Simultaneously, I'd like to tilt our portfolio to SCV. I'd like to exchange VMLTX for Vanguard Small-Cap Value Index Fund (VISVX) (0.28%) in our taxable, and then buy VMLTX or another bond in our tax-advantaged (by exchanging it for VWNFX & VTSMX). I can address both goals simultaneously, but I have a few questions on doing this.
1) We already have a tiny amount of small-cap exposure in our Total Stock Market holdings ~1.1% of total portfolio, per MS X-Ray, I believe. Exchanging the VMLTX, which is 7.9% of our portfolio in addition to the SCV in our Total Stock Market (~1.1% of our total portfolio) means that we'd immediately have 9% of our portfolio in small-cap value stocks?
Is 9% too much/not enough? Given our portfolio & situation (below), what exposure do you all think would be optimal? [Our Stock/Bond/Cash AA is 65/30/5.]
Since, we're in a relatively low federal tax bracket (15%) yet in a high tax state (9%), what other VG bond fund, in place of VMLTX, would you all suggest?retiredjg wrote: For low tax brackets, taxable bonds usually pay more, even after taxes.
Mortgage –30 year fixed at 4.75% (refi’d May 2009)
Credit card debt – none
Student – 1.6% fixed @ $130 a month.
Car – no debt
Emergency Fund – not included below
Tax Filing Status
Married Filing Jointly – 15% Fed in 2009; 9% Oregon (2009)
Hers – 35
His – 37
Son (2008), Daughter (2010)
Stable jobs in local/state government with an annual income of ~$100K. Expect this to increase incrementally – not dramatically - relative to inflation later in our careers. Intend to stay in our current house/city indefinitely (“…’til they cart me out in a box”).
28.5% Vanguard Total Stock Mkt Idx - Admiral (VTSAX) (0.08%)
8.7% Vanguard Total Stock Mkt Idx - Inv (VTSMX) (0.18%)
4.7% Vanguard PRIMECAP (VPMCX) (0.50)
16.7% Total Int'l Stock Index (VGTSX) (0.34%)
7.9% Vanguard Limited-Term Tax Exempt (VMLTX) (0.20%)
10.7% Vanguard Inflation-Protect Sec (VIPSX) (0.25%)
3.4% Vanguard FTSE All-World Except US (VFWIX) (0.40%)
5.3% Windsor II (VWNFX) (0.39%)
3.0% Vanguard Total Stock Mkt Idx Inv
1.8% Vanguard Short-Term Bond Index (VFSTX) (0.24%)
6.3% Vanguard Total Bond Market Index Fund – Institutional Shares (VBTIX) (0.07%)
2.9% Intermediate Bond Option (0.09%)
0.2% Large Company Stock Option (0.39%)
BTW - I've deferred a decision on REITS.