Portfolio suggestions

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Topic Author
YoYo1976
Posts: 9
Joined: Mon Sep 04, 2017 7:12 am

Portfolio suggestions

Post by YoYo1976 »

I’m wanting to simplify our portfolio and would like to get your perspective.

I’m thinking of a 50/50 split of Vanguard Wellington Fund (VWENX/ VWELX) and Vanguard Balanced Index Fund (VBIAX).

What do you think? Am I missing anything? Are there any special considerations to be aware of when I make changes to the t brokerage account?

Emergency funds: 6 months of expenses

Debt: Mortgage $168,000 (3.4% fixed rate) – no other debt

Tax Filing Status: Married Filing Jointly

Tax Rate: 12% Federal, 7.44 % State

State of Residence: Iowa

Ages: Both my wife and I are 63. We plan to take SS at NRA.

Desired Asset allocation: Moderate (60% stocks /40% bonds)

Total portfolio: $1.1 million (all at Vanguard)

Asset allocation category weight (percent of total portfolio)
Intermediate-Term Bond 9.68
Long-Term Bond 9.79
Short-Term Bond 4.8
Inflation-Protected Bond 11.56
Large Blend 25.64
Large Growth 5.98
Large Value 2.95
Small Blend 2.91
Small Value 2.58
Mid-Cap Value 7.18
Real Estate 1.17
Diversified Emerging Markets 1.89
Foreign Large Blend 6.78
World Stock 5.35
Lifestyle Moderate Allocation 1.75

Taxable brokerage
VBTLX Vanguard Total Bond Market Index Fund Admiral Shares 0.69
VBLAX Vanguard Long-Term Bond Index Fund Admiral Shares 0.42
VBIRX Vanguard Short-Term Bond Index Fund Admiral Shares 1.53
VTSAX Vanguard Total Stock Market Index Fund Admiral Shares 1.45
PFG Principal Financial Group 7.18
VWUSX Vanguard U.S. Growth Fund Investor Shares 0.58
VWUSX Vanguard U.S. Growth Fund Investor Shares 0.35
VIPSX Vanguard Inflation-Protected Securities Fund Investor Shares 2.08
VTAPX Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares 0.93
VMVFX Vanguard Global Minimum Volatility Fund Investor Shares 0.50

My IRA
VAIPX Vanguard Inflation-Protected Securities Fund Admiral Shares 5.55
VBTLX Vanguard Total Bond Market Index Fund Admiral Shares 6.92
VTSAX Vanguard Total Stock Market Index Fund Admiral Shares 16.64
VWUAX Vanguard U.S. Growth Fund Admiral Shares 4.49
VBLAX Vanguard Long-Term Bond Index Fund Admiral Shares 3.35
VMVFX Vanguard Global Minimum Volatility Fund Investor Shares 3.94

My Roth IRA
VBTLX Vanguard Total Bond Market Index Fund Admiral Shares 0.69
VTSAX Vanguard Total Stock Market Index Fund Admiral Shares 0.95
VVIAX Vanguard Value Index Fund Admiral Shares 0.28
VMVFX Vanguard Global Minimum Volatility Fund Investor Shares 0.42

My Inherited IRA (taking annual RMDs)
VIPSX Vanguard Inflation-Protected Securities Fund Investor Shares 0.65
VBTLX Vanguard Total Bond Market Index Fund Admiral Shares 1.38
VTSAX Vanguard Total Stock Market Index Fund Admiral Shares 2.38
VWUSX Vanguard U.S. Growth Fund Investor Shares 0.56
VMVFX Vanguard Global Minimum Volatility Fund Investor Shares 0.49

Her IRA
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares 1.89
VTMGX Vanguard Developed Markets Index Fund Admiral Shares 2.92
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares 3.86
VTAPX Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares 2.35
VLCAX Vanguard Large Cap Index Fund Admiral Shares 4.22
VVIAX Vanguard Value Index Fund Admiral Shares 2.67
VBILX Vanguard Intermediate-Term Bond Index Fund Admiral Shares 6.02
VGSLX Vanguard Real Estate Index Fund Admiral Shares 1.17
VBIRX Vanguard Short-Term Bond Index Fund Admiral Shares 3.27
VSMAX Vanguard Small-Cap Index Fund Admiral Shares 2.91
VSIAX Vanguard Small-Cap Value Index Fund Admiral Shares 2.58

Her Roth IRA
VSMGX Vanguard LifeStrategy Moderate Growth Fund 1.75

Contributions
$7,000 in 2021 and 2022 to his Roth IRA from taxable account
$7,000 in 2021 and 2022 to her Roth IRA from taxable account
brad.clarkston
Posts: 1726
Joined: Fri Jan 03, 2014 7:31 pm
Location: Kansas City, MO

Re: Portfolio suggestions

Post by brad.clarkston »

Nothing wrong with that setup at your age and portfolio lots of people go the managed super-funds route for ease of use.

Code: Select all

Vanguard Wellington Admiral          / VWENX / ER: 0.160%
Vanguard Wellington Inv              / VWELX / ER: 0.240%
Vanguard Balanced Index Fund Admiral / VBIAX / ER: 0.07%
Just keep in mind the amount of fee's you'll be paying in ER. The above isn't bad but it's something to track.
70% AVGE | 20% FXNAX | 10% T-Bill/Muni
Topic Author
YoYo1976
Posts: 9
Joined: Mon Sep 04, 2017 7:12 am

Re: Portfolio suggestions

Post by YoYo1976 »

Thank you.
User avatar
retiredjg
Posts: 54082
Joined: Thu Jan 10, 2008 11:56 am

Re: Portfolio suggestions

Post by retiredjg »

Neither of the funds you are considering is very tax-efficient. In your tax bracket, that may not make a great deal of difference. And what you gain may make it worth it to you anyway.

They will provide you with a portfolio that is near 60% stocks and 40% bonds and it will be simple.

You will surely run into capital gains tax if you replace the taxable account with your idea. Have you considered making this transition over several years? Some or even near all of your gains might be taxed at 0% if you time it right and have the space left in the 0% cap gains bracket.

Your portfolio is way more complex than needed. I can see why you are interested in this change.

Assuming that someone is still working to make you eligible for the Roth IRA contributions.
Topic Author
YoYo1976
Posts: 9
Joined: Mon Sep 04, 2017 7:12 am

Re: Portfolio suggestions

Post by YoYo1976 »

Thank you. I appreciate the capital gains information.

Yes, we have earned income.
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