I need suggestions on my portfolio

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Topic Author
Billyboy
Posts: 216
Joined: Mon Mar 24, 2008 2:21 pm
Location: California

I need suggestions on my portfolio

Post by Billyboy »

Following are the stocks I transferred into Vanguard from an outside Broker charging me 1%.Thanks to anyone who takes the time to look at all of this baloney. Prior to going to the broker the majority of it was in the Total Stock Market Admiral VTSAX, with some of it out of Total International Stock Mkt. VTIAX. I don't really care for the International?? What to do? Keep as is, haha put in Funds, if so which ones, Cash, Ally Bank? Suggestions:
Billy Boy—Rollover IRA Brokerage
Currently worth $829,053.01
When transferred to broker worth $936,151.43
A lot of this decline happened within this last downturn.
Vanguard Federal Money Market Fund (Settlement fund)
Trade date cash balance $57,066.22
Settlement fund accrued dividends —
Symbol Name Quantity Prices as of 05/11/2022 Balance Accrued
dividends Total balance
JEPI JPMORGAN EQUITY PREMIUM INCOME ETF 201.000 $56.250 $11,306.25

Stocks
GOOGL ALPHABET INC 15.000 $2,272.050 $34,080.75
AAPL APPLE INC 648.848 $146.500 $95,056.23
BAC BANK OF AMERICA 803.000 $35.570 $28,562.71
BRK BERKSHIRE HATHAWAY100.000 $311.540 $31,154.00
BA BOEING COMPANY 150.000 $129.390 $19,408.50
AVGO BROADCOM 76.000 $567.110 $43,100.3
CLF CLEVELAND CLIFFS 1,200.000 $21.400 $25,680.00
CV CVS HEALTH CORP 305.000 $97.990 $29,886.95
GS GOLDMAN SACHS 101.000 $301.550 $30,456.55
KKR KKR & CO INC 602.000 $50.150 $30,190.30
MSFT MICROSOFT CORP 251.000 $260.550 $65,398.05
MRNA MODERNA INC 150.000 $123.430 $18,514.50
MS MORGAN STANLEY 204.000 $78.890 $16,093.56
NVDA NVIDIA CORP 250.000 $166.300 $41,575.00
NXPI NXP SEMICONDUCTORS N V152.000$170.870$25,972.24
ON ON SEMICONDUCTOR CORP 800.000 $51.770 $41,416.00
PLUG PLUG POWER INC NEW 800.000 $13.450 $10,760.00
SBUX STARBUCKS CORP 152.000 $70.060 $10,649.12
TMO THERMO FISHER SCIENTIFIC INC 100.000 $520.000 $52,000.00
UBER UBER TECHNOLOGIES INC 1,000.000 $22.570 $22,570.00
UNH UNITEDHEALTH GROUP INC 100.000 $486.150 $48,615.00
V VISA INC CL A 201.000 $196.720 $39,540.72
Thanks in advance to anyone who provides any feedback.
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retired@50
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Location: Living in the U.S.A.

Re: I need suggestions on my portfolio

Post by retired@50 »

Billyboy wrote: Thu May 12, 2022 7:01 pm ...
Billy Boy—Rollover IRA Brokerage
Currently worth $829,053.01
...
Thanks in advance to anyone who provides any feedback.
If I'm reading this correctly, the individual stocks are held inside the Rollover IRA...

If so, then you can sell everything and put the proceeds into the stock and bond index funds of your choice with no tax consequences.

VTSAX for US stock.
You can skip international, as indicated in your post.
VBTLX for US Bonds

It's the two fund portfolio: https://www.bogleheads.org/wiki/Two-fund_portfolio

All you have to do is decide on what allocation you want. Stocks / Bonds / Cash.
Do you have other accounts to consider?
Do you have any strong feelings about your stock/bond/cash mixture?

Regards,
This is one person's opinion. Nothing more.
DIYtrixie
Posts: 130
Joined: Sun Sep 13, 2020 12:11 pm

Re: I need suggestions on my portfolio

Post by DIYtrixie »

retired@50 wrote: Thu May 12, 2022 7:15 pm
Billyboy wrote: Thu May 12, 2022 7:01 pm ...
Billy Boy—Rollover IRA Brokerage
Currently worth $829,053.01
...
Thanks in advance to anyone who provides any feedback.
If I'm reading this correctly, the individual stocks are held inside the Rollover IRA...

If so, then you can sell everything and put the proceeds into the stock and bond index funds of your choice with no tax consequences.

VTSAX for US stock.
You can skip international, as indicated in your post.
VBTLX for US Bonds

It's the two fund portfolio: https://www.bogleheads.org/wiki/Two-fund_portfolio

All you have to do is decide on what allocation you want. Stocks / Bonds / Cash.
Do you have other accounts to consider?
Do you have any strong feelings about your stock/bond/cash mixture?

Regards,
+1. This actually looks like one of the simpler “messes” (made by active management) to straighten out.
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Watty
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Joined: Wed Oct 10, 2007 3:55 pm

Re: I need suggestions on my portfolio

Post by Watty »

There is a getting started wiki if you have not seen it.

https://www.bogleheads.org/wiki/Getting_started

You are lucky that this is all in a retirement account so you will not have tax problems when you figure out what you want to do to clean it up.
Billyboy wrote: Thu May 12, 2022 7:01 pm What to do? Keep as is, haha put in Funds, if so which ones,
A three fund portfolio would be an option to look at. You could omit the international stocks if you want to and have a two fund portfolio. There are lots of people and opinions about having international stock or not but it does not seem to be a huge deal if you omit international stocks since companies are so global now.

https://www.bogleheads.org/wiki/Three-fund_portfolio
Topic Author
Billyboy
Posts: 216
Joined: Mon Mar 24, 2008 2:21 pm
Location: California

Re: I need suggestions on my portfolio

Post by Billyboy »

Thanks Bogleheads; I also have $1,741,000.00 already at Vanguard; 59% VTSAX, 38% VBTLX and 3% Short-term Reserves. Now after the transfer has come in I'm 71.4% Stocks, 38% Bonds and 2.2% Short-term Reserves. My original allocation goal was 60% Stocks, 40% Bonds. But I really don't have a preference. Except no 100% stocks or 100% bonds. Any more words of wisdom will be appreciated. BTW I'm 78 yrs old and she's 76.
speckledt
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Joined: Thu Dec 12, 2019 4:45 pm

Re: I need suggestions on my portfolio

Post by speckledt »

Do you realize VTSAX is 25 percent technology stocks?
Very risky in my humble opinion, especially for your age group and in a rising interest rate environment.
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retiredjg
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Re: I need suggestions on my portfolio

Post by retiredjg »

speckledt wrote: Fri May 13, 2022 6:34 am Do you realize VTSAX is 25 percent technology stocks?
Very risky in my humble opinion, especially for your age group and in a rising interest rate environment.
Surprised me. :shock:

But that is what the market is, according to the index they follow. So while surprised, I would not be concerned.
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retired@50
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Re: I need suggestions on my portfolio

Post by retired@50 »

Billyboy wrote: Thu May 12, 2022 10:44 pm Thanks Bogleheads; I also have $1,741,000.00 already at Vanguard; 59% VTSAX, 38% VBTLX and 3% Short-term Reserves. Now after the transfer has come in I'm 71.4% Stocks, 38% Bonds and 2.2% Short-term Reserves. My original allocation goal was 60% Stocks, 40% Bonds. But I really don't have a preference. Except no 100% stocks or 100% bonds. Any more words of wisdom will be appreciated. BTW I'm 78 yrs old and she's 76.
Something doesn't add up... :shock:

71.4 + 38 + 2.2 = 111.6 - Now that's going the extra mile. 111.6% invested in stocks / bond / cash.

Maybe some investigating will reveal your true asset allocation.

Regards,
This is one person's opinion. Nothing more.
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ruralavalon
Posts: 23307
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Location: Illinois

Re: I need suggestions on my portfolio

Post by ruralavalon »

Billyboy wrote: Thu May 12, 2022 7:01 pm Following are the stocks I transferred into Vanguard from an outside Broker charging me 1%.Thanks to anyone who takes the time to look at all of this baloney. Prior to going to the broker the majority of it was in the Total Stock Market Admiral VTSAX, with some of it out of Total International Stock Mkt. VTIAX. I don't really care for the International?? What to do? Keep as is, haha put in Funds, if so which ones, Cash, Ally Bank? Suggestions:
Billy Boy—Rollover IRA Brokerage
Currently worth $829,053.01
. . . . .
Billyboy wrote: Thu May 12, 2022 10:44 pm Thanks Bogleheads; I also have $1,741,000.00 already at Vanguard; 59% VTSAX, 38% VBTLX and 3% Short-term Reserves. Now after the transfer has come in I'm 71.4% Stocks, 38% Bonds and 2.2% Short-term Reserves. My original allocation goal was 60% Stocks, 40% Bonds. But I really don't have a preference. Except no 100% stocks or 100% bonds. Any more words of wisdom will be appreciated. BTW I'm 78 yrs old and she's 76.
In my opinion an asset allocation of 60/40 stock/fixed income is within the range of what is reasonable at ages 76 & 78.

In your rollover IRA you could simply use Vanguard Balanced Index Fund (VBIAX), witch has a 60/40 asset allocation.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
niagara_guy
Posts: 590
Joined: Tue Feb 11, 2020 8:32 am

Re: I need suggestions on my portfolio

Post by niagara_guy »

The s&p 500 index is down 16% ytd, so keep that in mind. Broad index funds do not protect you from a market decline like we are in now.

If these stocks/funds are in a taxable account make sure you have the cost basis from the old broker. If these are in taxable then you need to be careful or you can have a big tax bill if you sell something with a lot of gains. I am going to assume they are in a retirement account, post again to let us know if they are in taxable, the advice will be different because of tax implications.

I use index funds (VFIAX and total stock market) and would recommend these for your stock portion of your asset allocation (AA). They are both broadly diversified, pick a stock index fund with low cost (less than .05%/year) and broad exposure.

You can sell these stocks (assuming not in taxable) and buy index funds and use a 3 fund portfolio if you want.
Topic Author
Billyboy
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Location: California

Re: I need suggestions on my portfolio

Post by Billyboy »

Good catch retired at 50! Complete Asset allocation is Stocks 70%, Bonds 26%, Short- term Reserves 4%. I transposed a number and now this morning Vanguard changed to full numbers.
Anyway I'd still like to get some more expertise from any of you. Many or most of you feel that VBTLX is the best option for the fixed side; however, unless I read it incorrectly, which is very possible, it appears that it is down 4% this year. I know, it pays monthly dividends, but sometimes that's not enough. Is that a true statement under the current case or not? If so, what other choices could be used or preferred.
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retired@50
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Re: I need suggestions on my portfolio

Post by retired@50 »

Billyboy wrote: Fri May 13, 2022 4:49 pm Good catch retired at 50! Complete Asset allocation is Stocks 70%, Bonds 26%, Short- term Reserves 4%. I transposed a number and now this morning Vanguard changed to full numbers.
Anyway I'd still like to get some more expertise from any of you. Many or most of you feel that VBTLX is the best option for the fixed side; however, unless I read it incorrectly, which is very possible, it appears that it is down 4% this year. I know, it pays monthly dividends, but sometimes that's not enough. Is that a true statement under the current case or not? If so, what other choices could be used or preferred.
Interest rates are rising, both by the Federal Reserve, and in the marketplace. Mortgage rates are now over 5%.

This fact has driven down prices for pretty much all bond and/or fixed income assets.

VBTLX - Total bond is still an acceptable fixed income investment if you have a time horizon of 4 - 10 years (or more).

If you are expecting to spend the money sooner, consider a short term bond fund (still has some risk) or buy CDs, money market funds, or other cash investments if you cannot tolerate the price fluctuation.

I'm still using a combination of VBTLX (total bond) and VTABX (total international bond) in an 80% US / 20% International mixture. I expect to be a bond fund investor for another 30 years, maybe more.

Regards,
This is one person's opinion. Nothing more.
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