32 Yr old DINKS Portfolio Advice

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Topic Author
Sparky213
Posts: 5
Joined: Mon Aug 26, 2019 12:14 pm

32 Yr old DINKS Portfolio Advice

Post by Sparky213 » Thu Sep 05, 2019 4:08 pm

Hello Everyone.
2 Years ago I read my first financial book "the index card". That has been the basis of my investment allocations. Ive since found the bogleheads and I'm all in. We are 32 y.o DINKS living in NJ, No debt outside of mortgage, maxing 401k and will max IRA for the first time in '19 I'm looking to clean up and reallocate especially since i just opened IRA for the both of us.

We have a Profit Sharing account my employer funds @20k year, A 401k maxing with 6% match, His and hers brand new IRA(so new the money hasnt even settled yet). And soon to have Etrade account for ESPP and RSU. I intend on keep these around 5 -10% total of holdings. For now ill keep them out of this.

The thought process in "The Index Card" is hold your age in bonds. I see this is not that common in this group. Ill share our holdings and funds we have to choose from. Maybe you'll be able to shed some light on it. I'm learning but its ALOT to take in.

Current allocations within the funds are as follows:
My Profit Sharing: Total Holding $257,508
1.Guareenteed Income Fund(.00 ER) 30%
2.IBEW-NECA SP500 Index Fund(.02 ER) 30%
3. Vanguard Mid-Cap Index Fund Institutional Shares (VMCIX) (.04 ER) 20%
4. Vanguard Small-Cap Growth Index Fund Institutional Shares (VSGIX) (.04 ER) 10%
5 .International Value / LSV Asset Management Fund (.82) 10%

Available funds to choose from:(I left out anything over .10 ER and target date funds)
Vanguard Small-Cap Value Index Fund Institutional Shares ( VSIIX ) (.06 ER)


Spouse 401(k) Total Holdings: $111,303
1. U.S. Core Fixed Income Balanced Risk (FIBR) Fund (.14 ER) 29% (HOLY CRAP JUST REALIZED HOW HIGH ER IS!)
2. S&P 500 Index Fund (.04 ER) 46%
3.Russell Small Cap Index Fund(.05 ER) 9%
4.International Developed Markets Index Fund(.08 ER) 9%
5.Target Retirement Funds 2050 (.08 ER) 7%

Available Funds to choose from:(I left out anything over .10 ER and target date funds)

Intermediate Government Bond Index Fund (.07 ER)
S&P Mid Cap Index Fund (.05 ER)
Emerging Markets Index Fund(.11 ER)
Employer Company Stock (.04 ER)

My Roth at Vanguard - Total Holdings $2500
Haven't picked any funds. Open to suggestions

Spouse Roth at Vanguard - Total Holdings $2500
Havent picked any funds. Open to suggestions


Future Plans are to continue to max 401k & IRA. I'm looking into if my employer can open a 401k for me that i could fund pretax. Planning on installing solar panels and investing the SRECs and defer electric bill into taxable account. With an estimate of 8% growth i figure it to be worth 250k over 25 years. Continue buying and selling ESPP and receiving RSU's. We haven't ruled out children in the next few years, we just dont have any on the way. Please share your thoughts on allocations and how were currently positioned for the future. I should also add that recent retirees in my field are receiving roughly 5k mo in pension.

THANK YOU!

EdNorton
Posts: 136
Joined: Wed Jan 02, 2019 11:11 am

Re: 32 Yr old DINKS Portfolio Advice

Post by EdNorton » Thu Sep 05, 2019 5:40 pm

Get a dog, then you'll be DINKWAD 's.

Do you have a pension plan? If not, what does it matter what recent retirees are receiving from pensions?
Outside a dog, a book is man's best friend, inside a dog, it's too dark to read - Groucho

Topic Author
Sparky213
Posts: 5
Joined: Mon Aug 26, 2019 12:14 pm

Re: 32 Yr old DINKS Portfolio Advice

Post by Sparky213 » Thu Sep 05, 2019 6:52 pm

Dog -check
Pension plan -check.

I mentioned it because it’s the only reference point I have for what my pension might look like in 25 years.

smectym
Posts: 615
Joined: Thu May 26, 2011 5:07 pm

Re: 32 Yr old DINKS Portfolio Advice

Post by smectym » Fri Sep 06, 2019 4:13 am

To diversify your portfolio into non-correlated assets, have a couple of kids

Dandy
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Joined: Sun Apr 25, 2010 7:42 pm

Re: 32 Yr old DINKS Portfolio Advice

Post by Dandy » Fri Sep 06, 2019 5:48 am

You seem to be in fine financial shape. I wouldn't worry about having one fund with a .14 ER - it is probably more important to have good diversity and your other ERs are great. I think you can rely on your savings rate and company match to power your portfolio vs taking very high risk.

Life balance is important so even though NJ is a HCOL state (I know :oops: ) make sure you keep an eye on enjoying life as well as preparing for the future.

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happyisland
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Re: 32 Yr old DINKS Portfolio Advice

Post by happyisland » Fri Sep 06, 2019 7:13 am

smectym wrote:
Fri Sep 06, 2019 4:13 am
To diversify your portfolio into non-correlated assets, have a couple of kids
What is the expense ratio on that?

livesoft
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Joined: Thu Mar 01, 2007 8:00 pm

Re: 32 Yr old DINKS Portfolio Advice

Post by livesoft » Fri Sep 06, 2019 7:19 am

happyisland wrote:
Fri Sep 06, 2019 7:13 am
smectym wrote:
Fri Sep 06, 2019 4:13 am
To diversify your portfolio into non-correlated assets, have a couple of kids
What is the expense ratio on that?
It depends on whether one chooses active management or passive indexing. If one is the first in family and young when their child is born, then expense ratio is higher. If some of one's siblings already have kids, then expense ratio is much lower. Also, if child's grandparents are not working still, then expense ratio is even lower.
Last edited by livesoft on Fri Sep 06, 2019 7:23 am, edited 1 time in total.
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HomeStretch
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Joined: Thu Dec 27, 2018 3:06 pm

Re: 32 Yr old DINKS Portfolio Advice

Post by HomeStretch » Fri Sep 06, 2019 7:20 am

Holding employer stock in your portfolio is risky as it is a single stock and your income is already tied to the employer.

Don’t chose the “employer stock” option in the 401k available funds.

Reconsider holding 5-10% in employer stock received from stock awards vesting or ESPP purchases. Sell and reinvest in a diversified low-cost total market stock fund.

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

Re: 32 Yr old DINKS Portfolio Advice

Post by lakpr » Fri Sep 06, 2019 10:31 am

livesoft wrote:
Fri Sep 06, 2019 7:19 am
happyisland wrote:
Fri Sep 06, 2019 7:13 am
smectym wrote:
Fri Sep 06, 2019 4:13 am
To diversify your portfolio into non-correlated assets, have a couple of kids
What is the expense ratio on that?
It depends on whether one chooses active management or passive indexing. If one is the first in family and young when their child is born, then expense ratio is higher. If some of one's siblings already have kids, then expense ratio is much lower. Also, if child's grandparents are not working still, then expense ratio is even lower.
There is a quite steep back-end load named "college costs", of the order of thousands of dollars each :)

CoastalWinds
Posts: 579
Joined: Sat Apr 06, 2019 8:28 pm

Re: 32 Yr old DINKS Portfolio Advice

Post by CoastalWinds » Sat Sep 07, 2019 2:04 pm

lakpr wrote:
Fri Sep 06, 2019 10:31 am
livesoft wrote:
Fri Sep 06, 2019 7:19 am
happyisland wrote:
Fri Sep 06, 2019 7:13 am
smectym wrote:
Fri Sep 06, 2019 4:13 am
To diversify your portfolio into non-correlated assets, have a couple of kids
What is the expense ratio on that?
It depends on whether one chooses active management or passive indexing. If one is the first in family and young when their child is born, then expense ratio is higher. If some of one's siblings already have kids, then expense ratio is much lower. Also, if child's grandparents are not working still, then expense ratio is even lower.
There is a quite steep back-end load named "college costs", of the order of thousands of dollars each :)
Not to mention the 1% AUM fee during the teenage years, when you become the “bank of mom and pop”.

Wannaretireearly
Posts: 760
Joined: Wed Mar 31, 2010 4:39 pm

Re: 32 Yr old DINKS Portfolio Advice

Post by Wannaretireearly » Sat Sep 07, 2019 2:47 pm

Save as much as you can! Kids (on average) are expensive. The small nugget post tax we saved as really helped cushion us. Been hard to save a substantial amount post kids, in after tax accounts.
Gather those coins...have a few kids!
Buy Low, Sell High

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