Portfolio Help (soon to retire)

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Topic Author
nickfrank
Posts: 26
Joined: Tue Feb 23, 2010 1:39 pm

Portfolio Help (soon to retire)

Post by nickfrank »

My age 68, wife 60

Managed to save what we feel is enough. Our s/b target is 35/65 which is close to what we have by my calculations. The stock target is close to 6% for each of the major categories LG,LV,SV, LG.INTERN., SM.INTERN., and REITS. Our bond choices are a mix of gov., corp., LT. and ST. as well as INFL. Protection.

Do you have any suggestions for improvement?

His IRA:
Vang. Cap.OP. VHCOX 4%
" Sm.Val. Inx.VISVX7%
" Lg. Val. Inx.VIVAX3%
" Reit Inx. VGSIX 6%
" Int. Val.VTRIX 6%
" Int. Explor.VINEX 6%
" St.Inv.Grd. VFSUX 14%
" Int.Trm.Inx. VBILX12%
" Inf. Prot. VAIPX 13%
" Prime MM 3%
Harbor Bnd. HABDX 3%
His Roth:
Wellesley VWINX 4%
T.R.Price.Spec.Inc.RPSIX2%
His Other
IBonds 4%
Her IRA:
Vang. Cap. Op. VHCOX 4%
Her Roth:
Wellesley VWINX 4%
T.R.Price. Spec.Inc.RPSIX2%
Her Other
IBonds 4%

Thanks for your help.
Nick
Last edited by nickfrank on Thu Feb 25, 2010 2:17 pm, edited 1 time in total.
YDNAL
Posts: 13774
Joined: Tue Apr 10, 2007 4:04 pm
Location: Biscayne Bay

Re: Portfolio Help (soon to retire)

Post by YDNAL »

NICKFRANK wrote:My age 68, wife 60

Managed to save what we feel is enough
Nick, welcome.

I don't see a question and there is missing information. The most important decision is asset allocation (stock/bond split) to match your need and ability to take risk. Please review the link below and edit your original post with anything needed to help address your questions and ask as many questions as necessary.
Asking Portfolio Questions
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
Topic Author
nickfrank
Posts: 26
Joined: Tue Feb 23, 2010 1:39 pm

Portfolio Help (soon to retire)

Post by nickfrank »

Landy,

Thanks for the suggestions. I have edited my post.

Nick
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Taylor Larimore
Advisory Board
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Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Simplify

Post by Taylor Larimore »

Hi Nick:

Thanks for the edit. Now we understand.

In my opinion you have a very satisfactory portfolio. However, it is going to be increasingly difficult to manage and pass on to heirs.

Because you have only I-Bonds in taxable, you can simplify your portfolio and your life with these changes:

1. Sell your non-Vanguard funds and hold everything (including IRAs) with Vanguard. This will eliminate your brokerage and you will have your entire portfolio on one statement.

2. Consider using only one Vanguard's Target Retirement Fund in each account.

You will probably do just as well with the professionally designed and very diversified Target Funds that rebalance themselves and become more conservative with age, as you can do yourself.

The big benefit will be having less worry and more free time to enjoy your golden years.

Vanguard's Target-Date Funds Earn Top Marks
"Simplicity is the master key to financial success." -- Jack Bogle
YDNAL
Posts: 13774
Joined: Tue Apr 10, 2007 4:04 pm
Location: Biscayne Bay

Re: Portfolio Help (soon to retire)

Post by YDNAL »

NICKFRANK wrote:Landy,

Thanks for the suggestions. I have edited my post.
Thanks for the update, Nick.

I think that your portfolio is too complex for no apparent (very small) expected benefit. God forbid, if something happened to you, (1) does your wife understand the holdings and goals you have, and (2) can she handle rebalancing?

His IRA:
Vang. Target Ret Income VTINX 76% (set on autopilot - self rebalancing)
.... Vanguard Total Bond Market II Index Fund Investor Shares* 34.4%
.... Vanguard Total Stock Market Index Fund Investor Shares 18.0%
.... Vanguard Inflation-Protected Securities Fund Investor Shares 15.3%
.... Vanguard Prime Money Market Fund Investor Shares 3.8%
.... Vanguard European Stock Index Fund Investor Shares 2.3%
.... Vanguard Pacific Stock Index Fund Investor Shares 1.1%
.... Vanguard Emerging Markets Stock Index Fund Investor Shares 1.1%
.... Total — 76%

His Roth:
Vanguard Int. Explor. VINEX 6% (Adds to Foreign in VTINX while adding missing asset class)

Her IRA:
Vanguard Inflation-Protected Securities 4%

Her Roth:
Vanguard Reit Index VGSIX 6% (these are the REITs you want, make sure she does also)

Other
IBonds 8%

Overall: 34.5/65.5 Stocks/Bonds-Cash
Stocks: 70/30 US/Foreign
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
Topic Author
nickfrank
Posts: 26
Joined: Tue Feb 23, 2010 1:39 pm

Portfolio Help (soon to retire)

Post by nickfrank »

Thanks Taylor and Landy,

I have considered the Target Retirement Income Fund in the past but preferred Larry S. suggested high SV. tilt and not including GNMA's in the mix which then precludes the use of the target fund.
I do realize that the funds outside Vanguard only complicate matters and are of little significance either way.
I like Landy's suggestion of the Roth changes but Int. Expl. is closed to new investors stopping me from transferring my Roth. I could use the SM.Int.Index fund in its place however.
You are right Taylor that my wife would have some difficulty balancing this portfolio in the future and I should simplify it.

Thanks again for responding to my post. I will consider your suggestions.

Nick
YDNAL
Posts: 13774
Joined: Tue Apr 10, 2007 4:04 pm
Location: Biscayne Bay

Re: Portfolio Help (soon to retire)

Post by YDNAL »

NICKFRANK wrote:I like Landy's suggestion of the Roth changes but Int. Expl. is closed to new investors stopping me from transferring my Roth. I could use the SM.Int.Index fund in its place however.
Nick,
VINEX is not closed... you just need a $416.7K portfolio to buy $25 grand with 6% in His Roth. :)
International Explorer VINEX

Yes, you can add FTSE ex US Small (VFSVX) but I didn't suggest it because you already own VINEX and thought you may want to keep investing there and REITs. You can hold Small Value VISVX instead of REITS - which has like 13% REITs in it.
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
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