Portfolio review [2017 edition]

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kd2008
Posts: 527
Joined: Sun Feb 15, 2009 6:19 pm

Portfolio review [2017 edition]

Post by kd2008 » Tue Oct 10, 2017 11:20 am

My previous review is here: viewtopic.php?f=1&t=200355&p=3068317#p3068287

Thank you all for your great advice in the past that has enabled me to get a solid start.

Emergency funds not included in asset allocation below

No debt. Car and Condo paid off.

Tax Filing Status: Single

Tax Rate: Federal-28%, State-5%

Age: 36

Desired Asset allocation: 80 Stocks/20 Bonds, 33% International

Currently my asset allocation for a portfolio of just under $650K looks like:

Taxable 43.6%
11.2% VG Total Stock Index Adm 0.04
26.7% VG Total International Adm 0.11
3.4% 5yr CDs @ 5.5%
2.3% Savings @ 5%


401k 39.2%
27.0% U.S. Large Cap Stock Option (Tracks S&P 500) 0.05% No ticker
12.2% Core Bond Option (Tracks BarCap Aggr. Bond Index) 0.10% No ticker

401k did get a new monthly fee of $6 for sake of price transparency to separate out administrative and fund fees. So ERs of funds may drop in future.

Roth 16.7%
7.3% Vanguard Extended Market 0.08% (to complete 500 index)
9.4% VG Total Stock Index Adm 0.04%

HSA 0.5%
0.3% cash
0.2% VG Life Strategy Fund Growth (VASGX) 0.15%

Contributions for 2018
401k 18.5K
Roth IRA 5.5K
After-tax 401k account roughly 9% max allowed, rolled over to Roth IRA via mega backdoor Roth strategy.
Employer Stock Monthly Investment Plan 5% of pay max contribution allowed (Gets matched 33% after 3 years vesting)
401k employer match 6%
HSA max out after Employer contribution 3.45K
2nd 401k approx 20K (this is not with my full time employer and does not have employee pre-tax contributions). If this continues, it may be for max 6 to 10 years. We will see.

This will leave me with no money to contribute to my taxable Vanguard account. :( or :sharebeer I don't know.

2018 will be my first year where, except for Roth IRA contribution done at the start of the year, all of it will be automated. Hopefully, it will free up time and institute more disciplined DCA as I will have to make fewer decisions.


Questions:

1) How am I doing?
2) What could I do better?
3) For the 2nd 401k, there may be an option to eventually Roth it via after-tax and mega back door. I am not sure yet as it is new. If one is available, should I prefer that for the longer term? Since this is a short term engagement of few years, I am reluctant to rock the boat by asking for too much right now.

Thanks in advance!

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badbreath
Posts: 650
Joined: Mon Jul 18, 2016 7:50 pm

Re: Portfolio review [2017 edition]

Post by badbreath » Tue Oct 10, 2017 8:45 pm

to me your taxable is good to go (looks like mine)

Your 401k is good to go

Your Roth is fine. Just a non issue I would sell the extended and just put it in the total stock since it has mid and value in it. Thats me if you like the extended it is no issue.

HSA just get rid of the cash
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

kd2008
Posts: 527
Joined: Sun Feb 15, 2009 6:19 pm

Re: Portfolio review [2017 edition]

Post by kd2008 » Wed Oct 11, 2017 9:04 pm

Thank you for the feedback. HSA cash portion is the minimum requirement. Sadly can't get around it.

retiredjg
Posts: 30852
Joined: Thu Jan 10, 2008 12:56 pm

Re: Portfolio review [2017 edition]

Post by retiredjg » Fri Oct 13, 2017 7:51 am

kd2008 wrote:
Tue Oct 10, 2017 11:20 am
1) How am I doing?
2) What could I do better?
I think you are doing very well and I don't see anything that could be improved.

3) For the 2nd 401k, there may be an option to eventually Roth it via after-tax and mega back door. I am not sure yet as it is new. If one is available, should I prefer that for the longer term? Since this is a short term engagement of few years, I am reluctant to rock the boat by asking for too much right now.
I'm a little unclear about what this is. Apparently you have a side job working for someone else, not yourself. Who is contributing that money and what kind of account is the money going into? $20k seems like a lot for a match for such a short time.

"If one is available..."? Do you mean if after-tax combined with in-service rollovers becomes available?

kd2008
Posts: 527
Joined: Sun Feb 15, 2009 6:19 pm

Re: Portfolio review [2017 edition]

Post by kd2008 » Fri Oct 13, 2017 11:44 am

Thank you for the feedback.
retiredjg wrote:
Fri Oct 13, 2017 7:51 am
3) For the 2nd 401k, there may be an option to eventually Roth it via after-tax and mega back door. I am not sure yet as it is new. If one is available, should I prefer that for the longer term? Since this is a short term engagement of few years, I am reluctant to rock the boat by asking for too much right now.
I'm a little unclear about what this is. Apparently you have a side job working for someone else, not yourself. Who is contributing that money and what kind of account is the money going into? $20k seems like a lot for a match for such a short time.

"If one is available..."? Do you mean if after-tax combined with in-service rollovers becomes available?
It is still not clear from the info I received so far regarding the 2nd 401k. I am awaiting the response to my questions. I am assuming it may be nonelective deferral from the employer (in lieu of paying me more ..) and therefore pre-tax. My elective deferral is going to my full time employer.

If things aren't clear, I will just contribute to taxable Vanguard account.

Anyways, I am not too worried about it.

retiredjg
Posts: 30852
Joined: Thu Jan 10, 2008 12:56 pm

Re: Portfolio review [2017 edition]

Post by retiredjg » Fri Oct 13, 2017 4:20 pm

If all the money is from the employer, it is fine and you can invest it as you wish.

Or if it is an after-tax account and you are contributing, that is fine too. If you cannot roll it out to Roth IRA till you are finished with that job, probably Ok. I would not do it for an entire career though.

https://thefinancebuff.com/after-tax-40 ... ution.html

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