Retirement Question - fund allocation

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jtexas
Posts: 1
Joined: Fri Nov 08, 2019 7:42 pm

Retirement Question - fund allocation

Post by jtexas » Fri Nov 08, 2019 8:11 pm

Hi all,

I'm 34, single, own a home that I owe roughly 2.25x my annual salary on and have 12 years to pay off, half of which is interest free (family loan). Other than mortgage 0 debt.

I have 1x my annual salary in a high yield savings account. I would consider investing some, but like the liquidity and would like to purchase an income property in 3-4 years.

Current Retirement investments:
Roth IRA: VTI - 100.032 shares - market value $15,721- fully funded past 2 years, will fully fund this year. I try to time buys at market lows if possible (I know time in the market vs timing the market is the saying here, but I try to do both).
401k: Vanguard Target Retirement 2050 Inv VFIFX - 991.147 shares - market value $38,743.95
Old Brokerage Account that will remain untouched: VTI - 49.726 shares - market value $7,814 - old account no plans to add here
Current Retirement savings $62,278

I plan on continuing to contribute to my 401k and Roth IRA.

Due to the lower expense ratio and outperformance, I'm considering reallocating all of my 401k into VTI. I understand this reduces my diversification, so also considering allocating a percentage in VT or VXUS. Looking for feed back on this and recommended % allocation if I include VT or VXUS. At this stage, I haven't really considered allocating anything in a bond ETF... is this incredibly foolish at my age?

Goal: maximize net worth for retirement.

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Peter Foley
Posts: 4945
Joined: Fri Nov 23, 2007 10:34 am
Location: Lake Wobegon

Re: Retirement Question - fund allocation

Post by Peter Foley » Fri Nov 08, 2019 8:45 pm

You should have some allocation to bonds. That allocation would be best held in a tax deferred account. At your age the usual recommendation is to have something in the rage of 20% bonds, plus or minus 5% to 10%.

In general it is better to post a fund's name than its symbol. Many of us do not memorize a broad array of symbols.

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