Requesting portfolio/investment advice

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jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Requesting portfolio/investment advice

Post by jarhead » Fri Feb 02, 2018 7:56 pm

I have neglected my taxable and non-taxable accounts long enough and have decided to seek some advice. I have attempted to provide all of my information in a proper format and will correct it if something is not kosher.

Emergency funds: Have at least six months of expenses saved
Current total portfolio just hit seven-figures in retirement accounts

Debt:
Mortgage: Paid off. Pay $1400/month in property taxes (reminder to self to move out of NY as soon as possible) :D
Credit Cards: Pay off the balance monthly.
Cars: Lease 2 cars - pay ~$260/month for each car.

Tax Filing Status: Married Filing Jointly

Tax Rate:
Federal: 24% in 2018 (dropped from 33% bracket in 2017).
NY State: 6.65%

State of Residence: NY
His Age: 55
Her Age: 53
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 15-20% of stocks

Current retirement assets

Taxable -

Vanguard Brokerage Account
20% Total Bond Market Index Fund Admiral Shares (VBTLX) (0.05%)
14% Total International Stock Index Fund Investor Shares (VGTSX) (0.18%)
66% Total Stock Market Index Fund Admiral Shares (VTSAX) (0.04%)


Non-taxable -

His 401k
Old Fund prior to reshuffling:
100% Target Date 2030 Fund (ticker symbol) (0.06%)
http://profile.morningstar.com/profile/ ... SPUSA05DSG

New fund choices:
40% Intermediate Bond Fund (0.22)
36% S&P 500 Index Fund (0.02)
9% Small Cap Index Fund (0.05)
15% International Large Cap Index Fund (0.08)

Contribution - $24,000/year
Company match? Yes (dollar-for-dollar up to 5%)

His Rollover IRA at Vanguard
Traditional IRA Brokerage Account
100% Target Retirement 2030 Fund (VTHRX) (0.14%)

Her Rollover IRA at Vanguard
Traditional IRA Brokerage Account
100% Vanguard Target Retirement 2035 Fund (VTTHX) (0.14%)


Her rolled over 403(b) to Fidelity

14.82% Extended Market Index Premium (FSEVX) (0.07%)
25.25% US Bond Index Premium (FSITX) (0.04%)
8.75% International Index Fund Premium Class (FSIVX) (0.06%)
51.36% 500 Index Premium (FUSVX) (0.04%)

Her 457(b) Plan
Old Fund prior to reshuffling:
100% T. Rowe Price 2030 (TRRCX) (0.72%)

New fund choices:
36% NYSDCB Equity Index Unitized Account NYSDCINDX (Benchmarks S&P 500 Index) (0.01)
9% NYSDCB Russell 2500 Index Unitized Account NYSDCR25 (0.02)
40% NYSDCB US Debt Index Unitized Account NYSDCDEBT (0.02)
15% NYSDCP Int'l Equity Index Fund IEFIX (Benchmarks MSCI EAFE Index) (0.20)

Contribution - $19,250/year

Wife can retire with a nice pension in 3 years, but will probably keep working for at least another 5 years.

******************************************************************

Other than the emergency fund, we have about $130,000 sitting in a regular savings account earning nothing.

Funds available in his 401(k)

JPMorganChase Funds

Target Date Funds Expense Ratio
Target Date Income .08
Benchmark: S&P Target Retirement Income
Target Date 2020 .07
Benchmark: S&P Target Date 2020
Target Date 2025 .06
Benchmark: S&P Target Date 2025
Target Date 2030 .06
Benchmark: S&P Target Date 2030
Target Date 2035 .06
Benchmark: S&P Target Date 2035
Target Date 2040 .06
Benchmark: S&P Target Date 2040
Target Date 2045 .06
Benchmark: S&P Target Date 2045
Target Date 2050 .06
Benchmark: S&P Target Date 2050
Target Date 2055 .06
Benchmark: S&P Target Date 2055+

Cash Alternatives
Short-Term Fixed Income .00
Benchmark: BofA ML US Treasury Bill 3 Mon

Bonds
Stable Value .20
Benchmark: BofA ML US Treasury Bill 3 Mon
Government Inflation-Protected Bond .22
Benchmark: Bloomberg Barclays US Treasury TIPS
Core Bond .00
Intermediate Bond .22
Benchmark: Bloomberg Barclays US Agg Bond
High Yield Bond .36
Benchmark: Credit Suisse HY

Domestic Equity
Large Cap Value Index .03
Benchmark: Russell 1000 Value
Large Cap Value .35
Benchmark: Russell 1000 Value
S&P 500 Index Fund .02
Benchmark: S&P 500
Large Cap Growth Index .03
Benchmark: Russell 1000 Growth
Large Cap Growth .41
Benchmark: Russell 1000 Growth
S&P MidCap 400 Index .04
Benchmark: S&P MidCap 400 5
Small Cap Index .05
Benchmark: Russell 2000
Small Cap Core .00
Benchmark: Russell 2000
Small Cap Blend .61
Benchmark: Russell 2000

International Equity
International Large Cap Value .31
Benchmark: MSCI EAFE NR
International Large Cap Index .08
Benchmark: MSCI EAFE NR
International Small Cap Index .09
Benchmark: MSCI EAFE Small Cap NR

Emerging Market
Emerging Market Equity Index .14
Benchmark: MSCI EM NR

Company Stock
JPMorgan Chase Common Stock .00


Funds available in her 457(b)

457 Plan Funds

Name Symbol Expense

Target Date Funds
T. Rowe Price Retirement 2010 Trust NY01C 0.38
T. Rowe Price Retirement 2015 Trust NY02C 0.38
T. Rowe Price Retirement 2020 Trust NY03C 0.38
T. Rowe Price Retirement 2025 Trust NY04C 0.38
T. Rowe Price Retirement 2030 Trust NY05C 0.38
T. Rowe Price Retirement 2035 Trust NY06C 0.38
T. Rowe Price Retirement 2040 Trust NY07C 0.38
T. Rowe Price Retirement 2045 Trust NY08C 0.38
T. Rowe Price Retirement 2050 Trust NY09C 0.38
T. Rowe Price Retirement 2055 Trust NY010C 0.38
T. Rowe Price Retirement 2060 Trust NY011C 0.38

International Stocks
Int'l Equity Fund - Active Portfolio IEFAX N/A
Int'l Equity Fund - Index Portfolio IEFIX N/A
Morgan Stanley Institutional Fund -
Emerging Markets Portfolio - Class IS MMMPX 0.99

Small Cap Stocks
Delaware Small Cap Value Fund -
Institutional Class DEVIX 0.99
NYSDCB Russell 2500 Index Unitized Account NYSDCR25 0.02
T. Rowe QM US Small-Cap Growth Equity Fund
– I Class TQAIX 0.66

Mid Cap Stocks
Vanguard Strategic Equity Fund -
Investor Shares VSEQX 0.18

Large Cap Stocks
Boston Partners Lrge Cap Value Equity Fund NY21C 0.67
Fidelity OTC Portfolio FOCPX 0.81
NYSDCB Equity Index Unitized Account NYSDCINDX 0.01
T. Rowe Price Blue Chip Growth Trust NY23C 0.40
T. Rowe Price Equity Income Trust NY20C 0.33
Vanguard PRIMECAP Fund - Admiral Shares VPMAX 0.33

Balanced
Pax Balanced Fund - Int'l Class PAXIX 0.68
Vanguard Wellington Fund - Admiral Shares VWENX 0.16

Bonds
NYSDCB US Debt Index Unitized Account NYSDCDEBT 0.02
Voya Core Plus Trust Fund NY27C 0.23

Short-Term Investments
Stable Income Fund N/A

Thanks in advance,
Alex
Last edited by jarhead on Sun Feb 11, 2018 10:16 am, edited 4 times in total.

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WoodSpinner
Posts: 523
Joined: Mon Feb 27, 2017 1:15 pm

Re: Requesting portfolio/investment advice

Post by WoodSpinner » Fri Feb 02, 2018 9:05 pm

Jarhead,

You seem to have built a very low cost, passive portfolio! Well done. It’s obvious you have quite a bit of experience and insight.

Not sure I see why you would use a Chase Private Client service unless there are benefits I am missing.

I didn’t do the math, how close are you to your desired allocation?

WoodSpinner

flybynite
Posts: 138
Joined: Wed Oct 02, 2013 8:14 pm
Location: DC burbs

Re: Requesting portfolio/investment advice

Post by flybynite » Fri Feb 02, 2018 9:06 pm

jarhead wrote:
Fri Feb 02, 2018 7:56 pm
I have neglected my taxable and non-taxable accounts long enough and have decided to seek some advice. I have attempted to provide all of my information in a proper format and will correct it if something is not kosher.

Emergency funds: Have at least six months of expenses saved
Current total portfolio just hit seven-figures in retirement accounts

Debt:
Mortgage: Paid off. Pay $1400/month in property taxes (reminder to self to move out of NY as soon as possible) :D
Credit Cards: Pay off the balance monthly.
...
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 15-20% of stocks


Question:
Should I remain as a Chase Private Client and invest in their self-directed brokerage account? I have to look into what kind of funds they are offering in an SDA.
These are their fees for a self-directed account:
https://www.chase.com/content/dam/chase ... counts.pdf

Thanks in advance,
Alex

Alex - great work saving and planning for retirement, you seem to be humming quite a long in your "neglect" and you have a very informative post including your desired AA! On the primary topic, no, you should not pay 1.25% in fees to have an advisor provide access to high fee funds when you have all the great options you already have available in your taxable Vanguard brokerage, retirement accounts and the pretty decent options you have in you and your wife's company sponsored accounts.

Here's some specific recommendations:

0. What I said before, don't use this "service". I'm glad you have a great job but this investment advising service is not your friend even if offered by your kind employer. On the positive side, if a lot of people use it, they can continue to enjoy good profits and maybe will pass those along in paychecks or bonuses!

1. I would not continue to add money to bonds in your taxable account, this is not very tax efficient, you can maintain your AA by adding additional amount of bonds (through rebalancing) in your various tax advantaged retirement accounts instead.

2. If it were me, I would move out of retirement target date funds that both you and your wife are holding in tax advantaged. It's very hard to manage your asset allocation across multiple accounts in taxable and tax advantaged space when holding this type of fund, and the expense ratio in her account is also a bit high. Instead I would use these great options you have to do a simple 3 fund or 4 fund (I might choose to hold 80% SP500 and 20% small or mid-cap for the domestic portion of your stock allocation, but this adds complexity and is entirely up to you - it won't make that much difference in the end).

3. Keep in mind that you don't need to maintain your desired asset allocation in every account (see item 1). If there is a smaller Rollover account you are not adding much to for instance, if it's easier and provides access to admiral class funds, you can keep just one or two funds there. Be careful about movements in your taxable funds as these would create gains, you should mostly just add to those (and you already are use TSM and VGTSX so you are in good shape there to add funds).

Here are the funds you have access to I would recommend in the employer sponsored accounts for building a portfolio with your desired AA:

His 401K Plan Funds
Intermediate Bond .22
S&P 500 Index Fund .02
S&P MidCap 400 Index .04
Small Cap Index .05
International Large Cap Index .08

Her 457 Plan Funds
Int'l Equity Fund - Index Portfolio IEFIX N/A
NYSDCB Russell 2500 Index Unitized Account NYSDCR25 0.02
NYSDCB Equity Index Unitized Account NYSDCINDX 0.01
NYSDCB US Debt Index Unitized Account NYSDCDEBT 0.02

Cheers,

Jon

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Sat Feb 03, 2018 7:17 am

WoodSpinner wrote:
Fri Feb 02, 2018 9:05 pm
Jarhead,

You seem to have built a very low cost, passive portfolio! Well done. It’s obvious you have quite a bit of experience and insight.

Not sure I see why you would use a Chase Private Client service unless there are benefits I am missing.

I didn’t do the math, how close are you to your desired allocation?

WoodSpinner
WS,
Many moons ago I have read one of the books suggested on this forum and have tried my best to follow what I have read - since then, lately have not been as diligent in doing what's best for my accounts. Hence here I am. :happy
As far as Chase Private Client, it was my wife who liked the "perks" - we don't have the minimum required $250K with them, but I think they were hoping that we invest most of the savings at their high fees. That's like $1500+ annually in fees. :oops:
I haven't done my due diligence about meeting my desired allocation goals - adding that to my homework.
flybynite wrote:
Fri Feb 02, 2018 9:06 pm
jarhead wrote:
Fri Feb 02, 2018 7:56 pm
I have neglected my taxable and non-taxable accounts long enough and have decided to seek some advice. I have attempted to provide all of my information in a proper format and will correct it if something is not kosher.

Emergency funds: Have at least six months of expenses saved
Current total portfolio just hit seven-figures in retirement accounts

Debt:
Mortgage: Paid off. Pay $1400/month in property taxes (reminder to self to move out of NY as soon as possible) :D
Credit Cards: Pay off the balance monthly.
...
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 15-20% of stocks


Question:
Should I remain as a Chase Private Client and invest in their self-directed brokerage account? I have to look into what kind of funds they are offering in an SDA.
These are their fees for a self-directed account:
https://www.chase.com/content/dam/chase ... counts.pdf

Thanks in advance,
Alex

Alex - great work saving and planning for retirement, you seem to be humming quite a long in your "neglect" and you have a very informative post including your desired AA! On the primary topic, no, you should not pay 1.25% in fees to have an advisor provide access to high fee funds when you have all the great options you already have available in your taxable Vanguard brokerage, retirement accounts and the pretty decent options you have in you and your wife's company sponsored accounts.

Here's some specific recommendations:

0. What I said before, don't use this "service". I'm glad you have a great job but this investment advising service is not your friend even if offered by your kind employer. On the positive side, if a lot of people use it, they can continue to enjoy good profits and maybe will pass those along in paychecks or bonuses!

1. I would not continue to add money to bonds in your taxable account, this is not very tax efficient, you can maintain your AA by adding additional amount of bonds (through rebalancing) in your various tax advantaged retirement accounts instead.

2. If it were me, I would move out of retirement target date funds that both you and your wife are holding in tax advantaged. It's very hard to manage your asset allocation across multiple accounts in taxable and tax advantaged space when holding this type of fund, and the expense ratio in her account is also a bit high. Instead I would use these great options you have to do a simple 3 fund or 4 fund (I might choose to hold 80% SP500 and 20% small or mid-cap for the domestic portion of your stock allocation, but this adds complexity and is entirely up to you - it won't make that much difference in the end).

3. Keep in mind that you don't need to maintain your desired asset allocation in every account (see item 1). If there is a smaller Rollover account you are not adding much to for instance, if it's easier and provides access to admiral class funds, you can keep just one or two funds there. Be careful about movements in your taxable funds as these would create gains, you should mostly just add to those (and you already are use TSM and VGTSX so you are in good shape there to add funds).

Here are the funds you have access to I would recommend in the employer sponsored accounts for building a portfolio with your desired AA:

His 401K Plan Funds
Intermediate Bond .22
S&P 500 Index Fund .02
S&P MidCap 400 Index .04
Small Cap Index .05
International Large Cap Index .08

Her 457 Plan Funds
Int'l Equity Fund - Index Portfolio IEFIX N/A
NYSDCB Russell 2500 Index Unitized Account NYSDCR25 0.02
NYSDCB Equity Index Unitized Account NYSDCINDX 0.01
NYSDCB US Debt Index Unitized Account NYSDCDEBT 0.02

Cheers,

Jon
Jon,
Thanks for your reply to my questions. I am going to read it over a coupe of times, do some reshuffling and may come back with some more questions. All the great feedback and remarks gives me more confidence to do what I thought I could not on my own.

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Sun Feb 11, 2018 8:22 am

For his 401(k) fund choices, which combination would roughly equal to Total Stock Market?

80% S&P 500 Index Fund
20% S&P MidCap 400 Index

or

80% S&P 500 Index Fund
20% Small Cap Index

or some other combination?

TwstdSista
Posts: 987
Joined: Thu Nov 16, 2017 4:03 am

Re: Requesting portfolio/investment advice

Post by TwstdSista » Sun Feb 11, 2018 8:32 am

Technically (see: https://www.bogleheads.org/wiki/Approxi ... ock_market):
82% S&P 500 Index Fund
18% Small Cap Index

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Sun Feb 11, 2018 8:49 am

TwstdSista wrote:
Sun Feb 11, 2018 8:32 am
Technically (see: https://www.bogleheads.org/wiki/Approxi ... ock_market):
82% S&P 500 Index Fund
18% Small Cap Index
Thanks for that link, TS - very informative.

Question: On that chart, right above the 82% S&P 500/18% Small Cap Index, there is also a 81% S&P 500 Index Fund/4% Mid-Cap Index Fund/15% Small-Cap Index Fund combination. How does one decide which of the two is a better choice? Does it come down to how granular one wants to get?

TwstdSista
Posts: 987
Joined: Thu Nov 16, 2017 4:03 am

Re: Requesting portfolio/investment advice

Post by TwstdSista » Sun Feb 11, 2018 8:53 am

jarhead wrote:
Sun Feb 11, 2018 8:49 am
TwstdSista wrote:
Sun Feb 11, 2018 8:32 am
Technically (see: https://www.bogleheads.org/wiki/Approxi ... ock_market):
82% S&P 500 Index Fund
18% Small Cap Index
Thanks for that link, TS - very informative.

Question: On that chart, right above the 82% S&P 500/18% Small Cap Index, there is also a 81% S&P 500 Index Fund/4% Mid-Cap Index Fund/15% Small-Cap Index Fund combination. How does one decide which of the two is a better choice? Does it come down to how granular one wants to get?
I think yes. How specific do you want to get, versus how simple do you want to keep things? An extended market fund would be better since it covers both small and mid cap (is my understanding). Personally, I'd go 500 fund and SC fund at 80/20 ish and call it day. I like simple.

retiredjg
Posts: 34373
Joined: Thu Jan 10, 2008 12:56 pm

Re: Requesting portfolio/investment advice

Post by retiredjg » Sun Feb 11, 2018 9:19 am

jarhead wrote:
Fri Feb 02, 2018 7:56 pm
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 15-20% of stocks
Most of your target funds are more aggressive than 60/40 and have more than 15% - 20% of the stock allocation in international. This does not mean your portfolio choices are bad, just not what you said you wanted.



Taxable -

Vanguard Brokerage Account
20% Total Bond Market Index Fund Admiral Shares (VBTLX) (0.05%) <--this is likely ok in the 24% bracket, but if tax rates revert, I'd switch to tax-exempt bonds.
14% Total International Stock Index Fund Investor Shares (VGTSX) (0.18%)
66% Total Stock Market Index Fund Admiral Shares (VTSAX) (0.04%)



His 401k <--you can't save a lot of money in costs by switching to individual funds in this account
100% Target Date 2030 Fund (ticker symbol) (0.06%)
http://profile.morningstar.com/profile/ ... SPUSA05DSG
Her rolled over 403(b) to Fidelity <-- you could use a Fidelity Freedom INDEX fund here if you want; however, the individual funds are cheaper

14.82% Extended Market Index Premium (FSEVX) (0.07%)
25.25% US Bond Index Premium (FSITX) (0.04%)
8.75% International Index Fund Premium Class (FSIVX) (0.06%)
51.36% 500 Index Premium (FUSVX) (0.04%)
Her 457(b) Plan <--this account I would switch to the individual funds because of the high ER of the target fund
Old Fund prior to reshuffling as per forum's suggestions :
100% T. Rowe Price 2030 (TRRCX) (0.72%)

New fund choices:
36% NYSDCB Equity Index Unitized Account NYSDCINDX (Benchmarks S&P 500 Index) (0.01)
9% NYSDCB Russell 2500 Index Unitized Account NYSDCR25 (0.02)
40% NYSDCB US Debt Index Unitized Account NYSDCDEBT (0.02)
15% NYSDCP Int'l Equity Index Fund IEFIX (Benchmarks MSCI EAFE Index) (0.20)
Should I remain as a Chase Private Client and invest in their self-directed brokerage account? I have to look into what kind of funds they are offering in an SDA.
This is 2 independent questions.

What benefit would you get as a Chase Private Client? What do you have to do to be one? What does it cost you?

I don't see any reason to open a separate taxable account if you like the one you have. How could it benefit you to use their self directed brokerage? What does it offer that you don't get at Vanguard?

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Sun Feb 11, 2018 10:14 am

retiredjg wrote:
Sun Feb 11, 2018 9:19 am
jarhead wrote:
Fri Feb 02, 2018 7:56 pm
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 15-20% of stocks
Most of your target funds are more aggressive than 60/40 and have more than 15% - 20% of the stock allocation in international. This does not mean your portfolio choices are bad, just not what you said you wanted.
I will take a look and adjust accordingly


Taxable -

Vanguard Brokerage Account
20% Total Bond Market Index Fund Admiral Shares (VBTLX) (0.05%) <--this is likely ok in the 24% bracket, but if tax rates revert, I'd switch to tax-exempt bonds.
I will keep that in mind
14% Total International Stock Index Fund Investor Shares (VGTSX) (0.18%)
66% Total Stock Market Index Fund Admiral Shares (VTSAX) (0.04%)

His 401k <--you can't save a lot of money in costs by switching to individual funds in this account
Yes, the ER in the 401(k) is low. Doesn't it make it easier to manage my AA if I do move to individual funds?
100% Target Date 2030 Fund (ticker symbol) (0.06%)
http://profile.morningstar.com/profile/ ... SPUSA05DSG
Her rolled over 403(b) to Fidelity <-- you could use a Fidelity Freedom INDEX fund here if you want; however, the individual funds are cheaper

14.82% Extended Market Index Premium (FSEVX) (0.07%)
25.25% US Bond Index Premium (FSITX) (0.04%)
8.75% International Index Fund Premium Class (FSIVX) (0.06%)
51.36% 500 Index Premium (FUSVX) (0.04%)
Her 457(b) Plan <--this account I would switch to the individual funds because of the high ER of the target fund
Done
Old Fund prior to reshuffling as per forum's suggestions :
100% T. Rowe Price 2030 (TRRCX) (0.72%)

New fund choices:
36% NYSDCB Equity Index Unitized Account NYSDCINDX (Benchmarks S&P 500 Index) (0.01)
9% NYSDCB Russell 2500 Index Unitized Account NYSDCR25 (0.02)
40% NYSDCB US Debt Index Unitized Account NYSDCDEBT (0.02)
15% NYSDCP Int'l Equity Index Fund IEFIX (Benchmarks MSCI EAFE Index) (0.20)
Should I remain as a Chase Private Client and invest in their self-directed brokerage account? I have to look into what kind of funds they are offering in an SDA.
This is 2 independent questions.

What benefit would you get as a Chase Private Client? What do you have to do to be one? What does it cost you?
I'd have to keep a minimum combined amount with Chase in all the accounts. I talked it over with my wife and we decided that the benefits which they offer are not something that we'd taker advantage of - as a JPMorgan Chase employee, I already get some of the perks anyway.

I don't see any reason to open a separate taxable account if you like the one you have. How could it benefit you to use their self directed brokerage? What does it offer that you don't get at Vanguard?
I took the forum's advice and am no longer getting suckered into it :D I will remove the question from my original post.

retiredjg
Posts: 34373
Joined: Thu Jan 10, 2008 12:56 pm

Re: Requesting portfolio/investment advice

Post by retiredjg » Sun Feb 11, 2018 10:44 am

jarhead wrote:
Sun Feb 11, 2018 10:14 am
Doesn't it make it easier to manage my AA if I do move to individual funds?
Yes and no. The way you are doing it is fine - keeping each account at your target AA - if you understand what you are doing and if the extra cost is worth it to you (up to a point anyway). And you appear to understand how to do that just fine.

If you do decide to use individual funds, there is no need to have each asset class in each account. You could cut several accounts down to 1 or 2 funds. This requires more careful planning of how to invest your contributions - for example, you have to make sure that 40% of the total contributions are going to bonds and so on. If you want to do that, people here could show you how. Or you could keep using the target funds where you have low cost target choices.

This is purely a personal choice. The target funds can cost a little more, but they make contributing much easier and may help you avoid some behavioral mistakes which is priceless.

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Sun Feb 11, 2018 6:15 pm

retiredjg wrote:
Sun Feb 11, 2018 10:44 am
jarhead wrote:
Sun Feb 11, 2018 10:14 am
Doesn't it make it easier to manage my AA if I do move to individual funds?
Yes and no. The way you are doing it is fine - keeping each account at your target AA - if you understand what you are doing and if the extra cost is worth it to you (up to a point anyway). And you appear to understand how to do that just fine.
I am a late-bloomer on the topic and trying to read more - also just ordered a "Bogleheads" book from Amazon.
retiredjg wrote:
Sun Feb 11, 2018 10:44 am
If you do decide to use individual funds, there is no need to have each asset class in each account. You could cut several accounts down to 1 or 2 funds. This requires more careful planning of how to invest your contributions - for example, you have to make sure that 40% of the total contributions are going to bonds and so on. If you want to do that, people here could show you how. Or you could keep using the target funds where you have low cost target choices.

This is purely a personal choice. The target funds can cost a little more, but they make contributing much easier and may help you avoid some behavioral mistakes which is priceless.
I am going to look over all my accounts in the next few days and see where I can do better. Just came across this link which I found very helpful in understanding the topic.
https://www.bogleheads.org/wiki/Asset_a ... e_accounts

retiredjg
Posts: 34373
Joined: Thu Jan 10, 2008 12:56 pm

Re: Requesting portfolio/investment advice

Post by retiredjg » Sun Feb 11, 2018 7:06 pm

Go for it!

But...I think you may be underestimating the good job you are already doing. Yes, you can probably make an improvement here and there, but even if you don't make any changes at all, I think you are doing well. :happy

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Sun Feb 11, 2018 7:41 pm

retiredjg wrote:
Sun Feb 11, 2018 7:06 pm
Go for it!

But...I think you may be underestimating the good job you are already doing. Yes, you can probably make an improvement here and there, but even if you don't make any changes at all, I think you are doing well. :happy
Thanks for the kind words - they mean a lot.

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Thu Feb 15, 2018 8:35 pm

As stated in my original post, other than the emergency fund, we have about $130,000 sitting in a regular savings account earning virtually nothing. I know I can do much better to park the money in a CD, but I am sure there are probably better choices. I won't need access to the money for at least 5 years and maybe even longer. I have read today about how inflation eats away at the dollar's purchasing power and can no longer be this stupid to let the money sit in a savings account. I am open for your suggestions.

TwstdSista
Posts: 987
Joined: Thu Nov 16, 2017 4:03 am

Re: Requesting portfolio/investment advice

Post by TwstdSista » Fri Feb 16, 2018 6:42 am

If you'll need the money in five years:
Vanguard New York Municipal Money Market Fund (VYFXX) ER 0.16% or
Vanguard New York Long-Term Tax-Exempt Fund Investor Shares (VNYTX) ER 0.19%

Otherwise (per your desired asset allocation):
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
Vanguard Total International Market Index Fund Admiral Shares (VTIAX) ER 0.11%

retiredjg
Posts: 34373
Joined: Thu Jan 10, 2008 12:56 pm

Re: Requesting portfolio/investment advice

Post by retiredjg » Fri Feb 16, 2018 7:56 am

jarhead wrote:
Thu Feb 15, 2018 8:35 pm
As stated in my original post, other than the emergency fund, we have about $130,000 sitting in a regular savings account earning virtually nothing. I know I can do much better to park the money in a CD, but I am sure there are probably better choices. I won't need access to the money for at least 5 years and maybe even longer. I have read today about how inflation eats away at the dollar's purchasing power and can no longer be this stupid to let the money sit in a savings account. I am open for your suggestions.
If the money is for retirement, I'd invest it in stock funds (total stock and total international) and adjust some stocks to bonds in one of the other accounts.

If the money is for a short term goal, I'd invest it in a short term bond.

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Fri Feb 16, 2018 1:16 pm

TwstdSista wrote:
Fri Feb 16, 2018 6:42 am
If you'll need the money in five years:
Vanguard New York Municipal Money Market Fund (VYFXX) ER 0.16% or
Vanguard New York Long-Term Tax-Exempt Fund Investor Shares (VNYTX) ER 0.19%

Otherwise (per your desired asset allocation):
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
Vanguard Total International Market Index Fund Admiral Shares (VTIAX) ER 0.11%
I looked at the two NY funds and they historically (understandably) have low returns; a 5-year CD @2.5% would probably yield better returns even taking into account that it's taxable. I have been doing some reading and learned that as interest rates go up, bonds inversely go down. Please correct me if I am off my rocker. :mrgreen:
retiredjg wrote:
Fri Feb 16, 2018 7:56 am
jarhead wrote:
Thu Feb 15, 2018 8:35 pm
As stated in my original post, other than the emergency fund, we have about $130,000 sitting in a regular savings account earning virtually nothing. I know I can do much better to park the money in a CD, but I am sure there are probably better choices. I won't need access to the money for at least 5 years and maybe even longer. I have read today about how inflation eats away at the dollar's purchasing power and can no longer be this stupid to let the money sit in a savings account. I am open for your suggestions.
If the money is for retirement, I'd invest it in stock funds (total stock and total international) and adjust some stocks to bonds in one of the other accounts.

If the money is for a short term goal, I'd invest it in a short term bond.
This money is not for retirement, but maybe I should have a chat with my better half and see if we should dump some of it into a retirement account.

I looked at the Vanguard Short-Term Bond Index Fund (VBISX) and see that in the past 5 years the returns have been somewhat mediocre. Would it still make sense to invest in a short-term bond as opposed to a 5-year CD taxed at earned income rates (for me 24%+6%)? Or... maybe I should take a bit more risk and invest a small portion in stocks. :-?
Sorry for all the stupid question, but I am learning... as they say "better late than never"

retiredjg
Posts: 34373
Joined: Thu Jan 10, 2008 12:56 pm

Re: Requesting portfolio/investment advice

Post by retiredjg » Fri Feb 16, 2018 3:20 pm

If the money is needed at a certain time, do not invest in stocks. If your goal could be rescheduled a few years later than you want, to accommodate the recovery from a market crash, using some stocks could be OK.

Looking at historical returns is not going to help you much. If you want the money to be safe, whatever you invest in cannot be very risky and therefore will not pay a lot of return. If you want a better return, you will have to be more flexible about when you use the money.

You cannot get a good return and also have certain access to all the money at a certain time. It just does not work that way.

Money sitting in low interest savings may not keep up with inflation. A short term bond fund or a CD is likely to keep up with inflation or something close to it.

jarhead
Posts: 31
Joined: Thu Nov 20, 2008 11:55 am

Re: Requesting portfolio/investment advice

Post by jarhead » Fri Feb 16, 2018 4:02 pm

retiredjg wrote:
Fri Feb 16, 2018 3:20 pm
If the money is needed at a certain time, do not invest in stocks. If your goal could be rescheduled a few years later than you want, to accommodate the recovery from a market crash, using some stocks could be OK.
I do understand what you're saying. I used a 5-year time frame thinking that's when we may move out of NY so the $ may be needed, but with the equity in the current house and the cost of homes compared to other states, I doubt it. So the bottom line is the goal probably can be rescheduled. Something to ponder about with the wife.

Looking at historical returns is not going to help you much. If you want the money to be safe, whatever you invest in cannot be very risky and therefore will not pay a lot of return. If you want a better return, you will have to be more flexible about when you use the money.

You cannot get a good return and also have certain access to all the money at a certain time. It just does not work that way.

Money sitting in low interest savings may not keep up with inflation. A short term bond fund or a CD is likely to keep up with inflation or something close to it.
Points above have been noted. I will have to do some thinking over the weekend and may come back with some more questions.
I appreciate all the help and patience with me.

TG2
Posts: 192
Joined: Sat Nov 25, 2017 6:50 pm

Re: Requesting portfolio/investment advice

Post by TG2 » Fri Feb 16, 2018 6:44 pm

With regard to the Chase Private Client thing that several have talked about, it doesn't necessarily have to cost you anything. You need to have a combined $250,000 with them across all accounts, but there is no need to invest in their products or managed accounts. The Self-Directed Brokerage account is $5.00 per trade. I like having people I can call or walk in on whenever necessary and who will handle things like paperwork for me. I like having an advisor and a banker that I can talk to or get perspectives from even though I make all of my own decisions and trades. I like that I can send my son up and they will not only help him too but also reinforce what I teach him about money and investing.

Some of the other benefits for me are the Arts and Culture Card which I use regularly. It gives me free admission with guest privileges to several museums and attractions around town. I also have my name added to one of my son's accounts which extend my benefits to him as well so he pays nothing in the way of bank fees either. There are many other benefits I don't use, such as the free safety deposit box and wire transfers, increased ATM limits, and the 24-hour phone line where they will take care of supposedly any banking need I have, and more that I don't even remember. Overall, it works out very well for me. I'm sure they would like for me to invest a bunch of money in ways that bring in more fees, but it is not at all a requirement.

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