Portfolio Guidance

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Nukeboilermaker
Posts: 294
Joined: Mon Apr 11, 2011 9:49 am

Portfolio Guidance

Post by Nukeboilermaker » Thu Oct 11, 2018 5:45 pm

Hey Bogleheads,

I changed jobs a couple years ago and relocated to Georgia from Illinois. I transferred my 401k to my vanguard IRA but never really reinvested back into the market (still in Vanguard Federal Brokerage Money Market acct).

I’m trying to decide how to reinvest the sum of money, should I re-invest weekly, monthly or lump sum into investment funds. I figure it’s as good of a time to rebalance the portfolio while I do this.

Married (Both 32 yrs) with 2 kids (5 & 2)

Desired AA (90% Equities/10% bonds)

I work in utility industry and I’m partial to having about 10% of my portfolio (coming out of my equities) in dividend stocks/funds. For example, I recently purchased some of my employer’s stock in my IRA during a price dip which allowed a div yield of 6% at the purchasing price. I consider these as higher risk bonds in my head and strategy as I don’t expect the same level of volatility or market movement as traditional equities.

I’m open to overall input (Specific ETFs, AA, etc) as I’ve been out of it long enough I’m hoping this thread will get me re-engaged to the portfolio.

Annual Contributions going forward will be maxing out his 401k ($18.5k), His Roth IRA ($5.5k), Her tIRA ($5.5k)

Account/Investment-- E/R -- % of portfolio (Total of All Accounts)

His Roth IRA
Vanguard Prime Money Market Fund -- VMMXX --(ER 0.16%)-- 1.29%
Vanguard Small Cap Value Index Fund Admiral Shares -- VSIAX -- (ER 0.07%) -- 6.38%
Ali Baba Co -- BABA -- (N/A%) -- 1.48%
Federal $ Mrkt -- VMFXX -- (ER 0.11%) -- 2.73%
His rIRA total ($37,405.30) =11.90%

His traditional IRA
VANGUARD DIVIDEND APPRECIATION ETF -- VIG -- (ER 0.08%) -- 2.61%
VANGUARD MID CAP VALUE ETF -- VOE -- (ER 0.07%) -- 2.67%
VANGUARD S&P 500 INDEX ETF -- VOO -- (ER 0.0 4%) -- 5.89%
Southern Company -- SO -- (N/A) -- 6.95%
Federal $ Mrkt -- VMFXX -- (ER 0.11%) -- 25.42%
His tIRA total ($136,871.76) = 43.55%

His 401k (Current Employer)
BLACKROCK EAFE EQUITY INDEX FD -- EEIFT -- (ER 0.07%) -- 5.79%
BLACKROCK RUSSELL 2000 INDEX -- RIDTT -- (ER 0.04%) -- 6.20%
NORTHERN TRUST COLLECTIVE AGGRESSIVE BOND INDEX FUND -- NTLLT -- (ER 0.03%) -- 0.01%
Southern Company -- SO -- (N/A%) -- 1.67%
VANGUARD INSTITUTIONAL 500 INDEX TRUST -- VINST -- (ER 0.01%) -- 6.45%
401k Total ($63,219.83) = 20.12%

His Retirement total ($237,496.89 = 75.57%

Her tIRA
Vanguard Total Stock Market Index Fund Admiral -- VTSAX -- (ER 0.04%) 18.91%

Her Roth IRA
Vanguard Mid-Cap Growth Index Fund Admiral -- VMGMX-- (ER 0.07%) -- 5.53%
Her IRA Totals ($76,794.47) = 24.43%

Both Retirement Total ($314,291.36) = 100%

Thanks in advance,
Nuke

P.S. I have a more complete breakdown table but the formatting did not translate so I left it to only major $ values, Investment symbol, and % of TOTAL portfolio (His and Her accounts)
Last edited by Nukeboilermaker on Sat Oct 13, 2018 11:30 am, edited 3 times in total.

delamer
Posts: 6131
Joined: Tue Feb 08, 2011 6:13 pm

Re: Overdue Portfolio Review/Audit

Post by delamer » Thu Oct 11, 2018 6:04 pm

You’ll get more help if you add the fund names and ERs.

People don’t know the ticker symbols.

Nukeboilermaker
Posts: 294
Joined: Mon Apr 11, 2011 9:49 am

Re: Overdue Portfolio Review/Audit

Post by Nukeboilermaker » Thu Oct 11, 2018 6:16 pm

Thanks, any tips for importing a formatted table? That would likely make it much easier as that info is on the table, the formatting before was making it congested and impossible to read.

Freefallin
Posts: 21
Joined: Thu Oct 04, 2018 1:12 pm

Re: Overdue Portfolio Review/Audit

Post by Freefallin » Thu Oct 11, 2018 8:59 pm

In your tax advantaged accounts I would just put it all in VTIVX and throw money at it like mad. Keep it simple.
"Pain is the touchstone of all growth." - Bill W.

Nukeboilermaker
Posts: 294
Joined: Mon Apr 11, 2011 9:49 am

Re: Overdue Portfolio Review/Audit

Post by Nukeboilermaker » Fri Oct 12, 2018 3:31 pm

Freefallin wrote:
Thu Oct 11, 2018 8:59 pm
In your tax advantaged accounts I would just put it all in VTIVX and throw money at it like mad. Keep it simple.
I've contemplated before about putting all of the funds into target retirement accounts. It's something I'll consider for sure if I want to be very passive.

P.S. The original post has been updated with Fund Names and Expense Ratios

Nukeboilermaker
Posts: 294
Joined: Mon Apr 11, 2011 9:49 am

Re: Portfolio Guidance

Post by Nukeboilermaker » Sat Oct 13, 2018 11:31 am

Shameless Bump since post has been updated with information

champion_ham
Posts: 29
Joined: Thu Apr 26, 2018 11:55 am

Re: Portfolio Guidance

Post by champion_ham » Sat Oct 13, 2018 11:58 am

Personally, I'd simplify further.

His Roth IRA: VTSMX (100% of Roth IRA portfolio)
His Traditional IRA: VTSMX (77% of Traditional IRA portfolio) / VBMFX (23%)
His 401k: VINST (100%)
Her Traditional IRA: VGTSX (100%)
Her Roth IRA: VTSMX (100%)

ExitStageLeft
Posts: 899
Joined: Sat Jan 20, 2018 4:02 pm

Re: Portfolio Guidance

Post by ExitStageLeft » Sat Oct 13, 2018 12:23 pm

Your portfolio currently has about 38% fixed income assets. If you simplified to a lazy three-fund portfolio based on a 62/38 allocation with ~33% of stocks in international markets, your return would be nearly identical.

Approximation of your portfolio here:
https://www.portfoliovisualizer.com/bac ... ion19_2=38
I substituted AAPL for BABA to show a little more market history.

The three-fund portfolio had better diversification and a lower market correlation, in exchange for a slightly lower return.

Nukeboilermaker
Posts: 294
Joined: Mon Apr 11, 2011 9:49 am

Re: Portfolio Guidance

Post by Nukeboilermaker » Sat Oct 13, 2018 1:03 pm

Thanks Champ and Exit! I know I have WAAAAY to much in cash for my personal taste. That is as a result of not immediately re-investing after the rollover was completed. That website is going in my bookmarks ASAP.

The S&P 500 fund in my 401k is really good so I liked Champs suggestion of going 100% in that and then using bonds in my tIRA. I will probably look at keeping my roth in 1 or 2 more aggressive equity funds.

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