Looking for Portfolio advice

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merlinsmagic
Posts: 1
Joined: Wed Mar 24, 2021 3:55 pm

Looking for Portfolio advice

Post by merlinsmagic »

I am a first time poster. I see most of you have a lot more wisdom on how to handle money so I am just looking for any guidance you might could give me. I think I have done okay but more probably because I am pretty good at saving versus spending.

Emergency funds: 300k (Money toward upgrading to SFH + Emergency Fund)

Debt: $130k On Townhome at 30 YRS at 4.75%. Equity about $420k

Tax Filing Status: Single

Tax Rate: 32% Federal, 5.75% State

State of Residence: VA

Age: 48

income: 190k

Desired Asset allocation: 85% stocks / 15% bonds
Desired International allocation: 25% of stocks

Current total portfolio:

$750K Fidelity 401K
$6k Vanguard Roth IRA
$300k Vanguard Taxable
$380K Single Stocks


Current retirement assets

Employee Fidelity 401k:
37.95% FID FREEDOM 2035  (FFTHX) 0.72
17.47% FID FREEDOM 2030  (FFFEX) 0.68
15.78% FID GROWTH COMPANY  (FDGRX) 0.83
5.58% FID DIVERSIFD INTL  (FDIVX) 1.05
5.35% MFS MID CAP GRTH R3  (OTCHX) 1.05
4.68% J H TRITON T  (JATTX) 0.91
3.62% FID BLUE CHIP GR  (FBGRX) 0.79
2.47% FID OTC PORTFOLIO  (FOCPX) 0.87
2.31% FID REAL ESTATE INVS  (FRESX) 0.74
1.45% FID GROWTH STRAT  (FDEGX) 0.63
1.38% FID LOW PRICED STK  (FLPSX) 0.78
1.00% FID OVERSEAS  (FOSFX) 1.04
0.96% FID EQ DIV INCOME  (FEQTX) 0.6

Roth IRA at Vanguard:
100% VANGUARD TOTAL STOCK MARKET ETF (VTI) (.03)

Taxable:
90% Vanguard LifeStrategy Growth Fund (VASGX) (0.14%)
10% Vanguard Small-Cap Growth Index Fund Admiral Shares (VSGAX) (.07%)

Single Stocks:
40 % Visa
25 % Apple
8 % TSLA
27 % Misc


New annual Contributions:
401k - My Contribution - 14k / Company Contribution: 13k
6K Roth IRA

Available funds

Funds available in 401(k)

FID BLUE CHIP GR (FBGRX) 0.79%
FID CONTRAFUND (FCNTX) 0.86%
FID EQ DIV INCOME (FEQTX) 0.60%
FID EQUITY INC (FEQIX) 0.60%
FID FOCUSED STOCK (FTQGX) 0.88%
FID GROWTH COMPANY (FDGRX) 0.83%
FID LARGE CAP STOCK (FLCSX) 0.47%
FID OTC PORTFOLIO (FOCPX) 0.87%
FID TOTAL MKT IDX (FSKAX) 0.02%
TRP BLUE CHIP GR ADV (PABGX) 0.96%
FID EXTD MKT IDX (FSMAX) 0.04%
FID GROWTH STRAT (FDEGX) 0.63%
FID LOW PRICED STK (FLPSX) 0.78%
FID MID CAP STOCK (FMCSX) 0.92%
FID VALUE STRAT (FSLSX) 0.76%
MFS MID CAP GRTH R3 (OTCHX) 1.05%
FID SMALL CAP VALUE (FCPVX) 0.96%
J H TRITON T (JATTX) 0.91%
FID DIVERSIFD INTL (FDIVX) 1.05%
FID OVERSEAS (FOSFX) 1.04%
FID REAL ESTATE INVS (FRESX) 0.74%
FID FREEDOM 2005 (FFFVX) 0.47%
FID FREEDOM 2010 (FFFCX) 0.51%
FID FREEDOM 2015 (FFVFX) 0.55%
FID FREEDOM 2020 (FFFDX) 0.60%
FID FREEDOM 2025 (FFTWX) 0.64%
FID FREEDOM 2030 (FFFEX) 0.68%
FID FREEDOM 2035 (FFTHX) 0.72%
FID FREEDOM 2040 (FFFFX) 0.75%
FID FREEDOM 2045 (FFFGX) 0.75%
FID FREEDOM 2050 (FFFHX) 0.75%
FID FREEDOM 2055 (FDEEX) 0.75%
FID FREEDOM 2060 (FDKVX) 0.75%
FID FREEDOM 2065 (FFSFX) 0.75%
FID FREEDOM INCOME (FFFAX) 0.47%
FID PURITAN (FPURX) 0.52%
FID INTERMED BOND (FTHRX) 0.45%
FID INVST GR BD (FBNDX) 0.45%
PIF SHORT TERM INC A (SRHQX) 0.69%
FID GOVT MMKT (SPAX) 0.42%


Questions:
1. I feel like my investments are all over the board. With my 401k I first chose investments based on previous results & diversification, then picked target date funds and then went back to picking better performing. I never rebalanced I just switched incoming money to a different investment. Any advice on making this a cleaner/Simpler portfolio?

2. I never paid much attention to any of the expense ratios. Should I be?

3. I am hoping to retire early around 55 in a low cost of living area or at least have that as an option. So looking for any pointers in that direction. I would probably attempt to live on around 50k-60k/yr.


Thanks.
tashnewbie
Posts: 1504
Joined: Thu Apr 23, 2020 12:44 pm

Re: Looking for Portfolio advice

Post by tashnewbie »

merlinsmagic wrote: Wed Apr 07, 2021 3:08 pm Debt: $130k On Townhome at 30 YRS at 4.75%. Equity about $420k


Current total portfolio:

$380K Single Stocks


Single Stocks:
40 % Visa
25 % Apple
8 % TSLA
27 % Misc


New annual Contributions:
401k - My Contribution - 14k / Company Contribution: 13k

Questions:
1. I feel like my investments are all over the board. With my 401k I first chose investments based on previous results & diversification, then picked target date funds and then went back to picking better performing. I never rebalanced I just switched incoming money to a different investment. Any advice on making this a cleaner/Simpler portfolio?

2. I never paid much attention to any of the expense ratios. Should I be?

3. I am hoping to retire early around 55 in a low cost of living area or at least have that as an option. So looking for any pointers in that direction. I would probably attempt to live on around 50k-60k/yr.


Thanks.
Welcome to the forum.

In your tax bracket, I'd max traditional 401k contributions each year (current max is $19.5k). In the year you turn 50, you'll also be eligible for catchup contributions (current max is $6.5k).

1. In your 401k, I'd use these broadly diversified funds (check out the 3-fund wiki or the Getting Started wiki for more information behind the BH philosophy):

FID TOTAL MKT IDX (FSKAX) 0.02%
FID INTERMED BOND (FTHRX) 0.45%

Unfortunately, you don't appear to have a low-cost fund international fund in your 401k. I'd use one in your Roth IRA and taxable. Something like VTIAX/VXUS or the custodian's equivalent total int'l stock market fund.

2. You should definitely try to use the lowest cost funds to the extent possible. Why pay higher fees unnecessarily? It's impossible to predict whether the actively managed funds will outperform the index funds, but the higher fees are guaranteed. I think there have been studies that have shown actively managed funds don't consistently beat the index. There's probably information about this in the Getting Started wiki.

3. Are you planning to buy the SFH after you retire and move to lower COL area? I probably would wait. I'd refinance the mortgage on the townhome (look for a "no-cost" refi). Then I'd sell the townhome and use the equity in it to buy a house with cash in the retirement locale. I would probably invest a good portion of the cash you currently have. Was some of that cash earmarked for short-term spending?

4. The single stocks make up a very large percentage of your overall portfolio. I don't know if there's any way to tax efficiently sell off some of this stock. I definitely wouldn't add new money to any of these positions. I'd sell any lots that have unrealized losses.
Doctor Rhythm
Posts: 778
Joined: Mon Jan 22, 2018 3:55 am

Re: Looking for Portfolio advice

Post by Doctor Rhythm »

Welcome to the forum. Take a look at the wiki and browse around for a while to understand what this forum is about and the Boglehead way of investing. To answer some of your questions though...

1. If you’re changing funds in your retirement accounts frequently, we would say that you’re doing something wrong. You pick funds based on long term goals and investment strategy. If you’ve done this right, then you rarely need to change. This forum advocates using index funds that track the overall market rather than trying to beat the market. So, I never scrutinize returns when selecting a fund.

2. Costs matter a lot. In several studies, lower costs were the best predictor of future returns - a better predictor than past performance. Index funds are alway among the least expensive funds.
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