quick portfolio review appreciated

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Topic Author
loklav
Posts: 144
Joined: Fri Nov 10, 2017 11:39 pm

quick portfolio review appreciated

Post by loklav »

Hi,

I would appreciate it if you could review my current portfolio and advise some optimizations if needed.
We moved from France to the US 8 years ago and should get our citizenship next year. At this time, we are planning to go back to France, while our 19 years old daughter will stay in the US to complete college. We have 3 more kids who will come back with us to complete their education in France.
So the things in our mind at the moment are:
- keeping enough cash to pay for our daughter studies in the US (that normally we could cash flow if we stayed in the US)
- keeping enough cash to prepare our return to France and finance partially a house (400K loan)

44/41 years old, currently, we have:

Combined 401k: $200K (55% us, 20% intl, 25% bonds)
High yield saving: $430K
Combined Roth: $60K (VTSAX)
Taxable account: $500K (85% us VTSAX/VLCAX , 15% intl VTMGX/VFWAX)

Some financial investments in France: $60K

And we have RSUs in the pipeline.

I just sold some RSUs, this is why we have $430K in savings. I'm planning to take $80k and invest it in our taxable account (probably vtsax). I'm just considering waiting November to do it...
Additionally, we have some ESPP and bonus coming early next year close to $100K
Maybe there is a better place than keeping all this money in the high yield saving accounts?
Should we rebalance something? Our targeted AA would normally be 85/15...

Any advice?

thanks!
pkcrafter
Posts: 14320
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
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Re: quick portfolio review appreciated

Post by pkcrafter »

loklav wrote: Sat Oct 17, 2020 9:44 am Hi,

I would appreciate it if you could review my current portfolio and advise some optimizations if needed.
We moved from France to the US 8 years ago and should get our citizenship next year. At this time, we are planning to go back to France, while our 19 years old daughter will stay in the US to complete college. We have 3 more kids who will come back with us to complete their education in France.
So the things in our mind at the moment are:
- keeping enough cash to pay for our daughter studies in the US (that normally we could cash flow if we stayed in the US)
- keeping enough cash to prepare our return to France and finance partially a house (400K loan)

44/41 years old, currently, we have:

Combined 401k: $200K (55% us, 20% intl, 25% bonds)

By combined, you mean your 401k and wife's 401k?

High yield saving: $430K

You need an emergency fund, and you should probably invest the remainder into your retirement allocation.

Combined Roth: $60K (VTSAX)

Again, your Roth and wife's Roth?

Taxable account: $500K (85% us VTSAX/VLCAX , 15% intl VTMGX/VFWAX)

Some financial investments in France: $60K

And we have RSUs in the pipeline.

I just sold some RSUs, this is why we have $430K in savings. I'm planning to take $80k and invest it in our taxable account (probably vtsax). I'm just considering waiting November to do it...

OK, but what's special about November?

Additionally, we have some ESPP and bonus coming early next year close to $100K
Maybe there is a better place than keeping all this money in the high yield saving accounts?

Yes, invest most (keeping aside an emergency fund) in your current strategy.


Should we rebalance something? Our targeted AA would normally be 85/15...

85/15 is high risk, and you really don't have the need to do it, although you do have ability.


Paul


Any advice?

thanks!
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
Topic Author
loklav
Posts: 144
Joined: Fri Nov 10, 2017 11:39 pm

Re: quick portfolio review appreciated

Post by loklav »

yes combined means my wife and I.
You need an emergency fund, and you should probably invest the remainder into your retirement allocation.
I need more than an emergency fund. I don't want to risk all my money in a taxable account since I want to be able to pay for my daughter's college and our new house. We are maxing out our retirement accounts.
OK, but what's special about November?
US election which usually brings volatility. I know I should not time the market... but it's unlikely that the market is going to skyrocket in the next 2 weeks considering the current uncertainty, isn't it?
85/15 is high risk, and you really don't have the need to do it, although you do have ability.
why don't I have the need to do it?
ivgrivchuck
Posts: 131
Joined: Sun Sep 27, 2020 6:20 pm

Re: quick portfolio review appreciated

Post by ivgrivchuck »

loklav wrote: Sat Oct 17, 2020 9:44 am
Any advice?
Overall your portfolio and plan looks solid.

There is just no need to wait for a specific day to invest. If you know how much you are going to invest, and you know what your preferred asset allocation is (U.S./International/Cash), statistically the best time to invest is now, and following your chosen asset allocation.
44% VTI | 36% VXUS | 10% I-bonds | 10% EE-bonds
Outer Marker
Posts: 925
Joined: Sun Mar 08, 2009 8:01 am

Re: quick portfolio review appreciated

Post by Outer Marker »

ivgrivchuck wrote: Sun Oct 18, 2020 12:52 am
loklav wrote: Sat Oct 17, 2020 9:44 am
Any advice?
Overall your portfolio and plan looks solid.

There is just no need to wait for a specific day to invest. If you know how much you are going to invest, and you know what your preferred asset allocation is (U.S./International/Cash), statistically the best time to invest is now, and following your chosen asset allocation.
+1. I'd recommend you increase your fixed income to 25%, following Benjamin Grahm's rule, and especially considering your age. https://www.bogleheads.org/wiki/Graham_75-25_rule

In all likelihood, the sooner the better getting in, but perhaps 1/2 now, 1/2 in November if you're nervous.
Outer Marker
Posts: 925
Joined: Sun Mar 08, 2009 8:01 am

Re: quick portfolio review appreciated

Post by Outer Marker »

P.S. As to the upcoming election, I would not be surprised to see the markets rise (rightly or wrongly) regardless of who wins. Markets don't like uncertainty - witness your own hesitation to invest based on this consideration. If you want to engage in a little benign market timing, shovel in some money on any 1% or more down day with the objective of getting yourself fully invested in the next month or two.
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