Portfolio Analysis for 29 y.o.

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Topic Author
dolira19
Posts: 2
Joined: Sun Feb 11, 2024 10:24 am

Portfolio Analysis for 29 y.o.

Post by dolira19 »

Hi all - looking to get some feedback on my current portfolio and areas for improvement/next steps to consider. Thanks so much!

Emergency funds: Yes, 6 mo.

Debt: down to $8k in federal student loans at 3.5% (received a master's and bachelor's for ~$80k total). No other debt.

Tax Filing Status: Single

Tax Rate: 24% Federal, 4.95% State

State of Residence: IL

Housing: renting, no plans within the next 3 yrs to purchase anything

Age: 29

Desired Asset allocation: 90% stocks / 10% bonds - looking for feedback here :)
Desired International allocation: 35% of stocks - looking for feedback here :)

Total portfolio worth: ~$270k (9.2% in emergency) + have a car worth ~$10k but total does not include this
_______________________________________________________________

Current retirement assets

Taxable at Vanguard
20.4% cash
2.1% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) (0.04% expense ratio)
1.2% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) (0.11% expense ratio)

Roth IRA at Vanguard
14.9% Vanguard Target Retirement 2060 Fund (VTTSX) (0.08% expense ratio)

HSA at Fidelity (current employer)
0.9% Fidelity Total Market Index Fund (FSKAX) (0.015% expense ratio)
0.6% Fidelity Total Intl Index Fund (FTIHX) (0.06% expense ratio)

401k at Fidelity (current employer)
8.6% Fidelity Freedom Index 2060 Fund Institutional Premium Class (FFLEX) (0.08%)

403b at Fidelity (previous employer)
26.3% Vanguard Target Retirement 2060 Fund (VTTSX) (0.08% expense ratio). 4.4% (of the 26.3%) is traditional and remaining is Roth.

401a at Fidelity (previous employer)
15.8% Vanguard Target Retirement 2060 Trust I (no symbol, see available fund options below) (0.065% expense ratio). All traditional, no Roth.
_______________________________________________________________

Contributions

New annual Contributions
$23k 401k (25% going to traditional and rest is Roth; +4% employer match)
$7k Roth IRA
$26k taxable (doing $500/week at the moment)
$4150 to HSA (goes directly to Health Equity and then transfer to Fidelity periodically)
_______________________________________________________________

Available funds

Funds available in 401k (current employer)
Fidelity® 500 Index Fund (FXAIX) (0.015%)
American Funds American Mutual Fund® Class R-6 (RMFGX) (0.27%)
American Century Mid Cap Value Fund R6 Class (AMDVX) (0.63%)
Calvert US Large Cap Core Responsible Index Fund Class R6 (CSXRX) (0.19%)
Allspring Special Small Cap Value Fund - Class R6 (ESPRX) (0.83%)
Fidelity® Blue Chip Growth K6 Fund (FBCGX) (0.46%)
American Funds Growth and Income Portfolio Class R-6 (RGNGX) (0.35%)
Fidelity® Mid Cap Index Fund (FSMDX) (0.025%)
Cohen & Steers Realty Shares Fund Class Z (CSJZX) (0.8%)
American Funds Conservative Growth and Income Portfolio Class R-6 (RINGX) (0.29%)
Fidelity Freedom® Index 2055 Fund Institutional Premium Class (FFLDX) (0.08%)
Fidelity Freedom® Index 2060 Fund Institutional Premium Class (FFLEX) (0.08%)
Fidelity Freedom® Index 2045 Fund Institutional Premium Class (FFOLX) (0.08%)
Fidelity Freedom® Index 2050 Fund Institutional Premium Class (FFOPX) (0.08%)
Fidelity Freedom® Index 2065 Fund Institutional Premium Class (FFIKX) (0.08%)
American Funds Growth Portfolio Class R-6 (RGWGX) (0.39%)
American Funds Moderate Growth and Income Portfolio Class R-6 (RBAGX) (0.35%)
Fidelity Freedom® Index 2040 Fund Institutional Premium Class (FFIZX) (0.08%)
Impax Sustainable Allocation Fund Class Institutional (PAXIX) (0.65%)
Fidelity Freedom® Index 2035 Fund Institutional Premium Class (FFEZX) (0.08%)
Impax Global Environmental Markets Fund Institutional Class (PGINX) (0.91%)
Fidelity® International Capital Appreciation K6 Fund (FAPCX) (0.65%)
Fidelity® Government Money Market Fund Class K6 (FNBXX) (0.25%)
Fidelity Freedom® Index 2030 Fund Institutional Premium Class (FFEGX) (0.08%)
Fidelity Freedom® Index 2025 Fund Institutional Premium Class (FFEDX) (0.08%)
Fidelity Freedom® Index 2020 Fund Institutional Premium Class (FIWTX) (0.08%)
Fidelity® Global ex U.S. Index Fund (FSGGX) (0.055%)
MFS Mid Cap Growth Fund Class R6 (OTCKX) (0.66%)
Fidelity Freedom® Index 2015 Fund Institutional Premium Class (FIWFX) (0.08%)
Fidelity Freedom® Index 2010 Fund Institutional Premium Class (FFWTX) (0.08%)
Fidelity Freedom® Index 2005 Fund Institutional Premium Class (FFGFX) (0.08%)
Fidelity Freedom® Index Income Fund Institutional Premium Class (FFGZX) (0.08%)
American Funds Preservation Portfolio Class R-6 (RPPGX) (0.28%)
Fidelity® Small Cap Index Fund (FSSNX) (0.025%)
Fidelity® Inflation-Protected Bond Index Fund (FIPDX) (0.05%)
Fidelity® Total Bond K6 Fund (FTKFX) (0.3%)
JPMorgan Government Bond Fund Class R6 (OGGYX) (0.3%)
Fidelity® U.S. Bond Index Fund (FXNAX) (0.025%)
RBC Emerging Markets Equity Fund Class R6 (RREMX) (0.88%)
AB Small Cap Growth Portfolio Class Z (QUAZX) (0.78%)

Funds available in 403b (previous employer)
Parnassus Core Equity Fund - Institutional Shares (PRILX) (0.61% expense ratio)
Vanguard Total Stock Market Index Fund Institutional Plus Shares (VSMPX) (0.02% expense ratio)
PIMCO Inflation Response Multi-Asset Fund Institutional (PIRMX) (0.82% expense ratio)
Vanguard Target Retirement 2065 Fund (VLXVX) (0.08% expense ratio)
Vanguard Target Retirement 2060 Fund (VTTSX) (0.08% expense ratio)
Vanguard Target Retirement 2050 Fund (VFIFX) (0.08% expense ratio)
Vanguard Target Retirement 2055 Fund (VFFVX) (0.08% expense ratio)
Vanguard Target Retirement 2045 Fund (VTIVX) (0.08% expense ratio)
Vanguard Target Retirement 2040 Fund (VFORX) (0.08% expense ratio)
Vanguard Target Retirement 2035 Fund (VTTHX) (0.08% expense ratio)
Vanguard Target Retirement 2030 Fund (VTHRX) (0.08% expense ratio)
Harbor Diversified International All Cap Fund Retirement Class (HNIDX) (0.72% expense ratio)
Vanguard Target Retirement 2025 Fund (VTTVX) (0.08% expense ratio)
Vanguard Target Retirement 2020 Fund (VTWNX) (0.08% expense ratio)
Vanguard Total International Stock Index Fund Institutional Shares (VTSNX) (0.08% expense ratio)
Vanguard Target Retirement Income Fund (VTINX) (0.08% expense ratio)
BlackRock Total Return Fund Class K Shares (MPHQX) (0.38% expense ratio)
Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) (0.035% expense ratio)
Vanguard Target Retirement 2070 Fund (VSVNX) (0.08% expense ratio)

Funds available in 401a (previous employer)
Parnassus Sustainable Core Equity CIT Fund Class 1 (0.49%)
PIMCO Inflation Response Multi-Asset Fund Institutional (PIRMX) (0.82%)
Vanguard Target Retirement 2065 Trust I (0.065%)
Vanguard Target Retirement 2060 Trust I (0.065%)
Vanguard Target Retirement 2050 Trust I (0.065%)
Vanguard Target Retirement 2055 Trust I (0.065%)
Vanguard Target Retirement 2045 Trust I (0.065%)
Vanguard Target Retirement 2040 Trust I (0.065%)
Vanguard Target Retirement 2035 Trust I (0.065%)
Vanguard Target Retirement 2030 Trust I (0.065%)
Harbor Diversified International All Cap Fund Retirement Class (HNIDX) (0.72%)
Vanguard Target Retirement 2025 Trust I (0.065%)
Vanguard Target Retirement 2020 Trust I (0.065%)
Vanguard Target Retirement Income Trust I (0.065%)
BlackRock Total Return Bond Fund T (0.217%)
Prudential Guaranteed Interest Account (0.1%)
Vanguard Institutional Total Bond Market Index Trust (0.03%)
Vanguard Institutional Total International Stock Market Index Trust (0.07%)
Vanguard Institutional Total Stock Market Index Trust (0.015%)
Vanguard Target Retirement 2070 Trust I (0.065%)

_______________________________________________________________

Questions:
1. Any glaring issues that you recommend fixing or alternatives to consider, e.g., change from target date?

2. Is DCA an ok approach for taxable account or should I just do lump sum?
Last edited by dolira19 on Mon Feb 12, 2024 7:01 am, edited 1 time in total.
bonesly
Posts: 882
Joined: Mon Dec 18, 2017 9:28 pm
Location: WA

Re: Portfolio Analysis for 29 y.o.

Post by bonesly »

dolira19 wrote: Sun Feb 11, 2024 2:20 pm Desired Asset allocation: 90% stocks / 10% bonds - looking for feedback here :)
Desired International allocation: 35% of stocks - looking for feedback here :)
If you've read the topics on Asset Allocation (AA) and Assessing Risk Tolerance, then 90/10 with 35% of stocks in Int'l is fine. If you're still doubting whether this is right for you, consider taking the Vanguard Investor Questionnaire to see what AA it recommends and if you agree with that or not.
dolira19 wrote: Sun Feb 11, 2024 2:20 pm 1. Any glaring issues that you recommend fixing or alternatives to consider, e.g., change from target date?
I always find that holding a Target Date Fund and pure asset class funds (like Total US Stock, Total Int'l Stock, and Total US Bond) makes the calculation of your current AA a little more complicated, but if you're good with a spreadsheet and don't mind looking up the TDF's % holdings among the three basic classes, then it's fine.

You're holding Total US Stock and Total Int'l Stock in both the taxable account (Vanguard funds) and the tax-advantaged accounts (Fidelity HSA). Despite that the funds are different (Van vs Fido) they track the same index and have the potential to trigger the Wash Sale Rule if you ever sell for a loss in the taxable account and happen to buy (perhaps through auto-reinvestment of distributions) in the HSA. You can avoid that potential issue by doing one of the following:
1) hold Van S&P-500 (VFIAX) and Van Developed Markets (VTMGX) in the taxable account (similar but not "substantially identical"); -OR-
2) Turn off auto-reinvestment in the HSA and do manual buys for new purchases and reinvestment of distributions, noting to wait 31 days if there's been a loss-sale in the taxable for one or both funds
dolira19 wrote: Sun Feb 11, 2024 2:20 pm 2. Is DCA an ok approach for taxable account or should I just do lump sum?
Lump-sum beats DCA 2/3 of the time (see the Wiki Topic on DCA vs Lump Sum), but if that 1/3 that DCA wins is of concern, consider a 50/50 split. Put half of your cash into the market now and invest the other half every month for 6-12 months. I'd go lump-sum but that might not be right for you and your risk-tolerance.
Topic Author
dolira19
Posts: 2
Joined: Sun Feb 11, 2024 10:24 am

Re: Portfolio Analysis for 29 y.o.

Post by dolira19 »

Those are really great notes. Thanks for taking the time! I've got some homework.
BackToSchoolDad
Posts: 250
Joined: Wed Mar 18, 2020 6:33 pm

Re: Portfolio Analysis for 29 y.o.

Post by BackToSchoolDad »

Personally, I wouldn't change a thing. You've got good, index based target date funds available, I'd just stick with those.

Have you considered rolling over or consolidating your old accounts? Could make management simpler long term.

The only thing you may want to think about is what to do with that taxable account. Does that represent your EF?

If you like the one fund idea, iShares just came out with target retirement ETFs that could simplify things further, but they're new. I would probably switch to ETFs there for the portability sake and because I prefer them, but the VG mutual funds you're using are excellent and tax efficient.
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