Portfolio Review

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Topic Author
igpjazz3
Posts: 8
Joined: Mon Oct 19, 2020 4:08 pm

Portfolio Review

Post by igpjazz3 »

Hello,
This is my first post but has been reading the forum almost daily for 2 years now. I am 60 years old and my husband is 61. I have started working on an 'as needed basis' as an Urgent Care physician last September 2020 after practicing full time for about 25 years. This means I take only 1 to 2 9 hour shifts at the clinic once a month or even less. This is just to keep my skills up to date. My husband is full time employed and is planning to work until age 65. We get our health insurance from his job and his salary covers all our current expenses. He is contributing fully to his 403 B and HSA and we contributed to both our Roth IRAs early this year. We did not need to do any backdoor Roth this year because of my change in work status. My current employer usesTransamerica where my 403 B and 457 accounts are held. We used Vanguard PAS for 6 months last year and we manage our own portfolio right now.
Emergency funds: 6 months.
Annual expenses:76,000 after taxes. This includes travel expenses and hopefully will go down once we reach age 70.

Debt: None. Mortgage has been fully paid.
Tax Filing Status: Married Filing Jointly, One adult child who is independent.
Tax Rate:22% Federal, 5% State
State of Residence: WI
Desired Asset allocation: 60% stocks, 40% bonds
Desired International allocation: 10 to 15% of stocks

Please provide the approximate size of your total portfolio: 4.0 M. Not including the house which is about 320K.

Current retirement assets

Taxable: does not include emergency funds
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard Balanced Index Fund VBIAX 0.07 4.8%
Vanguard Developed Markets Index Fund ETF VEA 0.05 5.7%
Vanguard Emerging Market Stock Index Fund VEMAX 0.14 4.0%
Vanguard 500 Index Fund VFIAX 0.04 6.6%
Vanguard US Multifactor ETF VFMF 0.19 0.4%
Vanguard Short Term Investment Grade Fund VFSUX 0.10 2.7%
Vanguard Small-Cap Value Index Fund VSIAX 0.07 5.0%
Vanguard Total Stock Market ETF VTI 0.03 1.1%
Vanguard Extended Market Index Fund VXF 0.06 1.0%

His 403B
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard Total Bond Market Index Fund VBTLX 0.05 18.91%
Vanguard Total Stock Market Index Fund VTSAX 0.04 8.09%

His Roth IRA at Vanguard
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard Midcap Index Fund VIMAX 0.05 0.39%
Vanguard Developed Markets Index Fund VTMGX 0.07 1.21%
Vanguard Total Stock Market Index Fund VTSAX 0.04 2.16%

His HSA
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Fidelity 1.28%

Her 403b
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Baird Aggregate Bond Instl BAGIX 0.30 1.94%
Western Asset Income SDSAX 0.97 0.35%
Fidelity Inflation Protected Bond Index FIPDX 0.05 0.00%
Vanguard Institutional Index Instl PI VIIIX 0.02 0.53%
Principal Large Cap Growth I Inst PLGIX 0.68 0.53%
Dodge & Cox Stock DODGX 0.52 0.53%
Vanguard Midcap Index Fund VIMAX 0.05 0.12%
Janus Henderson Enterprise N JDMNX 0.60 0.06%
DFA US Target Value I DFFVX 0.33 0.06%
Vanguard Small Cap Index InstlPlus VSCPX 0.03 0.06%
Hartford SmallCap Growth HLS IA HISCX 0.67 0.06%
Vanguard Real Estate Index Institutional VGSNX 0.10 0.23%
American Funds EuroPacific Gr R6 RERGX 0.46 0.88%
DFA International Small Company I DFISX 0.44 0.18%
Hartford Schroders Emer Markets Equity SDR SEMTX 1.07 0.35%
Baird Aggregate Bond Instl BAGIX 0.30 0.43%
American Funds EuroPacific Gr R6 RERGX 0.46 0.20%
Vanguard Institutional Index Instl PI VIIIX 0.02 0.12%
Principal Large Cap Growth I Inst PLGIX 0.68 0.12%
Dodge & Cox Stock DODGX 0.52 0.12%
Western Asset Income SDSAX 0.97 0.08%
Hartford Schroders Emer Markets Equity SDR SEMTX 1.07 0.08%
Vanguard Real Estate Index Institutional VGSNX 0.10 0.05%
DFA International Small Company I DFISX 0.44 0.04%
Vanguard Midcap Index Fund VIMAX 0.05 0.03%
Janus Henderson Enterprise N JDMNX 0.60 0.01%
DFA US Target Value I DFFVX 0.33 0.01%
Vanguard Small Cap Index InstlPlus VSCPX 0.03 0.01%
Hartford SmallCap Growth HLS IA HISCX 0.67 0.01%
Fidelity Inflation Protected Bond Index FIPDX 0.05 0.00%


Her Roth IRA
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard 500 Index Fund VFIAX 0.04 6.14%
Vanguard Developed Markets Index Fund VTMGX 0.07 5.69%

Her Traditional IRA at Vanguard
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard Total Bond Market Index Fund VBTLX 0.05 5.07%
Vanguard Intermediate-Term Investment-Grade Fund VFIDX 0.10 4.12%
Vanguard Short Term Investment Grade Fund VFSUX 0.10 0.05%
Vanguard Total Intl Bond Index Fund VTABX 0.11 5.69%

Her 457B
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Baird Aggregate Bond Instl BAGIX 0.30 1.56%
Western Asset Income SDSAX 0.97 0.36%
Fidelity Inflation-Protected Bond Index FIPDX 0.05 0.12%
Vanguard Institutional Index Instl PI VIIIX 0.02 0.28%
Principal Large Cap Growth I Inst PLGIX 0.68 0.28%
Dodge & Cox Stock DODGX 0.52 0.28%
Vanguard Midcap Index Fund VIMAX 0.05 0.04%
Janus Henderson Enterprise N JDMNX 0.60 0.04%
DFA US Target Value I DFFVX 0.33 0.04%
Vanguard Small-Cap Index InstlPlus VSCPX 0.03 0.04%
Hartford SmallCap Growth HLS IA HISCX 0.67 0.04%
Vanguard Real Estate Index Institutional VGSNX 0.10 0.12%
American Funds EuroPacific Gr R6 RERGX 0.46 0.52%
DFA International Small Company I DFISX 0.44 0.08%
Hartford Schroders Emer Markets Equity SDR SEMTX 1.07 0.20%


_______________________________________________________________
Note: Total percentage of all the above accounts together (not each account individually) should equal 100%.
New annual Contributions
$26,000 his 401k
Her 403b: I put 80% of my wages about 900 a month to my 403 -B, the amount could be less if I do not work any shifts, no employer contributions
$7000 his IRA/Roth IRA
$7000 her IRA/Roth IRA

I plan to start distributing my 457 in 5 years (2026 - 2030) once my husband retires.

Her pension: 23,000K/year starting age 67 (2028)
He has no pension.

Social security calculations using opensocialsecurity.com. I will defer my claims until age 70 and hubby gets his starting age 66. :
2026: $18804
2027 to 2030: $25072
2031: $55260
2032 and beyond: $65323


Questions:
1. Please evaluate the tax efficiency of our taxable account.

2 I am unable to roll over my current employer 403b into my traditional IRA until I fully retire, most likely next year, 2022. I can see that the expense ratio of the current funds in my 403b are quite high and there are so many funds as well. I use portfolio express to rebalance this. Do you think it is a good idea to roll over my 403b right away after I retire? And if I do, how do I allocate them to the current funds at my traditional IRA?
3.When should we start doing Roth conversions?

Thanks!
User avatar
Duckie
Posts: 9777
Joined: Thu Mar 08, 2007 1:55 pm

Re: Portfolio Review

Post by Duckie »

igpjazz3, welcome to the forum.
igpjazz3 wrote: Mon Jul 26, 2021 4:32 pm Please evaluate the tax efficiency of our taxable account.
It's mostly tax-efficient, but it's also a bit of a mess.
I am unable to roll over my current employer 403b into my traditional IRA until I fully retire, most likely next year, 2022. I can see that the expense ratio of the current funds in my 403b are quite high and there are so many funds as well.
No kidding. In her 403b and her 457b the best listed options are:
  • Vanguard Institutional Index Instl PI VIIIX 0.02
  • Fidelity Inflation Protected Bond Index FIPDX 0.05
Since the two accounts total around 10% to 12% of your portfolio (depending on her 403b duplications) you could hold just VIIIX in those accounts.
I use portfolio express to rebalance this.
You need to reduce the number of funds in both your 403b and your 457b. Do you own snippets of every option in the plans? Unless the account is tiny, holding anything less than 5% is a waste of time.

In her 403b you write you hold 1.94% of Baird Aggregate and then farther down the list you hold 0.43% of Baird Aggregate. So which is it? 1.94% or 0.43%? Or somehow both? Then you duplicate most of the rest also. I added up your account percentages. With the duplication your numbers are off.

Taxable -- 31.3%

His 403b -- 27%

Her 403b -- %
It's 5.88 for the first group (Baird down through Hartford Schroders) and 1.31% for the second group (Baird down through Hartford SmallCap). That totals 7.19% which makes your total total 101.29%, not 100%.

Her 457b -- 4%

Her TIRA -- 14.93%

His Roth IRA -- 3.76%

Her Roth IRA -- 11.83%

His HSA -- 1.28%
Do you think it is a good idea to roll over my 403b right away after I retire?
Yes, unless you intend to use the backdoor method in the future.
And if I do, how do I allocate them to the current funds at my traditional IRA?
You don't. You don't need four bond funds in your TIRA. Pick one, probably just VBTLX Total Bond Index. If you want 40% bonds, he has 19% in his 403b so you could put 21% in your TIRA when you roll the 403b into the TIRA. (Get VFSUX out of taxable.)
Topic Author
igpjazz3
Posts: 8
Joined: Mon Oct 19, 2020 4:08 pm

Re: Portfolio Review

Post by igpjazz3 »

Hi Duckie - thanks so much for the quick and very insightful responses. I just have a follow-up question on the following:
In her 403b and her 457b the best listed options are:
Vanguard Institutional Index Instl PI VIIIX 0.02
Fidelity Inflation Protected Bond Index FIPDX 0.05
Since the two accounts total around 10% to 12% of your portfolio (depending on her 403b duplications) you could hold just VIIIX in those accounts.
If I put all my 403b and 457b in VIIIX, will this increase my total bond allocation to more than 40%? If yes, which stock fund would you recommend, and what percent, so I can maintain a 60-40 portfolio allocation?

Thanks again!
User avatar
Duckie
Posts: 9777
Joined: Thu Mar 08, 2007 1:55 pm

Re: Portfolio Review

Post by Duckie »

igpjazz3 wrote: Mon Jul 26, 2021 8:41 pm
In her 403b and her 457b the best listed options are:
Vanguard Institutional Index Instl PI VIIIX 0.02
Fidelity Inflation Protected Bond Index FIPDX 0.05
Since the two accounts total around 10% to 12% of your portfolio (depending on her 403b duplications) you could hold just VIIIX in those accounts.
If I put all my 403b and 457b in VIIIX, will this increase my total bond allocation to more than 40%? If yes, which stock fund would you recommend, and what percent, so I can maintain a 60-40 portfolio allocation?
VIIIX is 500 Index, a stock index fund, not bonds. You should look at the entire portfolio (his and hers) when figuring your asset allocation (AA). Right now between His 403b and Her TIRA there is 42% of space for low-cost bonds. With that space you don't need to put bonds in Her 403b and 457b.

Also, can you explain the current duplication in Her 403b?
BitTooAggressive
Posts: 1085
Joined: Tue Jul 13, 2021 3:15 pm

Re: Portfolio Review

Post by BitTooAggressive »

igpjazz3 wrote: Mon Jul 26, 2021 4:32 pm Hello,
This is my first post but has been reading the forum almost daily for 2 years now. I am 60 years old and my husband is 61. I have started working on an 'as needed basis' as an Urgent Care physician last September 2020 after practicing full time for about 25 years. This means I take only 1 to 2 9 hour shifts at the clinic once a month or even less. This is just to keep my skills up to date. My husband is full time employed and is planning to work until age 65. We get our health insurance from his job and his salary covers all our current expenses. He is contributing fully to his 403 B and HSA and we contributed to both our Roth IRAs early this year. We did not need to do any backdoor Roth this year because of my change in work status. My current employer usesTransamerica where my 403 B and 457 accounts are held. We used Vanguard PAS for 6 months last year and we manage our own portfolio right now.
Emergency funds: 6 months.
Annual expenses:76,000 after taxes. This includes travel expenses and hopefully will go down once we reach age 70.

Debt: None. Mortgage has been fully paid.
Tax Filing Status: Married Filing Jointly, One adult child who is independent.
Tax Rate:22% Federal, 5% State
State of Residence: WI
Desired Asset allocation: 60% stocks, 40% bonds
Desired International allocation: 10 to 15% of stocks

Please provide the approximate size of your total portfolio: 4.0 M. Not including the house which is about 320K.

Current retirement assets

Taxable: does not include emergency funds
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard Balanced Index Fund VBIAX 0.07 4.8%
Vanguard Developed Markets Index Fund ETF VEA 0.05 5.7%
Vanguard Emerging Market Stock Index Fund VEMAX 0.14 4.0%
Vanguard 500 Index Fund VFIAX 0.04 6.6%
Vanguard US Multifactor ETF VFMF 0.19 0.4%
Vanguard Short Term Investment Grade Fund VFSUX 0.10 2.7%
Vanguard Small-Cap Value Index Fund VSIAX 0.07 5.0%
Vanguard Total Stock Market ETF VTI 0.03 1.1%
Vanguard Extended Market Index Fund VXF 0.06 1.0%

His 403B
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard Total Bond Market Index Fund VBTLX 0.05 18.91%
Vanguard Total Stock Market Index Fund VTSAX 0.04 8.09%

His Roth IRA at Vanguard
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard Midcap Index Fund VIMAX 0.05 0.39%
Vanguard Developed Markets Index Fund VTMGX 0.07 1.21%
Vanguard Total Stock Market Index Fund VTSAX 0.04 2.16%

His HSA
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Fidelity 1.28%

Her 403b
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Baird Aggregate Bond Instl BAGIX 0.30 1.94%
Western Asset Income SDSAX 0.97 0.35%
Fidelity Inflation Protected Bond Index FIPDX 0.05 0.00%
Vanguard Institutional Index Instl PI VIIIX 0.02 0.53%
Principal Large Cap Growth I Inst PLGIX 0.68 0.53%
Dodge & Cox Stock DODGX 0.52 0.53%
Vanguard Midcap Index Fund VIMAX 0.05 0.12%
Janus Henderson Enterprise N JDMNX 0.60 0.06%
DFA US Target Value I DFFVX 0.33 0.06%
Vanguard Small Cap Index InstlPlus VSCPX 0.03 0.06%
Hartford SmallCap Growth HLS IA HISCX 0.67 0.06%
Vanguard Real Estate Index Institutional VGSNX 0.10 0.23%
American Funds EuroPacific Gr R6 RERGX 0.46 0.88%
DFA International Small Company I DFISX 0.44 0.18%
Hartford Schroders Emer Markets Equity SDR SEMTX 1.07 0.35%
Baird Aggregate Bond Instl BAGIX 0.30 0.43%
American Funds EuroPacific Gr R6 RERGX 0.46 0.20%
Vanguard Institutional Index Instl PI VIIIX 0.02 0.12%
Principal Large Cap Growth I Inst PLGIX 0.68 0.12%
Dodge & Cox Stock DODGX 0.52 0.12%
Western Asset Income SDSAX 0.97 0.08%
Hartford Schroders Emer Markets Equity SDR SEMTX 1.07 0.08%
Vanguard Real Estate Index Institutional VGSNX 0.10 0.05%
DFA International Small Company I DFISX 0.44 0.04%
Vanguard Midcap Index Fund VIMAX 0.05 0.03%
Janus Henderson Enterprise N JDMNX 0.60 0.01%
DFA US Target Value I DFFVX 0.33 0.01%
Vanguard Small Cap Index InstlPlus VSCPX 0.03 0.01%
Hartford SmallCap Growth HLS IA HISCX 0.67 0.01%
Fidelity Inflation Protected Bond Index FIPDX 0.05 0.00%


Her Roth IRA
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard 500 Index Fund VFIAX 0.04 6.14%
Vanguard Developed Markets Index Fund VTMGX 0.07 5.69%

Her Traditional IRA at Vanguard
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Vanguard Total Bond Market Index Fund VBTLX 0.05 5.07%
Vanguard Intermediate-Term Investment-Grade Fund VFIDX 0.10 4.12%
Vanguard Short Term Investment Grade Fund VFSUX 0.10 0.05%
Vanguard Total Intl Bond Index Fund VTABX 0.11 5.69%

Her 457B
FUND NAME TICKER EXPENSE RATIO PERCENTAGE
Baird Aggregate Bond Instl BAGIX 0.30 1.56%
Western Asset Income SDSAX 0.97 0.36%
Fidelity Inflation-Protected Bond Index FIPDX 0.05 0.12%
Vanguard Institutional Index Instl PI VIIIX 0.02 0.28%
Principal Large Cap Growth I Inst PLGIX 0.68 0.28%
Dodge & Cox Stock DODGX 0.52 0.28%
Vanguard Midcap Index Fund VIMAX 0.05 0.04%
Janus Henderson Enterprise N JDMNX 0.60 0.04%
DFA US Target Value I DFFVX 0.33 0.04%
Vanguard Small-Cap Index InstlPlus VSCPX 0.03 0.04%
Hartford SmallCap Growth HLS IA HISCX 0.67 0.04%
Vanguard Real Estate Index Institutional VGSNX 0.10 0.12%
American Funds EuroPacific Gr R6 RERGX 0.46 0.52%
DFA International Small Company I DFISX 0.44 0.08%
Hartford Schroders Emer Markets Equity SDR SEMTX 1.07 0.20%


_______________________________________________________________
Note: Total percentage of all the above accounts together (not each account individually) should equal 100%.
New annual Contributions
$26,000 his 401k
Her 403b: I put 80% of my wages about 900 a month to my 403 -B, the amount could be less if I do not work any shifts, no employer contributions
$7000 his IRA/Roth IRA
$7000 her IRA/Roth IRA

I plan to start distributing my 457 in 5 years (2026 - 2030) once my husband retires.

Her pension: 23,000K/year starting age 67 (2028)
He has no pension.

Social security calculations using opensocialsecurity.com. I will defer my claims until age 70 and hubby gets his starting age 66. :
2026: $18804
2027 to 2030: $25072
2031: $55260
2032 and beyond: $65323


Questions:
1. Please evaluate the tax efficiency of our taxable account.

2 I am unable to roll over my current employer 403b into my traditional IRA until I fully retire, most likely next year, 2022. I can see that the expense ratio of the current funds in my 403b are quite high and there are so many funds as well. I use portfolio express to rebalance this. Do you think it is a good idea to roll over my 403b right away after I retire? And if I do, how do I allocate them to the current funds at my traditional IRA?
3.When should we start doing Roth conversions?

Thanks!
I think you have more funds than my son had Pokémon cards when he was in grade school.

Seriously on your stocks I would decide on a US to international allocation and then on any tilt like value or small cap and choose some funds without so much overlap. Surely you can choose no more than 4 or 5 funds to do that.
Topic Author
igpjazz3
Posts: 8
Joined: Mon Oct 19, 2020 4:08 pm

Re: Portfolio Review

Post by igpjazz3 »

Duckie:
Also, can you explain the current duplication in Her 403b?

The duplicate fund was actually my employer contribution.
Topic Author
igpjazz3
Posts: 8
Joined: Mon Oct 19, 2020 4:08 pm

Re: Portfolio Review

Post by igpjazz3 »

BittooAgreesive:

I think you have more funds than my son had Pokémon cards when he was in grade school.

Seriously on your stocks I would decide on a US to international allocation and then on any tilt like value or small cap and choose some funds without so much overlap. Surely you can choose no more than 4 or 5 funds to do that.

Lol, you are right! too many funds.Need to simply. Thanks!
go2run
Posts: 159
Joined: Wed Mar 08, 2017 12:34 pm

Re: Portfolio Review

Post by go2run »

igpjazz3 wrote: Mon Jul 26, 2021 10:01 pm BittooAgreesive:

I think you have more funds than my son had Pokémon cards when he was in grade school.

Seriously on your stocks I would decide on a US to international allocation and then on any tilt like value or small cap and choose some funds without so much overlap. Surely you can choose no more than 4 or 5 funds to do that.

Lol, you are right! too many funds.Need to simply. Thanks!
Maybe consider consolidating to something like this for starters:

Note: I didn't touch taxable or His 403B allocations/investments. The number to the far right is the percentage of total for each fund. This overall allocation will yield a 61.85% stock / 38.46% bond. In all accounts with exception to the taxable, you can sell and reallocate with no tax impact. This will greatly simplify your overall picture. I didn't touch your taxable as I am unsure of what tax implications you will have by simplifying here.

Taxable
Vanguard Balanced Index Fund VBIAX 0.07 4.8% 4.8
Vanguard Developed Markets Index Fund ETF VEA 0.05 5.7% 5.7
Vanguard Emerging Market Stock Index Fund VEMAX 0.14 4.0% 4
Vanguard 500 Index Fund VFIAX 0.04 6.6% 6.6
Vanguard US Multifactor ETF VFMF 0.19 0.4% 0.4
Vanguard Short Term Investment Grade Fund VFSUX 0.10 2.7% 2.7
Vanguard Small-Cap Value Index Fund VSIAX 0.07 5.0% 5
Vanguard Total Stock Market ETF VTI 0.03 1.1% 1.1
Vanguard Extended Market Index Fund VXF 0.06 1.0% 1

His 403B
Vanguard Total Bond Market Index Fund VBTLX 0.05 18.91% 18.91
Vanguard Total Stock Market Index Fund VTSAX 0.04 8.09% 8.09

His Roth IRA at VG
Vanguard Total Stock Market Index Fund VTSAX 0.04 2.16% 3.76

Her 403B
Vanguard Institutional Index Instl PI VIIIX 0.02 0.12% 7.19

Her Roth IRA
Vanguard 500 Index Fund VFIAX 0.04 6.14% 11.83

Her Traditional IRA at Vanguard
Vanguard Total Bond Market Index Fund VBTLX 0.05 5.07% 14.93

Her 457B
Vanguard Institutional Index Instl PI VIIIX 0.02 0.28% 4.3
Topic Author
igpjazz3
Posts: 8
Joined: Mon Oct 19, 2020 4:08 pm

Re: Portfolio Review

Post by igpjazz3 »

Bit2Run:

Maybe consider consolidating to something like this for starters:

Note: I didn't touch taxable or His 403B allocations/investments. The number to the far right is the percentage of total for each fund. This overall allocation will yield a 61.85% stock / 38.46% bond. In all accounts with exception to the taxable, you can sell and reallocate with no tax impact. This will greatly simplify your overall picture. I didn't touch your taxable as I am unsure of what tax implications you will have by simplifying here.

Taxable
Vanguard Balanced Index Fund VBIAX 0.07 4.8% 4.8
Vanguard Developed Markets Index Fund ETF VEA 0.05 5.7% 5.7
Vanguard Emerging Market Stock Index Fund VEMAX 0.14 4.0% 4
Vanguard 500 Index Fund VFIAX 0.04 6.6% 6.6
Vanguard US Multifactor ETF VFMF 0.19 0.4% 0.4
Vanguard Short Term Investment Grade Fund VFSUX 0.10 2.7% 2.7
Vanguard Small-Cap Value Index Fund VSIAX 0.07 5.0% 5
Vanguard Total Stock Market ETF VTI 0.03 1.1% 1.1
Vanguard Extended Market Index Fund VXF 0.06 1.0% 1

His 403B
Vanguard Total Bond Market Index Fund VBTLX 0.05 18.91% 18.91
Vanguard Total Stock Market Index Fund VTSAX 0.04 8.09% 8.09

His Roth IRA at VG
Vanguard Total Stock Market Index Fund VTSAX 0.04 2.16% 3.76

Her 403B
Vanguard Institutional Index Instl PI VIIIX 0.02 0.12% 7.19

Her Roth IRA
Vanguard 500 Index Fund VFIAX 0.04 6.14% 11.83

Her Traditional IRA at Vanguard
Vanguard Total Bond Market Index Fund VBTLX 0.05 5.07% 14.93

Her 457B
Vanguard Institutional Index Instl PI VIIIX 0.02 0.28% 4.3

Thanks for simplifying!. Will definitely look into this.
Topic Author
igpjazz3
Posts: 8
Joined: Mon Oct 19, 2020 4:08 pm

Re: Portfolio Review

Post by igpjazz3 »

Maybe consider consolidating to something like this for starters:

Note: I didn't touch taxable or His 403B allocations/investments. The number to the far right is the percentage of total for each fund. This overall allocation will yield a 61.85% stock / 38.46% bond. In all accounts with exception to the taxable, you can sell and reallocate with no tax impact. This will greatly simplify your overall picture. I didn't touch your taxable as I am unsure of what tax implications you will have by simplifying here.

Taxable
Vanguard Balanced Index Fund VBIAX 0.07 4.8% 4.8
Vanguard Developed Markets Index Fund ETF VEA 0.05 5.7% 5.7
Vanguard Emerging Market Stock Index Fund VEMAX 0.14 4.0% 4
Vanguard 500 Index Fund VFIAX 0.04 6.6% 6.6
Vanguard US Multifactor ETF VFMF 0.19 0.4% 0.4
Vanguard Short Term Investment Grade Fund VFSUX 0.10 2.7% 2.7
Vanguard Small-Cap Value Index Fund VSIAX 0.07 5.0% 5
Vanguard Total Stock Market ETF VTI 0.03 1.1% 1.1
Vanguard Extended Market Index Fund VXF 0.06 1.0% 1

His 403B
Vanguard Total Bond Market Index Fund VBTLX 0.05 18.91% 18.91
Vanguard Total Stock Market Index Fund VTSAX 0.04 8.09% 8.09

His Roth IRA at VG
Vanguard Total Stock Market Index Fund VTSAX 0.04 2.16% 3.76

Her 403B
Vanguard Institutional Index Instl PI VIIIX 0.02 0.12% 7.19

Her Roth IRA
Vanguard 500 Index Fund VFIAX 0.04 6.14% 11.83

Her Traditional IRA at Vanguard
Vanguard Total Bond Market Index Fund VBTLX 0.05 5.07% 14.93

Her 457B
Vanguard Institutional Index Instl PI VIIIX 0.02 0.28% 4.3

Thanks so much! Done :-) Next question is: when do we start Roth conversions?

Good day to all!
Topic Author
igpjazz3
Posts: 8
Joined: Mon Oct 19, 2020 4:08 pm

Re: Portfolio Review

Post by igpjazz3 »

Hello,

I have read that Vanguard Balanced Index Fund (VBIAX) is not very tax efficient in a taxable account. What do you suggest I replace it with? I understand I will have to pay capital gains tax is I sell it. I can add some bonds in my current 403-B to offset the bonds that I will sell.

Thanks!
User avatar
retired@50
Posts: 12821
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Portfolio Review

Post by retired@50 »

igpjazz3 wrote: Wed Sep 01, 2021 6:33 pm Hello,

I have read that Vanguard Balanced Index Fund (VBIAX) is not very tax efficient in a taxable account. What do you suggest I replace it with? I understand I will have to pay capital gains tax is I sell it. I can add some bonds in my current 403-B to offset the bonds that I will sell.

Thanks!
There are a couple of Boglehead wiki pages that can help you decide.

First, there's the tax-efficient fund placement page - linked below - usually it's best to use a pure stock index fund in a taxable account, or possibly a municipal bond fund ** if ** you are in a high enough tax bracket AND you don't have any more room for bonds in your tax-deferred accounts.
https://www.bogleheads.org/wiki/Tax-eff ... _placement

Second, there is a wiki page that discusses the tax cost of switching funds. It might be worth a read to help you save on taxes when selling VBIAX.
https://www.bogleheads.org/wiki/Paying_ ... itch_funds

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Topic Author
igpjazz3
Posts: 8
Joined: Mon Oct 19, 2020 4:08 pm

Re: Portfolio Review

Post by igpjazz3 »

Thanks retired@50, I will look into these!
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