Help with AA and short/med term savings

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
nsisson
Posts: 60
Joined: Sun Mar 30, 2014 7:16 pm

Help with AA and short/med term savings

Post by nsisson » Fri Nov 24, 2017 10:08 pm

Age: 27
Debt: None
Tax Filing Status: Single
Tax rate: 15%, currently AK resident but will be moving to D.C. in February and will likely become a resident there.
Income: Grad student/ ~25K

My investment situation:
Roth IRA:
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) – 100% (23% of total portfolio)

Traditional 401k (started in Feb. 2014):
SSgA S&P 500 Index Securities Lending Series Fund (SVSPX) – 70% (21% of total portfolio)
expense ratio = 0.70%
SSgA S&P MidCap Index Non-Lending Series Fund – 30% (9% of total portfolio)
expense ratio = 0.71%

Taxable:
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) – 80% (35% of total portfolio)
Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) – 20% (8% of total portfolio)

Individual Stock
Apple (few shares) (4% of total portfolio)

Current AA:
75% equity:
- Giant cap: 39%
- Large cap: 27%
- Mid cap: 14%
- Small cap: 4%
- International: 8%
25% bond:
- Total bond market: 23%

Broad overview:
- Currently contribute max to Roth IRA (Vanguard Total Bond Market Index Fund Admiral Shares), but have accumulated some money in my savings account (Capital One Money Market) and but wanted some thoughts of current AA and best direction forward.

I have my emergency fund/ 0-10 year savings in a Capital One Money Market account (1.3% interest). This is estimated to be about $40,000. But I have ~55K total in the account. I have a checking account which I use for day to day expenses, so this savings account money is not needed day to day.

Note:
1. Currently only contributing max to Roth (Vanguard total bond market index fund admiral), will be only foreseeable retirement option for at least another year, not contributing to taxable (currently all equity). So in short, only adding funds as bonds.
2. I have tried to allocate across all my accounts.
3. No annual fee for 401K that I am aware of.
4. I am invested in funds with the lowest expense ratios in my 401K, every other fund has an expense ratio >.70%

Questions:
1. Where should I have my <10-year savings needs? I'm happy with emergency fund in capital one account, but should short-mid term (5-10 years) savings be elsewhere? (thinking this is for house downpayment, car, marriage, moving...etc)

2. Since leaving job with 401K, I have left the funds in the employee account. Should I roll that over to Vanguard? Seems there would be a one time fee of $55.

3. How is my current AA?
- I'm a bit unsure of my Roth IRA being 100% bond since that is my only retirement contribution right now, but I know that this is most tax efficient.
However, I know switching placement when necessary does not incur a large capital gains tax. But by holding stocks in a taxable account instead, large built-up unrealized capital gains makes it difficult to switch even if switching would otherwise be beneficial.

- Is the total bond market fund the right one for me? Could switch to
55% VBILX (Vanguard Intermediate Term Bond Index) – about 50% Gov’t
45% VFIDX (Vanguard Intermediate-term investment grade) – about 6% Gov’t

- Should I diversify in different funds or keep current structure?

- Add more international allocation?

- Keep with total stock market or switch to SP 500?


Thanks!
Last edited by nsisson on Sat Nov 25, 2017 8:29 pm, edited 2 times in total.

User avatar
ruralavalon
Posts: 11839
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Help with AA and short/med term savings

Post by ruralavalon » Sat Nov 25, 2017 10:44 am

nsisson wrote:
Fri Nov 24, 2017 10:08 pm
Questions:
1. Where should I have my <10-year savings needs? I'm happy with emergency fund in capital one account, but should short-mid term savings be elsewhere? (thinking this is for house downpayment, car, marriage, moving...etc)
. . . . .
- I'm a bit unsure of my Roth IRA being 100% bond since that is my only retirement contribution right now, but I know that this is most tax efficient.
However, I know switching placement when necessary does not incur a large capital gains tax. But by holding stocks in a taxable account instead, large built-up unrealized capital gains makes it difficult to switch even if switching would otherwise be beneficial.
. . . . .
- Should I diversify in different funds or keep current structure?
Some additional information is necessary.

What percentage of the total portfolio is currently in each of the listed accounts?

What are the expense ratios of the funds you are using in your 401k?

What other funds are offered in your old 401k? Please give fund names, tickers and expense ratios.

Is there an annual account maintenance fee charged if you leave the old 401k where it is?

About what time frame do you have in mind for purchase of a home, car, etc.?

You can simply add this to your original post using the edit button, so that all of your information is in one place.

. . . . .

nsisson wrote:
Fri Nov 24, 2017 10:08 pm
2. Since leaving job with 401K, I have left the funds in the employee account. Should I roll that over to Vanguard? Seems there would be a one time fee of $55.
If the expense ratios for the funds in your 401k are very low, then you could just leave that account where it is.


nsisson wrote:
Fri Nov 24, 2017 10:08 pm
Age: 27
. . . . .
Current AA:
. . . . .
25% bond:
- Total bond market: 23%
. . . . .
3. How is my current AA?
Good.

At age 27 I suggest about 20% in bonds. This is expected to substantially reduce volatility (risk), with only a relatively slight decrease in return. Graph, "An Efficient Frontier: the power of diversification". Please see the wiki articles Bogleheads® investment philosophy, part 3 "Never bear too much or too little risk", and "Asset allocation".


nsisson wrote:
Fri Nov 24, 2017 10:08 pm
- Is the total bond market fund the right one for me? Could switch to
55% VBILX (Vanguard Intermediate Term Bond Index) – about 50% Gov’t
45% VFIDX (Vanguard Intermediate-term investment grade) – about 6% Gov’t
Any of those three intermediate-term bond funds would be good in my opinion. Most here use Vanguard Total Bond Market index Fund (VBTLX). I use Vanguard Intermediate-term Bond Index Fund (VBILX).


nsisson wrote:
Fri Nov 24, 2017 10:08 pm
Current AA:
75% equity:
. . . . .
- International: 8%
. . . . .
- Add more international allocation?
Yes, add more international.

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). You can find lots of debate here on international allocation, opinions rangeing all the way from 00% to 50% of stocks in international stocks. If you want more viewpoints on international stocks please try the Google search box (upper right, this page).


nsisson wrote:
Fri Nov 24, 2017 10:08 pm
- Keep with total stock market or switch to SP 500?
For domestic stocks I suggest using a total stock market index fund where available, it's a little more diversified including stocks smaller companies, and gives the prospect of a little more return.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

nsisson
Posts: 60
Joined: Sun Mar 30, 2014 7:16 pm

Re: Help with AA and short/med term savings

Post by nsisson » Sat Nov 25, 2017 8:32 pm

Edited post as requested. Expense ratios for 401K funds are all really high (>70%), I can post the funds but I'm leaning towards rolling it over because of fees.

Thanks for the info @ruralavalon

nsisson
Posts: 60
Joined: Sun Mar 30, 2014 7:16 pm

Re: Help with AA and short/med term savings

Post by nsisson » Sun Nov 26, 2017 10:10 am

Am thinking about using Capital One 360 CDs for short/med 5-10 year savings as they have the best rates. But would still like to hear some opinions about current portfolio (bonds in Roth IRA, AA) and rolling over 401K:

I'm a bit unsure of my Roth IRA being 100% bond since that is my only retirement/investment contribution right now, but I know that holding bonds in tax deferred is most tax efficient.
However, I know switching placement when necessary does not incur a large capital gains tax. But by holding stocks in a taxable account instead, large built-up unrealized capital gains makes it difficult to switch even if switching would otherwise be beneficial.

Related to the above question, Is the total bond market fund the right one for me? Could switch to
55% VBILX (Vanguard Intermediate Term Bond Index) – about 50% Gov’t
45% VFIDX (Vanguard Intermediate-term investment grade) – about 6% Gov’t

Lastly, current ER on two 401K funds are .70% and every other fund ER is higher.

Thanks

User avatar
ruralavalon
Posts: 11839
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Help with AA and short/med term savings

Post by ruralavalon » Sun Nov 26, 2017 10:41 am

Asset allocation.
At age 27 I suggest about 20% in bonds. This is expected to substantially reduce volatility (risk), with only a relatively slight decrease in return. Graph, "An Efficient Frontier: the power of diversification". Please see the wiki articles Bogleheads® investment philosophy, part 3 "Never bear too much or too little risk", and "Asset allocation".

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). You can find lots of debate here on international allocation, opinions rangeing all the way from 00% to 50% of stocks in international stocks. If you want more viewpoints on international stocks please try the Google search box (upper right, this page).

That works out to about 20% bonds, 20% international stocks, and 60% 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.


Rollover.
nsisson wrote:2. Since leaving job with 401K, I have left the funds in the employee account. Should I roll that over to Vanguard? Seems there would be a one time fee of $55
. . . . .
Expense ratios for 401K funds are all really high (>70%),
I suggest rolling the old 401k over to an IRA at Vanguard.


Fund selection.
In selecting funds strive for a combination of broad diversification (to reduce risk) and low expense ratios (to increase your net gain). To simply and easily achieve those two goals I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Wiki article "Three-fund portfolio". Forum discussion, "The Three-Fund Portfolio".

In the taxable account I suggest using Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04% and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%. Both are very tax-efficient. Wiki article "Tax-efficient fund placement". Those funds are also well suited to any type of account. Both are very diversified with very low expense ratios.

To make portfolio management and rebalancing easy it’s sometimes helpful to have a one or more accounts which contain all three basic asset types (bonds, international stocks, and domestic stocks). That could be in your Roth IRA, the only account receiving ongoing contributions.



Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund type portfolio. The asset allocation is: 20% bonds; 20% international stocks; and 60% 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 do not know the total amount invested, so don't know the share class that can be bought for the funds in the Roth IRA.


Taxable account @ Vanguard (43% of total portfolio)
35%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
08%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%

Roth IRA @ Vanguard (23% of total portfolio; adds $5.5k/yr)
05%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
12%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%
06%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%

Rollover IRA @ Vanguard, ex-401k (30% of current portfolio)
16%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
14%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%


Individual Stock (4% of total portfolio)
Apple (few shares) (4% of total portfolio)


Rebalancing.
Because the funds will grow at different and unpredictable rates, it may be necessary every year or two to rebalance in order to maintain the desired asset allocation. Wiki article, "Rebalancing". You can easily adjust the asset allocation by exchanging between funds inside the Roth IRA.

Avoid exchanging between funds in the taxable account, which can create income tax liability.

. . . . .

I suggest that you read one or two books on general investing. Wiki article, "Books: recommendations and reviews". When I first stated managing my own investments, I found this tutorial very helpful in learning investing terminology/jargon and some of the investing basics. Morningstar, "Investing Classroom". Also take a look at the Boglehead’s wiki, the "getting started" link I give below.

If you have any questions just ask.

I hope that this helps.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

User avatar
ruralavalon
Posts: 11839
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Help with AA and short/med term savings

Post by ruralavalon » Sun Nov 26, 2017 10:59 am

nsisson wrote:
Fri Nov 24, 2017 10:08 pm
I have my emergency fund/ 0-10 year savings in a Capital One Money Market account (1.3% interest). This is estimated to be about $40,000. But I have ~55K total in the account. I have a checking account which I use for day to day expenses, so this savings account money is not needed day to day.[/b]

. . . . .

Questions:
1. Where should I have my <10-year savings needs? I'm happy with emergency fund in capital one account, but should short-mid term (5-10 years) savings be elsewhere? (thinking this is for house downpayment, car, marriage, moving...etc)
Money needed in 5 years or less should be in very safe savings vehicles like a federally insured savings account or federally insured short-term CDs. For rates see www.bankrate.com . Another alternative might be a money market fund like Vanguard Prime Money Market Fund (VMMXX) as rates continue to improve.

Money needed in 5-10 years could be invested in an intermediate-term bond fund (like Vanguard Total Bond Market Index Fund, or Vanguard Intermediate-term Bond Index Fund) or could be invested in family conservative balanced fund (like Vanguard LifeStrategy Conservative Growth Fund [VSCGX], 40/60 allocation, or Vanguard LifeStrategy Moderate Growth Fund [VSMGX], 60/40 allocation).
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

nsisson
Posts: 60
Joined: Sun Mar 30, 2014 7:16 pm

Re: Help with AA and short/med term savings

Post by nsisson » Sun Nov 26, 2017 6:39 pm

I have read 'Boglehead's Guide to Investing' and feel decently clued in on the basics but some of the tax related issues and efficient allocation I seek help with. But I do welcome any books, or articles that would educate me more.

I do like your idea of a bit less bond % and I'll look into the link about including more international %. I have seen that topic a lot lately. Do I need to be worried about tax efficiency if I continue to use the three fund approach I am currently using in Vanguard?

The example portfolio looks interesting, and I think rebalancing would be easy enough. I would just need to figure out how to allocate the $5500 between the three suggested funds, but that is straightforward enough.

nsisson
Posts: 60
Joined: Sun Mar 30, 2014 7:16 pm

Re: Help with AA and short/med term savings

Post by nsisson » Tue Nov 28, 2017 11:12 pm

I like the look of the example portfolio, but would it be better to move the larger percentage of bonds to the Roth IRA since it is tax deferred? I could split my Roth contributions so that a large portion was going into the Vanguard Total Stock Market Index Fund and Vanguard Total International Stock Index Fund so that I wasn't just investing in bonds again.
ruralavalon wrote:
Sun Nov 26, 2017 10:41 am
Asset allocation.
At age 27 I suggest about 20% in bonds. This is expected to substantially reduce volatility (risk), with only a relatively slight decrease in return. Graph, "An Efficient Frontier: the power of diversification". Please see the wiki articles Bogleheads® investment philosophy, part 3 "Never bear too much or too little risk", and "Asset allocation".

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). You can find lots of debate here on international allocation, opinions rangeing all the way from 00% to 50% of stocks in international stocks. If you want more viewpoints on international stocks please try the Google search box (upper right, this page).

That works out to about 20% bonds, 20% international stocks, and 60% 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.


Rollover.
nsisson wrote:2. Since leaving job with 401K, I have left the funds in the employee account. Should I roll that over to Vanguard? Seems there would be a one time fee of $55
. . . . .
Expense ratios for 401K funds are all really high (>70%),
I suggest rolling the old 401k over to an IRA at Vanguard.


Fund selection.
In selecting funds strive for a combination of broad diversification (to reduce risk) and low expense ratios (to increase your net gain). To simply and easily achieve those two goals I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Wiki article "Three-fund portfolio". Forum discussion, "The Three-Fund Portfolio".

In the taxable account I suggest using Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04% and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%. Both are very tax-efficient. Wiki article "Tax-efficient fund placement". Those funds are also well suited to any type of account. Both are very diversified with very low expense ratios.

To make portfolio management and rebalancing easy it’s sometimes helpful to have a one or more accounts which contain all three basic asset types (bonds, international stocks, and domestic stocks). That could be in your Roth IRA, the only account receiving ongoing contributions.



Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund type portfolio. The asset allocation is: 20% bonds; 20% international stocks; and 60% 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 do not know the total amount invested, so don't know the share class that can be bought for the funds in the Roth IRA.


Taxable account @ Vanguard (43% of total portfolio)
35%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
08%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%

Roth IRA @ Vanguard (23% of total portfolio; adds $5.5k/yr)
05%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
12%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%
06%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%

Rollover IRA @ Vanguard, ex-401k (30% of current portfolio)
16%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
14%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%


Individual Stock (4% of total portfolio)
Apple (few shares) (4% of total portfolio)


Rebalancing.
Because the funds will grow at different and unpredictable rates, it may be necessary every year or two to rebalance in order to maintain the desired asset allocation. Wiki article, "Rebalancing". You can easily adjust the asset allocation by exchanging between funds inside the Roth IRA.

Avoid exchanging between funds in the taxable account, which can create income tax liability.

. . . . .

I suggest that you read one or two books on general investing. Wiki article, "Books: recommendations and reviews". When I first stated managing my own investments, I found this tutorial very helpful in learning investing terminology/jargon and some of the investing basics. Morningstar, "Investing Classroom". Also take a look at the Boglehead’s wiki, the "getting started" link I give below.

If you have any questions just ask.

I hope that this helps.

User avatar
ruralavalon
Posts: 11839
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Help with AA and short/med term savings

Post by ruralavalon » Wed Nov 29, 2017 8:05 am

nsisson wrote:
Tue Nov 28, 2017 11:12 pm
I like the look of the example portfolio, but would it be better to move the larger percentage of bonds to the Roth IRA since it is tax deferred? [emphasis added] I could split my Roth contributions so that a large portion was going into the Vanguard Total Stock Market Index Fund and Vanguard Total International Stock Index Fund so that I wasn't just investing in bonds again.
The rollover IRA is tax-deferred. The Roth IRA is not tax-deferred, it is tax free since you already paid taxes on the contributions to it.

You could add more bonds to the Roth IRA, replacing some international in the Roth IRA, while putting more international and less bonds in the rollover IRA.

ruralavalon wrote:Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund type portfolio. The asset allocation is: 20% bonds; 20% international stocks; and 60% 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 do not know the total amount invested, so don't know the share class that can be bought for the funds in the Roth IRA.


Taxable account @ Vanguard (43% of total portfolio)
35%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
08%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%

Roth IRA @ Vanguard (23% of total portfolio; adds $5.5k/yr)
05%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
12%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%
06%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%

Rollover IRA @ Vanguard, ex-401k (30% of current portfolio)
16%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
14%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%


Individual Stock (4% of total portfolio)
Apple (few shares) (4% of total portfolio)


Rebalancing.
Because the funds will grow at different and unpredictable rates, it may be necessary every year or two to rebalance in order to maintain the desired asset allocation. Wiki article, "Rebalancing". You can easily adjust the asset allocation by exchanging between funds inside the Roth IRA.

Avoid exchanging between funds in the taxable account, which can create income tax liability.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

nsisson
Posts: 60
Joined: Sun Mar 30, 2014 7:16 pm

Re: Help with AA and short/med term savings

Post by nsisson » Wed Nov 29, 2017 9:08 am

You are correct, sorry I missed that :oops:

Thanks
ruralavalon wrote:
Wed Nov 29, 2017 8:05 am
nsisson wrote:
Tue Nov 28, 2017 11:12 pm
I like the look of the example portfolio, but would it be better to move the larger percentage of bonds to the Roth IRA since it is tax deferred? [emphasis added] I could split my Roth contributions so that a large portion was going into the Vanguard Total Stock Market Index Fund and Vanguard Total International Stock Index Fund so that I wasn't just investing in bonds again.
The rollover IRA is tax-deferred. The Roth IRA is not tax-deferred, it is tax free since you already paid taxes on the contributions to it.

You could add more bonds to the Roth IRA, replacing some international in the Roth IRA, while putting more international and less bonds in the rollover IRA.

ruralavalon wrote:Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund type portfolio. The asset allocation is: 20% bonds; 20% international stocks; and 60% 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 do not know the total amount invested, so don't know the share class that can be bought for the funds in the Roth IRA.


Taxable account @ Vanguard (43% of total portfolio)
35%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
08%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%

Roth IRA @ Vanguard (23% of total portfolio; adds $5.5k/yr)
05%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
12%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%
06%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%

Rollover IRA @ Vanguard, ex-401k (30% of current portfolio)
16%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
14%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%


Individual Stock (4% of total portfolio)
Apple (few shares) (4% of total portfolio)


Rebalancing.
Because the funds will grow at different and unpredictable rates, it may be necessary every year or two to rebalance in order to maintain the desired asset allocation. Wiki article, "Rebalancing". You can easily adjust the asset allocation by exchanging between funds inside the Roth IRA.

Avoid exchanging between funds in the taxable account, which can create income tax liability.

Post Reply