Help Ducks Rebalance, Please. :)

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Ducks
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Help Ducks Rebalance, Please. :)

Post by Ducks » Sun Dec 13, 2009 7:49 pm

I funded our Roths and my Roth 401k today. Since this is my first rebalancing, I thought I'd post this up and see what you all thought. I appreciate everyones' insights very much. :)

Emergency funds = 6+ months of expenses, not included in below AA.
Debt: None.

Tax Filing Status: Married filing jointly
Tax Rate: 25% Federal 0% State
Age: Me 36; hubs 45
Desired Asset allocation:
56% US Stocks
14% International Stocks
15% Nominal Bonds
15% TIPS

Current portfolio: Low-Mid 6 figures.
Funds available in his 401(k) are in this google docs spreadsheet.
Funds available in Her 401(k) are Vanguard Funds.


We are currently:

His 401k @ John Hancock (yes, we know this is bad :( )
48% JETSX Total SM Index ER 1.13%
12.5% PTRAX JH PIMCO Total Return 1.51%

Her Rollover IRA (VG)
4.5% VIPSX VG Inflation Protected Securities .25%

Her Solo 401(k) @ Vanguard
5.5% VIPSX VG Inflation Protected Securities .25%
1% VSTMX VG TSM .18%

Her Solo Roth 401(k) @ Vanguard
6.5% VMMXX Vanguard Money Market

His Roth @ Vanguard
1% VG Inflation Protected Securities .25%
12% VFWIX FTSE All-World ex-US Index Fund .4%

Her Roth @ Vanguard
2.5% VIPSX VG Inflation Protected Securities .25%
2% VMMXX Vanguard Money Market


Where I thought we might go:

His 401k @ John Hancock (yep - still bad)
46% JETSX Total SM Index ER 1.13%
15% PTRAX JH PIMCO Total Return 1.51%

Her Rollover IRA (VG)
4.5% VIPSX VG Inflation Protected Securities .25%

Her Solo 401(k) @ Vanguard
7% VIPSX VG Inflation Protected Securities .25%

Her Solo Roth 401(k) @ Vanguard
6.5% VSTMX Vanguard TSM .20%

His Roth @ Vanguard
14% VFWIX FTSE All-World ex-US Index Fund .4%
2% VSTMX Vanguard TSM .20%

Her Roth @ Vanguard
3.5% VIPSX VG Inflation Protected Securities .25%
1.5% VSTMX Vanguard TSM .20%


Questions:
1) Does this seem reasonable?

2) Is it better to hold the bond fund in His 401k and put TSM in other accounts where i can find room for it, or is it better to put all TSM in His 401k and put VG Total Bond where i can find room for it?
Getting our Ducks in a row since 2008.

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Taylor Larimore
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Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Question

Post by Taylor Larimore » Mon Dec 14, 2009 7:20 am

Hi Duck:

Do you have other accounts (taxable, etc.)? It is important to look at a portfolio in its entirety.

Thank you.
"Simplicity is the master key to financial success." -- Jack Bogle

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Ducks
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Joined: Sun Apr 20, 2008 5:01 pm

Post by Ducks » Mon Dec 14, 2009 11:56 am

Taylor -

We do have individual stocks, but they are not for retirement, just 'long term savings.' We will probably use this for a house down payment(?) or charitable giving.

Hubs has a small amount of company stock, but this is a privately held very small company (150 employees) and I'm not sure if or how to include it.

They also have a profit-sharing plan. We have no control over the AA, though if iI remember correctly, it is approximately a 75/25 split, which is pretty close to our AA. Data i have on how much $ is in the account is 9 months old. We get an annual report each March.

If i should edit my original post to include this information in a more concrete form, please let me know.


Morgan -

Last year we did a little pushing and prodding to get them to change 401k providers. It didn't take. :annoyed: We send them articles and a bit of prodding every once in a while, hoping to keep this on the forefront of their mind. Hopefully we will see action in 2010.

As for international stocks, 14% total is 20% of our stock allocation. I'm not sure I'm ready to do more than that... though if there were compelling reasons to do so, I'd be interested in knowing what they are.


Thank you both for your responses. :)
Getting our Ducks in a row since 2008.

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Taylor Larimore
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Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Post by Taylor Larimore » Mon Dec 14, 2009 2:57 pm

Hi Ducks:

Without knowing details about the use of your taxable account and your profit sharing plan, I think your present and planned portfolios are both very good.

I like your second portfolio. However, I'd consolidate into one fund in each Vanguard Roth by eliminating the tiny TSM funds.
2) Is it better to hold the bond fund in His 401k and put TSM in other accounts where i can find room for it, or is it better to put all TSM in His 401k and put VG Total Bond where i can find room for it?

Answered above.

Happy Holiday!
"Simplicity is the master key to financial success." -- Jack Bogle

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