Annual Portfolio Checkup

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Topic Author
amucaze
Posts: 8
Joined: Sun Aug 07, 2016 4:20 pm

Annual Portfolio Checkup

Post by amucaze » Sun Jun 10, 2018 2:42 pm

Hi Bogleheads!

I evaluate my portfolio annually and really appreciate some of you casting a critical eye over my choices. Any suggestions you may have on my current configuration or investment plans are much appreciated.

Thanks in advance.

Basics
Gross income: 102K + 350K = 452K (I'm still coming to terms with the tax changes, so I'm unsure of tax brackets)
Debt: None
Tax status: Married, filing jointly
State: CA
Age: 32
Annual outgoings: < $70,000
Annual investable money: < $250,00
Desired asset allocation: 80% stocks, 20% bonds

Goal Allocations

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| US Stock | Intl Stock | Emerging | Bonds | Reit |
|----------|------------|----------|-------|------|
| 43%      | 25%        | 7%       | 20%   | 5%   |
Current Assets
$170K Ally Bank (1.6% interest rate) - 6mo emergency fund + 140K home deposit (it will happen one day!)
$18K (maxed for 2018) My Roth IRA
  • 100% Vanguard Total Stock Market Adm (VTSAX) (0.04%)
$17.5K (maxed for 2018) Her Roth IRA
  • 100% Vanguard REIT Index Adm (VGSLX) (0.12%)
$56K (ongoing 2018 contrib.) My 401K (Options: https://pastebin.com/X2Sru5qX)
  • 100% Vanguard Total Bond Adm (VBTLX) (0.05%)
$55K (ongoing 2018 contrib.) Her 401K (Options: https://pastebin.com/97Tubgt7)
  • 23% Vanguard Extended Mkt Index (VEXMX) (0.21%)
  • 77% Columbia Large Cap Index Fund (NINDX) (0.20%) - (EOY goal is 19/81)
$236K Joint Vanguard Taxable
  • 8% Vanguard Int.-Term Tax-Exempt (VWITX) (0.19%)
  • 40.5% Vanguard Total Stock Market Adm (VTSAX) (0.04%)
  • 2% Vanguard Emerging Markets (VEIEX) (0.32%)
  • 49.5% Vanguard Total Intl Adm (VTIAX) (0.11%)

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+---------------------------------+--------+---------+---------+---------+----------+----------+----------+------------+
|              Name               | Ticker | My IRA  | Her IRA | My 401K | Her 401K | Taxable  |  Totals  | Percentage |
+---------------------------------+--------+---------+---------+---------+----------+----------+----------+------------+
|                                 | Totals | $18,258 | $17,513 | $56,285 | $55,368  | $236,362 | $383,786 | 100.0%     |
| Vanguard Total Bond Adm         | VBTLX  |         |         | $56,285 |          |          | $56,285  | 14.7%      |
| Vanguard Int.-Term Tax-Exempt   | VWITX  |         |         |         |          | $18,126  | $18,126  | 4.7%       |
| Vanguard REIT Index Adm         | VGSLX  |         | $17,513 |         |          |          | $17,513  | 4.6%       |
| Vanguard Total Stock Market Adm | VTSAX  | $18,258 |         |         |          | $95,936  | $114,194 | 29.8%      |
| Vanguard Extended Mkt Index     | VEXMX  |         |         |         | $12,624  |          | $12,624  | 3.3%       |
| Columbia Large Cap Index        | NINDX  |         |         |         | $42,744  |          | $42,744  | 11.1%      |
| Vanguard Emerging Markets       | VEIEX  |         |         |         |          | $4,909   | $4,909   | 1.3%       |
| Vanguard Total Intl Adm         | VTIAX  |         |         |         |          | $117,391 | $117,391 | 30.6%      |
+---------------------------------+--------+---------+---------+---------+----------+----------+----------+------------+
Goal allocations (using the fund breakdowns: https://pastebin.com/UgEGYy0f):

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|       | US Stock | Intl Stock | Emerging | Bonds | Reit | Total  |
|-------|----------|------------|----------|-------|------|--------|
| Total | 43.0%    | 24.7%      | 7.2%     | 19.4% | 5.8% | 100.0% |
| Goal  | 43.0%    | 25.0%      | 7.0%     | 20.0% | 5.0% | 100.0% |
Questions/Areas of Concern
  • I'm favoring TBM in 401K over tax exempt muni bond funds in my taxable account - am I wasting my 401K space?
  • I've managed to cut down from 11 funds to 8 but perhaps I should keep pushing - I like having some control over emerging markets but perhaps it's too small to be valuable?
  • Is there a good source of fund breakdowns (as in Vanguard Total Stock Market is X% REIT, Y% US Stock, etc)? I used Morningstar's information to get a basic estimate.

User avatar
randomizer
Posts: 1547
Joined: Sun Jul 06, 2014 3:46 pm

Re: Annual Portfolio Checkup

Post by randomizer » Sun Jun 10, 2018 2:49 pm

Good on you for simplifying your portfolio. I think you should keep going.
87.5:12.5, EM tilt — HODL the course!

Topic Author
amucaze
Posts: 8
Joined: Sun Aug 07, 2016 4:20 pm

Re: Annual Portfolio Checkup

Post by amucaze » Mon Jun 11, 2018 10:16 am

Thanks for the support Randomizer, I'll take a closer look at why I want to have a tiny lean towards emerging and see if I can get rid of it.

PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Annual Portfolio Checkup

Post by PFInterest » Mon Jun 11, 2018 12:43 pm

amucaze wrote:
Sun Jun 10, 2018 2:42 pm
Questions/Areas of Concern
  • I'm favoring TBM in 401K over tax exempt muni bond funds in my taxable account - am I wasting my 401K space?
    --nope sounds good.
  • I've managed to cut down from 11 funds to 8 but perhaps I should keep pushing - I like having some control over emerging markets but perhaps it's too small to be valuable?
    --probably. but if it makes you happy. i for one wouldnt pay that ER though.
  • Is there a good source of fund breakdowns (as in Vanguard Total Stock Market is X% REIT, Y% US Stock, etc)? I used Morningstar's information to get a basic estimate.
    -- m* is fine.

megabad
Posts: 2524
Joined: Fri Jun 01, 2018 4:00 pm

Re: Annual Portfolio Checkup

Post by megabad » Mon Jun 11, 2018 4:43 pm

amucaze wrote:
Sun Jun 10, 2018 2:42 pm
  • I'm favoring TBM in 401K over tax exempt muni bond funds in my taxable account - am I wasting my 401K space?
    Personally I lean pretty far toward munis at 46% marginal tax bracket (fed,state). Would strongly suggest you consider very carefully, but nothing necessarily wrong with your decision if you feel strongly against munis.
  • I've managed to cut down from 11 funds to 8 but perhaps I should keep pushing - I like having some control over emerging markets but perhaps it's too small to be valuable?
    I like emerging separate so no complaints from me. Allows me to control qualified/vs. non-qualified for FITC a little more closely.
  • Is there a good source of fund breakdowns (as in Vanguard Total Stock Market is X% REIT, Y% US Stock, etc)? I used Morningstar's information to get a basic estimate.
Not sure of your tax situation, but since you have Extended Market Index available in retirement plans, I might consider going 500 Index in taxable instead of total market for tax efficiency reasons (100% qualified dividends almost every year, total stock lately has missed the 100%/95% mark a few years). You are awfully close to 20% dividend tax bracket though, so you might want to be careful how much dividends you throw off as a counter point. This is one of the reasons I slice and dice between market cap sectors, so I can reallocate small and large cap between retirement and taxable depending on the bracket. Just a few random thoughts.

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