Yet another "double check my 401k selection" post

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Topic Author
lograthsun
Posts: 2
Joined: Wed Sep 12, 2018 7:58 pm

Yet another "double check my 401k selection" post

Post by lograthsun »

Emergency funds: Yes. (10k)
Debt:
- roughly $50,000 in credit card debt (all of it on 0% offer cards, or balance transferred with 3% offers; i know, i know: not great.)
- 200,000 government student loans from medical school, 6-7%
- 210,000 mortgage, 3.75%
Tax Filing Status: Married Filing Jointly
Tax Rate: 33% federal
State of Residence: Ohio
Age: 30 year old physician (just out of residency training)
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: (i dont know; part of what im looking for advice on)% of stocks

Current retirement assets

Taxable
n/a

His 401k
TBD- just got a new job
Company match? 6% (1% at 100%, then the next 5% at 50% match)

His Roth IRA at Vanguard
100% VFFVX (around $13k saved during residency training)

Contributions

New annual Contributions
$12000 his 401k (the minimum amount to get the entire 6% match)


Available funds

Funds available in his 401(k)
American Funds EuroPacific Gr R5 International 0.53 / 0.53 -2.15 3.52 8.78 7.70 5.62 RERFX

Columbia Dividend Income Adv Large Cap 0.73 / 0.73 5.19 15.14 15.07 12.86 10.46 CVIRX

Custom Capital Preservation Fund Fixed N/A / N/A 1.61 2.47 N/A N/A 2.50 N/A

Diamond Hill Small-Mid Cap Y Mid Cap 0.82 / 0.81 4.94 10.62 9.94 10.87 11.01 DHMYX

Dodge & Cox Stock Fund Large Cap 0.52 / 0.52 7.34 18.05 15.56 13.64 10.19 DODGX

Hartford Total Return Bond Y Bond 0.47 / 0.47 -0.72 -0.47 2.70 3.08 4.11 HABYX

HSBC Opportunity I Mid Cap 1.31 / 1.10 15.63 28.58 14.62 13.03 11.79 RESCX

Janus Henderson Balanced T Balanced 0.83 / 0.83 8.14 15.70 11.08 9.77 8.88 JABAX

Neuberger Berman Sustainable Equity Inst Large Cap 0.67 / 0.67 9.93 18.56 14.30 12.80 9.82 NBSLX

T. Rowe Price 2005 Adv Asset Allocation 0.83 / 0.83 1.25 3.98 6.07 5.51 5.59 PARGX

T. Rowe Price 2010 Adv Asset Allocation 0.82 / 0.82 1.59 4.71 6.68 6.10 5.93 PARAX

T. Rowe Price 2015 Adv Asset Allocation 0.84 / 0.84 2.01 5.59 7.50 6.95 6.51 PARHX

T. Rowe Price 2020 Adv Asset Allocation 0.88 / 0.88 2.50 6.80 8.52 7.88 7.06 PARBX

T. Rowe Price 2025 Adv Asset Allocation 0.92 / 0.92 2.97 7.73 9.37 8.67 7.49 PARJX

T. Rowe Price 2030 Adv Asset Allocation 0.94 / 0.94 3.38 8.69 10.15 9.38 7.90 PARCX

T. Rowe Price 2035 Adv Asset Allocation 0.97 / 0.97 3.65 9.36 10.73 9.88 8.18 PARKX

T. Rowe Price 2040 Adv Asset Allocation 0.99 / 0.99 4.00 10.01 11.20 10.26 8.43 PARDX

T. Rowe Price 2045 Adv Asset Allocation 0.99 / 0.99 4.14 10.30 11.42 10.39 8.49 PARLX

T. Rowe Price 2050 Adv Asset Allocation 0.99 / 0.99 4.16 10.33 11.43 10.39 8.47 PARFX

T. Rowe Price 2055 Adv Asset Allocation 0.99 / 0.99 4.20 10.34 11.43 10.40 8.48 PAROX

T. Rowe Price Blue Chip Growth Large Cap 0.70 / 0.70 18.53 28.06 20.08 18.99 13.80 TRBCX

Templeton Global Total Return R6 Bond 0.76 / 0.71 -1.85 -1.86 3.29 2.40 1.01 FTTRX

3 Vanguard Extended Market Idx I Mid Cap 0.06 / 0.06 12.77 23.21 14.96 13.13 11.29 VIEIX

3 Vanguard FTSE All-World ex-US Index Inst International 0.10 / 0.10 -3.34 3.06 8.28 5.79 3.81 VFWSX

3 Vanguard Institutional Index I Large Cap 0.04 / 0.04 9.91 19.62 16.08 14.49 10.86 VINIX

Vanguard Shrt-Term Infl-Prot Sec Idx Adm Bond 0.06 / 0.06 1.01 1.11 1.38 0.68 0.36 VTAPX

3 Vanguard Total Bond Market Index Inst Bond 0.04 / 0.04 -1.08 -1.20 1.73 2.41 3.67 VBTIX

Vanguard Treasury Money Market Inv Money Market 0.09 / 0.09 1.08 1.43 0.71 0.43 0.29 VUSXX

Questions:
Here's what I was thinking, based off my study of bogleheads and white coat investor.
20.00% Vanguard FTSE All-World ex-US Index Inst International
60.00% Vanguard Institutional Index I Large Cap
20.00% Vanguard Total Bond Market Index Inst

1. Do you agree with this "lazy portfolio" for a 30 year old with average risk tolerance?
2. do you agree with the allocation to international stocks?
3. should I split the US stocks into institutional index & extended market, or just stay with institutional index for simplicity sake? (i like simplicity.) if so, what sub-allocation (if that is a word) would you go with?


Thank you for your assistance. I am aware i have credit card issues; there was some lifestyle creep at the end of residency training since i knew my income was going to quadruple, hence the 0% credit cards.
Last edited by lograthsun on Thu Sep 13, 2018 6:04 am, edited 1 time in total.
User avatar
whodidntante
Posts: 13114
Joined: Thu Jan 21, 2016 10:11 pm
Location: outside the echo chamber

Re: Yet another "double check my 401k selection" post

Post by whodidntante »

I would add some:
Vanguard Extended Market Idx I VIEIX

About 15%, taking from the large cap fund.

I like to do half my stock allocation as ex-USA. You'll need to hold your nose though because it isn't the hot performer lately.
Topic Author
lograthsun
Posts: 2
Joined: Wed Sep 12, 2018 7:58 pm

Re: Yet another "double check my 401k selection" post

Post by lograthsun »

Thanks for the advice. I think i will go ahead and get the extended market. I just didn't know if i was needlessly complicating things. So

Total bond 20
Institutional Index 45
Extended Market 15
FTSE All-World 20
TwstdSista
Posts: 1407
Joined: Thu Nov 16, 2017 3:03 am

Re: Yet another "double check my 401k selection" post

Post by TwstdSista »

^ That seems reasonable.

Consider maxing out your 401k options for both yourself and your spouse. Also, assuming you and your spouse do not have any traditional/SEP/SIMPLE IRA balances, consider Backdoor Roth IRA contributions. At your income level, both of these option should not be a problem. Then focus on the credit card debt and the student loans.
rkhusky
Posts: 17763
Joined: Thu Aug 18, 2011 8:09 pm

Re: Yet another "double check my 401k selection" post

Post by rkhusky »

For simplicity, I would just match what is in VFFVX (TR 2055) if you are comfortable with the 90/10 AA (you could choose TR 2045 or TR 2050 if you want to be a bit more conservative). That way, when you want to rebalance, you can just look at VFFVX for the allocations. You can either use Ext Market or not.

w/o VIEIX
55% Institutional Index
35% FTSE All-World
10% Total Bond

w/VIEIX (80/20 mix of Inst Indx/Ext Market)
44% Institutional Index
11% Ext. Market
35% FTSE All-World
10% Total Bond

You didn't include the expense ratios for your choices, but I am assuming the Vanguard funds are the lowest. The past performance numbers are irrelevant.
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