Help on Personal Investment Portfolio
Posted: Sun Nov 02, 2008 3:28 pm
I have read this forum for some time, and is a fan of Vanguard index investing. Yet my investment portfolio seems not aligned with my goal. I truly appreciate any advice/suggestions on my asset allocation.
I have emergency funds = 3-6 months of expenses
I have car loan = $28105
Tax Filing Status: Married filing Jointly
Tax Rate: about 28% Federal for 2008 (2009's estimated tax rate is 33%), 9.3% CA, living in CA.
Age: I am about 35, my wife 27, without kid
Currently plan to buy house in the next 6 month to 2 years. The down payment amount is excluded from investment portfolio listed here.
Desired Asset allocation: (80% stocks/20% bonds)
My total assets is low 6 figures, maybe ineligible to contribute to Roth IRA in 2009 and later years
Currently my stock investment portfolio is down about 35% since Jan 2008
Taxable (Vanguard Mutual Fund)
4.94% Vanguard Total Stock Index (VTSMX)
7.55% Vanguard Middle Cap Index (VIMSX)
6.87% Vanguard Small Cap Index (NAESX)
7.55% Vanguard Emerging Market Index (VEIEX)
subtotal: 26.92%
His Roth IRA at Vanguard
2.06% Vanguard Total In'l Stock Index (VGTSX)
10.3% Vanguard REIT Index (VGSIX)
subtotal: 12.36%
Her Roth IRA at Vanguard
1.85% Vanguard Total In'l Stock Index (VGTSX)
3.30% Vanguard SmallCap Value Index (VISVX)
subtotal: 5.15%
N/A = ticket symbol could not be found, mostly likely they are not publicly traded mutual fund
His 401k
1.58% S&P 500 Index Fund (N/A) (0.005%)
1.58% Dow Index Fund (N/A) (0.06%)
8.74% Vanguard PRIMECAP Fund (VPMAX) (0.31%)
3.36% Columbia Value&Restructuring (UMBIX) (0.94%)
1.17% Hartford Capital Appreciation (HIACX) (0.67%)
2.62% Hartford MidCap Fund (HIACX) (0.69%)
1.55% Turner Emerging Growth (TMCGX) (1.55%)
2.88% BGI EAFE Equity Index (N/A) (0.1%)
3.09% Dodge&Cox Int'l Stock Fund (DODFX) (0.65%)
2.82% Int'l Equity Blend Fund (N/A) (0.73%)
4.46% First Eagle Overseas fund (SGOIX) (0.88%)
0.89% Oppenheimer Int'l Small Fund (OSMYX) (0.79%)
0.00% BGI US Debt Index Fund (N/A) (0.10%)
1.10% Fidelity Money Market (FMPXX) (0.22%)
0.70% Company Individual Stock (N/A) (0.00%)
subtotal: 36.55%
Her 401K (she started in 2008)
0.89% Total Domestic Stock Market Index Fund (N/A) (0.13%)
0.00% S&P 500 Index Fund (N/A) (0.08%)
1.44% S&P MidCap 400 Index (N/A) (0.10%)
1.37% Russel 2000 Index (N/A) (0.11%)
1.58% MSCI EAFE Index (N/A) (0.15%)
subtotal: 5.29%
13.73% Company Profit Sharing (N/A) (commission on selling company stock)
New annual Contributions in 2009 (estimated):
his 401k $16,500 (personal contribution) + $5000 (employee match)
her 401k $16,500 (personal contribution) + $5000 (employee match)
New saving in 2009 (estimated)
$40000
Funds available in his/her 401(k)
Too many to list here. The favorite/good ones are listed on his/her 401k list (including 0% at time being)
My own computation on current asset allocation is as follows:
Domestic Large Cap 23%
Domestic Middle Cap 12%
Domestic Small Cap 13%
Int'l Large Cap 15%
Int'l Small Cap 5%
Int'l Emerging Cap 8%
REIT 10%
Employer Stock 14%
Questions:
1) I am thinking about put most domestic big cap, foreign big cap, blend bond into his 401k's index fund due to the low expense ratio, while preserving some good actively managed fund (i.e. VPMAX,SGOIX). Put most domestic middle and small cap to her 401k's index fund due to the low expense ratio.
2) Moving the taxable bond to his/her Roth IRA fund while maintaining REIT (I can't move VWEHX due to one year limitation) to avoid taxing on dividend.
3) Relocating some index fund (big/middle/small cap) to ETF fund through Wells Fargo trading account (100 trading per year) to save cost after taking loss. There is no capital gain in this case.
Thank you for your reading. Any shared thoughts is warmly welcomed.
Truthfully yours
kevin
I have emergency funds = 3-6 months of expenses
I have car loan = $28105
Tax Filing Status: Married filing Jointly
Tax Rate: about 28% Federal for 2008 (2009's estimated tax rate is 33%), 9.3% CA, living in CA.
Age: I am about 35, my wife 27, without kid
Currently plan to buy house in the next 6 month to 2 years. The down payment amount is excluded from investment portfolio listed here.
Desired Asset allocation: (80% stocks/20% bonds)
My total assets is low 6 figures, maybe ineligible to contribute to Roth IRA in 2009 and later years
Currently my stock investment portfolio is down about 35% since Jan 2008
Taxable (Vanguard Mutual Fund)
4.94% Vanguard Total Stock Index (VTSMX)
7.55% Vanguard Middle Cap Index (VIMSX)
6.87% Vanguard Small Cap Index (NAESX)
7.55% Vanguard Emerging Market Index (VEIEX)
subtotal: 26.92%
His Roth IRA at Vanguard
2.06% Vanguard Total In'l Stock Index (VGTSX)
10.3% Vanguard REIT Index (VGSIX)
subtotal: 12.36%
Her Roth IRA at Vanguard
1.85% Vanguard Total In'l Stock Index (VGTSX)
3.30% Vanguard SmallCap Value Index (VISVX)
subtotal: 5.15%
N/A = ticket symbol could not be found, mostly likely they are not publicly traded mutual fund
His 401k
1.58% S&P 500 Index Fund (N/A) (0.005%)
1.58% Dow Index Fund (N/A) (0.06%)
8.74% Vanguard PRIMECAP Fund (VPMAX) (0.31%)
3.36% Columbia Value&Restructuring (UMBIX) (0.94%)
1.17% Hartford Capital Appreciation (HIACX) (0.67%)
2.62% Hartford MidCap Fund (HIACX) (0.69%)
1.55% Turner Emerging Growth (TMCGX) (1.55%)
2.88% BGI EAFE Equity Index (N/A) (0.1%)
3.09% Dodge&Cox Int'l Stock Fund (DODFX) (0.65%)
2.82% Int'l Equity Blend Fund (N/A) (0.73%)
4.46% First Eagle Overseas fund (SGOIX) (0.88%)
0.89% Oppenheimer Int'l Small Fund (OSMYX) (0.79%)
0.00% BGI US Debt Index Fund (N/A) (0.10%)
1.10% Fidelity Money Market (FMPXX) (0.22%)
0.70% Company Individual Stock (N/A) (0.00%)
subtotal: 36.55%
Her 401K (she started in 2008)
0.89% Total Domestic Stock Market Index Fund (N/A) (0.13%)
0.00% S&P 500 Index Fund (N/A) (0.08%)
1.44% S&P MidCap 400 Index (N/A) (0.10%)
1.37% Russel 2000 Index (N/A) (0.11%)
1.58% MSCI EAFE Index (N/A) (0.15%)
subtotal: 5.29%
13.73% Company Profit Sharing (N/A) (commission on selling company stock)
New annual Contributions in 2009 (estimated):
his 401k $16,500 (personal contribution) + $5000 (employee match)
her 401k $16,500 (personal contribution) + $5000 (employee match)
New saving in 2009 (estimated)
$40000
Funds available in his/her 401(k)
Too many to list here. The favorite/good ones are listed on his/her 401k list (including 0% at time being)
My own computation on current asset allocation is as follows:
Domestic Large Cap 23%
Domestic Middle Cap 12%
Domestic Small Cap 13%
Int'l Large Cap 15%
Int'l Small Cap 5%
Int'l Emerging Cap 8%
REIT 10%
Employer Stock 14%
Questions:
1) I am thinking about put most domestic big cap, foreign big cap, blend bond into his 401k's index fund due to the low expense ratio, while preserving some good actively managed fund (i.e. VPMAX,SGOIX). Put most domestic middle and small cap to her 401k's index fund due to the low expense ratio.
2) Moving the taxable bond to his/her Roth IRA fund while maintaining REIT (I can't move VWEHX due to one year limitation) to avoid taxing on dividend.
3) Relocating some index fund (big/middle/small cap) to ETF fund through Wells Fargo trading account (100 trading per year) to save cost after taking loss. There is no capital gain in this case.
Thank you for your reading. Any shared thoughts is warmly welcomed.
Truthfully yours
kevin