fidelity® Diversified International Fun (FFGFX) (0.17%)
Fidelity Freedom® Index Income Fund (FFGZX) (0.18%)
BlackRock Core Bond Portfolio (CCBBX) (0.49%)
Vanguard Total Bond Market Index Fund (VBTLX) (0.05%)
PIMCO All Asset Fund (PAAIX) (0.875%)
Vanguard Total International Stock Index Fund (VTIAX ) (0.11%)
Oppenheimer Developing Markets Fund (ODVIX) (0.88%)
Fidelity Freedom® Index 2060 Fund (FFLEX) (0.16%)
Prudential Principal Preservation Separate Account (PPSA) (0.00%)

Both of our Roth IRAs are with Vanguard.

Thank you so much!
Last edited by sugarandspice on Wed Jun 21, 2017 11:18 am, edited 7 times in total.
CFM300
Posts: 2534
Joined: Sat Oct 27, 2007 5:13 am

Re: Need advices cleaning up my portfolio

Post by CFM300 »

Hard to offer advice without knowing your goals. Even then, we'd likely need more info.

Follow the guidance here about asking portfolio questions: viewtopic.php?t=6212

Just like you did back in 2015: viewtopic.php?f=1&t=168523

I'm sure people will be happy to help again.
Topic Author
sugarandspice
Posts: 30
Joined: Sat Jun 27, 2015 12:22 pm

Re: Need advices cleaning up my portfolio

Post by sugarandspice »

I've edited more info to the post.
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ruralavalon
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Re: Need advices cleaning up my portfolio

Post by ruralavalon »

Asset allocation.
sugarand spice wrote:Age: Late 30s
Portfolio size: low six figures
Desired Asset allocation: 75% stocks / 25% bonds
Desired International allocation: I am not really sure here. I personally don't like international allocation but I know I should have some.
In my opinion in your late 30s your desired asset allocation of 75/25 is within the range of what is reasonable.

I suggest around 20 - 30% of stocks in international stocks. Vanguard paper (March 2012), "Considerations for investing in non-U.S. equities". Historically, allocating 20% of an equity portfolio to non-U.S. stocks would have captured about 84% of the maximum possible diversification benefit, and allocating 30% of an equity portfolio to non-U.S. stocks would have captured about 99% of the maximum possible diversification benefit (p. 6).

That works out to about 25% bonds; 20% international stocks, and 55% domestic stocks. Asset allocation is a very personal decision. You must decide on an allocation that is comfortable for you based on your own ability, willingness and need to take risk.


Adjusting her allocation.
sugarand spice wrote:My husband 401k and Roth IRA are doing very well so I would like to just leave them alone and focus on correcting my portfolio if that’s possible.
. . . . .
Ok I know Her portfolio is very weird which I am trying to make adjustment now. One issue is that most options on my 401k have very high expense. PEOPX is the cheapest one on there. So I was wondering if it’s possible to just leave my 401K with PEOPX and try to adjust the balance with my Roth IRA instead.
I suggest using a total stock market index fund where available; otherwise an S&P 500 index fund (such as Dreyfus S&P Index Svc. Class, PEOPX) is good enough for domestic stocks. "In a 401(k) plan with limited choices one might very well opt for an S&P 500 index fund to serve as the domestic stock component of a three-fund portfolio." Wiki article, Three-fund portfolio, "Other considerations". An S&P 500 index fund covers 80% of the U.S. stock market, and in the 25 years since the creation of the first total stock market fund the performance of the two types of funds has been almost identical. Morningstar “growth of $10k” graph, VFINX vs VTSMX. See also Allan Roth, CBS Moneywatch, "John C. Bogle on the S&P 500 vs. the Total Stock Market". So it seems that adding a little in mid/small cap stocks trying to mimic the holdings of a total stock market fund has historically added little in performance.

The expense ratios for international stock fund in her 401k are absurd, 1.07-2.16%. The ERs are too high to even consider using the funds in my opinion. Also the ERs on the allocation funds, 0.71-1.32%, are too high to use the funds in my opinion.

Likewise the ERs on the bond funds, 0.75-1.21%, are too high to use the funds in my opinion.

Low expense ratios are critical to long-term investing performance. Vanguard blog post, "Stopping the silent killer of returns". Please see the table at the end of the post, "Cumulative impact of fees on ending wealth at various time horizons." Also, here is a calculator you could use to estimate the impact of investing expenses. Bankrate.com, "Mutual fund fees calculator".

Also, low expense ratios are the best predictor of future performance. Morningstar article. “If there's anything in the whole world of mutual funds that you can take to the bank, it's that expense ratios help you make a better decision. In every single time period and data point tested, low-cost funds beat high-cost funds.” “Investors should make expense ratios a primary test in fund selection. They are still the most dependable predictor of performance.”

If you want to leave his accounts as is, then you will not be able to add any international stock allocation, and the best you can do to get the desired assert allocation in adjusting her accounts is:

Her 401k (30% of his&her total portfolio; 75% of her portfolio)
75%, Dreyfus S&P Index Svc. Class (PEOPX) ER 0.52%s

Her Roth IRA @ Vanguard (10% of his&her total portfolio; 75% of her portfolio)
25%, Vanguard Total Bond Market Index Fund Admiral Share (VBTLX) ER 0.05%


Adjusting his&her allocation.
It is often best to look at all accounts of a married couple together as a single unified whole, rather than consider each person separately. Start fund selection by choosing only the one or two best funds (diversified + low ER) in each of the 401ks, where the choices offered are limited. Then complete the rest of the asset allocation using the nearly unlimited choices available in the IRAs.

That way if a good bond fund or a good international stock fund in his 401k then those funds could be bought in his 401k, and it would not matter that no good bond or international stock funds are offered in her 401k.

My suggestion is to treat all of the couples accounts as a single unified portfolio. If that possible approach has any appeal to you at all, then please let us know what other funds are offered in his 401k.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Topic Author
sugarandspice
Posts: 30
Joined: Sat Jun 27, 2015 12:22 pm

Re: Need advices cleaning up my portfolio

Post by sugarandspice »

ruralavalon wrote:Asset allocation.
That works out to about 25% bonds; 20% international stocks, and 55% domestic stocks.
ruralavalon, Thank you very much for taking your time giving me advices in such a great details. I like the above allocation and feel comfortable with it. Also, I can see that it would be better to involve His 401K in this otherwise it just seems difficult to get the desired allocation since Her 401k options are not very good. I will take a look at His 401K this weekend (I don't have his login so I have to wait) and come back with more info.

And just to make sure I understand your suggestion correctly, you are saying that I can continue with the Dreyfus S&P ONLY on Her401K but change all the funds on Her Roth IRA to Vanguard Total Bond Market Index (VBTLX)? And hopefully His 401K will have a good international stock fund so we can balance the whole thing out, is that correct?

I also have another question, when we are trying to get to the desired allocation with certain percentage, do we need to consider the fact that some funds, for example, Vanguard Balanced Index Fund (VBIAX) is 60% stock 40% bond? I mean do we need to break down the fund and look at those percentages as well?

Thank you so much. I really appreciate your help.
CFM300
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Joined: Sat Oct 27, 2007 5:13 am

Re: Need advices cleaning up my portfolio

Post by CFM300 »

sugarandspice wrote:when we are trying to get to the desired allocation with certain percentage, do we need to consider the fact that some funds, for example, Vanguard Balanced Index Fund (VBIAX) is 60% stock 40% bond?
Yes. And note also that the Fidelity Freedom Fund 2040 has 32% in international equities.

Given that you have limited choices in your 401(k), you might just stick with the S&P index fund there, and allocate your entire Roth IRA to Vanguard's Total Bond Fund (or whatever bond fund you want). Since your 401(k) is approximately 3 times the size of your IRA, that would give you a 75/25 stock/bond allocation.

So far, I'm just repeating what ruralavalon suggested. But I'll diverge here:

Your husband could just change the Fidelity Freedom fund in his 401(k) from 2040 to 2030 (or whatever gets bonds closest to 25%), and then change his IRA to Vanguard's Lifestrategy Growth fund (20% bonds, I believe) or the appropriate target retirement fund. (You'd need to investigate which year to use in order to achieve your desired bond allocation.)

That would keep things simple, and also allow you to gain some exposure to international stocks.

In summary, your accounts together would be allocated 75/25 stock/bond. And each of his accounts individually could be allocated 75/25, with whatever allocation to international happens to be present in the chosen funds.
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ruralavalon
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Location: Illinois

Re: Need advices cleaning up my portfolio

Post by ruralavalon »

sugarandspice wrote:
ruralavalon wrote:Asset allocation.
That works out to about 25% bonds; 20% international stocks, and 55% domestic stocks.
ruralavalon, Thank you very much for taking your time giving me advices in such a great details. I like the above allocation and feel comfortable with it. Also, I can see that it would be better to involve His 401K in this otherwise it just seems difficult to get the desired allocation since Her 401k options are not very good. I will take a look at His 401K this weekend (I don't have his login so I have to wait) and come back with more info.

And just to make sure I understand your suggestion correctly, you are saying that I can continue with the Dreyfus S&P ONLY on Her401K but change all the funds on Her Roth IRA to Vanguard Total Bond Market Index (VBTLX)? And hopefully His 401K will have a good international stock fund so we can balance the whole thing out, is that correct?
That is what you would do if you wanted to continue to treat her portfolio as separate from his portfolio.

If you want to treat all of the accounts together as a single unified portfolio, then wait until we see what is offered in his 401k before doing anything.

When you list the funds offered in his 401k please give fund names, tickers and expense ratios. Also please state about how much you expect that you might be contributing annually to each account. Again please simply add this to your original post using the edit button, so that all of your information is in one place.

sugarand spice wrote:I also have another question, when we are trying to get to the desired allocation with certain percentage, do we need to consider the fact that some funds, for example, Vanguard Balanced Index Fund (VBIAX) is 60% stock 40% bond? I mean do we need to break down the fund and look at those percentages as well
Yes. That's why it is easier to not use balanced funds along with pure stock funds and pure bond funds. It makes it harder to keep track of your asset allocation.

The big advantage of a balanced fund is that it can serve as an all-in-one investment portfolio. In other words you could use only that one fund in all accounts, if available in all accounts.

But you lose that big advantage if you mix it with other funds or if it's not available in all accounts.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Topic Author
sugarandspice
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Re: Need advices cleaning up my portfolio

Post by sugarandspice »

Thank you so much both CFM300 and ruralavalon! I will be back this weekend with the funds list from His 401K.
Topic Author
sugarandspice
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Joined: Sat Jun 27, 2015 12:22 pm

Re: Need advices cleaning up my portfolio

Post by sugarandspice »

ruralavalon wrote:If you want to treat all of the accounts together as a single unified portfolio, then wait until we see what is offered in his 401k before doing anything.

When you list the funds offered in his 401k please give fund names, tickers and expense ratios. Also please state about how much you expect that you might be contributing annually to each account. Again please simply add this to your original post using the edit button, so that all of your information is in one place.
I finally had a chance to get the information from His 401K and added it to the original post. The percentage also changed a bit since he has more in his account than I thought.

Thank you so much for all the help!
Topic Author
sugarandspice
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Re: Need advices cleaning up my portfolio

Post by sugarandspice »

I also have another question. Right now I am keeping all my emergency fund in regular saving account which has very low interest (0.9%). Is there a better place to keep it so that I can gain a little more interest? Most saving accounts that I see are around 0.9%-1% interest.
rgs92
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Re: Need advices cleaning up my portfolio

Post by rgs92 »

I've always wondered why the Fidelity Freedom Index funds had so much foreign exposure. VBINX (Vang. Balanced Index) has none.
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ruralavalon
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Re: Need advices cleaning up my portfolio

Post by ruralavalon »

POST WAS DELETED BY MISTAKE IN PREPARING IDEAS FOR A HOW TO INVEST NEW CONTRIBUTIONS

Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund type portfolio, modified as necessary to accommodate the fund offerings in your 401ks. Current portfolio size = "low six figures". New annual contributions = about $42.6k, including employer match. The asset allocation is: 25% bonds; 20% international stocks, and 55% domestic stocks. The percentages given are percentages of the total portfolio, not of a given account. The suggestion is to switch both the existing balances and the new contributions to the funds indicated. I have added ideas on how to distribute new contributions in the accounts.

His 401K (31% of portfolio; adds $18k/yr, no employer match = 40% of new annual contributions)
07%, Fidelity 500 Index Fund Institutional Class (FXSIX) ER 0.035% <= about 40% of new contributions to his 401k here
14%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%; <= about 35% of new contributions to his 401k here
10%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%<= about 25% of new contributions to his 401k here

Her 401K (43% of portfolio; adds $11k/yr + $2.6k employer match = $13.6k total = 33% of new annual contributions)
43%, Dreyfus S&P Index (PEOPX) (0.52), <= all new contributions to her 401k here

His Roth IRA (11% of portfolio; adds $5.5k/yr = 13% of new annual contributions)
06%, Vanguard Total International Stock Index Fund Investor Shares (VTIAX) ER 0.11% <= about 50% of new contributions to his IRA here
05%, Vanguard Total Bond Market Index Fund Investor Shares (VBFMX) ER 0.05%, <= about 50% of new contributions to his IRA here

Her Roth IRA (15% of portfolio; adds $5.5k/yr = 13% of new annual contributions)
05%, Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) ER 0.04% <=about 25% of new contributions to her IRA here
10%, Vanguard Total Bond Market Index Fund Investor Shares (VBFMX) ER 0.05%<= about 75% of new contributions to her IRA here
Last edited by ruralavalon on Tue Jun 27, 2017 5:34 pm, edited 3 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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ruralavalon
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Re: Need advices cleaning up my portfolio

Post by ruralavalon »

sugarandspice wrote:I also have another question. Right now I am keeping all my emergency fund in regular saving account which has very low interest (0.9%). Is there a better place to keep it so that I can gain a little more interest? Most saving accounts that I see are around 0.9%-1% interest.
You could consider other federally insured savings accounts, federally insured short-term CDs, a Vanguard short-term bond fund, or a Vanguard money market fund if rates improve a bit more. To compare rates on savings accounts and CDs see http://www.bankrate.com .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Topic Author
sugarandspice
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Re: Need advices cleaning up my portfolio

Post by sugarandspice »

ruralavalon wrote:Here is an example portfolio that you could consider. This is a three-fund type portfolio, modified as necessary to accommodate the fund offerings in your 401ks. Current portfolio size = "low six figures". New annual contributions = about $40k. The asset allocation is: 25% bonds; 20% international stocks, and 55% domestic stocks. The percentages given are percentages of the total portfolio, not of a given account. The suggestion is to switch both the existing balances and the new contributions to the funds indicated.

His 401K (31% of portfolio; adds $18k/yr)
12%, Fidelity 500 Index Fund Institutional Class (FXSIX) ER 0.035%;
09%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%; and
10%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%
Hi ruralavalon

Thank you so much for your help. I really like your suggestion and will definitely follow your advices.

Just to make sure I am doing this right, for existing balances, I will switch the contributions and follow the percentage that you suggested. But for future contribution such has His 401K, what is the best way to set it up so the overall (whole portfolio) will remain in the desired allocation? (I understand that I still need to rebalance it every year or two). Should I set up His 401K future allocation to be 39% FXSIX, 29% VTIAX, 32% VBTLX per pay period?

Thank you!!
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ruralavalon
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Re: Need advices cleaning up my portfolio

Post by ruralavalon »

sugarandspice wrote:
ruralavalon wrote:Here is an example portfolio that you could consider. This is a three-fund type portfolio, modified as necessary to accommodate the fund offerings in your 401ks. Current portfolio size = "low six figures". New annual contributions = about $40k. The asset allocation is: 25% bonds; 20% international stocks, and 55% domestic stocks. The percentages given are percentages of the total portfolio, not of a given account. The suggestion is to switch both the existing balances and the new contributions to the funds indicated.

His 401K (31% of portfolio; adds $18k/yr)
12%, Fidelity 500 Index Fund Institutional Class (FXSIX) ER 0.035%;
09%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%; and
10%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%
Hi ruralavalon

Thank you so much for your help. I really like your suggestion and will definitely follow your advices.

Just to make sure I am doing this right, for existing balances, I will switch the contributions and follow the percentage that you suggested. But for future contribution such has His 401K, what is the best way to set it up so the overall (whole portfolio) will remain in the desired allocation? (I understand that I still need to rebalance it every year or two). Should I set up His 401K future allocation to be 39% FXSIX, 29% VTIAX, 32% VBTLX per pay period?

Thank you!!
How much (in dollars) is the full annual employer match in her 401k?

Is there any employer match in his 401k, and if so how much (in dollars) is the full annual employer cnn match in his 401k?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Topic Author
sugarandspice
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Joined: Sat Jun 27, 2015 12:22 pm

Re: Need advices cleaning up my portfolio

Post by sugarandspice »

ruralavalon wrote:How much (in dollars) is the full annual employer match in her 401k?

Is there any employer match in his 401k, and if so how much (in dollars) is the full annual employer cnn match in his 401k?
2,600 for Her 401K. No company match for His 401K.

Thank you!
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ruralavalon
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Re: Need advices cleaning up my portfolio

Post by ruralavalon »

sugarandspice wrote:Just to make sure I am doing this right, for existing balances, I will switch the contributions and follow the percentage that you suggested. But for future contribution such has His 401K, what is the best way to set it up so the overall (whole portfolio) will remain in the desired allocation? (I understand that I still need to rebalance it every year or two). Should I set up His 401K future allocation to be 39% FXSIX, 29% VTIAX, 32% VBTLX per pay period?
sugarandspice wrote:
ruralavalon wrote:How much (in dollars) is the full annual employer match in her 401k?

Is there any employer match in his 401k, and if so how much (in dollars) is the full annual employer cnn match in his 401k?
2,600 for Her 401K. No company match for His 401K.

Thank you!
Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund type portfolio, modified as necessary to accommodate the fund offerings in your 401ks. Current portfolio size = "low six figures". New annual contributions = about $42.6k, including employer match. The asset allocation is: 25% bonds; 20% international stocks, and 55% domestic stocks. The percentages given are percentages of the total portfolio, not of a given account. The suggestion is to switch both the existing balances and the new contributions to the funds indicated. I have added ideas on how to distribute new contributions in the accounts.

His 401K (31% of portfolio; adds $18k/yr, no employer match = 40% of new annual contributions)
07%, Fidelity 500 Index Fund Institutional Class (FXSIX) ER 0.035%, <= about 40% of new contributions to his 401k here
14%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%, <= about 35% of new contributions to his 401k here
10%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%, <= about 25% of new contributions to his 401k here

Her 401K (43% of portfolio; adds $11k/yr + $2.6k employer match = $13.6k total = 33% of new annual contributions)
43%, Dreyfus S&P Index (PEOPX) (0.52), <= all new contributions to her 401k here

His Roth IRA (11% of portfolio; adds $5.5k/yr = 13% of new annual contributions)
06%, Vanguard Total International Stock Index Fund Investor Shares (VTIAX) ER 0.11%, <= about 50% of new contributions to his IRA here
05%, Vanguard Total Bond Market Index Fund Investor Shares (VBFMX) ER 0.05%, <= about 50% of new contributions to his IRA here

Her Roth IRA (15% of portfolio; adds $5.5k/yr = 13% of new annual contributions)
05%, Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) ER 0.04%, <=about 25% of new contributions to her IRA here
10%, Vanguard Total Bond Market Index Fund Investor Shares (VBFMX) ER 0.05%, <= about 75% of new contributions to her IRA here

This distrbution of new contributions may tend to keep your portfolio at your desired asset allocation. I tried to set the contributions so that 25% of new money goes to bonds, 20% goes to international stocks, and 55% goes to domestic stocks. The funds will have gains/losses and dividends at different and unpredictable rates, so it is not possible to be exact. You will probably need to rebalance once every year or two.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Topic Author
sugarandspice
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Re: Need advices cleaning up my portfolio

Post by sugarandspice »

ruralavalon wrote:This distrbution of new contributions may tend to keep your portfolio at your desired asset allocation. I tried to set the contributions so that 25% of new money goes to bonds, 20% goes to international stocks, and 55% goes to domestic stocks. The funds will have gains/losses and dividends at different and unpredictable rates, so it is not possible to be exact. You will probably need to rebalance once every year or two.
ruralavalon, thank you so much! I really appreciate your help. Now I feel so much better that I have a formula that I can just stick with it.
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