New Member - Portfolio Allocation Feedback

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Topic Author
DailyDouble
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Joined: Sun Nov 10, 2019 1:41 am

New Member - Portfolio Allocation Feedback

Post by DailyDouble » Wed Nov 13, 2019 10:00 pm

Hi,

I'm realizing I should have done this a long time ago, but better late than never, right? I've read through a bunch of the wiki, and am trying to rebalance my portfolio across multiple retirement accounts. I've come up with a tentative plan, but I'd love some feedback on it.

Emergency funds: Yes, 6 months of emergency funds in a high yield savings account.

Debt: Only debt is a 30 year fixed mortgage at an interest rate of 3.625% on our primary residence.

Tax Filing Status: Married Filing Jointly

Tax Rate: 37% Federal,11.3% State

State of Residence: California

Age: 38

Desired Asset allocation: 80% stocks /20% bonds
Desired International allocation:10% of stocks

Portfolio Size: 1.5M

Show us your current portfolio including all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans.

Show each fund or holding as a percentage of the entire portfolio, not as a percentage of the account that holding is in. If this instruction is not clear, see the example under the Key Points section below. For example:

Current retirement assets

Taxable
50.78% Alphabet Inc (GOOGL)
20.57% Cash for new investments

His 401k
24.85% Vanguard Target Retirement 2045 Trust Select (1681) (0.05%)
Company match? Yes

His Roth IRA at Schwab
Schwab Intelligent Portfolios (0.38% of Total Portfolio), consisting of:
0.01% CHARLES SCHWAB US REIT ETF (SCHH) (0.07%)
0.01% ISHARES GOLD ETF (IAU) (0.25%)
0.01% SCHWAB EMERGING MARKETS EQUITY ETF (SCHE) (0.13%)
0.02% SCHWAB FUNDA EMG MKTS LARGE COM ETF (FNDE) (0.39%)
0.04% SCHWAB FUNDAMENTAL INL LARGE COM ETF (FNDF) (0.25%)
0.02% SCHWAB FUNDAMENTAL INTL SMAL COM ETF (FNDC) (0.39%)
0.05% SCHWAB FUNDAMENTAL US LARGE CO ETF (FNDX) (0.25%)
0.04% SCHWAB FUNDAMENTAL US SMALL COM ETF (FNDA) (0.25%)
0.03% SCHWAB INTERMEDIATE TERM US TRS ETF (SCHR) (0.06%)
0.02% SCHWAB INTERNATIONAL EQUITY ETF (SCHF) (0.06%)
0.01% SCHWAB INTERNATNAL SMALL CAP EQY ETF (SCHC) (0.12%)
0.04% SCHWAB US LARGE CAP ETF (SCHX) (0.03%)
0.02% SCHWAB US SMALL CAP ETF (SCHA) (0.04%)
0.03% SCHWAB US TIPS ETF (SCHP) (0.05%)
0.01% SPDR BLMBRG BRCLY EMG MKT LCL ETF (EBND) (0.30%)
0.01% SPDR INTRMDT TRM CRPRATE BND ETF (SPIB) (0.07%)
0.01% VANGUARD GLBAL EX US REAL ESTATE ETF (VNQI) (0.12%)
0.02% VANGUARD MORTGAGE BACKED SEC ETF IV (VMBS) (0.07%)
0.01% XTRACKERS USD HIGH YIELD COR BND ETF (HYLB) (0.15%)


Her 401k at Schwab
3.12% Vanguard Institutional Target Retirement 2050 Fund Institutional Shares (VTRLX) (0.09%)

Her Roth IRA at Schwab
Schwab Intelligent Portfolios (0.38% of Total Portfolio) consisting of:
0.01% CHARLES SCHWAB US REIT ETF (SCHH) (0.07%)
0.01% ISHARES GOLD ETF (IAU) (0.25%)
0.01% SCHWAB EMERGING MARKETS EQUITY ETF (SCHE) (0.13%)
0.02% SCHWAB FUNDA EMG MKTS LARGE COM ETF (FNDE) (0.39%)
0.04% SCHWAB FUNDAMENTAL INL LARGE COM ETF (FNDF) (0.25%)
0.02% SCHWAB FUNDAMENTAL INTL SMAL COM ETF (FNDC) (0.39%)
0.05% SCHWAB FUNDAMENTAL US LARGE CO ETF (FNDX) (0.25%)
0.04% SCHWAB FUNDAMENTAL US SMALL COM ETF (FNDA) (0.25%)
0.03% SCHWAB INTERMEDIATE TERM US TRS ETF (SCHR) (0.06%)
0.02% SCHWAB INTERNATIONAL EQUITY ETF (SCHF) (0.06%)
0.01% SCHWAB INTERNATNAL SMALL CAP EQY ETF (SCHC) (0.12%)
0.04% SCHWAB US LARGE CAP ETF (SCHX) (0.03%)
0.02% SCHWAB US SMALL CAP ETF (SCHA) (0.04%)
0.03% SCHWAB US TIPS ETF (SCHP) (0.05%)
0.01% SPDR BLMBRG BRCLY EMG MKT LCL ETF (EBND) (0.30%)
0.01% SPDR INTRMDT TRM CRPRATE BND ETF (SPIB) (0.07%)
0.01% VANGUARD GLBAL EX US REAL ESTATE ETF (VNQI) (0.12%)
0.02% VANGUARD MORTGAGE BACKED SEC ETF IV (VMBS) (0.07%)
0.01% XTRACKERS USD HIGH YIELD COR BND ETF (HYLB) (0.15%)

Contributions

New annual Contributions
$19,000 his 401k
$9,500 his 401k employer match
$19,000 her 401k
$1,175 her 401k employer match
$6000 his Roth IRA
$6000 her Roth IRA
$15000 into taxable brokerage (for retirement, not short term goals)

Available funds
Funds available in his 401(k)
It looks like there is a self-directed brokerage option, where I can invest the funds in any mutual fund I prefer, if I jump through some hoops to set it up.
Vanguard Developed Markets Index Fund Institutional Plus Shares (VDIPX) (0.04%)
Vanguard Emerging Markets Index Fund Institutional Plus Shares (VEMRX) (0.08%)
Vanguard Institutional Total Bond Market Index Trust (0.025%)
Vanguard Institutional 500 Index Trust (0.012%)
Vanguard Institutional Extended Market Index Trust (0.031%)
Vanguard Total International Bond Index Fund Institutional Shares (VTIFX) (0.07%)
American Funds The Growth Fund of America® Class R-6 (RGAGX) (0.33%)
CRM Small Cap Value Fund Inst (CRISX) (0.92%)
Dodge & Cox Stock Fund (DODGX) (0.52%)
Fidelity® Diversified International Fund Class K (FDIKX) (0.69%)
Metropolitan West Total Return Bond Fund Plan Class (MWTSX) (0.37%)
Vanguard Federal Money Market Fund (VMFXX) (0.11%)
Vanguard Retirement Savings Trust II (0.27%)
William Blair Small-Mid Cap Growth CIT (0.90%)
Fidelity® Low-Priced Stock Fund Class K (FLPKX) (0.43%)
TIAA-CREF Social Choice Equity Fund Institutional Class (TISCX) (0.17%)
Vanguard Real Estate Index Fund Institutional Shares (VGSNX) (0.10%)
Vanguard Wellesley Income Fund Admiral Shares (VWIAX) (0.16%)
(There are also various Vanguard Target Retirement Funds w/ Various Retirement Ages)

Funds available in her 401(k)
American Funds Investment Company of America® Class R-6 (RICGX) (0.29%)
T. Rowe Price Growth Stock Fund I Class (PRUFX) (0.52%)
Vanguard Institutional Index Fund Institutional Shares VINIX (0.035%)
DFA U.S. Small Cap Value Portfolio Institutional Class (DFSVX) (0.52%)
Harbor Mid Cap Value Fund Institutional Class (HAMVX) (0.84%)
PGIM Jennison Small Company Fund- Class Z (PSCZX) (0.81%)
Vanguard Extended Market Index Fund Institutional Shares (VIEIX) (0.06%)
Vanguard Mid-Cap Growth Fund Investor Shares (VMGRX) (0.36%)
Dodge & Cox International Stock Fund (DODFX) (0.63%)
Vanguard Total International Stock Index Fund Institutional Shares (VTSNX) (0.08%)
Loomis Sayles Core Plus Bond Fund Class Y (NERYX) (0.48%)
Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) (0.035%)
Galliard Retirement Income Fund-Fee Class F35 (WGRIRX) (0.59%)
(There are also various Vanguard Target Retirement Funds w/ Various Retirement Ages)

Questions:
1. What’s the best way to include company stock into my overall portfolio? I’m heavily leveraged on Google stock (~50% of my portfolio) in a taxable brokerage account, due to compensation in the form of stock. I’ve since signed up for autosales of new incoming stock compensations. A big chunk of it has a low cost basis, so selling would incur lots of taxes. A smaller percentage of it ~10% will be sold over the next year when I've held it >1 year.

I’m thinking what I’ll do is include the GOOG stock into my total stock portfolio percentage. Is this a reasonable thing to do?

2. After reviewing much of the Bogleheads wiki, I came up with a draft of my plan. Could someone take a look over it and let me know if it looks reasonable?

I calculated my current allocations across all accounts and it was as follows (Percentages below are percentages across the entire portfolio)
Stock (Domestic) (incuding GOOG)
66.22%
Stock (International)
10.19%
Bonds (Domestic)
2.16%
Bonds (International)
0.84%
Commodities
0.02%
Cash (Immediately investable)
20.57%

My plan across my accounts is to re-balance across accounts to fit my 70/10/20 (Domestic Stock/International Stock/Domestic Bonds) portfolio profile. I’m counting the GOOG stock as part of the domestic stock portion of my portfolio:

Schwab Brokerage
50.78% GOOG
10.58% Schwab Total Stock Market Index Fund (SWTSX) (0.03)
9.92% Schwab International Index Fund (SWISX) (0.06)

His 401k
1.64% Vanguard Institutional Extended Market Index Trust (0.031%)
6.56% Vanguard Institutional 500 Index Trust (0.012%)
16.65% Vanguard Institutional Total Bond Market Index Trust (0.025%)

His Roth
0.38% Schwab Total Stock Market Index Fund (SWTSX) (0.03)

Her 401k
3.12% Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) (0.035%)

Her Roth
0.37% Schwab Total Stock Market Index Fund (SWTSX) (0.03)

I still don’t like how much risk I’m carrying with the GOOG stock, but at this point, I don’t think it makes sense to take the tax hit to liquidate.

The other option would be to change the balancing above to weigh the GOOG stock as large cap, and weigh my stock index contributions more heavily towards small/mid-cap. Would that make more sense here?

Thanks for any help on this.
- DailyDouble

HomeStretch
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Re: New Member - Portfolio Allocation Feedback

Post by HomeStretch » Wed Nov 13, 2019 11:04 pm

Your plan to adjust your holdings makes sense and the placement is tax-efficient.

The only issue as you are aware is the >50% in GOOG stock. Even with the large capital gains, I would suggest reducing the holding starting soon.

Incredible that Schwab intelligent Portfolios would invest a $6k Roth in 19 holdings.

Topic Author
DailyDouble
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Joined: Sun Nov 10, 2019 1:41 am

Re: New Member - Portfolio Allocation Feedback

Post by DailyDouble » Wed Nov 13, 2019 11:18 pm

Thanks for the reply HomeStretch!
HomeStretch wrote:
Wed Nov 13, 2019 11:04 pm
The only issue as you are aware is the >50% in GOOG stock. Even with the large capital gains, I would suggest reducing the holding starting soon.
Yeah, I wonder if it's worth it to bite the bullet and just eat the capital gains.
HomeStretch wrote:
Wed Nov 13, 2019 11:04 pm
Incredible that Schwab intelligent Portfolios would invest a $6k Roth in 19 holdings.
I was surprised as well. The expense ratios on some of them were pretty bad as well.

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Duckie
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Re: New Member - Portfolio Allocation Feedback

Post by Duckie » Wed Nov 13, 2019 11:30 pm

DailyDouble wrote:I’m thinking what I’ll do is include the GOOG stock into my total stock portfolio percentage. Is this a reasonable thing to do?
Yes.
After reviewing much of the Bogleheads wiki, I came up with a draft of my plan. Could someone take a look over it and let me know if it looks reasonable?
It looks very good, a vast improvement on the current plan.
The other option would be to change the balancing above to weigh the GOOG stock as large cap, and weigh my stock index contributions more heavily towards small/mid-cap. Would that make more sense here?
It is a large-cap stock but I wouldn't fuss with that definition. Considering it total stock makes things simpler.

Topic Author
DailyDouble
Posts: 7
Joined: Sun Nov 10, 2019 1:41 am

Re: New Member - Portfolio Allocation Feedback

Post by DailyDouble » Thu Nov 14, 2019 12:20 am

Duckie wrote:
Wed Nov 13, 2019 11:30 pm
It looks very good, a vast improvement on the current plan.
Thanks for looking it over Duckie. It gives me a lot of reassurance that I'm doing the right thing.
Duckie wrote:
Wed Nov 13, 2019 11:30 pm
It is a large-cap stock but I wouldn't fuss with that definition. Considering it total stock makes things simpler.
Thanks for confirming!

retired@50
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Re: New Member - Portfolio Allocation Feedback

Post by retired@50 » Thu Nov 14, 2019 12:35 am

DailyDouble wrote:
Wed Nov 13, 2019 11:18 pm
Thanks for the reply HomeStretch!
HomeStretch wrote:
Wed Nov 13, 2019 11:04 pm
The only issue as you are aware is the >50% in GOOG stock. Even with the large capital gains, I would suggest reducing the holding starting soon.
Yeah, I wonder if it's worth it to bite the bullet and just eat the capital gains.
HomeStretch wrote:
Wed Nov 13, 2019 11:04 pm
Incredible that Schwab intelligent Portfolios would invest a $6k Roth in 19 holdings.
I was surprised as well. The expense ratios on some of them were pretty bad as well.
You're in a high tax bracket, so selling Alphabet stock will add to your income, BUT, it will be at the lower long term capital gains rate. If I were you, I'd make part of my plan to sell off some of this stock every year for the foreseeable future (perhaps over as much as 10 years). You just can't have a serious portfolio that takes this much risk on a single company, that also I'm assuming provides your paycheck too...

Regards,

Topic Author
DailyDouble
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Joined: Sun Nov 10, 2019 1:41 am

Re: New Member - Portfolio Allocation Feedback

Post by DailyDouble » Thu Nov 14, 2019 2:41 am

retired@50 wrote:
Thu Nov 14, 2019 12:35 am
You're in a high tax bracket, so selling Alphabet stock will add to your income, BUT, it will be at the lower long term capital gains rate. If I were you, I'd make part of my plan to sell off some of this stock every year for the foreseeable future (perhaps over as much as 10 years). You just can't have a serious portfolio that takes this much risk on a single company, that also I'm assuming provides your paycheck too...
Retired@50 - I hear you. That’s a big reason why I’m looking for advice on Bogleheads. I’m planning to sell some more this year, to diversify, and auto sale any new incoming stock. In the meantime, I’ll liquidate the remaining stock and/or move a portion of them to a donor advised fund to offset the tax burden for sales through the years.

Thanks for the advice, I appreciate the input.

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Stinky
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Re: New Member - Portfolio Allocation Feedback

Post by Stinky » Thu Nov 14, 2019 8:52 am

DailyDouble wrote:
Thu Nov 14, 2019 2:41 am
retired@50 wrote:
Thu Nov 14, 2019 12:35 am
You're in a high tax bracket, so selling Alphabet stock will add to your income, BUT, it will be at the lower long term capital gains rate. If I were you, I'd make part of my plan to sell off some of this stock every year for the foreseeable future (perhaps over as much as 10 years). You just can't have a serious portfolio that takes this much risk on a single company, that also I'm assuming provides your paycheck too...
Retired@50 - I hear you. That’s a big reason why I’m looking for advice on Bogleheads. I’m planning to sell some more this year, to diversify, and auto sale any new incoming stock. In the meantime, I’ll liquidate the remaining stock and/or move a portion of them to a donor advised fund to offset the tax burden for sales through the years.

Thanks for the advice, I appreciate the input.
Welcome to the Forum! Glad that you posted your question.

I like your plan on the Google stock. First, auto selling any new incoming stock will stop the growth in the number of shares.

Second, I personally think that a donor-advised fund for part of the appreciated stock makes a lot of sense. Don't hesitate to "load up" the DAF with multiple years of expected grants would allow you to "bunch" the charitable deduction and may give you an enhanced tax deduction. (I personally like the Fidelity Charitable fund - very flexible, $5,000 minimum initial contribution, and just $50 minimum grant size.)

Third, gradually selling down the remaining Google shares to a reasonable level makes sense.

You've got a good plan.
It's a GREAT day to be alive - Travis Tritt

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goodenyou
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Re: New Member - Portfolio Allocation Feedback

Post by goodenyou » Thu Nov 14, 2019 9:13 am

It goes without saying that a high concentration in one stock is very risky. Liquidating that position, even with the tax consequence, is prudent. At your tax rate, I would concentrate my fixed income in tax-deferred, and fill up all 20% with a low cost intermediate term bond fund. The rest of tax deferred would be in a total market index fund. I am not a fan of more than a few index funds. Have you run your entire portfolio through a analyzer such as Vanguard's Portfolio Watch to get an assessment of what your AA is today? Paring down to simplicity will help keep your objectives in focus.
"Ignorance more frequently begets confidence than does knowledge" | Do you know how to make a rain dance work? Dance until it rains.

Topic Author
DailyDouble
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Joined: Sun Nov 10, 2019 1:41 am

Re: New Member - Portfolio Allocation Feedback

Post by DailyDouble » Fri Nov 15, 2019 12:43 am

Stinky wrote:
Thu Nov 14, 2019 8:52 am
DailyDouble wrote:
Thu Nov 14, 2019 2:41 am
retired@50 wrote:
Thu Nov 14, 2019 12:35 am
You're in a high tax bracket, so selling Alphabet stock will add to your income, BUT, it will be at the lower long term capital gains rate. If I were you, I'd make part of my plan to sell off some of this stock every year for the foreseeable future (perhaps over as much as 10 years). You just can't have a serious portfolio that takes this much risk on a single company, that also I'm assuming provides your paycheck too...
Retired@50 - I hear you. That’s a big reason why I’m looking for advice on Bogleheads. I’m planning to sell some more this year, to diversify, and auto sale any new incoming stock. In the meantime, I’ll liquidate the remaining stock and/or move a portion of them to a donor advised fund to offset the tax burden for sales through the years.

Thanks for the advice, I appreciate the input.
Welcome to the Forum! Glad that you posted your question.

I like your plan on the Google stock. First, auto selling any new incoming stock will stop the growth in the number of shares.

Second, I personally think that a donor-advised fund for part of the appreciated stock makes a lot of sense. Don't hesitate to "load up" the DAF with multiple years of expected grants would allow you to "bunch" the charitable deduction and may give you an enhanced tax deduction. (I personally like the Fidelity Charitable fund - very flexible, $5,000 minimum initial contribution, and just $50 minimum grant size.)

Third, gradually selling down the remaining Google shares to a reasonable level makes sense.

You've got a good plan.
Thanks for the feedback Stinky. I was thinking the same, to load up on my DAF to match charitable contributions I would have made anyways in the future.

Why do you like Fidelity better than Schwab? One thing I noticed about DAFs is that they all charge a percentage of the total assets in the fund. Is this something to worry about in the long run?

Topic Author
DailyDouble
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Re: New Member - Portfolio Allocation Feedback

Post by DailyDouble » Fri Nov 15, 2019 12:45 am

goodenyou wrote:
Thu Nov 14, 2019 9:13 am
It goes without saying that a high concentration in one stock is very risky. Liquidating that position, even with the tax consequence, is prudent. At your tax rate, I would concentrate my fixed income in tax-deferred, and fill up all 20% with a low cost intermediate term bond fund. The rest of tax deferred would be in a total market index fund. I am not a fan of more than a few index funds. Have you run your entire portfolio through a analyzer such as Vanguard's Portfolio Watch to get an assessment of what your AA is today? Paring down to simplicity will help keep your objectives in focus.
Thanks for the input. Why an intermediate bond fund vs. a total bond index?

I haven’t done Portfolio Watch. I'll give that a shot. Thanks for the pointer!

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Stinky
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Re: New Member - Portfolio Allocation Feedback

Post by Stinky » Fri Nov 15, 2019 8:20 am

DailyDouble wrote:
Fri Nov 15, 2019 12:43 am

Thanks for the feedback Stinky. I was thinking the same, to load up on my DAF to match charitable contributions I would have made anyways in the future.

Why do you like Fidelity better than Schwab? One thing I noticed about DAFs is that they all charge a percentage of the total assets in the fund. Is this something to worry about in the long run?
Glad to hear that you're thinking seriously about setting up a DAF.

As to Fidelity vs. Schwab, we never really looked at Schwab. From other threads on the Board, it looks like folks like Fidelity and Schwab about equally, and both of those are preferred to Vanguard (in large part because of the minimum initial contribution and grant sizes). We like Fidelity, and others like Schwab.

DAFs do charge an expense fee. At Fidelity, it's 60bp per year, with a minimum charge of $100. Offsetting the impact of that fee is the significant tax benefit from the tax-free investment income on funds within the DAF. For example, assume that the funds within the DAF are invested in an equity mutual fund that has a dividend yield of 2%. OP, based on your reported Federal tax rate, it looks like you would pay federal tax at a rate of 23.8% (including Medicare tax) on qualified dividend income if the funds were held in a taxable account, plus you would pay CA state income tax (I assume). If the total tax rate is 30%, then the tax savings by having the investment inside the DAF (2% X 30% = 60bp) entirely offsets the DAF expense charge.

We stocked up my DAF with multiple years of grants several years ago, invested the DAF funds in stock market funds, and are happy that we did it.
It's a GREAT day to be alive - Travis Tritt

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goodenyou
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Re: New Member - Portfolio Allocation Feedback

Post by goodenyou » Fri Nov 15, 2019 9:27 am

DailyDouble wrote:
Fri Nov 15, 2019 12:45 am
goodenyou wrote:
Thu Nov 14, 2019 9:13 am
It goes without saying that a high concentration in one stock is very risky. Liquidating that position, even with the tax consequence, is prudent. At your tax rate, I would concentrate my fixed income in tax-deferred, and fill up all 20% with a low cost intermediate term bond fund. The rest of tax deferred would be in a total market index fund. I am not a fan of more than a few index funds. Have you run your entire portfolio through a analyzer such as Vanguard's Portfolio Watch to get an assessment of what your AA is today? Paring down to simplicity will help keep your objectives in focus.
Thanks for the input. Why an intermediate bond fund vs. a total bond index?

I haven’t done Portfolio Watch. I'll give that a shot. Thanks for the pointer!
Total Bond is an intermediate term fund. It has a duration of about 6 years. It has been the work horse for fixed income and a perennially favorite around here. In my case, I do not have enough room in qualified accounts for all my fixed income so it spills over into taxable. I choose tax- exempt intermediate term (VWIUX) to fill the remainder. I am in the highest federal bracket like yourself, but I have no state income tax obligation (Texas) Therefore, I don’t use state-specific munis in taxable. Unfortunately, I also don’t have good low cost index bond funds in qualified accounts which complicates the strategy further. But, that’s for another discussion. I would emphasize the importance in simplifying your investment plan. The most important advice I got on the forum over the past ten years of membership was that simplicity makes you a more efficient and focused investor. You can get there my using new investment capital and moving around old strategically and as tax efficiently as possible.

Good luck.
"Ignorance more frequently begets confidence than does knowledge" | Do you know how to make a rain dance work? Dance until it rains.

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1789
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Re: New Member - Portfolio Allocation Feedback

Post by 1789 » Fri Nov 15, 2019 10:24 am

All i can say is make a strategy to unload goog stock from your entire portfolio and stick with total market stock and bond funds. You and her have great mutual funds to buy in 401ks. And don't bother to use self brokerage at all. Congrats on savings.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

Topic Author
DailyDouble
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Re: New Member - Portfolio Allocation Feedback

Post by DailyDouble » Sat Nov 16, 2019 12:46 pm

1789 wrote:
Fri Nov 15, 2019 10:24 am
All i can say is make a strategy to unload goog stock from your entire portfolio and stick with total market stock and bond funds. You and her have great mutual funds to buy in 401ks. And don't bother to use self brokerage at all. Congrats on savings.
Thanks for the input. What do you mean by ‘don’t bother to use self brokerage at all’? Do you mean don’t bother to buy individual stock?

I have a pretty big chunk of my portfolio stuck outside of tax advantaged accounts, so I don’t think it’s an option for me to avoid investing in taxable accounts.

What I am planning on doing is to sell some of the Google stock and pay living expenses using that, while maximizing my contributions further into my tax advantages accounts by using a mega backdoor roth.

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1789
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Re: New Member - Portfolio Allocation Feedback

Post by 1789 » Sat Nov 16, 2019 3:30 pm

DailyDouble wrote:
Sat Nov 16, 2019 12:46 pm
1789 wrote:
Fri Nov 15, 2019 10:24 am
All i can say is make a strategy to unload goog stock from your entire portfolio and stick with total market stock and bond funds. You and her have great mutual funds to buy in 401ks. And don't bother to use self brokerage at all. Congrats on savings.
Thanks for the input. What do you mean by ‘don’t bother to use self brokerage at all’? Do you mean don’t bother to buy individual stock?

I have a pretty big chunk of my portfolio stuck outside of tax advantaged accounts, so I don’t think it’s an option for me to avoid investing in taxable accounts.

What I am planning on doing is to sell some of the Google stock and pay living expenses using that, while maximizing my contributions further into my tax advantages accounts by using a mega backdoor roth.
In his 401k section you mentioned that he has abikity to use self brokerage and can buy any mutual fund he can. I read this as he has ability to use self directed brokeragelink account and i said it is not needed, imo. Because regular 401k does have great mutual funds
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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WoodSpinner
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Re: New Member - Portfolio Allocation Feedback

Post by WoodSpinner » Sat Nov 16, 2019 5:17 pm

OP,

One option is to donate portions of your Alphabet stock to your DAF so you can take a bit of a tax write off (or provide more room for Capital Gains).

This helped me considerably when I did some re-allocations in preparation for retirement.

WoodSpinner

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