Please evaluate portfolio

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gachimai
Posts: 5
Joined: Sat Mar 03, 2018 1:35 am

Please evaluate portfolio

Post by gachimai » Sat Mar 03, 2018 1:43 am

Hello

Thanks in advance for anyone reading.

Please evaluate my porfolio

Emergency funds 3 months
Cash - in business account, somewhere around $90,000 of which probably half taxes have already been paid on, I'm leaving in the business account for now
Debt: car loan $5,000
Married filing jointly
Tax rate: Fed 15%, State 2%
California
Me: 40
Wife: 42
2 kids (4 and 2)
Desired allocation: 80/20 stock/bond
Desired international: 30-40%

Self employed as a S-Corporation. Don't own a home, but would like soon but live in So.Cal (so quite expensive)

Late January I had sold some funds and was deciding what to do next went markets starting dropping, so have been waiting and want to get back in soon.

His Fidelity self employed 401k
40% FDRXX Fidelity Government Cash Reserves $72,000
7% ARTKX Artisan Intl Value Fund Inv CL $13,000
21% FSTVX Fidelity Total Mkt Index Premium CL $38,000
4% FTBFX Fidelity Total Bond $7,500
11%JENSX Jensen Quality Growth FD CL J $19,000
4% JSCVX Janus Henderson Small Cap Value T$6,500
13% SSHFX Sound Shore FD Inc $24,000

His Rollover IRA at Vanguard
100% VASGX (0.14%) $10,000

His SEP IRA at Vanguard
11% VBINX (0.19%) $3,600
16% VGTSX (0.17%) $5,200
46% VTSAX (0.04%) $14,500
26% VWELX (0.25%) $8,300

His Roth IRA at Vanguard
100% VFORX (0.15%) $2,400


Her Fidelity self employed 401k
53% FDRXX Fidelity Government Cash Reserves $12,000
1% GRSPX Greenspring Fund $300
23% JABAX Janus Henderson Balanced T $5,300
22% OAKBX Oakmark Equity & Income Investor $5,000


Contributions: Varies each year, depends how business is that year, but have been cutting back the last few years

1. Fidelity account, maybe consolidate into fewer funds?
2. Vanguard, same thing consolidate into fewer funds?

I'm looking to purchase a home, but housing prices seem crazy here in Southern California.

Thank you for reading.

goblue100
Posts: 586
Joined: Sun Dec 01, 2013 10:31 am

Re: Please evaluate portfolio

Post by goblue100 » Sat Mar 03, 2018 8:30 am

A question, do you want to invest using Boglehead principles? (low cost, index funds)? Because your Vanguard holdings look ok, but your Fidelity holdings seem like active funds.
Some people are immune to good advice. - Saul Goodman

mega317
Posts: 2470
Joined: Tue Apr 19, 2016 10:55 am

Re: Please evaluate portfolio

Post by mega317 » Sat Mar 03, 2018 9:36 am

Most around here are going to recommend a simple three fund portfolio. But what were you trying to accomplish with this one?

It sounds like you got lucky selling before the market dropped? Please don't think you can do that again. Buy now and then hold.

I would personally want a larger emergency fund in your position.

Lafder
Posts: 3749
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: Please evaluate portfolio

Post by Lafder » Sat Mar 03, 2018 9:40 am

Please go back and edit to change your % to add up to 100% for all accounts. It will make a big difference in seeing the relative size of your holdings , and allow you to add up the percents between accounts to get your actual asset allocation so you can see how much to change when rebalancing to hit your targets.

Fidelity solo401k allows you to roll in existing IRAs, so you can roll your SEP IRA into your 401k. That will make back door Roths possible and make fewer accounts to manage.

lafder

btenny
Posts: 4471
Joined: Sun Oct 07, 2007 6:47 pm

Re: Please evaluate portfolio

Post by btenny » Sat Mar 03, 2018 9:56 am

How do you want to invest going forward? Right now you have a mix of Vanguard funds that are OK but over complicated in type and cost. It seems to me going to a simpler 3 fund portfolio would help you a lot. So I would change both the Vanguard and Fidelity accounts to much simpler approaches.

Right now I suggest you change the Vanguard account to the following. It is both simple and balanced. You can add to it and manage it over time easily. I think you already have enough money in the account to buy all admiral shares in each fund type so the expense ratios will be very low.

VTSAX Vanguard Total Stock Market Index Admiral 60%
VBTLX Vanguard Total Bond Market Index Admiral 20%
VTIAX Vanguard Total International stock Index 20%

Is there a reason you have accounts at Fidelity and at Vanguard? I would move all your stuff to Vanguard. I am not a Fidelity fan but they do have low cost index funds so if you like you money in two places you can duplicate the above low cost index funds. But if you are not careful at Fidelity their advisers will sell you active high cost funds. So I would move all your accounts to Vanguard and then convert them to the 3 funds I discussed above.

Good Luck.

gachimai
Posts: 5
Joined: Sat Mar 03, 2018 1:35 am

Re: Please evaluate portfolio

Post by gachimai » Sat Mar 03, 2018 12:14 pm

goblue100 wrote:
Sat Mar 03, 2018 8:30 am
A question, do you want to invest using Boglehead principles? (low cost, index funds)? Because your Vanguard holdings look ok, but your Fidelity holdings seem like active funds.
Hello, yes I would like to. What happened is that around 2008 or so, I went to a fee only financial planner and was recommended these funds. I just held them over the years and last year thought about having to reallocate, but doing on my own and not going to a planner again

gachimai
Posts: 5
Joined: Sat Mar 03, 2018 1:35 am

Re: Please evaluate portfolio

Post by gachimai » Sat Mar 03, 2018 12:16 pm

mega317 wrote:
Sat Mar 03, 2018 9:36 am
Most around here are going to recommend a simple three fund portfolio. But what were you trying to accomplish with this one?

It sounds like you got lucky selling before the market dropped? Please don't think you can do that again. Buy now and then hold.

I would personally want a larger emergency fund in your position.

I know that I got lucky. I just happened to sell some funds and was thinking about what to do next when the markets started going down. I would like to keep growing these accounts towards retirement. I'm self employed so I don't get the benefit of any kind of company match. I agree on the emergency fund.

Thank you for the input

gachimai
Posts: 5
Joined: Sat Mar 03, 2018 1:35 am

Re: Please evaluate portfolio

Post by gachimai » Sat Mar 03, 2018 12:21 pm

Lafder wrote:
Sat Mar 03, 2018 9:40 am
Please go back and edit to change your % to add up to 100% for all accounts. It will make a big difference in seeing the relative size of your holdings , and allow you to add up the percents between accounts to get your actual asset allocation so you can see how much to change when rebalancing to hit your targets.

Fidelity solo401k allows you to roll in existing IRAs, so you can roll your SEP IRA into your 401k. That will make back door Roths possible and make fewer accounts to manage.

lafder
Thank you. I will have to look at the % again.

I'll look into the suggestion about rolling the IRA

gachimai
Posts: 5
Joined: Sat Mar 03, 2018 1:35 am

Re: Please evaluate portfolio

Post by gachimai » Sat Mar 03, 2018 12:32 pm

btenny wrote:
Sat Mar 03, 2018 9:56 am
How do you want to invest going forward? Right now you have a mix of Vanguard funds that are OK but over complicated in type and cost. It seems to me going to a simpler 3 fund portfolio would help you a lot. So I would change both the Vanguard and Fidelity accounts to much simpler approaches.

Right now I suggest you change the Vanguard account to the following. It is both simple and balanced. You can add to it and manage it over time easily. I think you already have enough money in the account to buy all admiral shares in each fund type so the expense ratios will be very low.

VTSAX Vanguard Total Stock Market Index Admiral 60%
VBTLX Vanguard Total Bond Market Index Admiral 20%
VTIAX Vanguard Total International stock Index 20%

Is there a reason you have accounts at Fidelity and at Vanguard? I would move all your stuff to Vanguard. I am not a Fidelity fan but they do have low cost index funds so if you like you money in two places you can duplicate the above low cost index funds. But if you are not careful at Fidelity their advisers will sell you active high cost funds. So I would move all your accounts to Vanguard and then convert them to the 3 funds I discussed above.

Good Luck.
I was happy with the funds that I had, but going forward I think I want to simplify. I had read about 3 fund portfolio so I was doing research on that.

I had Vanguard because I had my IRA there. Then when I became a S-Corp, I decided to open at Fidelity.

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