31 Year old 6 figure portfolio help

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ua99
Posts: 1
Joined: Sat Jun 09, 2018 12:22 am

31 Year old 6 figure portfolio help

Post by ua99 » Sat Aug 10, 2019 4:14 pm

Hello first time poster, 3 years reading forums occasionally. Looking for some help with allocating into positions going forward and what to add into.

Single, 31, able to save-invest $2.0K-$3K monthly, salary is $100K/yr with probable $15K-$40K bonus. I work hard every week, try somewhat to save
and keep a modest simple mindset lifestyle.

After 1 yr of starting this portfolio I’m up a measly 1.5% unrealized and 3.6% ytd realized from dividends and cap gains. The underperformance is also because I allocated into international, us small caps, us mid cap, us value which are almost 33% of the portfolio and haven’t had a good year. I have some individual company stocks that I think will compound. For the money I can invest going forward, what should I add into or hold back from? Do I keep buying the underperforming positions? Or Try something completely different? Thanks again Bogleheads, I really appreciate the content on here.

$290K Portfolio:
Cash – 7%
total us market VTI – 22%
individual us stocks (wfc-7 clmt-9 spg-2 bti-1) – 19%
us growth VUG – 9%
us large cap VV – 3%
vanguard value VTV – 3%
us tech growth QQQ – 3%
us materials VAW – 4%
us small cap VBR – 4%
total international VXUS – 8%
vanguard international equity VEU – 7%
total international small cap VSS – 5%
Vanguard mid cap VOE – 4%
fidelity us medical services FSHCX – 2%

Flyer24
Posts: 976
Joined: Sun Apr 08, 2018 4:21 pm

Re: 31 Year old 6 figure portfolio help

Post by Flyer24 » Sat Aug 10, 2019 4:51 pm

Please use the edit tool and follow this format for portfolio reviews.

viewtopic.php?f=1&t=6212

Don’t chase performance. Start reading the wiki guide on this site. You need to develop an allocation plan.

Just at first glance. You need to simplify. You are only 22% in total stock market. You should be at least 80%. Develop a 3 fund portfolio or go with a target fund. We can help you choose the funds if you follow the format and give us the fund information.

pkcrafter
Posts: 13526
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: 31 Year old 6 figure portfolio help

Post by pkcrafter » Sat Aug 10, 2019 6:27 pm

Welcome ua99,
ua99 wrote:
Sat Aug 10, 2019 4:14 pm
Hello first time poster, 3 years reading forums occasionally. Looking for some help with allocating into positions going forward and what to add into.

Single, 31, able to save-invest $2.0K-$3K monthly, salary is $100K/yr with probable $15K-$40K bonus. I work hard every week, try somewhat to save and keep a modest simple mindset lifestyle.

Your savings rate, ~30k/year, is excellent!

After 1 yr of starting this portfolio I’m up a measly 1.5% unrealized and 3.6% ytd realized from dividends and cap gains.

?? What about appreciation? VTI is up 20%.

The underperformance is also because I allocated into international, us small caps, us mid cap, us value which are almost 33% of the portfolio and haven’t had a good year. I have some individual company stocks that I think will compound. For the money I can invest going forward, what should I add into or hold back from? Do I keep buying the underperforming positions? Or Try something completely different? Thanks again Bogleheads, I really appreciate the content on here.

$290K Portfolio:
Cash – 7%
total US market VTI –
bond/cash - 20-25%
international - 20-30% of equity

Hold an emergency fund separately from investment portfolio.


https://www.bogleheads.org/wiki/Emergency_fund

individual us stocks (wfc-7 clmt-9 spg-2 bti-1) – 19%
us growth VUG – 9%
us large cap VV – 3%
vanguard value VTV – 3%
us tech growth QQQ – 3%
us materials VAW – 4%
us small cap VBR – 4%
total international VXUS – 8%
vanguard international equity VEU – 7%
total international small cap VSS – 5%
Vanguard mid cap VOE – 4%
fidelity us medical services FSHCX – 2%
The Boglehead-recommended 3 fund portfolio is highly efficient and will outperform 80+% of other strategies over time, so getting clever has a very low probability of increasing returns. Other strategies will test one's conviction.

viewtopic.php?f=10&t=88005

The biggest threat to good returns is trying to outperform what is a very good return over time. The hardest thing about investing is controlling one's behavior.





Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

pkcrafter
Posts: 13526
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: 31 Year old 6 figure portfolio help

Post by pkcrafter » Sat Aug 10, 2019 6:32 pm

Welcome ua99,
ua99 wrote:
Sat Aug 10, 2019 4:14 pm
Hello first time poster, 3 years reading forums occasionally. Looking for some help with allocating into positions going forward and what to add into.

Single, 31, able to save-invest $2.0K-$3K monthly, salary is $100K/yr with probable $15K-$40K bonus. I work hard every week, try somewhat to save and keep a modest simple mindset lifestyle.

Your savings rate, ~30k/year, is excellent!

After 1 yr of starting this portfolio I’m up a measly 1.5% unrealized and 3.6% ytd realized from dividends and cap gains.

?? What about appreciation? VTI is up 20%.

The underperformance is also because I allocated into international, us small caps, us mid cap, us value which are almost 33% of the portfolio and haven’t had a good year. I have some individual company stocks that I think will compound. For the money I can invest going forward, what should I add into or hold back from? Do I keep buying the underperforming positions? Or Try something completely different? Thanks again Bogleheads, I really appreciate the content on here.

$290K Portfolio:
Cash – 7%
total US market VTI –
bond/cash - 20-25%
international - 20-30% of equity

Hold an emergency fund separately from investment portfolio.


https://www.bogleheads.org/wiki/Emergency_fund

individual us stocks (wfc-7 clmt-9 spg-2 bti-1) – 19%
us growth VUG – 9%
us large cap VV – 3%
vanguard value VTV – 3%
us tech growth QQQ – 3%
us materials VAW – 4%
us small cap VBR – 4%
total international VXUS – 8%
vanguard international equity VEU – 7%
total international small cap VSS – 5%
Vanguard mid cap VOE – 4%
fidelity us medical services FSHCX – 2%
The Boglehead-recommended 3 fund portfolio is highly efficient and will outperform 80+% of other strategies over time, so getting clever has a very low probability of increasing returns. Other strategies will test one's conviction.

viewtopic.php?f=10&t=88005

The biggest threat to good returns is trying to outperform what is a very good return over time. The hardest thing about investing is controlling one's behavior.





Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

lakpr
Posts: 2207
Joined: Fri Mar 18, 2011 9:59 am

Re: 31 Year old 6 figure portfolio help

Post by lakpr » Mon Aug 12, 2019 7:22 pm

Do you have access to a workplace 401k plan and contributing the max $19k to it?

Roth IRA: with your income (if you include the bonus), is well above the income limit to be able to contribute to a Roth IRA. Therefore you should follow the Backdoor Roth process - look in the Wiki for “Backdoor Roth”, be sure to follow the instructions in that article carefully

Between the two, you should be able to save $25k per year in tax advantaged accounts.

Do you plan to marry and have kids in the future? If so, I suggest you start a 529 plan for now with your name as both the owner and beneficiary. Shovel all the remaining investable assets into this vehicle for now, at least until your contributions equal 4 years if in state tuition. You can invest them in Vanguard Nevada plan and go 100% equities. When you marry and have kids it is a simple matter of updating the beneficiary to your kid(s).

Until this stage is reached, refrain from investing in taxable accounts.

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