My Morningstar instant Xray-good or not?

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sil2017
Posts: 403
Joined: Mon Jan 23, 2017 7:25 am

My Morningstar instant Xray-good or not?

Post by sil2017 » Sat Dec 22, 2018 9:54 am

I am hoping that the boglehead experts can help me interpret my instant X-ray.

It's been over 10 years since I have checked with Morningstar instant Xray on my Retirement Portfolio.
All are in Vanguard Mutual admiral funds, mostly indexes with Wellington and Wellesley. I am 57 years old and I have been retired for a year and a half and living off my Defined benefit Pension. I do not have a need to tap into my retirement plan.

Does the following look like a good breakdown for my retirement portfolio? Am I on track? Should I change some of my asset allocation?

Cash- 2%
US Stocks-48%
Foreign stocks- 16 %
Bonds - 33%
Other - 1 %

Stock style
Large size is 81 % with a little more on value
Medium size is 14% , spread evenly with value, growth and core
Small size is 5 % spread evenly with value , growth and core

Interest rate sensitivity
All are Medium sensitivity with 22 % high quality and 79% medium quality

Thanks very much

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SpringMan
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Location: Michigan

Re: My Morningstar instant Xray-good or not?

Post by SpringMan » Sat Dec 22, 2018 10:25 am

Is your goal to have an Xray that represents the total markets or do you wish to tilt? Yours is overweight large caps but there really isn't a right or wrong only what you are comfortable with. Any given Xray is going to perform good if market conditions are favorable and poorly in bear markets.
Best Wishes, SpringMan

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

Re: My Morningstar instant Xray-good or not?

Post by ruralavalon » Sat Dec 22, 2018 10:40 am

sil2017 wrote:
Sat Dec 22, 2018 9:54 am
I am hoping that the boglehead experts can help me interpret my instant X-ray.

It's been over 10 years since I have checked with Morningstar instant Xray on my Retirement Portfolio.
All are in Vanguard Mutual admiral funds, mostly indexes with Wellington and Wellesley. I am 57 years old and I have been retired for a year and a half and living off my Defined benefit Pension. I do not have a need to tap into my retirement plan.

Does the following look like a good breakdown for my retirement portfolio? Am I on track? Should I change some of my asset allocation?

Cash- 2%
US Stocks-48%
Foreign stocks- 16 %
Bonds - 33%
Other - 1 %

Stock style
Large size is 81 % with a little more on value
Medium size is 14% , spread evenly with value, growth and core
Small size is 5 % spread evenly with value , growth and core

Interest rate sensitivity
All are Medium sensitivity with 22 % high quality and 79% medium quality

Thanks very much
That seems within reason in my opinion, considering that your expenses are covered by a pension.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

dbr
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Joined: Sun Mar 04, 2007 9:50 am

Re: My Morningstar instant Xray-good or not?

Post by dbr » Sat Dec 22, 2018 11:49 am

ruralavalon wrote:
Sat Dec 22, 2018 10:40 am


That seems within reason in my opinion, considering that your expenses are covered by a pension.
Exactly. If you don't need the money you can invest it any way you want. That does beg the question that you could think about what you want the money for. You could think about how much it might bother you if the value fluctuates a lot, which it will at that allocation to stocks. You could think about whether or not it is important to earn a good return on your investments.

As far as there being anything blatantly stupid -- no.

However, you don't mention how much you are paying in investment expenses. It is not good stewardship to pay too much.

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Kenkat
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Location: Cincinnati, OH

Re: My Morningstar instant Xray-good or not?

Post by Kenkat » Sat Dec 22, 2018 12:22 pm

It seems reasonable overall. You are 64% equities, 36% bonds which seems reasonable for your situation. You are slanted towards large cap equities which is fine but maybe you could branch into mid cap and small cap a bit more, but not critical by any means. I would also question the 79% medium quality of the bond holdings; I think that should probably be higher as it means you are likely holding lower quality bonds which would tend to fall with stocks in times of economic uncertainty. But overall, you are probably in good shape.

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grabiner
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Re: My Morningstar instant Xray-good or not?

Post by grabiner » Sat Dec 22, 2018 4:52 pm

sil2017 wrote:
Sat Dec 22, 2018 9:54 am
I am 57 years old and I have been retired for a year and a half and living off my Defined benefit Pension. I do not have a need to tap into my retirement plan.
This suggests that you have a high risk tolerance for a retiree.
Does the following look like a good breakdown for my retirement portfolio? Am I on track? Should I change some of my asset allocation?

Cash- 2%
US Stocks-48%
Foreign stocks- 16 %
Bonds - 33%
Other - 1 %
64% stock is age-21 in bonds, which is more aggressive than average, but with your pension, you should be more aggressive than average as long as you can stomach the risk. (The pension means that losing 20% of your investments will not decrease your standard of living by 20%.)

25% of the stock outside the US is in the normal range; most recommendations are 20-40%.
Stock style
Large size is 81 % with a little more on value
Medium size is 14% , spread evenly with value, growth and core
Small size is 5 % spread evenly with value , growth and core
Morningstar splits the market 76/18/6, so this is close to a market allocation, with a very small overweight to large-caps. If that is not what you want, you could buy a small amount in a small-cap fund.
Interest rate sensitivity
All are Medium sensitivity with 22 % high quality and 79% medium quality
This is also a neutral position; it's about what the total bond market does.
Wiki David Grabiner

Topic Author
sil2017
Posts: 403
Joined: Mon Jan 23, 2017 7:25 am

Re: My Morningstar instant Xray-good or not?

Post by sil2017 » Sat Dec 22, 2018 6:33 pm

For international stock, all the money is in the Vanguard total International index Admiral fund.

I think I pay $5 quarterly administration fee. All funds in Vanguard Admiral.

Should I add more international since I am on the low side? Which Vanguard Fund?

I do have 8% Vanguard total stock market in my taxable. Unfortunately I bought it at almost the peak.

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ruralavalon
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Location: Illinois

Re: My Morningstar instant Xray-good or not?

Post by ruralavalon » Sun Dec 23, 2018 9:30 am

sil2017 wrote:
Sat Dec 22, 2018 6:33 pm
For international stock, all the money is in the Vanguard total International index Admiral fund.

I think I pay $5 quarterly administration fee. All funds in Vanguard Admiral.

Should I add more international since I am on the low side? Which Vanguard Fund?

I do have 8% Vanguard total stock market in my taxable. Unfortunately I bought it at almost the peak.
In my opinion 25% of stocks in international stocks is reasonable, that is the allocation which we use. I usually suggest around 20 - 30% of stocks in international stocks. Vanguard paper (March 2012), "Considerations for investing in non-U.S. equities". Historically, allocating 20% of an equity portfolio to non-U.S. stocks would have captured about 84% of the maximum possible diversification benefit, and allocating 30% of an equity portfolio to non-U.S. stocks would have captured about 99% of the maximum possible diversification benefit (p. 6). (You can find lots of debate here on international allocation, opinions ranging all the way from 00% to 50% of stocks in international stocks. If you want more viewpoints on international stocks please try the Google search box (upper right, this page).

We use Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) as our only international stock fund.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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