New 401(k) asset allocation?

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Calygos
Posts: 493
Joined: Tue Jan 13, 2015 3:48 pm

New 401(k) asset allocation?

Post by Calygos » Sun Sep 16, 2018 10:02 am

Hi all,

This is something of a follow-up to my previous thread about a 401(k) rollover strategy given my recent new job. The new 401(k), which I'm setting up this week, is through Ascensus so it has pretty much full access to Vanguard funds. My rollover is liquidating the old 401(k), which was 100% VIGAX and about 25% of my mid 6-figure portfolio, into my tIRA's settlement fund, and my tIRA holds VTSAX, VTIAX, and VBTLX, whereas my other two accounts (taxable and Roth IRA) are all VTSAX, so all of my International and Bonds are in my tIRA.

Aiming for simplicity, is there any reason not to just mirror my AA in my 401k with the rollover funds and future paycheck contributions? At 80/20 stocks/bonds and 70/30 US/Int'l stocks, that means an AA of 56/24/20 US/Int'l/Bonds.

Thanks,
Calygos

Fund Reference List (all Admiral Shares)
VIGAX: Vanguard Growth Index Fund
VTSAX: Vanguard Total Stock Market Index Fund
VTIAX: Vanguard Total Int'l Stock Market Index Fund
VBTLX: Vanguard Total Bond Market Index Fund

Overall portfolio ~ $625k ~ 80% Stocks (70/30 US/Intl) and 20% Bonds
tIRA ~ $386k ~ Mix of VTSAX, VTIAX, and VBTLX to accommodate my AA
Old 401k ~ $154k ~ 100% VIGAX
Taxable + rIRA ~ $87k ~ 100% VTSAX
Last edited by Calygos on Sun Sep 16, 2018 11:08 am, edited 2 times in total.

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ruralavalon
Posts: 13720
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: New 401(k) asset allocation?

Post by ruralavalon » Sun Sep 16, 2018 10:52 am

Calygos wrote:
Sun Sep 16, 2018 10:02 am
Hi all,

This is something of a follow-up to my previous thread about a 401(k) rollover strategy given my recent new job. The new 401(k), which I'm setting up this week, is through Ascensus so it has pretty much full access to Vanguard funds. My rollover is liquidating the old 401(k), which was 100% VIGAX and about 25% of my mid 6-figure portfolio, into my tIRA's settlement fund, and my tIRA holds VTSAX, VTIAX, and VBTLX, whereas my other two accounts (taxable and Roth IRA) are all VTSAX, so all of my International and Bonds are in my tIRA.

Aiming for simplicity, is there any reason not to just mirror my AA in my 401k with the rollover funds and future paycheck contributions? At 80/20 stocks/bonds and 70/30 US/Int'l stocks, that means an AA of 56/24/20 US/Int'l/Bonds.

Thanks,
Calygos

Fund Reference List (all Admiral Shares)
VIGAX: Vanguard Growth Index Fund
VTSAX: Vanguard Total Stock Market Index Fund
VTIAX: Vanguard Total Int'l Stock Market Index Fund
VBTLX: Vanguard Total Bond Market Index Fund
This is very difficult to understand, since I don't know what accounts you have, the sizes of the accounts you have, how much is in each investment in each account, and your desired asset allocation. You could use this format: "Asking Portfolio Questions". 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.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Calygos
Posts: 493
Joined: Tue Jan 13, 2015 3:48 pm

Re: New 401(k) asset allocation?

Post by Calygos » Sun Sep 16, 2018 11:05 am

ruralavalon wrote:
Sun Sep 16, 2018 10:52 am
Calygos wrote:
Sun Sep 16, 2018 10:02 am
Hi all,

This is something of a follow-up to my previous thread about a 401(k) rollover strategy given my recent new job. The new 401(k), which I'm setting up this week, is through Ascensus so it has pretty much full access to Vanguard funds. My rollover is liquidating the old 401(k), which was 100% VIGAX and about 25% of my mid 6-figure portfolio, into my tIRA's settlement fund, and my tIRA holds VTSAX, VTIAX, and VBTLX, whereas my other two accounts (taxable and Roth IRA) are all VTSAX, so all of my International and Bonds are in my tIRA.

Aiming for simplicity, is there any reason not to just mirror my AA in my 401k with the rollover funds and future paycheck contributions? At 80/20 stocks/bonds and 70/30 US/Int'l stocks, that means an AA of 56/24/20 US/Int'l/Bonds.

Thanks,
Calygos

Fund Reference List (all Admiral Shares)
VIGAX: Vanguard Growth Index Fund
VTSAX: Vanguard Total Stock Market Index Fund
VTIAX: Vanguard Total Int'l Stock Market Index Fund
VBTLX: Vanguard Total Bond Market Index Fund
This is very difficult to understand, since I don't know what accounts you have, the sizes of the accounts you have, how much is in each investment in each account, and your desired asset allocation. You could use this format: "Asking Portfolio Questions". 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.
I've updated my OP with a description of my portfolio. My question boils down to what kind of AA I should build in my new 401k with the contributions from my paychecks at my new job, i.e. is it best to just contribute to the same three funds according to the AA percentages?

EDIT: Realized my OP stated something wrong. I'll definitely allocate the rolled over funds in the tIRA to keep with my desired AA, so I'm just wondering about the AA with contributions to the new 401k.

User avatar
ruralavalon
Posts: 13720
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: New 401(k) asset allocation?

Post by ruralavalon » Sun Sep 16, 2018 11:14 am

Calygos wrote:
Sun Sep 16, 2018 11:05 am
ruralavalon wrote:
Sun Sep 16, 2018 10:52 am
Calygos wrote:
Sun Sep 16, 2018 10:02 am
Hi all,

This is something of a follow-up to my previous thread about a 401(k) rollover strategy given my recent new job. The new 401(k), which I'm setting up this week, is through Ascensus so it has pretty much full access to Vanguard funds. My rollover is liquidating the old 401(k), which was 100% VIGAX and about 25% of my mid 6-figure portfolio, into my tIRA's settlement fund, and my tIRA holds VTSAX, VTIAX, and VBTLX, whereas my other two accounts (taxable and Roth IRA) are all VTSAX, so all of my International and Bonds are in my tIRA.

Aiming for simplicity, is there any reason not to just mirror my AA in my 401k with the rollover funds and future paycheck contributions? At 80/20 stocks/bonds and 70/30 US/Int'l stocks, that means an AA of 56/24/20 US/Int'l/Bonds.

Thanks,
Calygos

Fund Reference List (all Admiral Shares)
VIGAX: Vanguard Growth Index Fund
VTSAX: Vanguard Total Stock Market Index Fund
VTIAX: Vanguard Total Int'l Stock Market Index Fund
VBTLX: Vanguard Total Bond Market Index Fund
This is very difficult to understand, since I don't know what accounts you have, the sizes of the accounts you have, how much is in each investment in each account, and your desired asset allocation. You could use this format: "Asking Portfolio Questions". 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.
I've updated my OP with a description of my portfolio. My question boils down to what kind of AA I should build in my new 401k with the contributions from my paychecks at my new job, i.e. is it best to just contribute to the same three funds according to the AA percentages?

EDIT: Realized my OP stated something wrong. I'll definitely allocate the rolled over funds in the tIRA to keep with my desired AA, so I'm just wondering about the AA with contributions to the new 401k.
Why are you including Vanguard Growth Index Fund Admiral Shares (VIGAX) ER 0.05%?

How much will be contributed annually to each account?

How/ much is in the taxable account?

How much is in the Roth IRA?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Calygos
Posts: 493
Joined: Tue Jan 13, 2015 3:48 pm

Re: New 401(k) asset allocation?

Post by Calygos » Sun Sep 16, 2018 11:19 am

ruralavalon wrote:
Sun Sep 16, 2018 11:14 am
Calygos wrote:
Sun Sep 16, 2018 11:05 am
ruralavalon wrote:
Sun Sep 16, 2018 10:52 am
Calygos wrote:
Sun Sep 16, 2018 10:02 am
Hi all,

This is something of a follow-up to my previous thread about a 401(k) rollover strategy given my recent new job. The new 401(k), which I'm setting up this week, is through Ascensus so it has pretty much full access to Vanguard funds. My rollover is liquidating the old 401(k), which was 100% VIGAX and about 25% of my mid 6-figure portfolio, into my tIRA's settlement fund, and my tIRA holds VTSAX, VTIAX, and VBTLX, whereas my other two accounts (taxable and Roth IRA) are all VTSAX, so all of my International and Bonds are in my tIRA.

Aiming for simplicity, is there any reason not to just mirror my AA in my 401k with the rollover funds and future paycheck contributions? At 80/20 stocks/bonds and 70/30 US/Int'l stocks, that means an AA of 56/24/20 US/Int'l/Bonds.

Thanks,
Calygos

Fund Reference List (all Admiral Shares)
VIGAX: Vanguard Growth Index Fund
VTSAX: Vanguard Total Stock Market Index Fund
VTIAX: Vanguard Total Int'l Stock Market Index Fund
VBTLX: Vanguard Total Bond Market Index Fund
This is very difficult to understand, since I don't know what accounts you have, the sizes of the accounts you have, how much is in each investment in each account, and your desired asset allocation. You could use this format: "Asking Portfolio Questions". 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.
I've updated my OP with a description of my portfolio. My question boils down to what kind of AA I should build in my new 401k with the contributions from my paychecks at my new job, i.e. is it best to just contribute to the same three funds according to the AA percentages?

EDIT: Realized my OP stated something wrong. I'll definitely allocate the rolled over funds in the tIRA to keep with my desired AA, so I'm just wondering about the AA with contributions to the new 401k.
Why are u out including Vanguard Growth Index Fund Admiral Shares (VIGAX) ER 0.05%?

How much will be contributed annually to each account?
VIGAX was the best option in my old 401k. Since the new 401k is with Ascensus, I have access to all Vanguard funds so I figured going with something a little less aggressive (I'm approaching my mid-40s) might be advisable, hence moving from a Growth fund to Total Market funds.

I max my 401k, so $18.5k there (about $770/paycheck), and right now the only other account to which I can contribute is my Taxable (my new salary precludes rIRA contributions and I decided I don't want the complexity of a backdoor Roth), which for now is $500/month but probably increasing to perhaps $1k/month. The taxable is currently at about $70k and the rIRA about $17k.

EDIT: FWIW, my new employer will match 25% of the 401k contributions after the first year of employment, so year two will add another ~$6.1k, more if the contribution limit goes up in 2019.

User avatar
ruralavalon
Posts: 13720
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: New 401(k) asset allocation?

Post by ruralavalon » Sun Sep 16, 2018 11:36 am

How much is in the taxable account?

How much is in the Roth IRA?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Calygos
Posts: 493
Joined: Tue Jan 13, 2015 3:48 pm

Re: New 401(k) asset allocation?

Post by Calygos » Sun Sep 16, 2018 11:39 am

ruralavalon wrote:
Sun Sep 16, 2018 11:36 am
How much is in the taxable account?

How much is in the Roth IRA?
Per my previous post (kinda blends in), about $70k in Taxable and $17k in Roth IRA.

User avatar
ruralavalon
Posts: 13720
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: New 401(k) asset allocation?

Post by ruralavalon » Sun Sep 16, 2018 1:01 pm

Not using the standard format ("Asking Portfolio Questions"), and not putting all of your information in one place made it harder than necessary to answer your question.


Calygos wrote:
Sun Sep 16, 2018 10:02 am
Hi all,

This is something of a follow-up to my previous thread about a 401(k) rollover strategy given my recent new job. The new 401(k), which I'm setting up this week, is through Ascensus so it has pretty much full access to Vanguard funds. My rollover is liquidating the old 401(k), which was 100% VIGAX and about 25% of my mid 6-figure portfolio, into my tIRA's settlement fund, and my tIRA holds VTSAX, VTIAX, and VBTLX, whereas my other two accounts (taxable and Roth IRA) are all VTSAX, so all of my International and Bonds are in my tIRA.

Aiming for simplicity, is there any reason not to just mirror my AA in my 401k with the rollover funds and future paycheck contributions? At 80/20 stocks/bonds and 70/30 US/Int'l stocks, that means an AA of 56/24/20 US/Int'l/Bonds.

Thanks,
Calygos

Fund Reference List (all Admiral Shares)
VIGAX: Vanguard Growth Index Fund
VTSAX: Vanguard Total Stock Market Index Fund
VTIAX: Vanguard Total Int'l Stock Market Index Fund
VBTLX: Vanguard Total Bond Market Index Fund

Overall portfolio ~ $625k ~ 80% Stocks (70/30 US/Intl) and 20% Bonds
tIRA ~ $386k ~ Mix of VTSAX, VTIAX, and VBTLX to accommodate my AA
Old 401k ~ $154k ~ 100% VIGAX
Taxable + rIRA ~ $87k ~ 100% VTSAX
Calygos wrote:
Sun Sep 16, 2018 11:05 am
. . . . .
I've updated my OP with a description of my portfolio. My question boils down to what kind of AA I should build in my new 401k with the contributions from my paychecks at my new job, i.e. is it best to just contribute to the same three funds according to the AA percentages?

EDIT: Realized my OP stated something wrong. I'll definitely allocate the rolled over funds in the tIRA to keep with my desired AA, so I'm just wondering about the AA with contributions to the new 401k.
Calygos wrote:
Sun Sep 16, 2018 11:19 am
. . . . .
VIGAX was the best option in my old 401k. Since the new 401k is with Ascensus, I have access to all Vanguard funds so I figured going with something a little less aggressive (I'm approaching my mid-40s) might be advisable, hence moving from a Growth fund to Total Market funds.

I max my 401k, so $18.5k there (about $770/paycheck), and right now the only other account to which I can contribute is my Taxable (my new salary precludes rIRA contributions and I decided I don't want the complexity of a backdoor Roth), which for now is $500/month but probably increasing to perhaps $1k/month. The taxable is currently at about $70k and the rIRA about $17k.

EDIT: FWIW, my new employer will match 25% of the 401k contributions after the first year of employment, so year two will add another ~$6.1k, more if the contribution limit goes up in 2019.
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".

In the taxable account I suggest using Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04% and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%. Both are very tax-efficient. Wiki article "Tax-efficient fund placement". Those funds are also well suited to any type of account. Both are very diversified with very low expense ratios.
A bond fund is not very tax-efficient so ordinarily should be in a tax-advantaged account, preferably a tax-deferred account. Wiki article "Tax-efficient fund placement".

To make portfolio management and rebalancing easy it is often better to have at least one large tax-advantaged account which contains all three basic asset types (bonds, international stocks, and domestic stocks). Don’t try to put all components of the asset allocation in every account.



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 = $627k. New annual contributions = $29.1k perhaps increasing to $35.1k later. The asset allocation is: 20% bonds; 20% international stocks; and 60% 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.

I give a suggestion in blue on how to distribute the new annual contributions.


Taxable account @ Vanguard (11% of current portfolio; $70k; adds $6/yr now [probably increasing to $22k/yr] = 20% of new annual contributions now)
11%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%, <= all taxable account contributions ($6k/yr) here
00%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%.

New 401k (00% of current portfolio; $00k; adds $18.5k/yr + $4.6k employer match = $23.1k total = 80% of new annual contributions now)
00%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%, <= about 56% of 401k contributions ($11.5k/yr) here
00%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%, <= about 22% of 401k contributions ($5.8k/yr) here
00%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%, <= about 22% of 401k contributions ($5.8k/yr) here



traditional IRA @ Vanguard, including rollover of old 401k (86% of current portfolio; $550k; no additional contributions)
46%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
20%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%
20%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%

Roth IRA @ Vanguard (03% of current portfolio; $17k; no additional contributions)
03%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%


Contributions.
I give a suggestion in blue on how to distribute the new annual contributions. The idea is to arrange contributions in away that may tend to keep your overall portfolio at the desired asset allocation. The desired asset allocation is: 20% bonds; 20% international stocks; and 60% domestic stocks. With 20% of contributions going into Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04% in the taxable account, you put a correspondingly smaller than target percentage of 401k contributions in that fund in the 401k.

The suggestion will place:
20% of new annual contributions in bonds ($5.8k/$29.1k = 19.93%);
20% of new annual contributions in international stcks ($5.8k/$29.1k = 19.93%); and
60% of new annual contributions n domestic stocks ($11.5k + $6k = $17.5k, and $17.5k/$29.1k = 60.14%).


Rebalancing.
Because the funds will grow at different and unpredictable rates, it may be necessary every few years to rebalance in order to maintain the desired asset allocation. Wiki article, "Rebalancing". You can easily adjust the asset allocation by exchanging between funds inside the traditional IRA or the new 401k.

Avoid exchanging between funds in the taxable account, which can create income tax liability.

. . . . .

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.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Calygos
Posts: 493
Joined: Tue Jan 13, 2015 3:48 pm

Re: New 401(k) asset allocation?

Post by Calygos » Sun Sep 16, 2018 1:40 pm

ruralavalon wrote:
Sun Sep 16, 2018 1:01 pm
Not using the standard format ("Asking Portfolio Questions"), and not putting all of your information in one place made it harder than necessary to answer your question
I apologize, I misunderstood why you were asking me to do that. I will parse through what you've written, though, and reply once I've had the chance to reflect on it relative to my experience. However, I've been on the board for a few years and been following a simple 3-4 fund portfolio. Here I was just asking whether my new 401k contributions should be into a set of funds that mirror my overall desired AA or, as with my old 401k, maybe just keep to a single broad-based index fund and rebalance within the tIRA as needed over the years to keep aligned with my AA, or if any other strategy might be somewhat better.

Calygos
Posts: 493
Joined: Tue Jan 13, 2015 3:48 pm

Re: New 401(k) asset allocation?

Post by Calygos » Sun Sep 16, 2018 6:30 pm

ruralavalon wrote:
Sun Sep 16, 2018 1:01 pm
Not using the standard format ("Asking Portfolio Questions"), and not putting all of your information in one place made it harder than necessary to answer your question.


Calygos wrote:
Sun Sep 16, 2018 10:02 am
Hi all,

This is something of a follow-up to my previous thread about a 401(k) rollover strategy given my recent new job. The new 401(k), which I'm setting up this week, is through Ascensus so it has pretty much full access to Vanguard funds. My rollover is liquidating the old 401(k), which was 100% VIGAX and about 25% of my mid 6-figure portfolio, into my tIRA's settlement fund, and my tIRA holds VTSAX, VTIAX, and VBTLX, whereas my other two accounts (taxable and Roth IRA) are all VTSAX, so all of my International and Bonds are in my tIRA.

Aiming for simplicity, is there any reason not to just mirror my AA in my 401k with the rollover funds and future paycheck contributions? At 80/20 stocks/bonds and 70/30 US/Int'l stocks, that means an AA of 56/24/20 US/Int'l/Bonds.

Thanks,
Calygos

Fund Reference List (all Admiral Shares)
VIGAX: Vanguard Growth Index Fund
VTSAX: Vanguard Total Stock Market Index Fund
VTIAX: Vanguard Total Int'l Stock Market Index Fund
VBTLX: Vanguard Total Bond Market Index Fund

Overall portfolio ~ $625k ~ 80% Stocks (70/30 US/Intl) and 20% Bonds
tIRA ~ $386k ~ Mix of VTSAX, VTIAX, and VBTLX to accommodate my AA
Old 401k ~ $154k ~ 100% VIGAX
Taxable + rIRA ~ $87k ~ 100% VTSAX
Calygos wrote:
Sun Sep 16, 2018 11:05 am
. . . . .
I've updated my OP with a description of my portfolio. My question boils down to what kind of AA I should build in my new 401k with the contributions from my paychecks at my new job, i.e. is it best to just contribute to the same three funds according to the AA percentages?

EDIT: Realized my OP stated something wrong. I'll definitely allocate the rolled over funds in the tIRA to keep with my desired AA, so I'm just wondering about the AA with contributions to the new 401k.
Calygos wrote:
Sun Sep 16, 2018 11:19 am
. . . . .
VIGAX was the best option in my old 401k. Since the new 401k is with Ascensus, I have access to all Vanguard funds so I figured going with something a little less aggressive (I'm approaching my mid-40s) might be advisable, hence moving from a Growth fund to Total Market funds.

I max my 401k, so $18.5k there (about $770/paycheck), and right now the only other account to which I can contribute is my Taxable (my new salary precludes rIRA contributions and I decided I don't want the complexity of a backdoor Roth), which for now is $500/month but probably increasing to perhaps $1k/month. The taxable is currently at about $70k and the rIRA about $17k.

EDIT: FWIW, my new employer will match 25% of the 401k contributions after the first year of employment, so year two will add another ~$6.1k, more if the contribution limit goes up in 2019.
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".

In the taxable account I suggest using Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04% and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%. Both are very tax-efficient. Wiki article "Tax-efficient fund placement". Those funds are also well suited to any type of account. Both are very diversified with very low expense ratios.
A bond fund is not very tax-efficient so ordinarily should be in a tax-advantaged account, preferably a tax-deferred account. Wiki article "Tax-efficient fund placement".

To make portfolio management and rebalancing easy it is often better to have at least one large tax-advantaged account which contains all three basic asset types (bonds, international stocks, and domestic stocks). Don’t try to put all components of the asset allocation in every account.



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 = $627k. New annual contributions = $29.1k perhaps increasing to $35.1k later. The asset allocation is: 20% bonds; 20% international stocks; and 60% 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.

I give a suggestion in blue on how to distribute the new annual contributions.


Taxable account @ Vanguard (11% of current portfolio; $70k; adds $6/yr now [probably increasing to $22k/yr] = 20% of new annual contributions now)
11%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%, <= all taxable account contributions ($6k/yr) here
00%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%.

New 401k (00% of current portfolio; $00k; adds $18.5k/yr + $4.6k employer match = $23.1k total = 80% of new annual contributions now)
00%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%, <= about 56% of 401k contributions ($11.5k/yr) here
00%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%, <= about 22% of 401k contributions ($5.8k/yr) here
00%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%, <= about 22% of 401k contributions ($5.8k/yr) here



traditional IRA @ Vanguard, including rollover of old 401k (86% of current portfolio; $550k; no additional contributions)
46%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
20%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%
20%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%

Roth IRA @ Vanguard (03% of current portfolio; $17k; no additional contributions)
03%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%


Contributions.
I give a suggestion in blue on how to distribute the new annual contributions. The idea is to arrange contributions in away that may tend to keep your overall portfolio at the desired asset allocation. The desired asset allocation is: 20% bonds; 20% international stocks; and 60% domestic stocks. With 20% of contributions going into Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04% in the taxable account, you put a correspondingly smaller than target percentage of 401k contributions in that fund in the 401k.

The suggestion will place:
20% of new annual contributions in bonds ($5.8k/$29.1k = 19.93%);
20% of new annual contributions in international stcks ($5.8k/$29.1k = 19.93%); and
60% of new annual contributions n domestic stocks ($11.5k + $6k = $17.5k, and $17.5k/$29.1k = 60.14%).


Rebalancing.
Because the funds will grow at different and unpredictable rates, it may be necessary every few years to rebalance in order to maintain the desired asset allocation. Wiki article, "Rebalancing". You can easily adjust the asset allocation by exchanging between funds inside the traditional IRA or the new 401k.

Avoid exchanging between funds in the taxable account, which can create income tax liability.

. . . . .

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.
Ok, I understand your approach in allocating my combined monthly contributions to maintain my AA. I have a spreadsheet I'm using to keep track of my portfolio and allocations (though I also use Personal Capital for the various reporting it does), so I'll tweak it to help me with this method.

Thank you kindly for the thoughtful analysis and feedback!

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