New Investor portfolio opinions

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Glenwood
Posts: 1
Joined: Sun Feb 11, 2024 12:00 pm

New Investor portfolio opinions

Post by Glenwood »

New investor and new to Bogle. Finally trying to understand my investment choices and thinking I may not have a big enough variety. I lean aggressive and am okay taking short term hits because over the long haul I'm thinking aggression will pay off better. But I also have so much tied up in VTSAX (Vanguard Total Stock Market Index). Is that really a bad thing?

Basically, retirement accounts are approx 50% in Total Stock Market Funds and another 45% in a combo of Intl, Mid-Cap and Small-Cap funds, and maybe 5% in Bonds. I'm also wondering if the taxable $100k in the total stock market fund is the right place to be.


Cash - $100k in Wealthfront @ 5%
Brokerage - $100k in VTSAX (Vanguard Total Stock Market Index), $10k in VFIAX (VANGUARD 500 INDEX)
Individual Stocks - $60k

His Roth IRA - $100k ($80k VTSAX(Vanguard Total Stock Market Index), $20k VTIAX(Vanguard Total International Stock Index)
His Trad IRA - $190k ($80k VTSAX(Vanguard Total Stock Market Index), $30k VTIAX, $40k VSMAX (Vanguard Small-Cap Index), $40k VGIAX)(Vanguard Growth and Income Fund)
His 401k - 40% FXAIX (Fidelity 500 Index), 30% FSMDX (Fidelity Mid Cap Index), 20% PKSFX (Virtus KAR Small-Cap) , 10% FFOPX (Fidelity Freedom Index 2050 Fund) (previous 401k rolled to IRA upon job change)

Her Roth IRA - $155k ($100k VTSAX(Vanguard Total Stock Market Index), $5k VWIGX(Vanguard International Growth Fund)
Her SEP-IRA - $35k VTSAX (Vanguard Total Stock Market Index)
Her Trad IRA - $8k ($4k VTTHX (Vanguard Target Retirement 2035), $4k VWELX(Vanguard Wellington™ Fund)
Her 401k - $100k TCIIX (TIAA-CREF Lifecycle 2035 Fund), $20k QCEQIX (CREF Equity Index), $16k QCSTIX $2k VFIAX
Last edited by Glenwood on Sun Feb 11, 2024 6:37 pm, edited 1 time in total.
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retired@50
Posts: 12422
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: New Investor portfolio opinions

Post by retired@50 »

Glenwood wrote: Sun Feb 11, 2024 12:33 pm New investor and new to Bogle. Finally trying to understand my investment choices and thinking I may not have a big enough variety. I lean aggressive and am okay taking short term hits because over the long haul I'm thinking aggression will pay off better. But I also have so much tied up in VTIAX and VTSAX. Is that really a bad thing?


Cash - $100k in Wealthfront @ 5%
Brokerage - $100k in VTSAX, $10k in VFIAX
Individual Stocks - $60k

His Roth IRA - $100k ($80k VTSAX, $20k VTIAX)
His Trad IRA - $190k ($80k VTSAX, $30k VTIAX, $40k VSMAX, $40k VGIAX)
His 401k - 40% FXAIX, 30% FSMDX, 20% PKSFX, 10% FFOPX (previous 401k rolled to IRA upon job change)

Her Roth IRA - $155k ($100k VTSAX, $5k VWIGX)
Her SEP-IRA - $35k VTSAX
Her Trad IRA - $8k ($4k VTTHX, $4k VWELX)
Her 401k - $100k TCIIX, $20k QCEQIX, $16k QCSTIX $2k VFIAX
Welcome to the forum. :happy

Almost nobody knows all those ticker symbols from memory, so they probably won't bother to look each one up to offer an opinion.

Consider editing your post using the pencil icon and post in the Asking Portfolio Questions format which is standard for this forum.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
bonesly
Posts: 858
Joined: Mon Dec 18, 2017 9:28 pm
Location: WA

Re: New Investor portfolio opinions

Post by bonesly »

Glenwood wrote: Sun Feb 11, 2024 12:33 pm Finally trying to understand my investment choices and thinking I may not have a big enough variety.
You can get all the diversity you need from holding just three funds: Total US Stock, Total Int'l Stock, and Total US Bond. You have more than three funds so either there are tilts (overweighting relative to the market capitalization weighting of an index) or there are sector bets (a gamble that some sector will outperform the total market index).
Glenwood wrote: Sun Feb 11, 2024 12:33 pm ... I also have so much tied up in VTIAX and VTSAX. Is that really a bad thing?
As Retired@50 noted, you have a lot of funds, so it's not obvious to me if you have any bonds or if this is all 100% stocks (you didn't cite your desired/target asset allocation). If it is 100% stocks and that's by design then holding a lot of VTIAX and VTSAX isn't really a bad thing, but I would bet there's a lot of overlap with your other holdings and that you could significantly simplify your portfolio to something closer to a 3-Fund Portfolio.

As an aside, is the $100K cash at Wealthfront, your emergency fund or is that money waiting to be invested? Typically your emergency fund is acknowledge (you have one and it's adequate for 6-12 months of expenses), but it's not counted in your retirement portfolio (different purpose, time-frame, and risk-tolerance).
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mhadden1
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Location: North Alabama

Re: New Investor portfolio opinions

Post by mhadden1 »

bonesly wrote: Sun Feb 11, 2024 1:14 pm you could significantly simplify your portfolio to something closer to a 3-Fund Portfolio.
Definitely look into this. Pick an allocation and use inexpensive index funds to get market returns.
Retired 12/31/2015
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ruralavalon
Posts: 26169
Joined: Sat Feb 02, 2008 9:29 am
Location: Illinois

Re: New Investor portfolio opinions

Post by ruralavalon »

Welcome to the forum :D

Glenwood wrote: Sun Feb 11, 2024 12:33 pm New investor and new to Bogle. Finally trying to understand my investment choices and thinking I may not have a big enough variety. I lean aggressive and am okay taking short term hits because over the long haul I'm thinking aggression will pay off better. But I also have so much tied up in VTIAX and VTSAX. Is that really a bad thing?


Cash - $100k in Wealthfront @ 5%
Brokerage - $100k in VTSAX, $10k in VFIAX
Individual Stocks - $60k

His Roth IRA - $100k ($80k VTSAX, $20k VTIAX)
His Trad IRA - $190k ($80k VTSAX, $30k VTIAX, $40k VSMAX, $40k VGIAX)
His 401k - 40% FXAIX, 30% FSMDX, 20% PKSFX, 10% FFOPX (previous 401k rolled to IRA upon job change)

Her Roth IRA - $155k ($100k VTSAX, $5k VWIGX)
Her SEP-IRA - $35k VTSAX
Her Trad IRA - $8k ($4k VTTHX, $4k VWELX)
Her 401k - $100k TCIIX, $20k QCEQIX, $16k QCSTIX $2k VFIAX
I do not recognize all those ticker symbols.

It's better to use both the fund names and ticker symbols so that members who want to help you don't have to look up what you are talking about. Also it's easy to mistype a ticker, and so wind up discuss the wrong fund.

Having your largest investments in just a few broadly diversified index funds with very low expense ratios is a good thing, not a bad thing.

You have more than enough variety.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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