Help with my allocations

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abhan67
Posts: 15
Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Help with my allocations

Post by abhan67 » Thu May 31, 2018 7:43 pm

I am 64 and my wife is 57
My rollover with Vanguard 188K
Dividend growth fund (VDIGX) 4.8% , (ER 0.26)
Total International stock (VTIAX) 3.6% (0.11)
Total stock Index fund (VTSAX) 13.3% (0.04)
Vanguard Roth IRA 86K
Energy fund (VGENX) 0.8% (0.38)
Equity income fund (VEIPX) 1.08% (0.26)
Health care fund (VGHCX) 2.5% (0.38)
Real estate fund (VGSIX) 1% (0.26)
Total Stock fund (VTSAX) 2% (0.04)
Total world stock fund (VTWSX) 2% (0.19)
Current 401K 285K
i share S7P 500 (WFSPX) 7% (0.04)
Vang. Balanced fund (WBIAX) 26% (0.07)
offered funds are around 25 and most of them with expense ratios greater than 0.8. I have included only a few.
Ivy international core equity (IVIAX) 1.29
Ivy high income (WHIAX) 0.97
Virtus Rampart sector trend fund (PWBAX) 1%
i shares Russel midcap (BRMKX) 0.07
Fidelity advisor mid cap (FMPTX) 1.25%
i share Russel 2000 small cap (BDBKX) 0.07%
T. Rowe target 2025 (PARJX) 0.92
Templton Global Bond Fund class (TPINX) 0.96%
Oppenheimer Developing markets (ODMAX) 1.32
Her part
Vanguard Rollover 292 K
Total International (VTIAX) 4.4% (0.19)
Total stock fund (VTSAX) 23% (0.04%)
Vanguard Roth IRA 38K
Healthcare fund (VGHCX) 1.25% (0.38)
Total stock fund (VTSMX) 0.9% (0.14)
World stock (VTWSX) 1.75% (0.19)
Energy fund (VGENX) 0.7% (0.38)
Fidelity 403 b
Vanguard inst. Target 2025 (VRIVX) 4.9% (0.09)
Vanguard inst Target 2035 (VITFX) 2.2% (0.09)

we have around 890K in retirement accounts and 100K in the form of cash and CDs.
House (650K) is almost paid with than 50K in HELOC, currently in draw period and 10 year repayment period will start in 2020 at prime -1. We plan to withdraw some cash befor for emergency and to delay our social security claim.
Tax rates fed 25% State 5% and we live in a high real estate tax town.
We wish to work for three -four years and annual expenses will be 75K. Estimated social security will be around 48000
As I approach retirement how we need to allocate our invested funds?
Thanks a lot for your help
Sam
Last edited by abhan67 on Sat Jun 16, 2018 5:36 am, edited 1 time in total.

ChinchillaWhiplash
Posts: 524
Joined: Sat Jan 20, 2018 5:40 pm
Location: Colorado

Re: Help with my alocations

Post by ChinchillaWhiplash » Thu May 31, 2018 9:14 pm

I think you need to work on figuring out what you want for an asset allocation. You have a lot of funds, such as specific sector funds. You can make it a lot simpler by holding total stock market as your core holding, total international equities, and total bond. Boom! Done! You need to read up on asset allocation to figure out what you feel safe with. Getting close to retirement you probably want to go conservative with no more than 60% total in equities and at least 40% in bonds. Going this route would probably save you a lot of $s in expense ratios. I would go with the lowest expense ratios you can. You want all indexed, low expense ratio, no fee, no load funds. This will save you thousands right off the bat.

abhan67
Posts: 15
Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Re: Help with my alocations

Post by abhan67 » Thu Jun 14, 2018 5:37 am

Thanks .
I am working on simplifying our allocations. As my allocation is high on stocks, is it worth moving stock funds to balanced funds (VBIAX) either fully or in part?

annielouise
Posts: 332
Joined: Wed May 14, 2008 4:11 pm

Re: Help with my alocations

Post by annielouise » Thu Jun 14, 2018 6:30 am

abhan67 wrote:
Thu Jun 14, 2018 5:37 am
Thanks .
I am working on simplifying our allocations. As my allocation is high on stocks, is it worth moving stock funds to balanced funds (VBIAX) either fully or in part?
If your goal is to have a portfolio that is set and forget, you may want a Target date fund.

If your goal is a simple low cost portfolio, you may want a 3 fund strategy.

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ruralavalon
Posts: 13968
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Location: Illinois

Re: Help with my alocations

Post by ruralavalon » Thu Jun 14, 2018 11:51 am

Asset allocation.
abhan67 wrote:
Thu May 31, 2018 7:43 pm
I am 64 and my wife is 57.
At ages 64 and 57 I suggest about 40% in bonds (fixed income). This is expected to substantially reduce portfolio volatility (risk), with only a relatively moderate decrease in portfolio return. Graph, "An Efficient Frontier: the power of diversification". Please see the wiki articles Bogleheads® investment philosophy, part 3 "Never bear too much or too little risk", and "Asset allocation".

I suggest around 20 - 30% of stocks in international stocks. Vanguard paper (March 2012), "Considerations for investing in non-U.S. equities". Historically, allocating 20% of an equity portfolio to non-U.S. stocks would have captured about 84% of the maximum possible diversification benefit, and allocating 30% of an equity portfolio to non-U.S. stocks would have captured about 99% of the maximum possible diversification benefit (p. 6). (You can find lots of debate here on international allocation, opinions ranging all the way from 00% to 50% of stocks in international stocks. If you want more viewpoints on international stocks please try the Google search box (upper right, this page).

That works out about 40% bonds, 15% international stocks, and 45% domestic stocks. Asset allocation is a very personal decision. You must decide on an allocation that is comfortable for you based on your own ability, willingness and need to take risk.


Accounts & totals??
abhan67 wrote:My rollover with vanguard 184K
Dividend growth fund 40K
GNMA invesors shares 25 K
Total International stock 31K
Total stock fund 88 K

Roth IRA 86K
Energy fund 7200
Equity income fund 9200
Health care fund 20000
Real estate fund 8500
Total Stock fund 16700
Total world stock fund 16800

401K current total = $281k??
WFSPX 59
Black Rock MDDVX 85K
T. Rowe 2025 Adv, 56K
Black Rock Global 81K


Her part

total = 229k??
Rollover Vard 2ngua 29 K
Total International 37 K
Total stock fund 192 K

Roth IRA Vanguard 38K
Healthcare 9800
Total stock 7600
World stock 15K
Energy fund 6K

total all accounts = $818k??

we have around 100K in the form of cash and CDs. House (650K) is almost paid with less than 50K in HELOC. we live very modestly.
As I approach retirement how we need to allocate our invested funds?
Thanks for your help
Sam

Additional information.
Could you please list the funds offered in the 401k, giving fund names, tickers and expense ratios? Please see this for format: "Asking Portfolio Questions".

Do I have the totals for each account right, and the grand total for all accounts right? What is the balance on the mortgage note, and the interest rate? What is the interest rate on the HELOC?

About how long until expected retirement? Do you have a good estimate of your annual living expenses in retirement? What will your annual Social Security benefits be? Will there also be a pension?

You can simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.


Fund selection.
abhan67 wrote:
Thu Jun 14, 2018 5:37 am
Thanks .
I am working on simplifying our allocations. As my allocation is high on stocks, is it worth moving stock funds to balanced funds (VBIAX) either fully or in part?
Is your preference to use just a single balanced fund for your portfolio, or to use a mix of just a few funds like the three-fund portfolio? That is primarily a matter of personal preference. Either way, we need to know the funds offered in your current 401k, because the portfolio has to be built around what is available.

In selecting funds strive for a combination of broad diversification (to reduce risk) and low expense ratios (to increase your net gain).

One way to do that is to use the very well diversified, low expense ratio "three-fund portfolio". Wiki article "Three-fund portfolio". Forum discussion, "The Three-Fund Portfolio".

It is often better coordinate investments across all accounts, in other words treat all accounts together as a single unified portfolio, rather than view each account separately. Select just one or two of the better funds (most diversified + lower expense ratio) in the work-based account (401k, 403b, 457, TSP etc.), where the choices offered are limited. Then complete the rest of the asset allocation using the nearly unlimited or choices available in your IRAs. This approach lets you avoid having to use sub-par funds often found in work-based accounts like 401ks.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

abhan67
Posts: 15
Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Re: Help with my alocations

Post by abhan67 » Sat Jun 16, 2018 7:55 am

Thanks for your inputs.
Here is the suggestions incorporated
My rollover with Vanguard 188K
Dividend growth fund (VDIGX) 4.8% , (ER 0.26)
Total International stock (VTIAX) 3.6% (0.11)
Total stock Index fund (VTSAX) 13.3% (0.04)
Vanguard Roth IRA 86K
Energy fund (VGENX) 0.8% (0.38)
Equity income fund (VEIPX) 1.08% (0.26)
Health care fund (VGHCX) 2.5% (0.38)
Real estate fund (VGSIX) 1% (0.26)
Total Stock fund (VTSAX) 2% (0.04)
Total world stock fund (VTWSX) 2% (0.19)
Current 401K 285K
i share S7P 500 (WFSPX) 7% (0.04)
Vang. Balanced fund (WBIAX) 26% (0.07)
offered funds are around 25 and most of them with expense ratios greater than 0.8. I have included only a few.
Ivy international core equity (IVIAX) 1.29
Ivy high income (WHIAX) 0.97
Virtus Rampart sector trend fund (PWBAX) 1%
i shares Russel midcap (BRMKX) 0.07
Fidelity advisor mid cap (FMPTX) 1.25%
i share Russel 2000 small cap (BDBKX) 0.07%
T. Rowe target 2025 (PARJX) 0.92
Templton Global Bond Fund class (TPINX) 0.96%
Oppenheimer Developing markets (ODMAX) 1.32
Her part
Vanguard Rollover 292 K
Total International (VTIAX) 4.4% (0.19)
Total stock fund (VTSAX) 23% (0.04%)
Vanguard Roth IRA 38K
Healthcare fund (VGHCX) 1.25% (0.38)
Total stock fund (VTSMX) 0.9% (0.14)
World stock (VTWSX) 1.75% (0.19)
Energy fund (VGENX) 0.7% (0.38)
Fidelity 403 b
Vanguard inst. Target 2025 (VRIVX) 4.9% (0.09)
Vanguard inst Target 2035 (VITFX) 2.2% (0.09)

we have around 890K in retirement accounts and 100K in the form of cash and CDs.
House is worth 650K with only 50K in HELOC, currently in draw period and 10 year repayment period will start in 2020 at prime -1. We plan to withdraw some cash before for emergency and to delay our social security claim.
Tax rates fed 25% State 5% and we live in a high real estate tax town.
We wish to work for three -four years and annual expenses will be 75K. Estimated social security will be around 48000
Thanks for time and inputs
Sam

ChinchillaWhiplash
Posts: 524
Joined: Sat Jan 20, 2018 5:40 pm
Location: Colorado

Re: Help with my alocations

Post by ChinchillaWhiplash » Sat Jun 16, 2018 9:04 am

You still have a mess of funds. Some with high ER. What is your goal? You have a ton of overlapping funds. Way to complicated to figure out what your current AA is. For example, your wife's 403 with 2 different target date funds. What do you wish to do? Simplify? 1st you need to state how much you want to hold in equities/bonds, like 60/40 or some other percentage. Then do you want to divide equities into US and international holdings? If so, what percentage? Then do you want to tilt to small caps, value, etc? If so, what percentage? For bonds you would just use a total US bond fund. You could also incorporate a percentage to International bond. You hold a lot of sector funds. What is their purpose. Simplest thing to do is have a TDF in all. You would still need to figure out what your risk tolerance is with equity vs bond holdings are. For example, Vanguard 2040 TDF has an allocation of total US stocks 50.8%, total international stocks 33.5%, total US bond 10.4%, total international bond 4.3%. 4 funds with a set AA. Each TDF has a different % AA set for various risk tolerances. These will go more towards bonds the closer you get to the year of the fund. No one knows what your risk tolerance is. You must determine this for yourself. Figure out your retirement goals, how much you need to have in retirement, when you plan on retiring, etc. figure out how much you will be saving to achieve these goals. Figure out how aggressive you want to be etc. I would, and have personally, sell all the high ER holdings in favor of low ER index funds, but 1st you need some sort of plan.

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ruralavalon
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Location: Illinois

Re: Help with my alocations

Post by ruralavalon » Sat Jun 16, 2018 9:43 am

What is your general preference, a portfolio made up only of balanced funds, or a portfolio made up of a few stock and bond funds?

What are the bond funds offered in your current 401k? Please give fund names, tickers and expense ratios.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

abhan67
Posts: 15
Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Re: Help with my alocations

Post by abhan67 » Sat Jun 16, 2018 11:45 am

Thanks for your time and suggetions.
Our retirement investments are not in order and seeking advice before it is too late. We are interested in a portfolio of few stock and bond funds in rollover IRAs and 401K. We prefer to have more stock funds in roth.
Here are the bond funds from my current 401K plan
Ivy High income asset fund (WHIAX) 0.97%
Delaware Diversified Income (DPDFX) 0.70%
Templeton Global bond fund class A (TIPNX) 0.96%
Other balanced funds
Blackrock Global allocation (MDLOX) 1.07%
Vanguard Balnced index funds (VBAX) 0.07%

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ruralavalon
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Location: Illinois

Re: Help with my alocations

Post by ruralavalon » Sun Jun 17, 2018 8:24 am

abhan67 wrote:
Sat Jun 16, 2018 11:45 am
Thanks for your time and suggetions.
Our retirement investments are not in order and seeking advice before it is too late. We are interested in a portfolio of few stock and bond funds in rollover IRAs and 401K. We prefer to have more stock funds in roth.
Here are the bond funds from my current 401K plan
Ivy High income asset fund (WHIAX) 0.97%
Delaware Diversified Income (DPDFX) 0.70%
Templeton Global bond fund class A (TIPNX) 0.96%
Other balanced funds
Blackrock Global allocation (MDLOX) 1.07%
Vanguard Balnced index funds (VBAX) 0.07%
Vanguard Balanced Index Fund Admiral Shares (VBIAX) ER 0.07% is not a bond fund, it's asset mix is 60/40 stocks/bonds. That fund would be a reasonable way to hold bonds in your 401k.

It's usually best to coordinate investments among all accounts, to treat all accounts together as a single unified portfolio. To give any ideas on funds to use we will need to know what funds are offered in her 403b plan. Please give fund names, tickers and expense ratios. Also how much is currently in her 403b?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

abhan67
Posts: 15
Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Re: Help with my alocations

Post by abhan67 » Sun Jun 17, 2018 9:34 am

Thanks for the follow up and help.
Sorry. forgot to include the amount
403b 60K
Artisan Global Value Fund Institutional Class APHGX (1.04%)
JPMorgan Global Allocation Fund Class R6 GAOZX (0.68%)
Vanguard Extended Market Index Fund Institutional Shares VIEIX (1.23)
Vanguard Total International Stock Index Fund VTSNX (0.09%)
Vanguard Institutional Index Fund Institutional Shares VINIX (0.035)
PIMCO Global Advantage Strategy Bond Fund PSAIX (0.65%)
Vanguard Federal Money Market Fund VMFXX (0.11%)
iShares US Aggregate Bond Index K WFBIX (0.05%)

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ruralavalon
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Location: Illinois

Re: Help with my alocations

Post by ruralavalon » Sun Jun 17, 2018 8:49 pm

abhan67 wrote:
Sat Jun 16, 2018 7:55 am
Thanks for your inputs.
Here is the suggestions incorporated
My rollover with Vanguard 188K
Dividend growth fund (VDIGX) 4.8% , (ER 0.26)
Total International stock (VTIAX) 3.6% (0.11)
Total stock Index fund (VTSAX) 13.3% (0.04)
Vanguard Roth IRA 86K
Energy fund (VGENX) 0.8% (0.38)
Equity income fund (VEIPX) 1.08% (0.26)
Health care fund (VGHCX) 2.5% (0.38)
Real estate fund (VGSIX) 1% (0.26)
Total Stock fund (VTSAX) 2% (0.04)
Total world stock fund (VTWSX) 2% (0.19)
Current 401K 285K
i share S7P 500 (WFSPX) 7% (0.04)
Vang. Balanced fund (WBIAX) 26% (0.07)
offered funds are around 25 and most of them with expense ratios greater than 0.8. I have included only a few.
Ivy international core equity (IVIAX) 1.29
Ivy high income (WHIAX) 0.97
Virtus Rampart sector trend fund (PWBAX) 1%
i shares Russel midcap (BRMKX) 0.07
Fidelity advisor mid cap (FMPTX) 1.25%
i share Russel 2000 small cap (BDBKX) 0.07%
T. Rowe target 2025 (PARJX) 0.92
Templton Global Bond Fund class (TPINX) 0.96%
Oppenheimer Developing markets (ODMAX) 1.32
Her part
Vanguard Rollover 292 K
Total International (VTIAX) 4.4% (0.19)
Total stock fund (VTSAX) 23% (0.04%)
Vanguard Roth IRA 38K
Healthcare fund (VGHCX) 1.25% (0.38)
Total stock fund (VTSMX) 0.9% (0.14)
World stock (VTWSX) 1.75% (0.19)
Energy fund (VGENX) 0.7% (0.38)
Fidelity 403 b
Vanguard inst. Target 2025 (VRIVX) 4.9% (0.09)
Vanguard inst Target 2035 (VITFX) 2.2% (0.09)

we have around 890K in retirement accounts and 100K in the form of cash and CDs.
House is worth 650K with only 50K in HELOC, currently in draw period and 10 year repayment period will start in 2020 at prime -1. We plan to withdraw some cash before for emergency and to delay our social security claim.
Tax rates fed 25% State 5% and we live in a high real estate tax town.
We wish to work for three -four years and annual expenses will be 75K. Estimated social security will be around 48000
Thanks for time and inputs
Sam
Including $60k for her 403b I see a total of $949k, not $890k, plus the cash and CDs.


abhan67 wrote:
Sat Jun 16, 2018 11:45 am
Thanks for your time and suggetions.
Our retirement investments are not in order and seeking advice before it is too late. We are interested in a portfolio of few stock and bond funds in rollover IRAs and 401K. We prefer to have more stock funds in roth.
Here are the bond funds from my current 401K plan
Ivy High income asset fund (WHIAX) 0.97%
Delaware Diversified Income (DPDFX) 0.70%
Templeton Global bond fund class A (TIPNX) 0.96%
Other balanced funds
Blackrock Global allocation (MDLOX) 1.07%
Vanguard Balnced index funds (VBAX) 0.07%
Vanguard Balanced Index Fund Admiral Shares (VBIAX) ER 0.07% is not a bond fund, it's asset mix is 60/40 stocks/bonds. In a pinch, it will do for a way to hold bonds in your 401k. But the iShares U.S. Aggregate Bond Index Fund in her 403b is a much better way to buy a bond allocation.


abhan67 wrote:
Sun Jun 17, 2018 9:34 am
Thanks for the follow up and help.
Sorry. forgot to include the amount
403b 60K
Artisan Global Value Fund Institutional Class APHGX (1.04%)
JPMorgan Global Allocation Fund Class R6 GAOZX (0.68%)
Vanguard Extended Market Index Fund Institutional Shares VIEIX (1.23)
Vanguard Total International Stock Index Fund VTSNX (0.09%)
Vanguard Institutional Index Fund Institutional Shares VINIX (0.035)
PIMCO Global Advantage Strategy Bond Fund PSAIX (0.65%)
Vanguard Federal Money Market Fund VMFXX (0.11%)
iShares US Aggregate Bond Index K WFBIX (0.05%)
Fund selection.
In selecting funds strive for a combination of broad diversification (to reduce risk) and low expense ratios (to increase your net gain). To simply and easily achieve those two goals I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Wiki article "Three-fund portfolio". Forum discussion, "The Three-Fund Portfolio".

It is often better coordinate investments across all accounts, in other words treat all accounts together as a single unified portfolio, rather than view each account separately. Select just one or two of the better funds (most diversified + lower expense ratio) in the work-based account (401k, 403b, 457, TSP etc.), where the choices offered are limited. Then complete the rest of the asset allocation using the nearly unlimited or choices available in a taxable account or any IRAs. This approach lets you avoid having to use sub-par funds often found in work-based accounts like 401ks.


For domestic stocks I suggest using a total stock market index fund where available; otherwise an S&P 500 index fund (such as the iShares S&P 500 fund in your 401k or Vanguard Institutional Index Fund in her 403b) is good enough by itself for domestic stocks. "In a 401(k) plan with limited choices one might very well opt for an S&P 500 index fund to serve as the domestic stock component of a three-fund portfolio." Wiki article, Three-fund portfolio, "Other considerations".

An S&P 500 index fund covers 81% of the U.S. stock market investing in stocks of selected large-cap and mid-cap U.S. companies, and in the 26 years since the creation of the first total stock market index fund the total return of the two types of funds has been almost identical. Morningstar, "growth of $10k" graph, VTSAX vs VFIAX. In the first 10 years the S&P 500 fund did better, in the last 10 years the total market fund did better, and over the 26 years the total market fund gave a little more return (0.11% per year), but at the cost of a little more volatility (risk): nisiprius post, in the forum discussion "Exchanging the S&P 500 for the TSM". See also Allan Roth, CBS Moneywatch, "John C. Bogle on the S&P 500 vs. the Total Stock Market". So it seems that adding a little in mid/small cap stocks trying to mimic the holdings of a total stock market fund has historically made little difference in performance.

If you want to add the extended market fund, then an 81/19 mix of S&P 500 and extended market will approximate the content of a total stock market index fund. Wiki article, "Approximating total stock market". In my opinion this is not necessary, it is optional if you prefer to do this.


iShares U.S. Aggregate Bond Index K (WFBIX) ER 0.05% in her 403b is a total bond market index fund.

Cash and CDs are also fixed income, and can be counted as part of your "bond" allocation.



Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund type portfolio, modified as necessary to accommodate the fund offerings in your 401k. Current portfolio size = $1,049k including cash and CDs. New annual contributions = about ????k. The asset allocation is: 40% bonds (fixed income); 15% international stocks; and 45% domestic stocks. The percentages given are percentages of the total portfolio, not of a given account. The suggestion is to switch both the existing balances and the new contributions to the funds indicated. All percentages and dollar amounts are rounded off, so may not add up exactly. Sometimes I state 00% to indicate funds you might want to add in the future.

Taxable accounts (10% of total; $100k)
10%, cash and CDs

401k (27%of total; $285k)
27%, iShares S&P 500 Index Fund (WFSPX) ER 0.04%
00%, Vanguard Balanced Index Fund Admiral Shares (VBIAX) ER 0.07%

His rollover IRA @ Vanguard (18% of total; $188k)
08%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
10%,Vanguard Total Bond Market Index Admiral Shares (VBTLX) ER 0.05%

His Roth IRA @ Vanguard (8% total;$86k)
00%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
08%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%.

Her 403b (6% of total; $60k)
00%, Vanguard Institutional Index Fund (a S&P 500 index fund) (VINIX) ER 0.035%
00%, Vanguard Total International Stock Index Fund Admiral Shares(VTSNX) ER 0.09%
06%, iShares U.S. Aggregate Bond Index K (WFBIX) ER 0.05%

Her rollover IRA @ Vanguard (28% total; $92k)
11%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
03%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%.
14%, Vanguard Total Bond Market Index Admiral Shares (VBTLX) ER 0.05%

Her Roth IRA @ Vanguard (4% of total; $38k)
00%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
04%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%.

. . . . .

I suggest that you read one or two books on general investing. Wiki article, "Books: recommendations and reviews". When I first stated managing my own investments, I found this tutorial very helpful in learning investing terminology/jargon and some of the investing basics. Morningstar, "Investing Classroom". Also take a look at the Boglehead’s wiki, the "getting started" link I give below.

If you have any questions just ask.

I hope that this helps.
Last edited by ruralavalon on Sun Jun 17, 2018 9:28 pm, edited 1 time in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

abhan67
Posts: 15
Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Re: Help with my allocations

Post by abhan67 » Sun Jun 17, 2018 9:22 pm

Thanks for your time and guidance. we certainly appreciate it

abhan67
Posts: 15
Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Re: Help with my allocations

Post by abhan67 » Tue Jun 19, 2018 4:20 pm

I am working on changing the allocations based on your inputs. Thanks. You also suggested to make some additional funds like VBIAX in my 401K and others in Roth. I.t may be a couple of years before i leave workforce full time. I was wondering if we just contribute maximum in our 401K plans in to get employer matching funds and the invest rest in some short term vehicle like VSCSX, for needs, following retirement. Our aim to delay SS withdrawal as much as possible. Is it a right move? thanks

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ruralavalon
Posts: 13968
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Help with my allocations

Post by ruralavalon » Tue Jun 19, 2018 7:00 pm

abhan67 wrote:
Tue Jun 19, 2018 4:20 pm
I am working on changing the allocations based on your inputs. Thanks. You also suggested to make some additional funds like VBIAX in my 401K and others in Roth. I.t may be a couple of years before i leave workforce full time. I was wondering if we just contribute maximum in our 401K plans in to get employer matching funds and the invest rest in some short term vehicle like VSCSX, for needs, following retirement. Our aim to delay SS withdrawal as much as possible. Is it a right move? thanks
About how much (in dollars) are you currently contributing to investing (total, all accounts)? Do you expect that to increase in the near future, and if so to how much (total, all accounts)?

Have you determined how much you will need in retirement savings, and whether you can meet that goal if you decrease contributions to the 401k and 403b plans? Here is a calculator you could use-- www.firecalc.com.

Delaying the start of Social Security is often the right move for people who are in better than average health for their age. Then it might be a good idea to have some savings in a taxable account, to use while delaying start of Social Security, which could include a short-term bond fund. You already have about $100k In cash and CDs. Will that not be enough to enable you to delay the start of Social Security?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

abhan67
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Location: MA

Re: Help with my allocations

Post by abhan67 » Thu Jun 21, 2018 7:00 pm

Thanks for your suggestions. I have not heard about Firecal calculator before. used previously AARP and TRowe price retirementg calculators. AARP result was on track for retirement and by TRowe Price, we were short by a huge margin and recommended to save more than what we get in hand in a month. Using Firecal, 65000 for 25 years ~65% chances of lasting. Little surprising! 403b is no longer active and is with Fidelity. we normally contribute close to 15K annual and we started our careers very late after moving to this country. Our real estate tax itself is close to 1K per month and 100K may be just sufficient for 2 years, if we need to pay our health insurances.

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ruralavalon
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Re: Help with my allocations

Post by ruralavalon » Fri Jun 22, 2018 7:46 am

abhan67 wrote:
Tue Jun 19, 2018 4:20 pm
I am working on changing the allocations based on your inputs. Thanks. You also suggested to make some additional funds like VBIAX in my 401K and others in Roth. I.t may be a couple of years before i leave workforce full time. I was wondering if we just contribute maximum in our 401K plans in to get employer matching funds and the invest rest in some short term vehicle like VSCSX, for needs, following retirement. Our aim to delay SS withdrawal as much as possible. Is it a right move? thanks
abhan67 wrote:
Thu Jun 21, 2018 7:00 pm
Thanks for your suggestions. I have not heard about Firecal calculator before. used previously AARP and TRowe price retirementg calculators. AARP result was on track for retirement and by TRowe Price, we were short by a huge margin and recommended to save more than what we get in hand in a month. Using Firecal, 65000 for 25 years ~65% chances of lasting. Little surprising! 403b is no longer active and is with Fidelity. we normally contribute close to 15K annual and we started our careers very late after moving to this country. Our real estate tax itself is close to 1K per month and 100K may be just sufficient for 2 years, if we need to pay our health insurances.
My guess is that it would probably be better to continue to make high contributions to the 401k, and NOT reduce the contributions to just enough to get the employer match. Consider working a few more years than you planned, if necessary.


Here is a retirement planning calculator which you might find helpful: www.i-orp.com
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

abhan67
Posts: 15
Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Re: Help with my allocations

Post by abhan67 » Wed Jun 27, 2018 6:31 pm

Thanks. we are glad that we changed our allocations considering what happened in the last few weeks. Thanks for your suggestions.

abhan67
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Joined: Sat Oct 27, 2012 1:20 pm
Location: MA

Re: Help with my allocations

Post by abhan67 » Sat Jul 21, 2018 4:52 pm

Thanks for the second retirement planning calculator (i-orp) and I found to be useful. One TSP account is still open (30K) though no longer working with Federal government. I am thinking to move her all funds to TSP and would like to know is it a good move? Thanks

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ruralavalon
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Re: Help with my allocations

Post by ruralavalon » Mon Jul 23, 2018 9:07 am

abhan67 wrote:
Sat Jul 21, 2018 4:52 pm
Thanks for the second retirement planning calculator (i-orp) and I found to be useful. One TSP account is still open (30K) though no longer working with Federal government. I am thinking to move her all funds to TSP and would like to know is it a good move? Thanks
I am completely lost, this is the first mention of any TSP accounts.

Is there more than one TSP account? How many, and how large is each? Are any of them still receiving contributions?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

abhan67
Posts: 15
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Location: MA

Re: Help with my allocations

Post by abhan67 » Mon Jul 23, 2018 7:22 pm

Hi: My sincere apologies. There is only one TSP account (34K in L2020 fund) and as the contract ended very recently, there will be no more contribution. I read now about TSP funds and in particular, about G fund to be better than other total bond funds. This prompted me to get some answers on this. I appreciate your help.

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ruralavalon
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Re: Help with my allocations

Post by ruralavalon » Tue Jul 24, 2018 8:22 am

abhan67 wrote:
Sat Jul 21, 2018 4:52 pm
Thanks for the second retirement planning calculator (i-orp) and I found to be useful. One TSP account is still open (30K) though no longer working with Federal government. I am thinking to move her all funds to TSP and would like to know is it a good move? Thanks
abhan67 wrote:
Mon Jul 23, 2018 7:22 pm
Hi: My sincere apologies. There is only one TSP account (34K in L2020 fund) and as the contract ended very recently, there will be no more contribution. I read now about TSP funds and in particular, about G fund to be better than other total bond funds. This prompted me to get some answers on this. I appreciate your help.
The G Fund is not a total bond fund, it's return is set by a statutory formula determined by a weighted average of all Treasuries maturities of 4 years or longer. The G Fund gives returns equal to long-term Treasuries without risk of loss of principal.

I don't have a TSP account, and have no experience with the G Fund. Please see the wiki articles "G Fund" and "TSP". On this forum I see that TSP participants often use a combination of both the G Fund and a total bond market index fund for their bond allocation.

Your desired bond allocation = 40% of portfolio. Her TSP account = about 3% of portfolio, her 403b = about 6% of portfolio, and her rollover IRA @ Vanguard = about 28% of portfolio, for a total of about 37% of portfolio. I would not recommend putting all 37% in the G Fund, so don't believe it's a good idea to move all of her funds to the TSP. Her 403b and her rollover IRA do offer good, low expense index funds to use.

Remember that I have no TSP account and no experience with the G Fund, so I am not clearly the best person to answer this question for you.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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