Portfolio Review Requested

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Hat
Posts: 53
Joined: Wed Feb 10, 2010 10:27 pm

Portfolio Review Requested

Post by Hat » Sun Feb 14, 2010 1:24 am

Thanks to all for the valuable information in this forum.

Emergency funds: 10 months

Debt: None

Tax Filing Status: Single
Tax Rate: 28% Federal 0% State (TX)

Age: 35

Desired Asset allocation: (65% stocks / 35% bonds)
Intl allocation: 20% of stocks
Current portfolio: $200k - $250k range

Taxable
None

Roth at Vanguard
20% Vanguard Total Bond Market Index Fund (VBMFX) (0.22%)

Rollover IRA at Vanguard
50% Vanguard Target Retirement 2030 Fund (VTHRX) (0.19%)

401k
30% 2025 Fund (none) (0.40%)
Intermediate-Term Bond 23.7
Foreign Large Blend 16.55
Foreign Large Value 16.55
Large Blend 15.12
Large Growth 7.56
Large Value 7.56
Small Growth 6.48
Small Blend 6.48

New annual Contributions
$16500 401k
$5k Roth
$0 Taxable


Funds available in 401(k):

PIMCO Total Return (PTTRX) (0.46%)

American Funds EuroPacific (RERFX) (0.54%)

Dodge & Cox International Stock (DODFX) (0.65%)

Neuberger Berman Genesis (NBGIX) (0.87%)

American Funds Growth Fund of America (RGAFX) (0.43%)

2035 Fund (none) (0.38%)
Foreign Large Blend 17.9
Foreign Large Value 17.9
Intermediate-Term Bond 16.9
Large Blend 16.54
Large Growth 8.28
Large Value 8.28
Small Growth 7.1
Small Blend 7.1

Balanced Fund (none) (0.22%)
U.S. Stocks 49.88
Non-U.S. Stocks 9.22
Bonds 26.45
Cash 14.46

Large Value Fund (none) (0.22%)
U.S. Stocks 81.14
Non-U.S. Stocks 15.32
Bonds 0
Cash 3.54

Large Blend Fund (none) (0.05%)
U.S. Stocks 99.3
Non-U.S. Stocks 0
Bonds 0.4
Cash 0.1
Other 0.2


Questions:
1. Is this a good AA? I'd like to keep my portfolio as simple as possible.

Laura
Posts: 7975
Joined: Mon Feb 19, 2007 7:40 pm

Looks great

Post by Laura » Sun Feb 14, 2010 9:29 am

Hat,

Your portfolio looks great. I am assuming you are holding Total Bond Market in the roth because the 401k fund does not meet your bond target. The balanced fund looks like it comes close so you might consider switching to that if you want. Or, is there something like a 2020 fund option in your 401k that you just didn't list?

If the answer is yes then you could hold that one other retirement fund.

In your rollover IRA you are holding a fund that doesn't match your target allocation. You should ignore the date and pick the fund that most closely matches your target. In this case the Target Retirement 2020 would be a better option. You could then hold the same thing in your roth account.

You could have

roth
Target Retirement 2020

rollover IRA
Target Retirement 2020

401k
2025 fund or the balanced fund

With just these three funds you would be very close to your asset allocation goal and achieve the simplicity you desire.

Good job.

Laura
The views presented are my own and not necessarily those of the Department of State or the U.S. Government.

User avatar
Topic Author
Hat
Posts: 53
Joined: Wed Feb 10, 2010 10:27 pm

Post by Hat » Sun Feb 14, 2010 1:21 pm

Thanks for taking the time to look at my asset allocation.

Alas, there is no 2020 fund offered in my 401k.

Per your recommendation, I believe I'll go with

Roth
Target Retirement 2020

Rollover IRA
Target Retirement 2020

401k
2025 fund

Laura
Posts: 7975
Joined: Mon Feb 19, 2007 7:40 pm

Looks good

Post by Laura » Sun Feb 14, 2010 1:36 pm

Hat,

That looks like a good choice. One other thing you could do is to switch the roth and/or rollover IRA to a more conservative holding with more bonds. That would balance out your 2025 401k investment that has fewer bonds than you wanted. You could use the 2015 fund, for example, which has 40% bonds. Anyway, either is fine.

Laura
The views presented are my own and not necessarily those of the Department of State or the U.S. Government.

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