Portfolio Review/Advice
Portfolio Review/Advice
Hi Bogleheads,
I was hoping to solicit some portfolio advice. I feel like my allocations are all over the place, and I’m paralyzed by over analysis right now. Hoping for some advice and a nudge in the right direction.
- Emergency Funds: $100k (high yield savings at 1.5%) This money is intended for a home purchase in CA in 2018, but coastal city real estate prices are insane and I’m having heartburn about possibly overpaying at the top of the market.
- Debt: Car loan $5k (1.89%)
- Tax Filing: Single
- Tax Rate: 28% / 9.3%
- State of Residence: CA
- Age: 36
- Desired Asset Allocation: 85% stocks / 15% bonds
- Desired International allocation: 40% of stocks
Current Portfolio
Taxable Vanguard Account:
- 3.83%: 500 Index (VFIAX)
- 3.35%: Value Index (VVIAX)
- 3.35%: Small-Cap Value Index (VSIAX)
- 3.35%: International Value (VTRIX)
Vanguard Roth IRA
- 7.52%: Wellington Fund (VWELX)
- 3.68%: REIT Index (VGSLX)
Vanguard IRA
- I only use it to funnel funds into my Roth via the backdoor. I cannot deduct contribution so this account remains $0 all year.
Vanguard IRA (Inherited) – 2018 is the first year I will take the RMD. I plan to put these RMDs into my taxable account. I’m on the stretch distribution plan.
- REIT Index (VGSLX): 3.07%
- Total Bond Market (VBTLX): 3.2%
- Total International (VTIAX): 7.16%
- Total Stock Market (VTSAX): 9.7%
401k (company match)
- T. Rowe Price Equity Index 500 (PREIX): 14.49%
- JP Morgan Large Cap Growth (SEEGX): 16.31%
- Dreyfus Midcap (PESPX): 7.19%
- iShares MSCI EAFE Intl Idx (MDIIX): 7.19%
- Core Plus Bond / PIMCO Fund: 6.60%
Contributions
New Annual Contributions
- $18k into 401k ($5k employer match)
- $5,500 into Roth (via backdoor)
- I’m unsure how much to put into my taxable account given the froth in today’s market. I’m considering to keep building cash reserve for home purchase and/or deploy into the market if there’s a big correction.
Available Funds in 401k:
- JP Morgan Large Cap Growth (SEEGX): 0.85%
- American Funds EuroPacific Growth Fund R4 (RERCX): 0.85%
- Invesco Small Cap Growth Fund Y (GTSYX): 0.98%
- iShares MSCI EAFE Intl Idx Inv A (MDIIX): 0.38%
- MassMutual Select Mid Cap Growth Adm (MMELX): 1.03%
- T. Rowe Price Equity Index 500 (PREIX): 0.23%
- Columbia Contrarian Core A (LCCAX): 1.06%
- S/A Janus Balanced Strategy: 1.06%
- Dreyfus Midcap Index Fund (PESPX): 0.51%
- Invesco Growth & Income Fund A (ACGIX): 0.82%
- Janus Henderson Small Cap Value T (JSCVX): 1.13%
- Diamond Hill Small-Mid Cap (DHMAX): 1.24%
- Core Plus Bond / PIMCO Fund: 0.63%
- Nuveen Real Estate Secs A (FREAX): 1.30%
- iShares US Aggregate Bond Index Inv. A (BMOAX): 0.35%
- Guaranteed Income Fund (GIF): 0.25%
Questions:
- Are the funds I selected for each of my accounts appropriate from a tax efficiency perspective?
- I’m a little light in my international exposure given my desired allocation. Would it make sense to beef up my international positions in my Roth, Taxable Account, or 401k?
- I’m basically looking for an overall review of my portfolio, and perhaps some suggestions on how I should, if needed, rebalance to a more appropriate allocation. I’d like to be on the aggressive side, since I still plan on working another 30 or so years.
Thank you very much in advance!
I was hoping to solicit some portfolio advice. I feel like my allocations are all over the place, and I’m paralyzed by over analysis right now. Hoping for some advice and a nudge in the right direction.
- Emergency Funds: $100k (high yield savings at 1.5%) This money is intended for a home purchase in CA in 2018, but coastal city real estate prices are insane and I’m having heartburn about possibly overpaying at the top of the market.
- Debt: Car loan $5k (1.89%)
- Tax Filing: Single
- Tax Rate: 28% / 9.3%
- State of Residence: CA
- Age: 36
- Desired Asset Allocation: 85% stocks / 15% bonds
- Desired International allocation: 40% of stocks
Current Portfolio
Taxable Vanguard Account:
- 3.83%: 500 Index (VFIAX)
- 3.35%: Value Index (VVIAX)
- 3.35%: Small-Cap Value Index (VSIAX)
- 3.35%: International Value (VTRIX)
Vanguard Roth IRA
- 7.52%: Wellington Fund (VWELX)
- 3.68%: REIT Index (VGSLX)
Vanguard IRA
- I only use it to funnel funds into my Roth via the backdoor. I cannot deduct contribution so this account remains $0 all year.
Vanguard IRA (Inherited) – 2018 is the first year I will take the RMD. I plan to put these RMDs into my taxable account. I’m on the stretch distribution plan.
- REIT Index (VGSLX): 3.07%
- Total Bond Market (VBTLX): 3.2%
- Total International (VTIAX): 7.16%
- Total Stock Market (VTSAX): 9.7%
401k (company match)
- T. Rowe Price Equity Index 500 (PREIX): 14.49%
- JP Morgan Large Cap Growth (SEEGX): 16.31%
- Dreyfus Midcap (PESPX): 7.19%
- iShares MSCI EAFE Intl Idx (MDIIX): 7.19%
- Core Plus Bond / PIMCO Fund: 6.60%
Contributions
New Annual Contributions
- $18k into 401k ($5k employer match)
- $5,500 into Roth (via backdoor)
- I’m unsure how much to put into my taxable account given the froth in today’s market. I’m considering to keep building cash reserve for home purchase and/or deploy into the market if there’s a big correction.
Available Funds in 401k:
- JP Morgan Large Cap Growth (SEEGX): 0.85%
- American Funds EuroPacific Growth Fund R4 (RERCX): 0.85%
- Invesco Small Cap Growth Fund Y (GTSYX): 0.98%
- iShares MSCI EAFE Intl Idx Inv A (MDIIX): 0.38%
- MassMutual Select Mid Cap Growth Adm (MMELX): 1.03%
- T. Rowe Price Equity Index 500 (PREIX): 0.23%
- Columbia Contrarian Core A (LCCAX): 1.06%
- S/A Janus Balanced Strategy: 1.06%
- Dreyfus Midcap Index Fund (PESPX): 0.51%
- Invesco Growth & Income Fund A (ACGIX): 0.82%
- Janus Henderson Small Cap Value T (JSCVX): 1.13%
- Diamond Hill Small-Mid Cap (DHMAX): 1.24%
- Core Plus Bond / PIMCO Fund: 0.63%
- Nuveen Real Estate Secs A (FREAX): 1.30%
- iShares US Aggregate Bond Index Inv. A (BMOAX): 0.35%
- Guaranteed Income Fund (GIF): 0.25%
Questions:
- Are the funds I selected for each of my accounts appropriate from a tax efficiency perspective?
- I’m a little light in my international exposure given my desired allocation. Would it make sense to beef up my international positions in my Roth, Taxable Account, or 401k?
- I’m basically looking for an overall review of my portfolio, and perhaps some suggestions on how I should, if needed, rebalance to a more appropriate allocation. I’d like to be on the aggressive side, since I still plan on working another 30 or so years.
Thank you very much in advance!
- Tyler Aspect
- Posts: 1620
- Joined: Mon Mar 20, 2017 10:27 pm
- Location: California
- Contact:
Re: Portfolio Review/Advice
scottrj12 wrote: ↑Mon Jan 22, 2018 6:45 pm Hi Bogleheads,
I was hoping to solicit some portfolio advice. I feel like my allocations are all over the place, and I’m paralyzed by over analysis right now. Hoping for some advice and a nudge in the right direction.
Welcome to Bogleheads.
- Emergency Funds: $100k (high yield savings at 1.5%) This money is intended for a home purchase in CA in 2018, but coastal city real estate prices are insane and I’m having heartburn about possibly overpaying at the top of the market.
- Debt: Car loan $5k (1.89%)
- Tax Filing: Single
- Tax Rate: 28% / 9.3%
- State of Residence: CA
- Age: 36
- Desired Asset Allocation: 85% stocks / 15% bonds
- Desired International allocation: 40% of stocks
Current Portfolio
Taxable Vanguard Account:
- 3.83%: 500 Index (VFIAX) Exchange to Total Stock Market (VTSAX)
- 3.35%: Value Index (VVIAX)
- 3.35%: Small-Cap Value Index (VSIAX)
- 3.35%: International Value (VTRIX)
Vanguard Roth IRA
- 7.52%: Wellington Fund (VWELX) Exchange to Total International (VTIAX)
- 3.68%: REIT Index (VGSLX)
Vanguard IRA
- I only use it to funnel funds into my Roth via the backdoor. I cannot deduct contribution so this account remains $0 all year.
Vanguard IRA (Inherited) – 2018 is the first year I will take the RMD. I plan to put these RMDs into my taxable account. I’m on the stretch distribution plan.
3.07% REIT Index (VGSLX)
10.03% Vanguard Total International (VTIAX)
10.03% Vanguard Extended Market Index (VEXAX)
401k (company match)
15% iShares US Aggregate Bond Index Inv. A (BMOAX)
36.78% T. Rowe Price Equity Index 500 (PREIX)
Your least expensive options in the 401k accounts are these two funds.
Contributions
New Annual Contributions
- $18k into 401k ($5k employer match)
- $5,500 into Roth (via backdoor)
- I’m unsure how much to put into my taxable account given the froth in today’s market. I’m considering to keep building cash reserve for home purchase and/or deploy into the market if there’s a big correction.
New taxable contribution goes to Total Stock Market (VTSAX) or house fund.
Past result does not predict future performance. Mentioned investments may lose money. Contents are presented "AS IS" and any implied suitability for a particular purpose are disclaimed.
-
- Posts: 1408
- Joined: Thu Nov 16, 2017 3:03 am
Re: Portfolio Review/Advice
Tyler's suggestions are very similar to where my brain was going while reading your post. Exchanging VFIAX for VTSAX in taxable will have tax consequences, so just be aware of that if you decide to do that.
Your portfolio seems quite good. But the small percentages re: REIT, Value, EM, and SC seem not worth the effort to track. (just my opinion, I stick with the 3 fund portfolio because I'm like to keep things simple). If you truly want those tilts then just own them and make then 5-10% of your portfolio. Or pick just one or two that you truly like.
Your portfolio seems quite good. But the small percentages re: REIT, Value, EM, and SC seem not worth the effort to track. (just my opinion, I stick with the 3 fund portfolio because I'm like to keep things simple). If you truly want those tilts then just own them and make then 5-10% of your portfolio. Or pick just one or two that you truly like.
Re: Portfolio Review/Advice
15% bonds is very aggressive for your age.scottrj12 wrote:- Age: 36
- Desired Asset Allocation: 85% stocks / 15% bonds
The best options are:Available Funds in 401k:
- T. Rowe Price Equity Index 500 (PREIX) 0.23% -- Large caps, 80% of US stocks
- iShares MSCI EAFE Intl Idx Inv A (MDIIX) 0.38% -- Developed markets, 75% of international stocks
- iShares US Aggregate Bond Index (BMOAX) 0.35% -- US bonds
Since in general it's better to have assets with lower expected growth (bonds) in pre-tax accounts and assets with higher expected growth (stocks) in Roth accounts, I would remove Wellington from the Roth IRA. It really doesn't belong in your portfolio at all because it's a balanced fund and all the other funds are individual funds.Are the funds I selected for each of my accounts appropriate from a tax efficiency perspective?
Not the 401k if you can avoid it. The best international option in that account is limited. Use either taxable or your IRAs.I’m a little light in my international exposure given my desired allocation. Would it make sense to beef up my international positions in my Roth, Taxable Account, or 401k?
You have a desired AA of 85% stocks, 15% bonds, with 40% of stocks in international. That breaks down to 51% US stocks, 34% international stocks, and 15% bonds. Right now you could have:I’m basically looking for an overall review of my portfolio, and perhaps some suggestions on how I should, if needed, rebalance to a more appropriate allocation. I’d like to be on the aggressive side, since I still plan on working another 30 or so years.
Taxable at Vanguard -- 14%
5% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.04%)
9% (VEXAX) Vanguard Extended Market Index Fund Admiral Shares (0.08%)
401k -- 52%
37% (PREIX) T. Rowe Price Equity Index 500 Fund Investor Class (0.23%)
15% (BMOAX) iShares U.S. Aggregate Bond Index Fund Investor A Shares (0.35%)
Inherited TIRA at Vanguard -- 23%
23% (VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.11%)
Roth IRA at Vanguard -- 11%
11% (VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.11%)
My comments:
- This ignores the tax cost of selling in taxable.
- Extended Market in taxable provides the mid/small caps missing from the 500 Index in the 401k. You could swap that out to Small-Cap Value if wanted. Or for simplicity just use Total Stock.
- If you want 40% of stocks to be international, eventually you're going to have to add international to taxable.
Help, I feel I'm over-analyzing...
[Thread merged into here, see below. --admin LadyGeek]
Hi Bogleheads,
I was hoping to solicit some portfolio advice. I feel like my allocations are all over the place, and I’m paralyzed by over analysis right now. Hoping for some advice and a nudge in the right direction.
• Emergency Funds: $100k (currently in a high yield savings account at 1.5%. This money is intended for a home purchase in CA in 2018, but coastal city real estate prices are insane and I’m having heartburn about possibly overpaying at the top of the market)
• Debt: Car loan $5k (1.89%)
• Tax Filing: Single
• Tax Rate: 28% / 9.3%
• State of Residence: CA
• Age: 36
• Desired Asset Allocation: 85% stocks / 15% bonds
• Desired International allocation: 40% of stocks
Current Portfolio
Taxable Vanguard Account:
• 3.83%: 500 Index (VFIAX)
• 3.35%: Value Index (VVIAX)
• 3.35%: Small-Cap Value Index (VSIAX)
• 3.35%: International Value (VTRIX)
Vanguard Roth IRA
• 7.52%: Wellington Fund (VWELX)
• 3.68%: REIT Index (VGSLX)
Vanguard IRA
• I only use it to funnel funds into my Roth via the backdoor. I cannot deduct contribution so this account remains $0 all year.
Vanguard IRA (Inherited) – 2018 is the first year I will take the RMD. I plan to put these RMDs into my taxable account. I’m on the stretch distribution plan.
• 3.07%: REIT Index (VGSLX)
• 3.2%: Total Bond Market (VBTLX):
• 7.16%: Total International (VTIAX):
• 9.7%: Total Stock Market (VTSAX):
Employer 401k (company match)
• 14.9%: T. Rowe Price Equity Index 500 (PREIX):
• 16.31%: JP Morgan Large Cap Growth (SEEGX):
• 7.19%: Dreyfus Midcap (PESPX):
• 7.19%: IShares MSCI EAFE Intl Idx (MDIIX):
• 6.60%: Core Plus Bond / PIMCO Fund:
Contributions
New Annual Contributions
• $18k into 401k ($5k employer match)
• $5,500 into Roth (via backdoor)
• I’m unsure how much to put into my taxable account given the froth in today’s market. I’m considering to keep building cash reserve for home purchase and/or deploy into the market if there’s a big correction.
Available Funds
Funds available in 401k
• JP Morgan Large Cap Growth (SEEGX): 0.85%
• American Funds EuroPacific Growth Fund R4 (RERCX): 0.85%
• Invesco Small Cap Growth Fund Y (GTSYX): 0.98%
• iShares MSCI EAFE Intl Idx Inv A (MDIIX): 0.38%
• MassMutual Select Mid Cap Growth Adm (MMELX): 1.03%
• T. Rowe Price Equity Index 500 (PREIX): 0.23%
• Columbia Contrarian Core A (LCCAX): 1.06%
• S/A Janus Balanced Strategy: 1.06%
• Dreyfus Midcap Index Fund (PESPX): 0.51%
• Invesco Growth & Income Fund A (ACGIX): 0.82%
• Janus Henderson Small Cap Value T (JSCVX): 1.13%
• Diamond Hill Small-Mid Cap (DHMAX): 1.24%
• Core Plus Bond / PIMCO Fund: 0.63%
• Nuveen Real Estate Secs A (FREAX): 1.30%
• iShares US Aggregate Bond Index Inv. A (BMOAX): 0.35%
• Guaranteed Income Fund (GIF): 0.25%
Questions
• Are the funds I selected for each of my accounts appropriate from a tax efficiency perspective?
• I’m a little light in my international exposure given my desired allocation. Would it make sense to beef up my international positions in my Roth, Taxable Account, or 401k?
• I’m basically looking for an overall review of my portfolio, and perhaps some suggestions on how I should, if needed, rebalance to a more appropriate allocation. I’d like to be on the aggressive side, since I still plan on working another 30 or so years.
Thanks in advance Bogleheads!
Hi Bogleheads,
I was hoping to solicit some portfolio advice. I feel like my allocations are all over the place, and I’m paralyzed by over analysis right now. Hoping for some advice and a nudge in the right direction.
• Emergency Funds: $100k (currently in a high yield savings account at 1.5%. This money is intended for a home purchase in CA in 2018, but coastal city real estate prices are insane and I’m having heartburn about possibly overpaying at the top of the market)
• Debt: Car loan $5k (1.89%)
• Tax Filing: Single
• Tax Rate: 28% / 9.3%
• State of Residence: CA
• Age: 36
• Desired Asset Allocation: 85% stocks / 15% bonds
• Desired International allocation: 40% of stocks
Current Portfolio
Taxable Vanguard Account:
• 3.83%: 500 Index (VFIAX)
• 3.35%: Value Index (VVIAX)
• 3.35%: Small-Cap Value Index (VSIAX)
• 3.35%: International Value (VTRIX)
Vanguard Roth IRA
• 7.52%: Wellington Fund (VWELX)
• 3.68%: REIT Index (VGSLX)
Vanguard IRA
• I only use it to funnel funds into my Roth via the backdoor. I cannot deduct contribution so this account remains $0 all year.
Vanguard IRA (Inherited) – 2018 is the first year I will take the RMD. I plan to put these RMDs into my taxable account. I’m on the stretch distribution plan.
• 3.07%: REIT Index (VGSLX)
• 3.2%: Total Bond Market (VBTLX):
• 7.16%: Total International (VTIAX):
• 9.7%: Total Stock Market (VTSAX):
Employer 401k (company match)
• 14.9%: T. Rowe Price Equity Index 500 (PREIX):
• 16.31%: JP Morgan Large Cap Growth (SEEGX):
• 7.19%: Dreyfus Midcap (PESPX):
• 7.19%: IShares MSCI EAFE Intl Idx (MDIIX):
• 6.60%: Core Plus Bond / PIMCO Fund:
Contributions
New Annual Contributions
• $18k into 401k ($5k employer match)
• $5,500 into Roth (via backdoor)
• I’m unsure how much to put into my taxable account given the froth in today’s market. I’m considering to keep building cash reserve for home purchase and/or deploy into the market if there’s a big correction.
Available Funds
Funds available in 401k
• JP Morgan Large Cap Growth (SEEGX): 0.85%
• American Funds EuroPacific Growth Fund R4 (RERCX): 0.85%
• Invesco Small Cap Growth Fund Y (GTSYX): 0.98%
• iShares MSCI EAFE Intl Idx Inv A (MDIIX): 0.38%
• MassMutual Select Mid Cap Growth Adm (MMELX): 1.03%
• T. Rowe Price Equity Index 500 (PREIX): 0.23%
• Columbia Contrarian Core A (LCCAX): 1.06%
• S/A Janus Balanced Strategy: 1.06%
• Dreyfus Midcap Index Fund (PESPX): 0.51%
• Invesco Growth & Income Fund A (ACGIX): 0.82%
• Janus Henderson Small Cap Value T (JSCVX): 1.13%
• Diamond Hill Small-Mid Cap (DHMAX): 1.24%
• Core Plus Bond / PIMCO Fund: 0.63%
• Nuveen Real Estate Secs A (FREAX): 1.30%
• iShares US Aggregate Bond Index Inv. A (BMOAX): 0.35%
• Guaranteed Income Fund (GIF): 0.25%
Questions
• Are the funds I selected for each of my accounts appropriate from a tax efficiency perspective?
• I’m a little light in my international exposure given my desired allocation. Would it make sense to beef up my international positions in my Roth, Taxable Account, or 401k?
• I’m basically looking for an overall review of my portfolio, and perhaps some suggestions on how I should, if needed, rebalance to a more appropriate allocation. I’d like to be on the aggressive side, since I still plan on working another 30 or so years.
Thanks in advance Bogleheads!
Re: Portfolio Review/Advice
Thank you so much everyone! The advice really helps focus my attention from being all over the place.
Much appreciated
Much appreciated
- Tyler Aspect
- Posts: 1620
- Joined: Mon Mar 20, 2017 10:27 pm
- Location: California
- Contact:
Re: Help, I feel I'm over-analyzing...
Is this a duplicate thread? Some of us has answered this one already. What's changed?
Past result does not predict future performance. Mentioned investments may lose money. Contents are presented "AS IS" and any implied suitability for a particular purpose are disclaimed.
Re: Portfolio Review/Advice
^^^ scottrj12 - You had a duplicate post and one reply (Tyler Aspect), which I merged into here.
I don't know if anything changed. Feel free to edit the post as you see fit.
I don't know if anything changed. Feel free to edit the post as you see fit.
Re: Portfolio Review/Advice
Apologies, yes it was an accidental duplicate question. The material in the second post is identical to the first. Thanks again to all the Bogleheads who took the time to respond. Very helpful.
Thanks,
RJ
Thanks,
RJ