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.
Yet another "double check my 401k selection" post
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Yet another "double check my 401k selection" post
Last edited by lograthsun on Thu Sep 13, 2018 6:04 am, edited 1 time in total.
- whodidntante
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Re: Yet another "double check my 401k selection" post
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.
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.
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- Joined: Wed Sep 12, 2018 7:58 pm
Re: Yet another "double check my 401k selection" post
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
Total bond 20
Institutional Index 45
Extended Market 15
FTSE All-World 20
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Re: Yet another "double check my 401k selection" post
^ 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.
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.
Re: Yet another "double check my 401k selection" post
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.
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.