Portfolio reconfiguration

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
bigballertexan
Posts: 2
Joined: Sun Oct 14, 2018 2:36 pm

Portfolio reconfiguration

Post by bigballertexan » Sun Oct 14, 2018 3:57 pm

Below is a summary of my portfolio. How it is readable - though a little different than the format suggested. I really just copied a spreadsheet into this block.

Married with 2 children: 1 college graduate (debt free); 1 sophomore (debt free, so far).

Goal: Reconfigure portfolio for (1) protection (more conservative) (2) modest growth (3) conversion to retirement income streams.

How do I accomplish the above?

I've been in touch with a few financial planners/advisors who are all too happy to help me. I went to a few local bogleheads meetups where it was suggested that I seek some help from this forum before going with a financial planner/advisor.


Current Value
401K (Company X - Retired 1 year ago) Not contributing at this time $483,868.13
5% Fixed Income
92% Equities
3% Premixed

401K (Consulting) Contribution Rate: 24% $3,824.99
Vanguard Growth Index Admiral 50% Large Cap Stock - Growth
Vanguard Small Cap Index Admiral 50% Small Cap Stock - Blend

IRA_Me (T Rowe) Not contributing at this time
Science & Technology - Roth IRA $89,725.00 100% Stocks

IRA_Wife (T Rowe) Not contributing at this time
Science & Technology - Roth IRA $74,932.00 100% Stocks

Deferred Annuity (Fidelity) Not contributing at this time
Contract date: 5/11/1995 FAVCF Fidelity VIP Contrafund (9004) $113,554.35 Domestic Stock: 90%
Annuity date: 2/1/2050 FAVEI Fidelity VIP Euity-Income (9005) $26,189.96 Foreign Stock: 9%
FAVMC Fidelity VIP Mid Cap (9032) $100,879.07 Short-term: 1%
Total $240,632.38

Income
Me Consulting $94,000.00 yearly
Wife Teacher $21,000.00 yearly
Rental House $6,600.00 yearly
Pension Company X $22,800 yearly - Joint & 100% Survivor Annuity with
Pop-Up - started 10/2017

Savings - Bank $162,000.00

529 College Savings Plan Monthly contribution
$300.00 $20,359.00 Vanguard Aggressive Age-Based

Insurance
Life No
Medical Yes
Vision Yes
Dental Yes
Long Term Care - me MetLife ($28.53/mth) Yes
Long Term Care - wife MetLife ($28.53/mth) Yes

Debt - No major debt
1. Home is paid off $200,000
2. Rental property is paid off $65,000
3. 3 cars are paid off $20,000
Last edited by bigballertexan on Sun Oct 14, 2018 6:27 pm, edited 1 time in total.

User avatar
LadyGeek
Site Admin
Posts: 48547
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Portfolio reconfiguration

Post by LadyGeek » Sun Oct 14, 2018 4:25 pm

Welcome! The forum software is pure text. It doesn't understand your spreadsheet. Here is your post with the line breaks removed (<br />). Feel free to copy it and update your post.

You can edit your post by clicking on the "pencil" icon in the top-right corner of the post. If you need assistance, let me know.
bigballertexan wrote:
Sun Oct 14, 2018 3:57 pm
...
Update: OP has revised his post. See below.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

bigballertexan
Posts: 2
Joined: Sun Oct 14, 2018 2:36 pm

Re: Portfolio reconfiguration

Post by bigballertexan » Sun Oct 14, 2018 6:29 pm

Thank you very much LadyGeek.

Living Free
Posts: 119
Joined: Thu Jul 19, 2018 7:31 pm

Re: Portfolio reconfiguration

Post by Living Free » Tue Oct 16, 2018 8:56 am

bigballertexan wrote:
Sun Oct 14, 2018 3:57 pm
Below is a summary of my portfolio. How it is readable - though a little different than the format suggested. I really just copied a spreadsheet into this block.

Married with 2 children: 1 college graduate (debt free); 1 sophomore (debt free, so far).

Goal: Reconfigure portfolio for (1) protection (more conservative) (2) modest growth (3) conversion to retirement income streams.

How do I accomplish the above?

I've been in touch with a few financial planners/advisors who are all too happy to help me. I went to a few local bogleheads meetups where it was suggested that I seek some help from this forum before going with a financial planner/advisor.


Current Value
401K (Company X - Retired 1 year ago) Not contributing at this time $483,868.13
5% Fixed Income
92% Equities
3% Premixed

401K (Consulting) Contribution Rate: 24% $3,824.99
Vanguard Growth Index Admiral 50% Large Cap Stock - Growth
Vanguard Small Cap Index Admiral 50% Small Cap Stock - Blend

IRA_Me (T Rowe) Not contributing at this time
Science & Technology - Roth IRA $89,725.00 100% Stocks

IRA_Wife (T Rowe) Not contributing at this time
Science & Technology - Roth IRA $74,932.00 100% Stocks

Deferred Annuity (Fidelity) Not contributing at this time
Contract date: 5/11/1995 FAVCF Fidelity VIP Contrafund (9004) $113,554.35 Domestic Stock: 90%
Annuity date: 2/1/2050 FAVEI Fidelity VIP Euity-Income (9005) $26,189.96 Foreign Stock: 9%
FAVMC Fidelity VIP Mid Cap (9032) $100,879.07 Short-term: 1%
Total $240,632.38

Income
Me Consulting $94,000.00 yearly
Wife Teacher $21,000.00 yearly
Rental House $6,600.00 yearly
Pension Company X $22,800 yearly - Joint & 100% Survivor Annuity with
Pop-Up - started 10/2017

Savings - Bank $162,000.00

529 College Savings Plan Monthly contribution
$300.00 $20,359.00 Vanguard Aggressive Age-Based

Insurance
Life No
Medical Yes
Vision Yes
Dental Yes
Long Term Care - me MetLife ($28.53/mth) Yes
Long Term Care - wife MetLife ($28.53/mth) Yes

Debt - No major debt
1. Home is paid off $200,000
2. Rental property is paid off $65,000
3. 3 cars are paid off $20,000
welcome bigballertexan!

You can rebalance in your retirement accounts to a more conservative allocation without worrying about paying taxes. So to get more conservative you could do that.
How much are these financial planners you've been speaking with going to charge you? I'd consider the vanguard personal adviser service for 0.3% if you do need help from from an adviser.

megabad
Posts: 660
Joined: Fri Jun 01, 2018 4:00 pm

Re: Portfolio reconfiguration

Post by megabad » Tue Oct 16, 2018 3:40 pm

bigballertexan wrote:
Sun Oct 14, 2018 3:57 pm
Goal: Reconfigure portfolio for (1) protection (more conservative) (2) modest growth (3) conversion to retirement income streams.

How do I accomplish the above?
Upon quick glance, you appear to be about 75%/25% equity/fixed income if I include your Savings as Fixed Income. Assuming this is appropriate and your savings is not for college or for an emergency fund or rental repairs, I believe this equity bond allocation is reasonable for someone who is approximately age 50 and 15-20 years out for retirement. Does this match your current situation?

If you wish to go more conservative, you may wish to include a bond index fund such as Total Bond Market Index. I would ordinarily prefer Bond Market Index fund over a large holding in cash for someone who is a ways off from retirement.

It is not clear to me what the investments are within Company X 401k so I can't speak to holdings specifically (or whether they are conservative). Are these holdings broad based index funds?

Will wife become pension eligible in the future (since she is a teacher)? This could be an additional income stream.

When you say "conversion to retirement income streams", what do you mean? This is a phrase commonly used by insurance salespeople, which confuses me as to what your goal is there.

Post Reply