Portfolio Review Request - 45yo

[knitabook]

Hey Bogleheads--I'm a longtime lurker on this forum and I'm looking for some advice from seasoned investors. I'm starting to think of retirement as a real thing that will actually happen. I'm great at saving, but have no good plan for how I will withdraw funds. It seems like all the investment advice online is targeted towards people who are starting their investing journey or are really far behind. I need some "I'm in pretty good shape, but what's next/what am I missing" type of advice. Thanks in advance for your help.

Emergency funds: Yes. 6+ months

Debt: None

Tax Filing Status: Single

Tax Rate: 22% Federal (bracket, effective closer to 12%), 5% State

State of Residence: Kansas

Age: 45

Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: Unsure

Portfolio Value: ~641k

Current retirement assets

Taxable ~182k

8% cash - in multiple CDs
14% Vanguard Total International Stock Index Fund ETF (VXUS) (0.08)
4% Vanguard FTSE Emerging Markets Index Fund ETF (VWO) (0.08)
8% Vanguard Total International Bond Index Fund ETF (BNDX) (0.05)
32% Vanguard Total Stock Market Index Fund ETF Shares (VTI) (0.03)
14% Vanguard Total Bond Market Index Fund ETF (BND) (0.03)
9% Vanguard Total World Stock Index Fund ETF (VT) (0.07)
2% Vanguard REIT ETF (VNQ) (0.13)
10% Ibonds


401k ~195k

9% John Hancock Bond Fund Class R6 (JHBSX) (0.36)
4% PIMCO International Bond Fund (U.S. Dollar-Hedged) I (PFORX) (0.75)
17% American Funds Europac Growth (AEPGX) (0.85)
57% John Hancock Variable Insurance Trust 500 Index (JFIVX) (0.3)
13% American Funds New World Fund (NEWFX) (0.96)

Company match 3%

Roth IRA at Vanguard ~180k

1% Vanguard Extended Market Index Fund ETF Shares (VXF) (0.22)
38% Vanguard LifeStrategy Growth Fund Investor Shares (VASGX) (0.14)
26% Vanguard FTSE Social Index Fund Admiral (VFTAX) (0.14)
35% Vanguard Wellington Fund Admiral Shares (VWENX) (0.18)

Trad Rollover IRA at Vanguard ~35k

33% Vanguard LifeStrategy Growth Fund Investor Shares (VASGX) (0.14)
67% Vanguard Wellington Fund Investor Shares (VWELX) (0.25)

Health Savings Account at Fidelity ~49k

100% Fidelity Asset Manager 85% Fund (FAMRX) (0.68)

_______________________________________________________________

Contributions

New annual Contributions
$6500 401k (+2k employer contributions)
$7000 Roth IRA
$0 taxable (for retirement, not short term goals)

Available funds

Funds available in 401(k)

American Funds 2045 TD 0.37
American Funds 2040 TD 0.37
JH Multimanager Aggressive LS 0.68
JH Multimanager Growth LS 0.62
JH Multimanager Balanced LS 0.57
JH Multimanager Moderate LS 0.52
JH Multimanager Conserv LS 0.48
Allspring Special MidCap Value 0.57
American Century Small Cap Val 0.74
American Funds New World Fund 0.57
Cohen & Steers Real Estate 0.65
DFA U.S. Small Cap Fund 0.27
Fidelity Advisor Energy Fund 0.46
JPMorgan Large Cap Growth 0.44
MFS Mid Cap Growth Fund 0.54
Mid Cap Index Fund 0.16
Putnam Small Cap Growth Fund 0.75
500 Index Fund 0.05
American Funds EuroPac Growth 0.47
Washington Mutual Investors 0.26
DFA International Value 0.28
Diamond Hill Large Cap Fund 0.5
MFS Massachusetts Investors 0.21
Total Stock Market Index Fund 0.16
AF American Balanced Fund 0.25
BlackRock High Yield Bond Fund 0.43
BlackRock U.S. Debt Index Fund 0.04
DFA Inflation-Protected Sec 0.11
John Hancock Bond Fund 0.26
PIMCO Intl Bond USD-Hedged 0.75
John Hancock Stable Val 0.42


Questions:

1. Is there any “cleanup” that could be done on my portfolio as it stands now that could save me some expenses / headaches over the next 10-15 years?

2. I am feeling a sense of vague dissatisfaction with Vanguard these days. I can't really put my finger on it, but I find myself thinking of moving accounts to Fidelity more and more often. It could just be general anxiety. Should I seriously consider this action?

3. Should I work with a financial planner? I've been a DIY investor forever and I think I'm in pretty good shape for retirement. But, I don't have a clear grasp of things like tax strategies and Roth conversions. I'm a little afraid of taking money out (which I know is not rational). I'm 15-20 years out from retirement (hopefully). Do I need to make changes now to optimize withdrawals in the future? How bad could I screw this up?

4. I don't really like any of the funds in my 401k. Should I just do a target fund?

[dogagility]

I'm starting to think of retirement as a real thing that will actually happen. I'm great at saving, but have no good plan for how I will withdraw funds.

Is your question how much I can withdraw/year? If so, I suggest using either VPW or TPAWPlanner.
viewtopic.php?t=120430
https://tpawplanner.com/
viewtopic.php?t=331368

401k ~195k
9% John Hancock Bond Fund Class R6 (JHBSX) (0.36)
4% PIMCO International Bond Fund (U.S. Dollar-Hedged) I (PFORX) (0.75)
17% American Funds Europac Growth (AEPGX) (0.85)
57% John Hancock Variable Insurance Trust 500 Index (JFIVX) (0.3)
13% American Funds New World Fund (NEWFX) (0.96)

Rather than the funds you're using, these are better funds (broad, low cost index funds):
Total Stock Market Index Fund 0.16
BlackRock U.S. Debt Index Fund 0.04

Roth IRA at Vanguard ~180k

1% Vanguard Extended Market Index Fund ETF Shares (VXF) (0.22)
38% Vanguard LifeStrategy Growth Fund Investor Shares (VASGX) (0.14)
26% Vanguard FTSE Social Index Fund Admiral (VFTAX) (0.14)
35% Vanguard Wellington Fund Admiral Shares (VWENX) (0.18)

Trad Rollover IRA at Vanguard ~35k

33% Vanguard LifeStrategy Growth Fund Investor Shares (VASGX) (0.14)
67% Vanguard Wellington Fund Investor Shares (VWELX) (0.25)

I would simplify this by investing in total stock market and total bond market index funds.

Health Savings Account at Fidelity ~49k

100% Fidelity Asset Manager 85% Fund (FAMRX) (0.68)

This fund expense ratio is too high. Select among these Fidelity index funds instead. This link should help. https://www.bogleheads.org/wiki/Fidelity

2. I am feeling a sense of vague dissatisfaction with Vanguard these days. I can't really put my finger on it, but I find myself thinking of moving accounts to Fidelity more and more often. It could just be general anxiety. Should I seriously consider this action?

I and many Bogleheads really like Fidelity. https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop

3. Should I work with a financial planner? I've been a DIY investor forever and I think I'm in pretty good shape for retirement. But, I don't have a clear grasp of things like tax strategies and Roth conversions. I'm a little afraid of taking money out (which I know is not rational). I'm 15-20 years out from retirement (hopefully). Do I need to make changes now to optimize withdrawals in the future? How bad could I screw this up?

You can learn all of this and DIY if you have the interest and time to read and ask questions on the forum.

If you want to pay a financial planner instead, that is also a choice. But not needed by any means.

[tashnewbie]

Taxable ~182k

8% cash - in multiple CDs
14% Vanguard Total International Stock Index Fund ETF (VXUS) (0.08)
4% Vanguard FTSE Emerging Markets Index Fund ETF (VWO) (0.08)
8% Vanguard Total International Bond Index Fund ETF (BNDX) (0.05)
32% Vanguard Total Stock Market Index Fund ETF Shares (VTI) (0.03)
14% Vanguard Total Bond Market Index Fund ETF (BND) (0.03)
9% Vanguard Total World Stock Index Fund ETF (VT) (0.07)
2% Vanguard REIT ETF (VNQ) (0.13)
10% Ibonds

I would stop using the highlighted funds in taxable because they're tax inefficient. If you can sell them with no or low tax cost, I suggest doing that. If not, then stop adding new money to them and divert dividends elsewhere.

I probably wouldn't use VT in taxable either and would opt to use separate US and ex-US funds, but that's up to you.

Funds available in 401(k)
500 Index Fund 0.05
Total Stock Market Index Fund 0.16
BlackRock U.S. Debt Index Fund 0.04

I don't know why you dislike the choices in your 401k. The above options are great. You can decide whether you want S&P500 or total market for US stock.

Questions:
1. Is there any “cleanup” that could be done on my portfolio as it stands now that could save me some expenses / headaches over the next 10-15 years?

I would stop using the funds I mentioned in taxable and would opt for cheaper funds in the other accounts.

Otherwise, I don't see any glaring issues. I think you'll just need to keep adding new money and be patient. Might be worthwhile to learn basics of withdrawal strategies now. I'd probably revisit that within 5-10 years from possible retirement.

[HMSVictory]

I would simplify your portfolio to the following:

Taxable ~182k

VTI - 100%

401k ~195k

BlackRock U.S. Debt Index Fund - 50%
Total Stock - 50%

Roth IRA at Vanguard ~180k

VXUS - most of the account till you hit your international goal then the remainder in VTI

Trad Rollover IRA at Vanguard ~35k

BND - 100%

Leave the HSA as is.

I can scale this portfolio from 641k to 641M without any additional hassles. If you have substantial taxable gains in your taxable account you may not want to consolidate it BUT if they are minimal I would pay the 15% capital gains taxes and stream line.

[retired@50]

... I need some "I'm in pretty good shape, but what's next/what am I missing" type of advice. Thanks in advance for your help.

Taxable ~182k

8% cash - in multiple CDs
14% Vanguard Total International Stock Index Fund ETF (VXUS) (0.08)
4% Vanguard FTSE Emerging Markets Index Fund ETF (VWO) (0.08)
8% Vanguard Total International Bond Index Fund ETF (BNDX) (0.05)
32% Vanguard Total Stock Market Index Fund ETF Shares (VTI) (0.03)
14% Vanguard Total Bond Market Index Fund ETF (BND) (0.03)
9% Vanguard Total World Stock Index Fund ETF (VT) (0.07)
2% Vanguard REIT ETF (VNQ) (0.13)
10% Ibonds

Contributions

New annual Contributions
$6500 401k (+2k employer contributions)
$7000 Roth IRA

Questions:

1. Is there any “cleanup” that could be done on my portfolio as it stands now that could save me some expenses / headaches over the next 10-15 years?

2. I am feeling a sense of vague dissatisfaction with Vanguard these days. I can't really put my finger on it, but I find myself thinking of moving accounts to Fidelity more and more often. It could just be general anxiety. Should I seriously consider this action?

3. Should I work with a financial planner? I've been a DIY investor forever and I think I'm in pretty good shape for retirement. But, I don't have a clear grasp of things like tax strategies and Roth conversions. I'm a little afraid of taking money out (which I know is not rational). I'm 15-20 years out from retirement (hopefully). Do I need to make changes now to optimize withdrawals in the future? How bad could I screw this up?

4. I don't really like any of the funds in my 401k. Should I just do a target fund?

1. Yes, clean-up on aisle 401k. You're using expensive funds in the 401k when perfectly good less expensive funds are available.

2. I wouldn't bother with moving accounts, but that's really up to you. I think Vanguard is fine.

3. There are a lot of financial planners that don't have a clear grasp of tax strategies and Roth conversions too.
I'd try asking your questions in the forum.

4. No, use the index funds the other posters have mentioned. You could hold your international stock allocation in your taxable or Roth account.
500 Index Fund 0.05
Total Stock Market Index Fund 0.16
BlackRock U.S. Debt Index Fund 0.04

I'd consider increasing your contribution to the 401k plan at work. You're sitting on $182K that you could use to live on if the reduction in your paycheck is an issue.

Also, I'd reinforce tashnewbie's point about holding all those tax inefficient investments in your taxable account. That's not doing you any favors when income tax time rolls around. For more on this line of thinking, see the wiki page on tax efficient fund placement.

Regards,

[knitabook]

Thank you everyone. This helps a lot.