Feedback on my portfolio and asset placement

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Topic Author
ryanbohle
Posts: 111
Joined: Tue Oct 29, 2019 9:20 pm

Feedback on my portfolio and asset placement

Post by ryanbohle »

In fall of 2019 I read the Bogle books and then parted ways with my advisor. He wasn’t a bad dude, in fact he was very fee and tax conscious, but I decided to take over and avoid his 0.75% AUM.

I sold and reinvested a lot of the holdings, kept a few things (labeled vestigial).

I’m looking for feedback on fund choices. Asset allocation and asset placement.

Adding it all up I’m about 72% US stock 20% international stock, 7% bonds and <1% REITs

My asset allocation plan is to be at 60% US stock, 30% international, and 10% bonds. Shifting to this with new investments.

Im 36, make 415K/yr, invest about 87K/yr in retirement. I have a high tolerance for volatility.

Other than the bonds in the employer based retirement account each fund is a low ER index fund, mostly through vanguard.

403(B)
VINIX (15.5%) total us stock index
MWTIX (2.2%) crummy bond fund

457(B)
VINIX (11%)
MWTIX (2.2)

401(K) Employer
VINIX (3.3%)
MWTIX (1.2%)

My Roth
VTI (2.4%) total US stock index
IVV (6.3%) S&P index
VUG (7.3%) vestigial
IJH (1.7%) S&P mid cap, vestigial
VXUS (10%) total international
BND (1%) total bond fund
VCIT (<1%) vestigial
SCHH (0.5%) vestigial

Wife Roth
VTI (4.4%)
IVV (1.8%)
VXUS (3.3%)
AGG (1% ) vestigial, bond fund

Brokerage
VTI (8%)
IVV (1.8%) vestigial
VXUS (6.6%)

(% of retirement portfolio; $654,000)
————-

100K (529s, emergency fund, short term cash reserves, crypto)
550K house
365K mortgage
30K car loan

Thank you in advance!:)
Last edited by ryanbohle on Fri Jun 11, 2021 12:35 pm, edited 2 times in total.
User avatar
retired@50
Posts: 5907
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Feedback on my portfolio and asset placement

Post by retired@50 »

ryanbohle wrote: Thu Jun 10, 2021 8:08 pm I’m looking for feedback on fund choices. Asset allocation and asset placement.
...
Thank you in advance!:)
Pro tip. Update your post to also include fund names and expense ratios.

Virtually nobody will respond if they have to look up 20 tickers to know what you're talking about.

Regards,
This is one person's opinion. Nothing more.
dbr
Posts: 35952
Joined: Sun Mar 04, 2007 9:50 am

Re: Feedback on my portfolio and asset placement

Post by dbr »

You obviously already have identified "vestigial" funds that could just be sold off and that MWTIX is not a very good fund. So if you do sell all the scraps and find a better option for tax deferred bonds, you could rewrite the result for easier thinking about what you have.

There is a philosophy one should never have more than 75% in stocks nor less than 25%, so maybe 7% or so is pointless and not worth the expense ratio. What are the options?

A point to consider as well is that the 100k is also part of your asset allocation and you could recalculate based on that.
User avatar
retired@50
Posts: 5907
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Feedback on my portfolio and asset placement

Post by retired@50 »

I don't really see the need for using things like an S&P 500 fund AND a total stock market fund (e.g. IVV & VTI). The performance of these kinds of funds over the long term is practically identical. I'd settle on VTI just to help simplify.

Also, I don't see the need for multiple bond funds (AGG, BND, VCIT, MWTIX). If there are no decent low-cost bond index funds in any of the 3 plans (401k, 457, 403b), then you could consider holding BND in the Roth account space, or, you could consider holding a tax-exempt national municipal bond fund in the taxable account space (consider Vanguard's Tax-Exempt Bond Index VTEAX / ETF version = VTEB).

Regards,
This is one person's opinion. Nothing more.
wetgear
Posts: 250
Joined: Thu Apr 06, 2017 10:14 am

Re: Feedback on my portfolio and asset placement

Post by wetgear »

ryanbohle wrote: Thu Jun 10, 2021 8:08 pm In fall of 2019 I read the Bogle books and then parted ways with my advisor. He wasn’t a bad dude, in fact he was very fee and tax conscious, but I decided to take over and avoid his 0.75% AUM.

I sold and reinvested a lot of the holdings, kept a few things (labeled vestigial).

I’m looking for feedback on fund choices. Asset allocation and asset placement.

Adding it all up I’m about 72% US stock 20% international stock, 7% bonds and <1% REITs

My asset allocation plan is to be at 60% US stock, 30% international, and 10% bonds. Shifting to this with new investments.

Im 36, make 415K/yr, invest about 87K/yr in retirement. I have a high tolerance for volatility.

Other than the bonds in the employer based retirement account each fund is a low ER index fund, mostly through vanguard.

403(B)
VINIX (15.5%) total us stock index
MWTIX (2.2%) crummy bond fund

457(B)
VINIX (11%)
MWTIX (2.2)

401(K) Employer
VINIX (3.3%)
MWTIX (1.2%)

My Roth
VTI (2.4%) total US stock index
IVV (6.3%) S&P index
VUG (7.3%) vestigial
IJH (1.7%) S&P mid cap, vestigial
VXUS (10%) total international
BND (1%) total bond fund
VCIT (<1%) vestigial
SCHH (0.5%) vestigial

Wife Roth
VTI (4.4%)
IVV (1.8%)
VXUS (3.3%)
AGG (1% ) vestigial, bond fund

Brokerage
VTI (8%)
IVV (1.8%) vestigial
VXUS (6.6%)

(% of retirement portfolio; $654,000)
————-

100K (529s, emergency fund cash, crypto)
550K house
365K mortgage
30K car loan

Thank you in advance!:)
I might try something like this to simplify.

My Roth
VTI
VXUS

Wife Roth
VTI
VXUS

Brokerage
VTI
VXUS

You've noted the vestigial funds already so drop them. A S&P 500 and Total Market have lots of overlap just use the Total Market. It's best to keep your bonds in pre-tax accounts. You have noted that your bond fund in those accounts is bad though. Do you have low cost Target Date Funds in your pre-tax plan(s)? If so that might be the best way to hold your bonds. If you could edit your original post and list the options in your company plans we could give better/more complete advice. You don't tell us your interest rates on the mortgage or car loan but I'd suspect paying at least the car off tomorrow would be a good idea if for no other reason than to simplify. At your tax rate even a low interest rate mortgage ends up costing you a lot so paying that off also could be advantageous over purchasing any more bonds because its effectively a negative bond with higher interest than you can make by purchasing bonds today, it's also a guaranteed return.
Topic Author
ryanbohle
Posts: 111
Joined: Tue Oct 29, 2019 9:20 pm

Re: Feedback on my portfolio and asset placement

Post by ryanbohle »

wetgear wrote: Fri Jun 11, 2021 11:20 am
ryanbohle wrote: Thu Jun 10, 2021 8:08 pm In fall of 2019 I read the Bogle books and then parted ways with my advisor. He wasn’t a bad dude, in fact he was very fee and tax conscious, but I decided to take over and avoid his 0.75% AUM.

I sold and reinvested a lot of the holdings, kept a few things (labeled vestigial).

I’m looking for feedback on fund choices. Asset allocation and asset placement.

Adding it all up I’m about 72% US stock 20% international stock, 7% bonds and <1% REITs

My asset allocation plan is to be at 60% US stock, 30% international, and 10% bonds. Shifting to this with new investments.

Im 36, make 415K/yr, invest about 87K/yr in retirement. I have a high tolerance for volatility.

Other than the bonds in the employer based retirement account each fund is a low ER index fund, mostly through vanguard.

403(B)
VINIX (15.5%) total us stock index
MWTIX (2.2%) crummy bond fund

457(B)
VINIX (11%)
MWTIX (2.2)

401(K) Employer
VINIX (3.3%)
MWTIX (1.2%)

My Roth
VTI (2.4%) total US stock index
IVV (6.3%) S&P index
VUG (7.3%) vestigial
IJH (1.7%) S&P mid cap, vestigial
VXUS (10%) total international
BND (1%) total bond fund
VCIT (<1%) vestigial
SCHH (0.5%) vestigial

Wife Roth
VTI (4.4%)
IVV (1.8%)
VXUS (3.3%)
AGG (1% ) vestigial, bond fund

Brokerage
VTI (8%)
IVV (1.8%) vestigial
VXUS (6.6%)

(% of retirement portfolio; $654,000)
————-

100K (529s, emergency fund cash, crypto)
550K house
365K mortgage
30K car loan

Thank you in advance!:)
I might try something like this to simplify.

My Roth
VTI
VXUS

Wife Roth
VTI
VXUS

Brokerage
VTI
VXUS

You've noted the vestigial funds already so drop them. A S&P 500 and Total Market have lots of overlap just use the Total Market. It's best to keep your bonds in pre-tax accounts. You have noted that your bond fund in those accounts is bad though. Do you have low cost Target Date Funds in your pre-tax plan(s)? If so that might be the best way to hold your bonds. If you could edit your original post and list the options in your company plans we could give better/more complete advice. You don't tell us your interest rates on the mortgage or car loan but I'd suspect paying at least the car off tomorrow would be a good idea if for no other reason than to simplify. At your tax rate even a low interest rate mortgage ends up costing you a lot so paying that off also could be advantageous over purchasing any more bonds because its effectively a negative bond with higher interest than you can make by purchasing bonds today, it's also a guaranteed return.
I appreciate your feedback. I’ve had similar thoughts. I want to keep my bonds in the pre tax accounts but the options are less than desirable. The target date funds are with American funds. Couldn’t run away fast enough.

I had some municipal bonds in my brokerage account. But I also had about 70K of student loans. So I just sold the bonds and kissed my student loans goodbye.

I forget the interest rate on my mortgage but it’s a 15 year fixed, that I refinanced in late 2019. I might get aggressive in a few years but right now I have other priorities. I agree; I kind of view my mortgage payments as my “bond allocation”. Im fine being at 90% stock this far away from retirement. I’ll start to slowly increase my bond allocation over time, probably start after I turn 40.

I have the cash to pay off the car. But I am saving to redo my deck. My daughters are getting splinters. :( the interest on the car loan is only 1.9%. After I finish my deck next spring, I’ll knock that off in no time.
Last edited by ryanbohle on Fri Jun 11, 2021 1:08 pm, edited 4 times in total.
Topic Author
ryanbohle
Posts: 111
Joined: Tue Oct 29, 2019 9:20 pm

Re: Feedback on my portfolio and asset placement

Post by ryanbohle »

retired@50 wrote: Fri Jun 11, 2021 11:04 am I don't really see the need for using things like an S&P 500 fund AND a total stock market fund (e.g. IVV & VTI). The performance of these kinds of funds over the long term is practically identical. I'd settle on VTI just to help simplify.

Also, I don't see the need for multiple bond funds (AGG, BND, VCIT, MWTIX). If there are no decent low-cost bond index funds in any of the 3 plans (401k, 457, 403b), then you could consider holding BND in the Roth account space, or, you could consider holding a tax-exempt national municipal bond fund in the taxable account space (consider Vanguard's Tax-Exempt Bond Index VTEAX / ETF version = VTEB).

Regards,
Thank you for your thoughts! I addressed some of what you said in a response above. Where to put my bonds has been an issue I’ve struggled with.
Topic Author
ryanbohle
Posts: 111
Joined: Tue Oct 29, 2019 9:20 pm

Re: Feedback on my portfolio and asset placement

Post by ryanbohle »

dbr wrote: Fri Jun 11, 2021 10:23 am You obviously already have identified "vestigial" funds that could just be sold off and that MWTIX is not a very good fund. So if you do sell all the scraps and find a better option for tax deferred bonds, you could rewrite the result for easier thinking about what you have.

There is a philosophy one should never have more than 75% in stocks nor less than 25%, so maybe 7% or so is pointless and not worth the expense ratio. What are the options?

A point to consider as well is that the 100k is also part of your asset allocation and you could recalculate based on that.
Thank you for your time and thoughts. I addressed a few of your points in a response above. What bonds to buy and where to put them has been a struggle. I’d love a low cost bond fund in a pre tax account but MWTIX was the best option of bad options.

The crypto is a hobby. And I’ll spend the rest of the cash on a new deck in the spring. Anything left over I’ll throw at the car loan.
Last edited by ryanbohle on Fri Jun 11, 2021 12:36 pm, edited 1 time in total.
Topic Author
ryanbohle
Posts: 111
Joined: Tue Oct 29, 2019 9:20 pm

Re: Feedback on my portfolio and asset placement

Post by ryanbohle »

retired@50 wrote: Fri Jun 11, 2021 11:04 am I don't really see the need for using things like an S&P 500 fund AND a total stock market fund (e.g. IVV & VTI). The performance of these kinds of funds over the long term is practically identical. I'd settle on VTI just to help simplify.

Also, I don't see the need for multiple bond funds (AGG, BND, VCIT, MWTIX). If there are no decent low-cost bond index funds in any of the 3 plans (401k, 457, 403b), then you could consider holding BND in the Roth account space, or, you could consider holding a tax-exempt national municipal bond fund in the taxable account space (consider Vanguard's Tax-Exempt Bond Index VTEAX / ETF version = VTEB).

Regards,
The bonds are an issue, ive struggle with from the begining. MWTIX is the best option of bad options i my plan (401k, 457, 403b). That is the location I'd prefer to have the bulk of my bonds. Initially I was investing in VTEB in my taxable account, but I also had some student loans. So I just sold the municipal bonds and kissed my student loans goodbye! But that left me with a pretty low bond allocation.
Topic Author
ryanbohle
Posts: 111
Joined: Tue Oct 29, 2019 9:20 pm

Re: Feedback on my portfolio and asset placement

Post by ryanbohle »

dbr wrote: Fri Jun 11, 2021 10:23 am You obviously already have identified "vestigial" funds that could just be sold off and that MWTIX is not a very good fund. So if you do sell all the scraps and find a better option for tax deferred bonds, you could rewrite the result for easier thinking about what you have.

There is a philosophy one should never have more than 75% in stocks nor less than 25%, so maybe 7% or so is pointless and not worth the expense ratio. What are the options?

A point to consider as well is that the 100k is also part of your asset allocation and you could recalculate based on that.
In my tax deferred accounts through my employer my bond options are:
MWTIX
THRRX
Something without a ticker called “Lincoln Stable Value account -C65 - taxable bond

That’s it outside of American funds target date funds.
Topic Author
ryanbohle
Posts: 111
Joined: Tue Oct 29, 2019 9:20 pm

Re: Feedback on my portfolio and asset placement

Post by ryanbohle »

retired@50 wrote: Fri Jun 11, 2021 11:04 am I don't really see the need for using things like an S&P 500 fund AND a total stock market fund (e.g. IVV & VTI). The performance of these kinds of funds over the long term is practically identical. I'd settle on VTI just to help simplify.

Also, I don't see the need for multiple bond funds (AGG, BND, VCIT, MWTIX). If there are no decent low-cost bond index funds in any of the 3 plans (401k, 457, 403b), then you could consider holding BND in the Roth account space, or, you could consider holding a tax-exempt national municipal bond fund in the taxable account space (consider Vanguard's Tax-Exempt Bond Index VTEAX / ETF version = VTEB).

Regards,

In my tax deferred accounts through my employer my bond options are:
MWTIX
THRRX
Something without a ticker called “Lincoln Stable Value account -C65 - taxable bond

That’s it outside of American funds target date funds.
Topic Author
ryanbohle
Posts: 111
Joined: Tue Oct 29, 2019 9:20 pm

Re: Feedback on my portfolio and asset placement

Post by ryanbohle »

wetgear wrote: Fri Jun 11, 2021 11:20 am
ryanbohle wrote: Thu Jun 10, 2021 8:08 pm In fall of 2019 I read the Bogle books and then parted ways with my advisor. He wasn’t a bad dude, in fact he was very fee and tax conscious, but I decided to take over and avoid his 0.75% AUM.

I sold and reinvested a lot of the holdings, kept a few things (labeled vestigial).

I’m looking for feedback on fund choices. Asset allocation and asset placement.

Adding it all up I’m about 72% US stock 20% international stock, 7% bonds and <1% REITs

My asset allocation plan is to be at 60% US stock, 30% international, and 10% bonds. Shifting to this with new investments.

Im 36, make 415K/yr, invest about 87K/yr in retirement. I have a high tolerance for volatility.

Other than the bonds in the employer based retirement account each fund is a low ER index fund, mostly through vanguard.

403(B)
VINIX (15.5%) total us stock index
MWTIX (2.2%) crummy bond fund

457(B)
VINIX (11%)
MWTIX (2.2)

401(K) Employer
VINIX (3.3%)
MWTIX (1.2%)

My Roth
VTI (2.4%) total US stock index
IVV (6.3%) S&P index
VUG (7.3%) vestigial
IJH (1.7%) S&P mid cap, vestigial
VXUS (10%) total international
BND (1%) total bond fund
VCIT (<1%) vestigial
SCHH (0.5%) vestigial

Wife Roth
VTI (4.4%)
IVV (1.8%)
VXUS (3.3%)
AGG (1% ) vestigial, bond fund

Brokerage
VTI (8%)
IVV (1.8%) vestigial
VXUS (6.6%)

(% of retirement portfolio; $654,000)
————-

100K (529s, emergency fund cash, crypto)
550K house
365K mortgage
30K car loan

Thank you in advance!:)
I might try something like this to simplify.

My Roth
VTI
VXUS

Wife Roth
VTI
VXUS

Brokerage
VTI
VXUS

You've noted the vestigial funds already so drop them. A S&P 500 and Total Market have lots of overlap just use the Total Market. It's best to keep your bonds in pre-tax accounts. You have noted that your bond fund in those accounts is bad though. Do you have low cost Target Date Funds in your pre-tax plan(s)? If so that might be the best way to hold your bonds. If you could edit your original post and list the options in your company plans we could give better/more complete advice. You don't tell us your interest rates on the mortgage or car loan but I'd suspect paying at least the car off tomorrow would be a good idea if for no other reason than to simplify. At your tax rate even a low interest rate mortgage ends up costing you a lot so paying that off also could be advantageous over purchasing any more bonds because its effectively a negative bond with higher interest than you can make by purchasing bonds today, it's also a guaranteed return.

In my tax deferred accounts through my employer my bond options are:
MWTIX
THRRX
Something without a ticker called “Lincoln Stable Value account -C65 - taxable bond

That’s it outside of American funds target date funds.
User avatar
retired@50
Posts: 5907
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Feedback on my portfolio and asset placement

Post by retired@50 »

ryanbohle wrote: Fri Jun 11, 2021 8:22 pm Something without a ticker called "Lincoln Stable Value account -C65 - taxable bond
Stable Value accounts can be a decent alternative to a normal bond fund.

They are, generally speaking, an insurance company product where they offer a fixed rate of return for a 6 or 12 month period, which resets once in a while. No need to worry about an expense ratio, because the rate of return is guaranteed by the insurance company sponsor.

So, the action item for you is to call the 401k provider and ask what the current rate of return is, and also ask about any restrictions on withdrawals, etc. Since this will only be a small part of your portfolio, it might work out okay.

Regards,
This is one person's opinion. Nothing more.
wetgear
Posts: 250
Joined: Thu Apr 06, 2017 10:14 am

Re: Feedback on my portfolio and asset placement

Post by wetgear »

retired@50 wrote: Fri Jun 11, 2021 8:28 pm
ryanbohle wrote: Fri Jun 11, 2021 8:22 pm Something without a ticker called "Lincoln Stable Value account -C65 - taxable bond
Stable Value accounts can be a decent alternative to a normal bond fund.

They are, generally speaking, an insurance company product where they offer a fixed rate of return for a 6 or 12 month period, which resets once in a while. No need to worry about an expense ratio, because the rate of return is guaranteed by the insurance company sponsor.

So, the action item for you is to call the 401k provider and ask what the current rate of return is, and also ask about any restrictions on withdrawals, etc. Since this will only be a small part of your portfolio, it might work out okay.

Regards,
+1 This very well may be the best way to hold your FI.
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