Need AA Help with Retirement Portfolio (3 accounts)

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SunCatcher
Posts: 2
Joined: Fri Dec 07, 2018 3:48 am

Need AA Help with Retirement Portfolio (3 accounts)

Post by SunCatcher » Fri Dec 07, 2018 4:14 am

I’m new here and not a very experienced investor. I’ve had a 401K for years at a lower wage job (which I still work at very p/t but may eventually end next year). I opened a Roth IRA 5 years ago and was told to “just choose a Target 2035 fund” by a financial planner. Realized I needed more bonds so started adding more bonds outside of Target Fund. My current portfolio seems to need better balance/diversification; I could use help with asset allocation. I do not make a lot of money and am worried about making mistakes. My apologies in advance if I’m asking too many questions in one post.

Income: $50K yr
Emergency funds: 6 months
Debt: No debt except for mortgage on a condo - $57K at 2.65% for 10 yrs (valued about $400K)
Age: 43, not planning to retire for another 22 years

Desired Asset Allocation (roughly): 60% US stocks / 20% International stocks / 20% US bonds OR reduce US stocks 10% and add 10% Int’l bonds

Current Retirement Portfolio: $120K
401K:
FSKAX - Fidelity Total Market Index Fund 52.7% (E/R 0.015%)
Company Stock 6.7%

Roth IRA:
VTTHX - Vanguard Target Retirement 2035 18.6%
VBMFX - Vanguard Total Bond Market Index 5.7%
VHDYX - Vanguard High Dividend Yield Index 8.3%

HSA:
VMIAX - Vanguard Materials Index 6%
Cash (mandatory in this account) 2%

I will max out Roth IRA and HSA contribution with an additional $500-1000 to 401K every year.

Questions:
1. Should I just get out of the Target Fund so I can have better distributed asset allocation between my 3 accounts?
2. Is a target of 20% US bonds still too low? I'm not a conservative investor. Should I also add International bonds?
3. I’ve owned company stock for years and just realized it doesn't pay any dividends and I’ve just been waiting for it go back up to sell. Should I just sell and have it do more work compounding in a fund?
4. I’m kind of stuck in my old HSA until VMIAX recovers and I can sell/roll that money into my new HSA. I still have $3450 to contribute to my new HSA for 2018 in a TD Ameritrade account. Any TD Ameritrade or other suggestions to help balance my overall portfolio?
Last edited by SunCatcher on Fri Dec 07, 2018 12:23 pm, edited 1 time in total.

goblue100
Posts: 736
Joined: Sun Dec 01, 2013 10:31 am

Re: Need AA Help with Retirement Portfolio (3 accounts)

Post by goblue100 » Fri Dec 07, 2018 8:33 am

SunCatcher wrote:
Fri Dec 07, 2018 4:14 am

Questions:
1. Should I just get out of the Target Fund so I can have better distributed asset allocation between my 3 accounts?
2. Is a target of 20% US bonds still too low? I'm not a conservative investor. Should I also add International bonds?
3. I’ve owned company stock for years and just realized it doesn't pay any dividends and I’ve just been waiting for it go back up to sell. Should I just sell and have it do more work compounding in a fund?
4. I’m kind of stuck in my old HSA until VMIAX recovers and I can sell/roll that money into my new HSA. I still have $3450 to contribute to my new HSA for 2018 in a TD Ameritrade account. Any suggestions to help balance my overall portfolio?
1. That is certainly a choice you can make, provided you have decent choices in your Roth. Most people do it to save a little bit on ER over the target date fund. I personally am moving towards the one fund solutions. The 2035 fund seems to have the 80/20 mix you say you want.
2. A lot of people on this board would say yes. I'm not one of them. I think 80/20 is fine allocation, though you may want to add bonds when you get 5 years away from retirement.
3. Yes.
4.How about Vanguard Total World Stock Index Fund Investor Shares (VTWSX)
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns

SunCatcher
Posts: 2
Joined: Fri Dec 07, 2018 3:48 am

Re: Need AA Help with Retirement Portfolio (3 accounts)

Post by SunCatcher » Fri Dec 07, 2018 1:21 pm

Thank you for your response goBlue100!
The 2035 fund seems to have the 80/20 mix you say you want.
With all of my accounts combined. My portfolio is about 90% stocks and 10% bonds, which is why I added the VBMFX (bond fund) separately. I've stopped contributing to 2035 fund in an effort to bring up bonds without increasing my stocks in that fund. But then how do I increase my international position in my 2035 without continuing to add to US stocks since I have so much of it in my 401K? Just seemed like it might be inefficient and confusing with all of my other positions as a whole.

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