Reallocated my investments for simplification and need input

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Kittens
Posts: 26
Joined: Tue Feb 27, 2018 5:33 pm

Reallocated my investments for simplification and need input

Post by Kittens » Mon Mar 19, 2018 4:38 pm

Hi everyone, I've posted before and had a mess of funds and reallocated everything in order to better align with the 3 fund strategy.

quick summary: 27 years old, ideally around 60/20/20 desired allocation for stock/international/bonds


No debt
25k in high yield savings for possibly a house, will slowly add to this.
12k in emergency funds


I have followed previous recommendations on keeping expenses low as possible, I don't think any exceed 0.14% and most are 0.03-0.08

Taxable account - 48k


14k - SWISX - Schwab International Index Fund
14k - SWPPX - Schwab S&P 500 Index Fund
20k - SWTSX - Schwab Total Market Index Fund

Notes - I have decent gains on the S&P 500 index fund and don't want to switch over, and just started putting in Total Market Index fund. I will probably contribute any stock portion to the SWTSX

401k - 115k

55% Vanguard Index Admiral S&P 500 - VFIAX (63.25k)
15% Vanguard Emerging Mkts Stock Idx Adm - VEMAX (17.25k)
30% Vanguard Inflation-Protected Secs Adm - VAIPX (34.5k)

Notes - VFIAX is the only good index fund available, the only other option is VVIAX Vanguard Value Index Adm - not sure if this is a total market index. Also, this emerging markets index is the only international one with low expense ratio - is this ok?

Roth IRA - 30k

100% in SWYMX - Schwab Target 2050 Index Fund

-or-

18k in SWTSX
12k in SWISX

Notes - debating on which one to do - should I just maintain the same index funds or go with a target fund here? leaning towards just putting it in the indexes.

If I go with the indexes for Roth, my total allocation will be : 193k total invested

115.25k in a market index (59.7%)
43.25k in international index (22.4%)
34.5k in a bond index (17.9%)

which seems in line with my risk tolerance since I am only 27. Does this sound like a good plan? Thanks again for all of your help, my accounts would be a complete mess without this forum

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

Re: Reallocated my investments for simplification and need input

Post by TwstdSista » Mon Mar 19, 2018 5:17 pm

It would be helpful to us, and to you, if you think of the entire portfolio as one whole. So all percentages should add up to 100%, not each account individually. You also didn't post expense ratios, those help as well.

You have an extremely high percentage in Emerging Markets, I'm not sure if you understand why you have this particular tilt.

I would not use a target date fund in your Roth -- use a total stock fund and/or a total international fund. This will make it much easier to determine your allocations and rebalance when needed.

Overall, I think you're heading in the right direction!

User avatar
goingup
Posts: 3308
Joined: Tue Jan 26, 2010 1:02 pm

Re: Reallocated my investments for simplification and need input

Post by goingup » Mon Mar 19, 2018 6:22 pm

I like to use different funds in our Roths than in the taxable account. This is for ease in the (rare) event of a Tax Loss Harvest opportunity. So, I'm not opposed to your use of Target Funds in your Roth for that reason. Also, it's just easy!

Kittens
Posts: 26
Joined: Tue Feb 27, 2018 5:33 pm

Re: Reallocated my investments for simplification and need input

Post by Kittens » Tue Mar 20, 2018 1:32 pm

TwstdSista wrote:
Mon Mar 19, 2018 5:17 pm
It would be helpful to us, and to you, if you think of the entire portfolio as one whole. So all percentages should add up to 100%, not each account individually. You also didn't post expense ratios, those help as well.

You have an extremely high percentage in Emerging Markets, I'm not sure if you understand why you have this particular tilt.

I would not use a target date fund in your Roth -- use a total stock fund and/or a total international fund. This will make it much easier to determine your allocations and rebalance when needed.

Overall, I think you're heading in the right direction!
thanks! I didn't post the expense ratios for each but they are all under .1%. Also my percentages on the bottom do add up to 100% - am I missing something?

I may reduce the amount in emerging markets and put into my regular international funds. The only other option on my 401k is a Fidelity Overseas account with a 1% expense ratio

I like to use different funds in our Roths than in the taxable account. This is for ease in the (rare) event of a Tax Loss Harvest opportunity. So, I'm not opposed to your use of Target Funds in your Roth for that reason. Also, it's just easy!
Thanks - I am probably going to keep the funds long term so would it be better just to stay with the index?

User avatar
ajw360
Posts: 44
Joined: Fri Nov 17, 2017 3:51 pm
Location: Colorado
Contact:

Re: Reallocated my investments for simplification and need input

Post by ajw360 » Tue Mar 20, 2018 3:52 pm

I would go with the individual index funds in your Roth. It will make rebalancing much easier. You are a bit heavy in US large cap and international emerging markets. I would look at moving out of VEMAX, and buying more SWISX, either in your taxable or Roth account. You can also look at an extended market or small/mid cap fund to help round out your S&P 500 funds and give you more total market exposure. See https://www.bogleheads.org/wiki/Approxi ... ock_market.

Post Reply