Portfolio analysis

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bzappasodi
Posts: 19
Joined: Sun Jan 03, 2010 2:26 pm

Portfolio analysis

Post by bzappasodi » Tue Oct 02, 2018 7:41 pm

Good day!

Here is my current breakdown. Additionally, I have a question regarding excess cash from the proceeds of my home sale.
Any advice would be greatly appreciated!

Cash in taxable accounts including emergency fund:
Vanguard Growth Index Fund Admiral Shares:
$17,500
Vanguard Prime Money Market Fund:
$70,073

Other Taxable savings for house repairs, vacations, presents etc:
  • TD Savings currently around $7,000
    Credit Union currently around $5,000
    Cap One Savings currently around $4,500
Debt:

Condo Mortgage $1140 a month with a $125,000 mortgage balance.
HOA $200 a month.
No other debt, car is paid off.
Tax Filing Status: Single.
Tax Rate: 25%
State of Residence: NJ
Age: ~62
Desired Asset allocation: 60% stocks / 40% bonds

Current retirement assets:
401k at Putnam:
Current Balance around 145k

Breakdown as follows:
Marathon London Global EX US CIT
1045.876896
$12,100.79
8.34%

BlackRock Russell 2000 Index Fund
505.144109
$7,956.61
5.49%

Columbia Small Cap Value
472.963274
$8,962.66
6.18%

William Blair Small MidCap Growth CIT
189.125083
$5,076.12
3.5%

DFA US Large Cap Value I
182.087194
$7,243.42
4.99%

BlackRock U.S. Debt Index Fund
4436.752446
$48,601.23
33.51%

MacKay Shields High Yield Bond 1
684.78385
$7,327.18
5.05%

WTC CIF-II TIPS Portfolio
4872.325797
$47,748.80
32.93%


Company match?
yes, 6%

Roth IRA at Vanguard:
Vanguard Total Stock Market Index Fund Admiral Shares:
currently around $150,000

Traditional IRA at Vanguard:
Vanguard Total Bond Market Index Fund Admiral Shares:
currently around $69,690

Vanguard Total International Stock Index Fund Admiral Shares:
currently around $56,754

Vanguard Total Stock Market Index Fund Admiral Shares:
currently around $30,000

Annual Contributions to all accounts:

~$20,000 a year to 401k or ~$1622 a month. Company matches 6%.

$6500 to Roth IRA a year

$9600 to various taxable account buckets:

Annual salary $108k

Funds that are available in my 401(k) with expense ratio

Various BlackRock LifePath Index funds
.09

BlackRock EAFE Equity Index Fund
.14

Marathon London Global EX US CIT
.75

BlackRock Russell 2000 Index Fund
.18

Columbia Small Cap Value Fund II Instl 3
.85

BlackRock Mid Cap Equity Index Fund
.10

William Blair Small MidCap Growth CIT
.85

BlackRock Equity Index Fund
.11

DFA US Large Cap Value I
.37

Winslow Large Cap Growth R
.60

BlackRock U.S. Debt Index Fund
.06

MacKay Shields High Yield Bond 1
.35

WTC-CIF II Core Bond Plus Series 4
.32

WTC CIF-II TIPS Portfolio
.21

BlackRock Liquidity Treasury Instl
.20


Question:
I think I have too much in cash due to the sale of my home recently.
What should I do with the excess cash? Invest in a rental condo? Put more into my Vanguard Growth Index Fund Admiral fund?
I'd like to simplify the 401k. As Mr. Bogle says, "Hold high the idea of simplicity in investing"!

Thanks in advance!
BZ

Living Free
Posts: 98
Joined: Thu Jul 19, 2018 7:31 pm

Re: Portfolio analysis

Post by Living Free » Tue Oct 02, 2018 8:31 pm

bzappasodi wrote:
Tue Oct 02, 2018 7:41 pm
Good day!

Here is my current breakdown. Additionally, I have a question regarding excess cash from the proceeds of my home sale.
Any advice would be greatly appreciated!

Cash in taxable accounts including emergency fund:
Vanguard Growth Index Fund Admiral Shares:
$17,500
Vanguard Prime Money Market Fund:
$70,073

Other Taxable savings for house repairs, vacations, presents etc:
  • TD Savings currently around $7,000
    Credit Union currently around $5,000
    Cap One Savings currently around $4,500
Debt:

Condo Mortgage $1140 a month with a $125,000 mortgage balance.
HOA $200 a month.
No other debt, car is paid off.
Tax Filing Status: Single.
Tax Rate: 25%
State of Residence: NJ
Age: ~62
Desired Asset allocation: 60% stocks / 40% bonds

Current retirement assets:
401k at Putnam:
Current Balance around 145k

Breakdown as follows:
Marathon London Global EX US CIT
1045.876896
$12,100.79
8.34%

BlackRock Russell 2000 Index Fund
505.144109
$7,956.61
5.49%

Columbia Small Cap Value
472.963274
$8,962.66
6.18%

William Blair Small MidCap Growth CIT
189.125083
$5,076.12
3.5%

DFA US Large Cap Value I
182.087194
$7,243.42
4.99%

BlackRock U.S. Debt Index Fund
4436.752446
$48,601.23
33.51%

MacKay Shields High Yield Bond 1
684.78385
$7,327.18
5.05%

WTC CIF-II TIPS Portfolio
4872.325797
$47,748.80
32.93%


Company match?
yes, 6%

Roth IRA at Vanguard:
Vanguard Total Stock Market Index Fund Admiral Shares:
currently around $150,000

Traditional IRA at Vanguard:
Vanguard Total Bond Market Index Fund Admiral Shares:
currently around $69,690

Vanguard Total International Stock Index Fund Admiral Shares:
currently around $56,754

Vanguard Total Stock Market Index Fund Admiral Shares:
currently around $30,000

Annual Contributions to all accounts:

~$20,000 a year to 401k or ~$1622 a month. Company matches 6%.

$6500 to Roth IRA a year

$9600 to various taxable account buckets:

Annual salary $108k

Funds that are available in my 401(k) with expense ratio

Various BlackRock LifePath Index funds
.09

BlackRock EAFE Equity Index Fund
.14

Marathon London Global EX US CIT
.75

BlackRock Russell 2000 Index Fund
.18

Columbia Small Cap Value Fund II Instl 3
.85

BlackRock Mid Cap Equity Index Fund
.10

William Blair Small MidCap Growth CIT
.85

BlackRock Equity Index Fund
.11

DFA US Large Cap Value I
.37

Winslow Large Cap Growth R
.60

BlackRock U.S. Debt Index Fund
.06

MacKay Shields High Yield Bond 1
.35

WTC-CIF II Core Bond Plus Series 4
.32

WTC CIF-II TIPS Portfolio
.21

BlackRock Liquidity Treasury Instl
.20


Question:
I think I have too much in cash due to the sale of my home recently.
What should I do with the excess cash? Invest in a rental condo? Put more into my Vanguard Growth Index Fund Admiral fund?
I'd like to simplify the 401k. As Mr. Bogle says, "Hold high the idea of simplicity in investing"!

Thanks in advance!
BZ
1. Invest the excess according to your asset allocation plan. If you want to get into rental real estate then include that as a desired percentage of your portfolio. If you are going to need to invest more money than you have space for in your tax advantaged accounts then I'd recommend broad index funds in taxable. I'd prefer vanguard total stock market index or total international stock market index to the growth index fund. If you wanted a guaranteed return for your money you could consider paying down the mortgage, then get the return of your mortgage interest rate (minus tax benefits from that)

2. I agree with simplifying the 401k. fortunately you can do that without tax consequences. I'd probably focus on the index funds - looks like you have a bond index and US stock index and a foreign stock index fund. You might want to relatively overweight the bonds in the 401k if you are putting a lot of stock investments in your taxable account.

bzappasodi
Posts: 19
Joined: Sun Jan 03, 2010 2:26 pm

Re: Portfolio analysis

Post by bzappasodi » Thu Oct 04, 2018 8:17 am

Thanks so much for your response! Makes perfect sense!

Valuethinker
Posts: 36046
Joined: Fri May 11, 2007 11:07 am

Re: Portfolio analysis

Post by Valuethinker » Thu Oct 04, 2018 4:27 pm

bzappasodi wrote:
Tue Oct 02, 2018 7:41 pm
Good day!

Here is my current breakdown. Additionally, I have a question regarding excess cash from the proceeds of my home sale.
Any advice would be greatly appreciated!

Cash in taxable accounts including emergency fund:
Vanguard Growth Index Fund Admiral Shares:
$17,500
Vanguard Prime Money Market Fund:
$70,073

Other Taxable savings for house repairs, vacations, presents etc:
  • TD Savings currently around $7,000
    Credit Union currently around $5,000
    Cap One Savings currently around $4,500
Debt:

Condo Mortgage $1140 a month with a $125,000 mortgage balance.
HOA $200 a month.
No other debt, car is paid off.
Tax Filing Status: Single.
Tax Rate: 25%
State of Residence: NJ
Age: ~62
Desired Asset allocation: 60% stocks / 40% bonds

Current retirement assets:
401k at Putnam:
Current Balance around 145k

Breakdown as follows:
Marathon London Global EX US CIT
1045.876896
$12,100.79
8.34%
Normally I would say kill all active managed funds. But this one ... they have an amazing reputation. I don't know what fees you are paying on that fund, but I would tend to keep hold of it.
DFA US Large Cap Value I
182.087194
$7,243.42
4.99%
I don't know the Expense Ratios on these funds. However generally I am a big fan of DFA, and normally you cannot buy DFA funds except through a financial adviser. Again, I would probably hold onto this one.
BlackRock U.S. Debt Index Fund
4436.752446
$48,601.23
33.51%
In principle looks fine but it really depends upon the ER -- sorry I now see you put those below.
MacKay Shields High Yield Bond 1
684.78385
$7,327.18
5.05%
I don't think you need high yield bonds. We have seen the best of HY bonds for this economic cycle, I am fairly sure.
WTC CIF-II TIPS Portfolio
4872.325797
$47,748.80
32.93%
I like TIPS.

Roth IRA at Vanguard:
Vanguard Total Stock Market Index Fund Admiral Shares:
currently around $150,000

Traditional IRA at Vanguard:
Vanguard Total Bond Market Index Fund Admiral Shares:
currently around $69,690

Vanguard Total International Stock Index Fund Admiral Shares:
currently around $56,754

Vanguard Total Stock Market Index Fund Admiral Shares:
currently around $30,000
All eminently sensible.


Annual Contributions to all accounts:

~$20,000 a year to 401k or ~$1622 a month. Company matches 6%.

$6500 to Roth IRA a year

$9600 to various taxable account buckets:

Annual salary $108k
Funds that are available in my 401(k) with expense ratio

Various BlackRock LifePath Index funds
.09

BlackRock EAFE Equity Index Fund
.14

Marathon London Global EX US CIT
.75

BlackRock Russell 2000 Index Fund
.18

Columbia Small Cap Value Fund II Instl 3
.85

BlackRock Mid Cap Equity Index Fund
.10

William Blair Small MidCap Growth CIT
.85

BlackRock Equity Index Fund
.11

DFA US Large Cap Value I
.37

Winslow Large Cap Growth R
.60

BlackRock U.S. Debt Index Fund
.06

MacKay Shields High Yield Bond 1
.35

WTC-CIF II Core Bond Plus Series 4
.32

WTC CIF-II TIPS Portfolio
.21

BlackRock Liquidity Treasury Instl
.20


Question:
I think I have too much in cash due to the sale of my home recently.
What should I do with the excess cash? Invest in a rental condo?
I would say almost certainly not. Being a landlord can be hassle and you are reaching an age where you want less, not more, hassle. Condos come with lots of extra fees and you are not fully in control of those bills. Also over time real estate markets tend to create more condos if there is demand. With single family homes there's a finite supply of land for any given distance from employment centres, but with condos, they can always approve taller ones (and I think cities tend to, over time).

I would invest the money according to your general asset allocation. Perhaps first after repaying your mortgage - that's a guaranteed risk free, after tax, return at whatever your mortgage interest rate is.
Put more into my Vanguard Growth Index Fund Admiral fund?
I'd like to simplify the 401k. As Mr. Bogle says, "Hold high the idea of simplicity in investing"!

Thanks in advance!
BZ
All looks pretty good.

On the 401k the Marathon Fund is special and I'd just run the bet (alternative call - it's too small to really matter, and conversely I am not suggesting doubling up).

The Blackrock funds will give you the equity index exposure you need. I would say have 10% of your portfolio (ie 1/4 of your bonds) in TIPS. So the Debt Index fund plus that does it.

bzappasodi
Posts: 19
Joined: Sun Jan 03, 2010 2:26 pm

Re: Portfolio analysis

Post by bzappasodi » Sat Oct 06, 2018 6:31 am

Thanks so much for your input!

BZ

User avatar
ruralavalon
Posts: 13970
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Portfolio analysis

Post by ruralavalon » Sat Oct 06, 2018 11:25 am

Cash for investing?
How much cash do you have for long-term/retirement investing, not including your emergency fund or cash kept for a specific purpose?

Asset allocation.
In my opinion at age 62 your desired asset allocation of 60/40 stocks/bonds is within the range of what is reasonable.


Fund selection.
In your 401k I suggest using:
BlackRock Equity Index Fund (a S&P 500 index fund, 81% of U.S. stock market) ER 0.12%;
BlackRock EAFE Index Fund (international stocks, developed markets only) ER 0.14%; and
BlackRock U.S. Debt Index Fund ER 0.06%.

Can you post a link to the fact sheet for "Marathon Global Ex-U.S CIT?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

bzappasodi
Posts: 19
Joined: Sun Jan 03, 2010 2:26 pm

Re: Portfolio analysis

Post by bzappasodi » Mon Oct 08, 2018 6:35 pm

ruralavalon wrote:
Sat Oct 06, 2018 11:25 am
Cash for investing?
How much cash do you have for long-term/retirement investing, not including your emergency fund or cash kept for a specific purpose?
For investing I'd say 62k.

Asset allocation.
In my opinion at age 62 your desired asset allocation of 60/40 stocks/bonds is within the range of what is reasonable.

Fund selection.
In your 401k I suggest using:
BlackRock Equity Index Fund (a S&P 500 index fund, 81% of U.S. stock market) ER 0.12%;
BlackRock EAFE Index Fund (international stocks, developed markets only) ER 0.14%; and
BlackRock U.S. Debt Index Fund ER 0.06%.
Sounds good!
Can you post a link to the fact sheet for "Marathon Global Ex-U.S CIT?
I have the PDF, apparently attachments are not allowed.
As follows:

Investment Objective & Strategy
Marathon targets an outperformance of 2% to 3% over the benchmark return over rolling 3 to 5 year periods.
Risk Profile
International investments may be most appropriate for someone looking for greater potential returns and willing to accept a higher degree of risk. International investments may provide diversification for a domestic portfolio. Foreign investments involve special risks, including currency fluctuations and political developments.

Asset Allocation1
Largest Holdings
Non U.S. Stock.................... 95.30 Cash...................................... 3.40 U.S. Stock............................. 1.00 Other..................................... 0.30
Geographic Diversification
% of Assets
Europe Developed...................... 27.47 United Kingdom.......................... 20.76 Japan.......................................... 16.59 Asia Developed............................ 9.90 North America.............................. 8.10 Latin America............................... 5.14 Asia Emerging.............................. 4.95 Australasia.................................... 4.10 Europe Emerging......................... 1.78 Africa Middle East........................ 1.22
Largest Holdings
% of Assets
Nt Col Govt Stif............................. 2.68 Samsung Electronics Co Ltd......... 1.24 Fairfax Financial Holdings Ltd....... 1.16 Intertek Group PLC....................... 1.03 Taiwan Semiconductor Manufacturing Co Ltd............................................0.99



Thanks!

User avatar
ruralavalon
Posts: 13970
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Portfolio analysis

Post by ruralavalon » Tue Oct 09, 2018 9:25 am

What is the interest rate on the mortgage note (balance $125k) for your condo?

Have you considered simply using the $62k available for investing to pay down the balance on the the mortgage note for the condo?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

bzappasodi
Posts: 19
Joined: Sun Jan 03, 2010 2:26 pm

Re: Portfolio analysis

Post by bzappasodi » Thu Oct 11, 2018 8:46 am

ruralavalon wrote:
Tue Oct 09, 2018 9:25 am
What is the interest rate on the mortgage note (balance $125k) for your condo?

4.5%

Have you considered simply using the $62k available for investing to pay down the balance on the the mortgage note for the condo?

Yes, I have!

Thanks!

User avatar
ruralavalon
Posts: 13970
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Portfolio analysis

Post by ruralavalon » Thu Oct 11, 2018 8:40 pm

Cash from home sale?
Additionally, I have a question regarding excess cash from the proceeds of my home sale.
Any advice would be greatly appreciated!
. . . . .
Condo Mortgage $1140 a month with a $125,000 mortgage balance.
bzappasodi wrote:
Thu Oct 11, 2018 8:46 am
ruralavalon wrote:
Tue Oct 09, 2018 9:25 am
What is the interest rate on the mortgage note (balance $125k) for your condo?

4.5%

Have you considered simply using the $62k available for investing to pay down the balance on the the mortgage note for the condo?

Yes, I have!

Thanks!
In my opinion it's better to use the $62k from your home sale to pay down the $125k condo mortgage at $4.5%.

That's like getting a guaranteed 4.5% return on investment. Ordinarily paying off higher interest debt is the second highest investing priority after getting the match in a 401k. Please see the wiki article "Prioritizing investments".

Also I think it's desirable to enter retirement debt free if practical, and paying off about 1/2 of the condo mortgage balance gets you closer to that goal.



Asset allocation.
In my opinion at age 62 your desired asset allocation of 60/40 stocks/bonds is within the range of what is reasonable.

I suggest around 20 - 30% of stocks in international stocks. Vanguard paper (March 2012), "Considerations for investing in non-U.S. equities". Historically, allocating 20% of an equity portfolio to non-U.S. stocks would have captured about 84% of the maximum possible diversification benefit, and allocating 30% of an equity portfolio to non-U.S. stocks would have captured about 99% of the maximum possible diversification benefit (p. 6). (You can find lots of debate here on international allocation, opinions ranging all the way from 00% to 50% of stocks in international stocks. If you want more viewpoints on international stocks please try the Google search box (upper right, this page).

That works out to about 40% bonds; 15% international stocks; and 45% domestic stocks. Asset allocation is a very personal decision. You must decide on an allocation that is comfortable for you based on your own ability, willingness and need to take risk.



Fund selection & placement.
In selecting funds strive for a combination of broad diversification (to reduce risk) and low expense ratios (to increase your net gain). To simply and easily achieve those two goals I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Wiki article "Three-fund portfolio". Forum discussion, "The Three-Fund Portfolio".

It is often better coordinate investments across all accounts, in other words treat all accounts together as a single unified portfolio, rather than view each account separately. Select just one or two of the better funds (most diversified + lower expense ratio) in the work-based account (401k, 403b, 457, TSP etc.), where the choices offered are limited. Then complete the rest of the asset allocation using the nearly unlimited or choices available in a taxable account or any IRAs. This approach lets you avoid having to use sub-par funds often found in work-based plans. Do not try to put all components of the asset allocation in every account.

In your 401k I suggest using:
1) BlackRock Equity Index Fund (a S&P 500 index fund, 81% of U.S. stock market) ER 0.12%;
2) BlackRock EAFE Index Fund (international stocks, developed markets only) ER 0.14%; and
3) BlackRock U.S. Debt Index Fund ER 0.06%.


Domestic stocks.
For domestic stocks I suggest using a total stock market index fund where available; otherwise an S&P 500 index fund (such as BlackRock Equity Index Fund in your 401k) is good enough by itself for domestic stocks. "In a 401(k) plan with limited choices one might very well opt for an S&P 500 index fund to serve as the domestic stock component of a three-fund portfolio." Wiki article, Three-fund portfolio, "Other considerations".

An S&P 500 index fund covers 81% of the U.S. stock market investing in stocks of selected large-cap and mid-cap U.S. companies, and in the 26 years since the creation of the first total stock market index fund the total return of the two types of funds has been almost identical. Morningstar, "growth of $10k" graph, VTSAX vs VFIAX. In the first 10 years the S&P 500 fund did better, in the last 10 years the total market fund did better, and over the 26 years the total market fund gave a little more return (0.11% per year), but at the cost of a little more volatility (risk): nisiprius post, in the forum discussion "Exchanging the S&P 500 for the TSM". See also Allan Roth, CBS Moneywatch, "John C. Bogle on the S&P 500 vs. the Total Stock Market". So it seems that adding a little in mid/small cap stocks trying to mimic the holdings of a total stock market fund has historically made little difference in performance.

If you want to add the extended market fund in one of the IRAs to supplement the S&P 500 fund in your 401k, then an 81/19 mix of S&P 500 and extended market will approximate the content of a total stock market index fund. Wiki article, "Approximating total stock market". In my opinion this is not necessary, it is optional if you prefer to do this.


International stocks.
BlackRock EAFE index Fund in your 401k covers developed markets only. You can supplement that by using some Vanguard Emerging Markets Index Fund in one of your IRAs.


Bonds.
BlackRock U.S. Debt Index Fund ER 0.06% in your 401k tracks the Bloomberg Barclays U.S. Aggregate Bond Index, similar to Vanguard Total Bond Market.

Bond funds are not very tax-efficient and, ordinarily should not be held in a taxable account. A bond fund should ordinarily be held in a tax-advantaged account, preferably a tax-deferred account like a 401k or a traditional IRA. Wiki article "Tax-efficient fund placement".



Taxable account.
In the taxable account I suggest using Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04% and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%. Both are very tax-efficient. Wiki article "Tax-efficient fund placement". Those funds are also well suited to any type of account. Both are very diversified with very low expense ratios.

I would keep the Vanguard Growth Index Admiral (VIGAX) ER 0.05% in the taxable account, rather than incur income tax liability selling it. I would not buy more of the growth fund, or reinvest the dividends in the growth fund. Vanguard Total Stock Market Index Fund is more diversified.


To make portfolio management and rebalancing easy it is often better to have at least one large tax-advantaged account which contains all three basic asset types (bonds, international stocks, and domestic stocks). Don’t try to put all components of the asset allocation in every account.



Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund type portfolio, modified as necessary to accommodate the fund offerings in your 401k. Current portfolio size = $444.5k. New annual contributions = about $????k/yr. The asset allocation is: 40% bonds; 15% international stocks; and 45% domestic stocks. The percentages given are percentages of the total portfolio, not of a given account. The suggestion is to switch both the existing balances and the new contributions to the funds indicated. All percentages and dollar amounts are rounded off, so may not add up exactly. Sometimes I state 00% to indicate funds you might want to add in the future.

Taxable account @ Vanguard (18% of total; $79.5k; adds $???k/yr)
04%, $17.5k, Vanguard Growth Index Fund Admiral Shares (VIGAX) ER 0.05%
14%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
00%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%.

401k (33% of total; $145k; adds $20/yr + employer match $???k/yr)
09%, BlackRock Equity Index Fund (a S&P 500 index fund, 81% of U.S. stock market) ER 0.12%;
10%, BlackRock EAFE Index Fund (international stocks, developed markets only) ER 0.14%; and
14%, BlackRock U.S. Debt Index Fund ER 0.06%

Roth IRA @ Vanguard (34% of total; $150k; adds $6.5k/yr)
19%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
05%, Vanguard Emerging Mkts Stock Index Admiral Shares (VEMAX) ER 0.14%
10%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%

Traditional IRA @ Vanguard (16% of total; $70k)
16%, Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%



Rebalancing.
Because the funds will grow at different and unpredictable rates, it may be necessary every few years to rebalance in order to maintain the desired asset allocation. Wiki article, "Rebalancing". You can easily adjust the asset allocation by exchanging between funds inside your 401k or Roth IRA.

Avoid exchanging between funds in the taxable account, which can create income tax liability.

. . . . .

I suggest that you read one or two books on general investing. Wiki article, "Books: recommendations and reviews". When I first stated managing my own investments, I found this tutorial very helpful in learning investing terminology/jargon and some of the investing basics. Morningstar, "Investing Classroom". Also take a look at the Boglehead’s wiki, the "getting started" link I give below.

If you have any questions just ask.

I hope that this helps.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

bzappasodi
Posts: 19
Joined: Sun Jan 03, 2010 2:26 pm

Re: Portfolio analysis

Post by bzappasodi » Sun Oct 14, 2018 9:23 am

Thanks so much for your response! Greatly appreciated!

BZ

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