Need retirement/investment advice existing + future

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the cartographer
Posts: 1
Joined: Thu Sep 13, 2018 7:57 am

Need retirement/investment advice existing + future

Post by the cartographer » Thu Sep 13, 2018 5:25 pm

Initial disclaimer: I am an expat from the US working in the UK until June 2020. I have been based in the UK since January 2016.

Emergency funds: Yes, at least 6 month
Debt: student loans - $21k @ 6.55% $3.7k @ 3.98%
Tax Filing Status: Single
Tax Rate: 30% Federal (based off my quick calculation, gross taxable about $275k), UK tax rate ~36%, 0% State (broke CT residency while working abroad)
State of Residence: CT but currently living in the UK on work assignment until June 2020
Age: 33
Desired Asset allocation: 70-75% stocks / 25-30% bonds
Desired International allocation: [Not sure] 20% of stocks?

Portfolio currently low six-figures all-in, not counting un-vested company stock awards or cash

Current retirement assets

Taxable
5.6% CI

His 401k (current employer)
41.9% Dryden S&P 500 Index Fund (0.04%)
10.6% BlackRock Equity Market Index Fund (0.06%)

His 401k (prior employer)
22.2% BlackRock S&P 500 Index Fund (0.07%)
2.7% BlackRock Russell 2000 Index Fund (0.07%)
2.7% BlackRock S&P 400 Mid Cap Index Fund (0.07%)

His Roth IRA
1.8% VBIIX (0.15%)
2.7% VGTSX (0.17%)
9.7% VTSAX (0.04%)


Contributions

New annual Contributions

$18.5k his 401k (plsu $8K ER match)
~$35k or so for savings/investments each year

Available funds

Funds available in his 401(k):

Fixed Income Fund (0.47%)
High Yield Bond / Caywood-Scholl Fund (0.37%)
Dryden S&P 500 Index Fund (0.04%)
Large Cap Blend Fund (0.42%) - Allocation: Large Cap Value / Barrow Hanley Fund 50.00% SA/T. Rowe Price Growth Stock Strategy 50.00%
BlackRock Equity Market Index Fund (0.06%)
Mid Cap Blend Fund (0.56%) - Allocation: Mid Cap Growth / Westfield Capital Fund 50.00% Mid Cap Value / Robeco Boston Partners Fund 50.00%
Small Cap Blend Fund (0.71%) - Allocation: Small Cap Growth / Emerald Fund 50.00% Small Cap Value / Integrity Fund 50.00%
Foreign Stock Index Fund II (0.05%)
International Stock Fund (0.61%) - Allocation: International Blend / Lazard Fund 50.00% International Growth / Artisan Partners Fund 50.00%

Questions:

I haven't revisited my investments in while and am hoping for some help in how I should approach a few things:

1. Should I roll my old 401k into my current 401k (and thus the funds above?) Similarly, with the roth IRA?

2. Where should I look to invest the available funds each year ~$35k amongst taxable/retirement/savings/etc?

3. How should I allocate the existing funds amongst the available options in my 401k and Vanguard?

Thank you - apologies if the above is not sufficient to answer these questions, but let me know and I will add any detail needed.

Ryan

JBTX
Posts: 4089
Joined: Wed Jul 26, 2017 12:46 pm

Re: Need retirement/investment advice existing + future

Post by JBTX » Thu Sep 13, 2018 7:17 pm

the cartographer wrote:
Thu Sep 13, 2018 5:25 pm
Initial disclaimer: I am an expat from the US working in the UK until June 2020. I have been based in the UK since January 2016.
And disclaimer from me, I have no knowledgeable of any tax or regulatory impacts of investing as an expat.

Emergency funds: Yes, at least 6 month
Debt: student loans - $21k @ 6.55% $3.7k @ 3.98%
Tax Filing Status: Single
Tax Rate: 30% Federal (based off my quick calculation, gross taxable about $275k), UK tax rate ~36%, 0% State (broke CT residency while working abroad)
State of Residence: CT but currently living in the UK on work assignment until June 2020
Age: 33
Desired Asset allocation: 70-75% stocks / 25-30% bonds
Desired International allocation: [Not sure] 20% of stocks?

Portfolio currently low six-figures all-in, not counting un-vested company stock awards or cash

Current retirement assets

Taxable
5.6% CI

His 401k (current employer)
41.9% Dryden S&P 500 Index Fund (0.04%)
10.6% BlackRock Equity Market Index Fund (0.06%)

His 401k (prior employer)
22.2% BlackRock S&P 500 Index Fund (0.07%)
2.7% BlackRock Russell 2000 Index Fund (0.07%)
2.7% BlackRock S&P 400 Mid Cap Index Fund (0.07%)

His Roth IRA
1.8% VBIIX (0.15%)
2.7% VGTSX (0.17%)
9.7% VTSAX (0.04%)


Contributions

New annual Contributions

$18.5k his 401k (plsu $8K ER match)
~$35k or so for savings/investments each year

Available funds

Funds available in his 401(k):

Fixed Income Fund (0.47%)
High Yield Bond / Caywood-Scholl Fund (0.37%)
Dryden S&P 500 Index Fund (0.04%)
Large Cap Blend Fund (0.42%) - Allocation: Large Cap Value / Barrow Hanley Fund 50.00% SA/T. Rowe Price Growth Stock Strategy 50.00%
BlackRock Equity Market Index Fund (0.06%)
Mid Cap Blend Fund (0.56%) - Allocation: Mid Cap Growth / Westfield Capital Fund 50.00% Mid Cap Value / Robeco Boston Partners Fund 50.00%
Small Cap Blend Fund (0.71%) - Allocation: Small Cap Growth / Emerald Fund 50.00% Small Cap Value / Integrity Fund 50.00%
Foreign Stock Index Fund II (0.05%)
International Stock Fund (0.61%) - Allocation: International Blend / Lazard Fund 50.00% International Growth / Artisan Partners Fund 50.00%

Questions:

I haven't revisited my investments in while and am hoping for some help in how I should approach a few things:

1. Should I roll my old 401k into my current 401k (and thus the funds above?) Similarly, with the roth IRA?
As to 401k it is entirely up to you. I personally wouldn't move for lower expenses of 0.03%. It really depends on the choices the old one has vs the new one. Your selections in the old one are pretty good choices.

I am not sure what you are asking with the Roth. Where do you want to move it to? If you get some more money in there you can upgrade to admiral shares.

Your 401k has no bond choices? I don't see much bonds in your portfolio but you want 25-30%

Your fund choices are good choices, the ones you selected seem to be the best ones. Ig ore all of those higher fee actively managed funds. I am just not sure what you are trying to accomplish allocation wise with your current selections. I'd try to get to you allocation with as few funds as possible. You don't have to have your asset allocation in each account separately. As long as all of your funds meet your allocation.

Why so little in the small and mid cap selections? If you are trying to mirror a total market index they should comprise a total of somewhere around 15-25% of your us stock allocation.
2. Where should I look to invest the available funds each year ~$35k amongst taxable/retirement/savings/etc?
I've always used the same allocations for new contributions as existing ones. Not sure why new funds allocation would be different unless existing fund balances are very high and new funds are used to rebalance.

Are any low fee target date or life strategy funds available?
3. How should I allocate the existing funds amongst the available options in my 401k and Vanguard?

Thank you - apologies if the above is not sufficient to answer these questions, but let me know and I will add any detail needed.

Ryan
Don't overcomplicate this. Do your best to get to your allocation the the few index fund choices that you have. I wouldn't get too wrapped up worrying about fee differences of 0.05% between funds.

Get some international in there. At least 20%. I personally do 35-40%. There is an inexpensive foreign index fund in the choices. I don't know anything about it.

Try to wind down that 6.5% loan as fast as reasonably possible.

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