New Rollovered 401K balanced or not?

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Topic Author
collen
Posts: 8
Joined: Thu Oct 11, 2018 11:18 am

New Rollovered 401K balanced or not?

Post by collen » Fri Feb 14, 2020 2:05 pm

Hi everyone...Sorry for stumbling through this. I think I have all the needed data except I'm having a hard time seeing how much Wealthfront and Vanguard's fees are -- I must be looking in all the wrong places.

I retired one year ago at 62 but only recently rolled over my 401k. I am not drawing SSA yet, but plan to early next year. Now I'm trying to ensure I have a good balance; I am a newbie at managing my money (which I sorely regret now), but have learned enough to come to Bogleheads to help learn. Also, one 401k fund I had to sell as it was $1m min., so I have about 27k in cash sitting in my Schwab account I need to reinvest.

Here's my portfolio now --
1. Am I over weight and distributed well enough?
2. What to buy with extra schwab cash?
3. Is the Wealthfront cash account OK (it's about 1 year's expenses)? Or should I winnow down and invest funds?

Schwab Mix
EFTs and Closed End = 29.09%
Mutual Funds = 62.32%
Fixed Income = 1.94%
Cash = about 27k

Positions for account Rollover IRA 02/10/2020, followed by Vanguard and Wealthfront
All the high cost funds were what Schwab picked when rolled over; I bought some funds, but not over .4 expense (which are gross).

Code: Select all

Schwab Positions for account Rollover IRA 02/10/2020					
Symbol	Description                                   Market Value        % Of Account	   Security Type                     Expense
FNDX	SCHWAB FUNDAMENTAL US LARGE CO ETF           10993.05                  2.66%       ETFs & Closed End Funds         0.25
SCHZ	SCHWAB US AGGREGATE BOND ETF                 44676.18                 10.83%       ETFs & Closed End Funds	   0.04
SCHD	SCHWAB US DIVIDEND EQUITY ETF                21091.25                 5.11%        ETFs & Closed End Funds         0.06
SCHX	SCHWAB US LARGE CAP ETF                      10993                   5.19%        ETFs & Closed End Funds	   0.04
SCHG	SCHWAB US LARGE CAP GROWTH ETF              21834.88                 5.29%        ETFs & Closed End Funds	   1.26
BCSIX	BROWN CAP MGMT SMALL CO FD INV CL            4239.58                1.03%            Mutual Fund                   0.44
MWTIX	METROPOLITAN WEST TOTAL RETURN BOND I       61615.99                 14.93%              Mutual Fund              1.115
PAAIX	PIMCO ALL ASSET INSTL CL	           61023.99	             14.79%	          Mutual Fund	          1.25
PTTRX	PIMCO TOTAL RETURN FUND INSTL CL	    61491.64          	   14.9%	          Mutual Fund             0.71
SWPPX	SCHWAB S&P 500 INDEX FD                	   21434.19        	   5.19%             	Mutual Fund               0.02
PRGFX	T ROWE PRICE GWTH STOCK FD INV              17976.7	           4.36%	             Mutual Fund	   0.66
TCVIX	TOUCHSTONE MID CAP VALUE FD CL INST	  7344       	            2.02%               Mutual Fund               0.97
VWNAX	VANGUARD WINDSOR II FD ADMIRAL SHARE	 16950.48	         4.11%               	Mutual Fund	          0.26
VSVIX	VICTORY INTEGRITY SMALL CAP VALUE Y	 4057.7      	         0.98%                	    Mutual Fund           1.12
69506YQH5   PACIFIC WESTERN B 1.6% CD FDIC INS DUE 04/21/20 US	8001.15	1.94%	Fixed Income	
Cash & Cash Investments	--27461.61  6.66%	Cash and Money Market	
Account Total	--	%401,185.39	--		
					
Vanguard					
AIIEX	Invesco International Growth Fund Class A	$9,880.45			
AMRMX	American Funds American Mutual Fund® Class A	$9,476.26			
ANCFX	American Funds Fundamental Investors® Class A	$11,331.46			
VMFXX	Vanguard Federal Money Market Fund	          $1,989.4			
total		$32,677.57			
					
Wealthfront			15000 managed free		
ASSET CLASS	TARGET	CURRENT	MARKET VALUE		
U.S. Stocks	32.00%	33.70%	$27,394.68		
Foreign Stocks	14.00%	13.60%	$11,066.18		
Emerging Markets11.00%	10.90%	$8,849.18		
Dividend Stocks	5.00%	5.30%	$4,298.29		
Natural Resources5.00%	4.30%	$3,526.56		
Municipal Bonds33.00%	31.90%	$25,920.43		
Total                         	$81,055.32		
cash savings acct  1.78%	$38,529.84		
					
Total Portfolio	$553,448.12				

Thanks for your thoughts (and patience)...

retired@50
Posts: 1736
Joined: Tue Oct 01, 2019 2:36 pm

Re: New Rollovered 401K balanced or not?

Post by retired@50 » Fri Feb 14, 2020 7:00 pm

collen wrote:
Fri Feb 14, 2020 2:05 pm
Hi everyone...Sorry for stumbling through this. I think I have all the needed data except I'm having a hard time seeing how much Wealthfront and Vanguard's fees are -- I must be looking in all the wrong places.

I retired one year ago at 62 but only recently rolled over my 401k. I am not drawing SSA yet, but plan to early next year. Now I'm trying to ensure I have a good balance; I am a newbie at managing my money (which I sorely regret now), but have learned enough to come to Bogleheads to help learn. Also, one 401k fund I had to sell as it was $1m min., so I have about 27k in cash sitting in my Schwab account I need to reinvest.

Here's my portfolio now --
1. Am I over weight and distributed well enough?
2. What to buy with extra schwab cash?
3. Is the Wealthfront cash account OK (it's about 1 year's expenses)? Or should I winnow down and invest funds?

Schwab Mix
EFTs and Closed End = 29.09%
Mutual Funds = 62.32%
Fixed Income = 1.94%
Cash = about 27k

Positions for account Rollover IRA 02/10/2020, followed by Vanguard and Wealthfront
All the high cost funds were what Schwab picked when rolled over; I bought some funds, but not over .4 expense (which are gross).

Code: Select all

Schwab Positions for account Rollover IRA 02/10/2020					
Symbol	Description                                   Market Value        % Of Account	   Security Type                     Expense
FNDX	SCHWAB FUNDAMENTAL US LARGE CO ETF           10993.05                  2.66%       ETFs & Closed End Funds         0.25
SCHZ	SCHWAB US AGGREGATE BOND ETF                 44676.18                 10.83%       ETFs & Closed End Funds	   0.04
SCHD	SCHWAB US DIVIDEND EQUITY ETF                21091.25                 5.11%        ETFs & Closed End Funds         0.06
SCHX	SCHWAB US LARGE CAP ETF                      10993                   5.19%        ETFs & Closed End Funds	   0.04
SCHG	SCHWAB US LARGE CAP GROWTH ETF              21834.88                 5.29%        ETFs & Closed End Funds	   1.26
BCSIX	BROWN CAP MGMT SMALL CO FD INV CL            4239.58                1.03%            Mutual Fund                   0.44
MWTIX	METROPOLITAN WEST TOTAL RETURN BOND I       61615.99                 14.93%              Mutual Fund              1.115
PAAIX	PIMCO ALL ASSET INSTL CL	           61023.99	             14.79%	          Mutual Fund	          1.25
PTTRX	PIMCO TOTAL RETURN FUND INSTL CL	    61491.64          	   14.9%	          Mutual Fund            0.71
SWPPX	SCHWAB S&P 500 INDEX FD                	   21434.19        	   5.19%             	Mutual Fund               0.02
PRGFX	T ROWE PRICE GWTH STOCK FD INV              17976.7	           4.36%	             Mutual Fund	   0.66
TCVIX	TOUCHSTONE MID CAP VALUE FD CL INST	  7344       	            2.02%               Mutual Fund               0.97
VWNAX	VANGUARD WINDSOR II FD ADMIRAL SHARE	 16950.48	         4.11%               	Mutual Fund	          0.26
VSVIX	VICTORY INTEGRITY SMALL CAP VALUE Y	 4057.7      	         0.98%                	    Mutual Fund           1.12
69506YQH5   PACIFIC WESTERN B 1.6% CD FDIC INS DUE 04/21/20 US	8001.15	1.94%	Fixed Income	
Cash & Cash Investments	--27461.61  6.66%	Cash and Money Market	
Account Total	--	%401,185.39	--		
					
Vanguard					
AIIEX	Invesco International Growth Fund Class A	$9,880.45			
AMRMX	American Funds American Mutual Fund® Class A	$9,476.26			
ANCFX	American Funds Fundamental Investors® Class A	$11,331.46			
VMFXX	Vanguard Federal Money Market Fund	          $1,989.4			
total		$32,677.57			
					
Wealthfront			15000 managed free		
ASSET CLASS	TARGET	CURRENT	MARKET VALUE		
U.S. Stocks	32.00%	33.70%	$27,394.68		
Foreign Stocks	14.00%	13.60%	$11,066.18		
Emerging Markets11.00%	10.90%	$8,849.18		
Dividend Stocks	5.00%	5.30%	$4,298.29		
Natural Resources5.00%	4.30%	$3,526.56		
Municipal Bonds33.00%	31.90%	$25,920.43		
Total                         	$81,055.32		
cash savings acct  1.78%	$38,529.84		
					
Total Portfolio	$553,448.12				

Thanks for your thoughts (and patience)...
After reading your post, a few thoughts come to mind.

1. You're portfolios are too complex, with too many funds and other holdings. You're never going to be able to herd all these cats.
2. You're paying way too much in expense ratios, at least for the holdings you listed that show an expense ratio. One of the main advantages of using a low-cost brokerage like Schwab or Vanguard is the low-expense ratio funds they offer. I'd suggest you SERIOUSLY rethink any fund or ETF with an expense ratio higher than .20%
3. My recommendation is to read or re-read this wiki page on how to implement the Three-Fund Portfolio. Holding this many funds doesn't add diversification, it adds complexity and additional work to re-balance.

https://www.bogleheads.org/wiki/Three-fund_portfolio

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

Topic Author
collen
Posts: 8
Joined: Thu Oct 11, 2018 11:18 am

Re: New Rollovered 401K balanced or not?

Post by collen » Sat Feb 15, 2020 5:53 pm

Many Thanks retired@50 ...I knew something was off (besides me :)

retired@50
Posts: 1736
Joined: Tue Oct 01, 2019 2:36 pm

Re: New Rollovered 401K balanced or not?

Post by retired@50 » Sat Feb 15, 2020 5:58 pm

collen wrote:
Sat Feb 15, 2020 5:53 pm
Many Thanks retired@50 ...I knew something was off (besides me :)
As you begin the process of paring down your holdings, if you're in a taxable account, you'll need to keep the tax consequences in mind. In other words, if you have large capital gains or losses, this will impact your 2020 taxes, due by April 15, 2021.

If you're selling and/or buying inside a 401k, traditional IRA, or Roth IRA, then you don't need to pay any attention to the tax consequences, since there aren't any.

Best of luck.

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

Topic Author
collen
Posts: 8
Joined: Thu Oct 11, 2018 11:18 am

Re: New Rollovered 401K balanced or not?

Post by collen » Sun Feb 16, 2020 2:09 pm

Good to know. I have a lot of learning to do and much appreciate your time.

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