Vanguard Retirement /thru employer allocation

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donkashane48
Posts: 13
Joined: Sat Jan 13, 2018 9:25 am

Vanguard Retirement /thru employer allocation

Post by donkashane48 » Sat Jan 13, 2018 10:25 am

Hi everyone

I'm new to trying to understand my employer 401k, I have been employed and in the 401k through them for 13yrs. On and off and always changing my payroll deduction based on life situations. But now I'm in a better situation to stay consistent in that area. My question goes to what things I should be investing in. My employer offers:

All-in one options ranging from 2015 to 2065/ incl:

Vanguard Target retirement income (VTINX).

Short term reserves:

Vanguard Retire Savings Trust IV

Vanguard Federal Money Mkt Fund (VMFXX)

Bond Funds:

Vanguard Total Bond Mkt Index Adm (VBTLX)

Vanguard Tot Bond lx Admiral (VTABX)

Domestic Stock Funds:

Vanguard Windsor II Fund Adm (VWNAX)

Vanguard Value Index Fund Adm (VVIAX)

Vanguard Morgan Growth Fund Adm (VMRAX)

Vanguard Extended Mkt Index Adm (VEXAX)

Vanguard 500 Index Fund Adm (VFIAX)

International Stock funds:

Vanguard Tot Intl lx Admiral (VTIAX)

Here is what I'm currently investing in:

500 Index Fund (29%)
Extended Mkt Index Adm (30%)
Tot Intl Stock lx Admiral (34%)
Total Bond Mkt Index Adm (7%)

I'm 36 planning on retiring at 65 hopefully sooner :D. Does my current allocation look ok or should I just be in an all-in one like the 2045 which is suggested if I were to use that option. Or keep doing what I'm doing just need to be investing in different funds. I will provide more info if needed. Thank you in advance its greatly appreciated.

dbr
Posts: 27039
Joined: Sun Mar 04, 2007 9:50 am

Re: Vanguard Retirement /thru employer allocation

Post by dbr » Sat Jan 13, 2018 11:55 am

If 93% of your assets are in stocks are your clearly committed to the idea that you will not bail out of the stock market if stocks start to take a steep decline, even losing 50% or their value or more?

drk
Posts: 522
Joined: Mon Jul 24, 2017 10:33 pm
Location: Seattle

Re: Vanguard Retirement /thru employer allocation

Post by drk » Sat Jan 13, 2018 12:17 pm

What's your rationale behind holding 29% in the S&P 500 and 30% in the Extended Market fund? I'd recommend reading the wiki article about extended market index funds and their use. If you changed your allocation to those two funds closer to an 80:20 ratio (e.g., 48% VFIAX and 12% VEXAX), your US stock holdings would simulate Vanguard's total stock market index.

donkashane48
Posts: 13
Joined: Sat Jan 13, 2018 9:25 am

Re: Vanguard Retirement /thru employer allocation

Post by donkashane48 » Sat Jan 13, 2018 12:45 pm

dbr wrote:
Sat Jan 13, 2018 11:55 am
If 93% of your assets are in stocks are your clearly committed to the idea that you will not bail out of the stock market if stocks start to take a steep decline, even losing 50% or their value or more?
If 93% Is what an average person at my age and retirement age should be then thats where I wanna be. But that is why im here cause i took advice 13yrs ago and havent really done anything since, kind of set it and forget it approach with rebalancing every cpl yrs, I'm feeling that I'm not going in the right direction and looking for advice to get back on track. Thanks again

donkashane48
Posts: 13
Joined: Sat Jan 13, 2018 9:25 am

Re: Vanguard Retirement /thru employer allocation

Post by donkashane48 » Sat Jan 13, 2018 12:50 pm

drk wrote:
Sat Jan 13, 2018 12:17 pm
What's your rationale behind holding 29% in the S&P 500 and 30% in the Extended Market fund? I'd recommend reading the wiki article about extended market index funds and their use. If you changed your allocation to those two funds closer to an 80:20 ratio (e.g., 48% VFIAX and 12% VEXAX), your US stock holdings would simulate Vanguard's total stock market index.
I have no rationale thought on my 29% holdings there, I think i took some bad advice a few years ago and havent really bothered to research and figure out what i should actually be doing. I did skim through that article and will thorolly read it tonight at work, thank you for that.

drk
Posts: 522
Joined: Mon Jul 24, 2017 10:33 pm
Location: Seattle

Re: Vanguard Retirement /thru employer allocation

Post by drk » Sat Jan 13, 2018 1:07 pm

donkashane48 wrote:
Sat Jan 13, 2018 12:45 pm
dbr wrote:
Sat Jan 13, 2018 11:55 am
If 93% of your assets are in stocks are your clearly committed to the idea that you will not bail out of the stock market if stocks start to take a steep decline, even losing 50% or their value or more?
If 93% Is what an average person at my age and retirement age should be then thats where I wanna be. But that is why im here cause i took advice 13yrs ago and havent really done anything since, kind of set it and forget it approach with rebalancing every cpl yrs, I'm feeling that I'm not going in the right direction and looking for advice to get back on track. Thanks again
That makes sense! Generally 93% in stocks is high for someone your age, but it's not outside the realm of reason. There are several rules of thumb: age in bonds, age - 10/20/30 in bonds, age / 2 in bonds. Your other investments and timeline for needing this money also come into play. What do your investments look like outside of your 401k? Could you add those to your post to give people a fuller picture? See this thread about asking portfolio questions for more information.

All that being said, if you're good at setting and forgetting, and interested in dropping the rebalancing, a target date fund could be exactly what you're looking for. If you're looking for a slightly more aggressive allocation, you could go for the 2050 fund rather than the suggested 2045 one.

dbr
Posts: 27039
Joined: Sun Mar 04, 2007 9:50 am

Re: Vanguard Retirement /thru employer allocation

Post by dbr » Sat Jan 13, 2018 1:12 pm

donkashane48 wrote:
Sat Jan 13, 2018 12:45 pm
dbr wrote:
Sat Jan 13, 2018 11:55 am
If 93% of your assets are in stocks are your clearly committed to the idea that you will not bail out of the stock market if stocks start to take a steep decline, even losing 50% or their value or more?
If 93% Is what an average person at my age and retirement age should be then thats where I wanna be. But that is why im here cause i took advice 13yrs ago and havent really done anything since, kind of set it and forget it approach with rebalancing every cpl yrs, I'm feeling that I'm not going in the right direction and looking for advice to get back on track. Thanks again
It is not a question of what someone "should" be; it is a question that if you make that choice the danger that exists for many people is that you will bail out after a downturn and actualize a serious loss. The consequence of making that mistake is greater the more one has in stocks and also probably the likelihood of making that mistake is greater the more one has in stocks. If you are comfortable and committed that you won't do that, then that danger is forestalled.

donkashane48
Posts: 13
Joined: Sat Jan 13, 2018 9:25 am

Re: Vanguard Retirement /thru employer allocation

Post by donkashane48 » Sat Jan 13, 2018 1:49 pm

dbr wrote:
Sat Jan 13, 2018 1:12 pm
donkashane48 wrote:
Sat Jan 13, 2018 12:45 pm
dbr wrote:
Sat Jan 13, 2018 11:55 am
If 93% of your assets are in stocks are your clearly committed to the idea that you will not bail out of the stock market if stocks start to take a steep decline, even losing 50% or their value or more?
If 93% Is what an average person at my age and retirement age should be then thats where I wanna be. But that is why im here cause i took advice 13yrs ago and havent really done anything since, kind of set it and forget it approach with rebalancing every cpl yrs, I'm feeling that I'm not going in the right direction and looking for advice to get back on track. Thanks again
It is not a question of what someone "should" be; it is a question that if you make that choice the danger that exists for many people is that you will bail out after a downturn and actualize a serious loss. The consequence of making that mistake is greater the more one has in stocks and also probably the likelihood of making that mistake is greater the more one has in stocks. If you are comfortable and committed that you won't do that, then that danger is forestalled.

I'm committed to not messing with it, the only thing I've done is rebalance and increase/decrease my paycheck deduction. So I've been with this mix since 2004 taking the lumps as I've gone.

donkashane48
Posts: 13
Joined: Sat Jan 13, 2018 9:25 am

Re: Vanguard Retirement /thru employer allocation

Post by donkashane48 » Sat Jan 13, 2018 1:51 pm

drk wrote:
Sat Jan 13, 2018 1:07 pm
donkashane48 wrote:
Sat Jan 13, 2018 12:45 pm
dbr wrote:
Sat Jan 13, 2018 11:55 am
If 93% of your assets are in stocks are your clearly committed to the idea that you will not bail out of the stock market if stocks start to take a steep decline, even losing 50% or their value or more?
If 93% Is what an average person at my age and retirement age should be then thats where I wanna be. But that is why im here cause i took advice 13yrs ago and havent really done anything since, kind of set it and forget it approach with rebalancing every cpl yrs, I'm feeling that I'm not going in the right direction and looking for advice to get back on track. Thanks again
That makes sense! Generally 93% in stocks is high for someone your age, but it's not outside the realm of reason. There are several rules of thumb: age in bonds, age - 10/20/30 in bonds, age / 2 in bonds. Your other investments and timeline for needing this money also come into play. What do your investments look like outside of your 401k? Could you add those to your post to give people a fuller picture? See this thread about asking portfolio questions for more information.

All that being said, if you're good at setting and forgetting, and interested in dropping the rebalancing, a target date fund could be exactly what you're looking for. If you're looking for a slightly more aggressive allocation, you could go for the 2050 fund rather than the suggested 2045 one.
Thanks for the link and ill fill that out and post more when I get to work

donkashane48
Posts: 13
Joined: Sat Jan 13, 2018 9:25 am

Re: Vanguard Retirement /thru employer allocation

Post by donkashane48 » Sat Jan 13, 2018 9:36 pm

I think I got everything, if you need more info let me know. Thanks again

Emergency funds: I do not have this
Debt: Mortgage ($90k and 5.75% interest rate) Car loan ($15k and 12% interest rate)
Tax Filing Status: Married Filing Jointly
Tax Rate: % Federal, xx% State (not sure will look into this)
State of Residence: New York
Age: 36
Desired Asset allocation: 85-90% stocks / 10-15% bonds
Desired International allocation: xx% of stocks (I'm not sure)

If you want to give us a detailed breakdown within each asset class (xx% large caps, xx% mid caps, xx% bonds, xx% cash, etc.), go ahead. (Most people probably will not want to do this. If you are not sure what this means, please disregard.)

Please provide a hint as to the size of your current total portfolio: low six-figures

Providing the split of your assets and contributions between taxable and tax-advantaged accounts is also helpful. Please include all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans. For example:

Current retirement assets

Taxable
xx% cash (for investing – do not include emergency funds) none
xx% fund name (ticker symbol) (expense ratio)
xx% stock company name (ticker symbol)

His 401k
xx% fund name (ticker symbol) (expense ratio) Employer 401k
Company match? yes 100% on 1st 3% and 50% on 2nd 3%

His Roth IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio) none
xx% fund name (ticker symbol) (expense ratio) none

His Rollover IRA at Schwab
xx% fund name (ticker symbol) (expense ratio) none

Her 403b
xx% fund name (ticker symbol) (expense ratio) none
Company match?

Her SIMPLE IRA at Fidelity
xx% fund name (ticker symbol) (expense ratio) none

Her Traditional IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio) none

Total of All Accounts Together (not each account individually) should equal 100%.

Contributions

New annual Contributions
$xx his 401k (also specify any employer matching contributions) 3%increase yearly, I currently put 11% of my paycheck weekly (gross yr 100k)
$xx her 403b (also specify any employer matching contributions)
$xx his IRA/Roth IRA
$xx her IRA/Roth IRA
$xx taxable (for retirement, not short term goals)

Available funds

ALL-IN-ONE OPTIONS
Funds available in his 401(k)
Fund name: Vanguard Target Retirement 2015 (VTXVX 0303) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2020 (VTWNX 0682) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2025 (VTTVX 0304) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2030 (VTXVX 0695) (expense ratio: 0.15%)
Fund name: Vanguard Target Retirement 2035 (VTTHX 0305) (expense ratio: 0.15%)
Fund name: Vanguard Target Retirement 2040 (VFORX 0696) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2045 (VTIVX 0306) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2050 (VFIFX 0699) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2055 (VFFVX 1487) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2060 (VTTSX 1691) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2065 (VLXVX 1791) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement Income (VTINX 0308) (expense ratio: 0.13%)
SHORT-TERM RESERVES
Fund name: Vanguard Retire Savings Trust IV (ticker symbol: - 0348) (expense ratio: 0.40%)
BOND FUNDS
Fund name: Vanguard Tot Intl Bond lx Admiral (VTABX 0511) (expense ratio: 0.12%)
Fund name: Vanguard Total Bond Mkt Index Adm (VBTLX 0584) (expense ratio: 0.05%)
DOMESTIC STOCK FUNDS
Fund name: Vanguard 500 Index Fund Adm (VFIAX 0540) (expense ratio: 0.04%)
Fund name: Vanguard Extended Mkt Index Adm (VEXAX 0598) (expense ratio: .08%)
Fund name: Vanguard Growth Index Fund Adm (VIGAX 0509) (expense ratio: 0.06%)
Fund name: Vanguard Morgan Growth Fund Adm (VMRAX 0526) (expense ratio: 0.28%)
Fund name: Vanguard Value Index Fund Adm (VVIAX 0506) (expense ratio: 0.06%)
Fund name: Vanguard Windsor II Fund Adm (VWNAX 0573) (expense ratio: 0.25%)

INTERNATIONAL STOCK FUNDS
Fund name: Vanguard Tot Intl Stock lx Admiral (VTIAX 0569) (expense ratio: 0.11%)

Funds available in her 403(b) none
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)

ICMoney
Posts: 163
Joined: Fri Oct 28, 2016 2:38 pm

Re: Vanguard Retirement /thru employer allocation

Post by ICMoney » Sun Jan 14, 2018 4:55 pm

donkashane48 wrote:
Sat Jan 13, 2018 9:36 pm
I think I got everything, if you need more info let me know. Thanks again

Emergency funds: I do not have this
Debt: Mortgage ($90k and 5.75% interest rate) Car loan ($15k and 12% interest rate)
Tax Filing Status: Married Filing Jointly
Tax Rate: % Federal, xx% State (not sure will look into this)
State of Residence: New York
Age: 36
Desired Asset allocation: 85-90% stocks / 10-15% bonds
Desired International allocation: xx% of stocks (I'm not sure)

If you want to give us a detailed breakdown within each asset class (xx% large caps, xx% mid caps, xx% bonds, xx% cash, etc.), go ahead. (Most people probably will not want to do this. If you are not sure what this means, please disregard.)

Please provide a hint as to the size of your current total portfolio: low six-figures

Providing the split of your assets and contributions between taxable and tax-advantaged accounts is also helpful. Please include all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans. For example:

Current retirement assets

Taxable
xx% cash (for investing – do not include emergency funds) none
xx% fund name (ticker symbol) (expense ratio)
xx% stock company name (ticker symbol)

His 401k
xx% fund name (ticker symbol) (expense ratio) Employer 401k
Company match? yes 100% on 1st 3% and 50% on 2nd 3%

His Roth IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio) none
xx% fund name (ticker symbol) (expense ratio) none

His Rollover IRA at Schwab
xx% fund name (ticker symbol) (expense ratio) none

Her 403b
xx% fund name (ticker symbol) (expense ratio) none
Company match?

Her SIMPLE IRA at Fidelity
xx% fund name (ticker symbol) (expense ratio) none

Her Traditional IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio) none

Total of All Accounts Together (not each account individually) should equal 100%.

Contributions

New annual Contributions
$xx his 401k (also specify any employer matching contributions) 3%increase yearly, I currently put 11% of my paycheck weekly (gross yr 100k)
$xx her 403b (also specify any employer matching contributions)
$xx his IRA/Roth IRA
$xx her IRA/Roth IRA
$xx taxable (for retirement, not short term goals)

Available funds

ALL-IN-ONE OPTIONS
Funds available in his 401(k)
Fund name: Vanguard Target Retirement 2015 (VTXVX 0303) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2020 (VTWNX 0682) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2025 (VTTVX 0304) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2030 (VTXVX 0695) (expense ratio: 0.15%)
Fund name: Vanguard Target Retirement 2035 (VTTHX 0305) (expense ratio: 0.15%)
Fund name: Vanguard Target Retirement 2040 (VFORX 0696) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2045 (VTIVX 0306) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2050 (VFIFX 0699) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2055 (VFFVX 1487) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2060 (VTTSX 1691) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2065 (VLXVX 1791) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement Income (VTINX 0308) (expense ratio: 0.13%)
SHORT-TERM RESERVES
Fund name: Vanguard Retire Savings Trust IV (ticker symbol: - 0348) (expense ratio: 0.40%)
BOND FUNDS
Fund name: Vanguard Tot Intl Bond lx Admiral (VTABX 0511) (expense ratio: 0.12%)
Fund name: Vanguard Total Bond Mkt Index Adm (VBTLX 0584) (expense ratio: 0.05%)
DOMESTIC STOCK FUNDS
Fund name: Vanguard 500 Index Fund Adm (VFIAX 0540) (expense ratio: 0.04%)
Fund name: Vanguard Extended Mkt Index Adm (VEXAX 0598) (expense ratio: .08%)
Fund name: Vanguard Growth Index Fund Adm (VIGAX 0509) (expense ratio: 0.06%)
Fund name: Vanguard Morgan Growth Fund Adm (VMRAX 0526) (expense ratio: 0.28%)
Fund name: Vanguard Value Index Fund Adm (VVIAX 0506) (expense ratio: 0.06%)
Fund name: Vanguard Windsor II Fund Adm (VWNAX 0573) (expense ratio: 0.25%)

INTERNATIONAL STOCK FUNDS
Fund name: Vanguard Tot Intl Stock lx Admiral (VTIAX 0569) (expense ratio: 0.11%)

Funds available in her 403(b) none
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Just a couple observations - can you refinance your mortgage to a lower interest rate? 5.75% is really high in today's interest rate environment. If your car loan is really at a 12% interest rate, it probably makes sense to only contribute to your 401k up to the match (6%?) and attack that loan until it's gone. Then, afterwards you can increase your retirement contributions. Your 401k investment choices seem good (i.e. low expense ratios), maybe you could just shift it all to a Target Retirement fund (i.e. pick the fund with the year in the name around the year you'll turn 65) while you get up to speed on investing?

It looks like you are probably in the 12% federal tax bracket if your+your spouse's total gross wages are $100K/year. If that's correct, you may want to look into preferring Roth IRA contributions to 401k contributions (still contribute to 401k at 6% to get the max match, that is always the priority), but it's debatable. See: https://www.bogleheads.org/wiki/Priorit ... nvestments

Also, you should try to figure out something for an emergency fund - many here keep 2-6+ months of living expenses in a high yield savings account like Ally.

Best,
ICM

donkashane48
Posts: 13
Joined: Sat Jan 13, 2018 9:25 am

Re: Vanguard Retirement /thru employer allocation

Post by donkashane48 » Sun Jan 14, 2018 7:28 pm

ICMoney wrote:
Sun Jan 14, 2018 4:55 pm
donkashane48 wrote:
Sat Jan 13, 2018 9:36 pm
I think I got everything, if you need more info let me know. Thanks again

Emergency funds: I do not have this
Debt: Mortgage ($90k and 5.75% interest rate) Car loan ($15k and 12% interest rate)
Tax Filing Status: Married Filing Jointly
Tax Rate: % Federal, xx% State (not sure will look into this)
State of Residence: New York
Age: 36
Desired Asset allocation: 85-90% stocks / 10-15% bonds
Desired International allocation: xx% of stocks (I'm not sure)

If you want to give us a detailed breakdown within each asset class (xx% large caps, xx% mid caps, xx% bonds, xx% cash, etc.), go ahead. (Most people probably will not want to do this. If you are not sure what this means, please disregard.)

Please provide a hint as to the size of your current total portfolio: low six-figures

Providing the split of your assets and contributions between taxable and tax-advantaged accounts is also helpful. Please include all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans. For example:

Current retirement assets

Taxable
xx% cash (for investing – do not include emergency funds) none
xx% fund name (ticker symbol) (expense ratio)
xx% stock company name (ticker symbol)

His 401k
xx% fund name (ticker symbol) (expense ratio) Employer 401k
Company match? yes 100% on 1st 3% and 50% on 2nd 3%

His Roth IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio) none
xx% fund name (ticker symbol) (expense ratio) none

His Rollover IRA at Schwab
xx% fund name (ticker symbol) (expense ratio) none

Her 403b
xx% fund name (ticker symbol) (expense ratio) none
Company match?

Her SIMPLE IRA at Fidelity
xx% fund name (ticker symbol) (expense ratio) none

Her Traditional IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio) none

Total of All Accounts Together (not each account individually) should equal 100%.

Contributions

New annual Contributions
$xx his 401k (also specify any employer matching contributions) 3%increase yearly, I currently put 11% of my paycheck weekly (gross yr 100k)
$xx her 403b (also specify any employer matching contributions)
$xx his IRA/Roth IRA
$xx her IRA/Roth IRA
$xx taxable (for retirement, not short term goals)

Available funds

ALL-IN-ONE OPTIONS
Funds available in his 401(k)
Fund name: Vanguard Target Retirement 2015 (VTXVX 0303) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2020 (VTWNX 0682) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2025 (VTTVX 0304) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2030 (VTXVX 0695) (expense ratio: 0.15%)
Fund name: Vanguard Target Retirement 2035 (VTTHX 0305) (expense ratio: 0.15%)
Fund name: Vanguard Target Retirement 2040 (VFORX 0696) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2045 (VTIVX 0306) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2050 (VFIFX 0699) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2055 (VFFVX 1487) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2060 (VTTSX 1691) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2065 (VLXVX 1791) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement Income (VTINX 0308) (expense ratio: 0.13%)
SHORT-TERM RESERVES
Fund name: Vanguard Retire Savings Trust IV (ticker symbol: - 0348) (expense ratio: 0.40%)
BOND FUNDS
Fund name: Vanguard Tot Intl Bond lx Admiral (VTABX 0511) (expense ratio: 0.12%)
Fund name: Vanguard Total Bond Mkt Index Adm (VBTLX 0584) (expense ratio: 0.05%)
DOMESTIC STOCK FUNDS
Fund name: Vanguard 500 Index Fund Adm (VFIAX 0540) (expense ratio: 0.04%)
Fund name: Vanguard Extended Mkt Index Adm (VEXAX 0598) (expense ratio: .08%)
Fund name: Vanguard Growth Index Fund Adm (VIGAX 0509) (expense ratio: 0.06%)
Fund name: Vanguard Morgan Growth Fund Adm (VMRAX 0526) (expense ratio: 0.28%)
Fund name: Vanguard Value Index Fund Adm (VVIAX 0506) (expense ratio: 0.06%)
Fund name: Vanguard Windsor II Fund Adm (VWNAX 0573) (expense ratio: 0.25%)

INTERNATIONAL STOCK FUNDS
Fund name: Vanguard Tot Intl Stock lx Admiral (VTIAX 0569) (expense ratio: 0.11%)

Funds available in her 403(b) none
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Just a couple observations - can you refinance your mortgage to a lower interest rate? 5.75% is really high in today's interest rate environment. If your car loan is really at a 12% interest rate, it probably makes sense to only contribute to your 401k up to the match (6%?) and attack that loan until it's gone. Then, afterwards you can increase your retirement contributions. Your 401k investment choices seem good (i.e. low expense ratios), maybe you could just shift it all to a Target Retirement fund (i.e. pick the fund with the year in the name around the year you'll turn 65) while you get up to speed on investing?

It looks like you are probably in the 12% federal tax bracket if your+your spouse's total gross wages are $100K/year. If that's correct, you may want to look into preferring Roth IRA contributions to 401k contributions (still contribute to 401k at 6% to get the max match, that is always the priority), but it's debatable. See: https://www.bogleheads.org/wiki/Priorit ... nvestments

Also, you should try to figure out something for an emergency fund - many here keep 2-6+ months of living expenses in a high yield savings account like Ally.

Best,
ICM
This actually really hits home, and thank you for that.. I'm not sure how to refinance or the reasons behind it.. I have my main mortgage, then I have a heloc both around 35k both with the combined interest rate.. And for the car loan I don't have the best credit and the reason for the high interest rate.. But I'm willing to get things in order.. How do you get your spouse on board?? I'm the main source of income so trying to balance all of this is beyond crazy for me but I think I'm getting the big picture.. Honestly how the flip do you guys get out of debt??? I'm only around 100k and feel swamped by it.. I will make adjustments to my overall contribution percentage,, but should I hide the rest of that % via something(help me), so its not getting spent every week. I'm not trying to hide anything from my DW, but if is not in he paycheck it doesn't get spent if you know what Im saying

ICMoney
Posts: 163
Joined: Fri Oct 28, 2016 2:38 pm

Re: Vanguard Retirement /thru employer allocation

Post by ICMoney » Mon Jan 15, 2018 9:28 am

donkashane48 wrote:
Sun Jan 14, 2018 7:28 pm
ICMoney wrote:
Sun Jan 14, 2018 4:55 pm
donkashane48 wrote:
Sat Jan 13, 2018 9:36 pm
I think I got everything, if you need more info let me know. Thanks again

Emergency funds: I do not have this
Debt: Mortgage ($90k and 5.75% interest rate) Car loan ($15k and 12% interest rate)
Tax Filing Status: Married Filing Jointly
Tax Rate: % Federal, xx% State (not sure will look into this)
State of Residence: New York
Age: 36
Desired Asset allocation: 85-90% stocks / 10-15% bonds
Desired International allocation: xx% of stocks (I'm not sure)

If you want to give us a detailed breakdown within each asset class (xx% large caps, xx% mid caps, xx% bonds, xx% cash, etc.), go ahead. (Most people probably will not want to do this. If you are not sure what this means, please disregard.)

Please provide a hint as to the size of your current total portfolio: low six-figures

Providing the split of your assets and contributions between taxable and tax-advantaged accounts is also helpful. Please include all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans. For example:

Current retirement assets

Taxable
xx% cash (for investing – do not include emergency funds) none
xx% fund name (ticker symbol) (expense ratio)
xx% stock company name (ticker symbol)

His 401k
xx% fund name (ticker symbol) (expense ratio) Employer 401k
Company match? yes 100% on 1st 3% and 50% on 2nd 3%

His Roth IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio) none
xx% fund name (ticker symbol) (expense ratio) none

His Rollover IRA at Schwab
xx% fund name (ticker symbol) (expense ratio) none

Her 403b
xx% fund name (ticker symbol) (expense ratio) none
Company match?

Her SIMPLE IRA at Fidelity
xx% fund name (ticker symbol) (expense ratio) none

Her Traditional IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio) none

Total of All Accounts Together (not each account individually) should equal 100%.

Contributions

New annual Contributions
$xx his 401k (also specify any employer matching contributions) 3%increase yearly, I currently put 11% of my paycheck weekly (gross yr 100k)
$xx her 403b (also specify any employer matching contributions)
$xx his IRA/Roth IRA
$xx her IRA/Roth IRA
$xx taxable (for retirement, not short term goals)

Available funds

ALL-IN-ONE OPTIONS
Funds available in his 401(k)
Fund name: Vanguard Target Retirement 2015 (VTXVX 0303) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2020 (VTWNX 0682) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2025 (VTTVX 0304) (expense ratio: 0.14%)
Fund name: Vanguard Target Retirement 2030 (VTXVX 0695) (expense ratio: 0.15%)
Fund name: Vanguard Target Retirement 2035 (VTTHX 0305) (expense ratio: 0.15%)
Fund name: Vanguard Target Retirement 2040 (VFORX 0696) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2045 (VTIVX 0306) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2050 (VFIFX 0699) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2055 (VFFVX 1487) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2060 (VTTSX 1691) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement 2065 (VLXVX 1791) (expense ratio: 0.16%)
Fund name: Vanguard Target Retirement Income (VTINX 0308) (expense ratio: 0.13%)
SHORT-TERM RESERVES
Fund name: Vanguard Retire Savings Trust IV (ticker symbol: - 0348) (expense ratio: 0.40%)
BOND FUNDS
Fund name: Vanguard Tot Intl Bond lx Admiral (VTABX 0511) (expense ratio: 0.12%)
Fund name: Vanguard Total Bond Mkt Index Adm (VBTLX 0584) (expense ratio: 0.05%)
DOMESTIC STOCK FUNDS
Fund name: Vanguard 500 Index Fund Adm (VFIAX 0540) (expense ratio: 0.04%)
Fund name: Vanguard Extended Mkt Index Adm (VEXAX 0598) (expense ratio: .08%)
Fund name: Vanguard Growth Index Fund Adm (VIGAX 0509) (expense ratio: 0.06%)
Fund name: Vanguard Morgan Growth Fund Adm (VMRAX 0526) (expense ratio: 0.28%)
Fund name: Vanguard Value Index Fund Adm (VVIAX 0506) (expense ratio: 0.06%)
Fund name: Vanguard Windsor II Fund Adm (VWNAX 0573) (expense ratio: 0.25%)

INTERNATIONAL STOCK FUNDS
Fund name: Vanguard Tot Intl Stock lx Admiral (VTIAX 0569) (expense ratio: 0.11%)

Funds available in her 403(b) none
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Fund name (ticker symbol) (expense ratio)
Just a couple observations - can you refinance your mortgage to a lower interest rate? 5.75% is really high in today's interest rate environment. If your car loan is really at a 12% interest rate, it probably makes sense to only contribute to your 401k up to the match (6%?) and attack that loan until it's gone. Then, afterwards you can increase your retirement contributions. Your 401k investment choices seem good (i.e. low expense ratios), maybe you could just shift it all to a Target Retirement fund (i.e. pick the fund with the year in the name around the year you'll turn 65) while you get up to speed on investing?

It looks like you are probably in the 12% federal tax bracket if your+your spouse's total gross wages are $100K/year. If that's correct, you may want to look into preferring Roth IRA contributions to 401k contributions (still contribute to 401k at 6% to get the max match, that is always the priority), but it's debatable. See: https://www.bogleheads.org/wiki/Priorit ... nvestments

Also, you should try to figure out something for an emergency fund - many here keep 2-6+ months of living expenses in a high yield savings account like Ally.

Best,
ICM
This actually really hits home, and thank you for that.. I'm not sure how to refinance or the reasons behind it.. I have my main mortgage, then I have a heloc both around 35k both with the combined interest rate.. And for the car loan I don't have the best credit and the reason for the high interest rate.. But I'm willing to get things in order.. How do you get your spouse on board?? I'm the main source of income so trying to balance all of this is beyond crazy for me but I think I'm getting the big picture.. Honestly how the flip do you guys get out of debt??? I'm only around 100k and feel swamped by it.. I will make adjustments to my overall contribution percentage,, but should I hide the rest of that % via something(help me), so its not getting spent every week. I'm not trying to hide anything from my DW, but if is not in he paycheck it doesn't get spent if you know what Im saying
Refinancing your mortgage would lower your monthly payment because you will be paying less in interest - but I don't know if a HELOC throws a wrench in it. Hopefully someone with more knowledge on the logistics of refinancing will weigh in - but there are plenty of lenders that will speak with you about refinancing. I know the mortgage professor site is supposed to be good (https://www.mtgprofessor.com/Calculator ... lator.html), maybe search this forum for other info on refinancing. We used Amerisave for a mortgage recently and found their rates to be great. You could also retitle your thread so you might get more bogleheads to respond with info on this (i.e. something like "Help a newbie with paying off 12% car loan, refinancing mortgage with a HELOC?").

Debt is hard - it sounds like the 12% car loan should be a top priority, maybe the HELOC depending on its interest rate as well (what is the HELOC interest rate, and what is the mortgage interest rate?). Dave Ramsey has good info out there on paying off debt, which maybe you and your spouse could get on board with? Maybe you could agree on a budget/debt payoff plan, and set aside money each month to aggressively pay the car loan, etc. off - perhaps even in a separate bank account if that might help it seem less accessible to everyday spending?

Good luck regardless, and feel free to keep the questions coming.

Best,
ICM

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