Hi Poisns1,Poisns1 wrote: ↑Tue Jul 13, 2021 6:49 pmWetgear I'd love to do that but I honestly don't know how. It confuses the heck out of me. That's why I'm trying to simplify both accounts (my 401k and her IRA) prior to retirement. For example there is about 30% international built into 15% of my 401k balance in the Fidelity Target Date 2030 Fund. Then I have 20% of my 401k in the International Stock Index. The rest of the funds are split among Total Stock, Small/Mid cap, bond etc. I have no clue about the wife's IRA funds and what AA they carry as she picked those years ago when her original stock funds were closed and she was forced to pick new funds.wetgear wrote: ↑Tue Jul 13, 2021 6:12 pmCan you edit your original post to show what percentages of your total portfolio each fund represents? Percentage of individual accounts isn't really useful information. Your AA and % international should be set at the portfolio level not the account level. There is much disagreement here about how much international is appropriate with people arguing anywhere from 0-50% is appropriate but most would agree 20% isn't a bad option. You may not need to hold all 3 of the funds for a 3 fund portfolio in every account and if your wife's IRA is small 1 fund would likely be fine.Poisns1 wrote: ↑Tue Jul 13, 2021 4:06 pm 1) Can I ask what portion of your 65AA is in US Stock vs. International Stock and do you think that the 2 Fidelity target date funds offered in my 401k are too high of an AA in International Stock at 30% and 35.33%. I've heard about the Life Strategy Funds but now sure if those funds are also "heavily" weighted towards International Stocks?
2) Also can you recommend a 3 fund portfolio (actual fund choices) to move my wife's expensive Fidelity IRA funds to please?
Here are the main retirement accounts. A 3rd account (IRA) will be opened up with Fidelity before the end of the year and I will transfer my company retirement money into that account. Like you said I would like to have all 3 of these simplified so I can easily monitor the AA. I just don't know how to get from point A to point B? Can you help me sort this mess out and fix everything? Wife's IRA is small and I agree, if I'm looking for a 65/35 or 60/40 AA can you recommend a good 1 fund choice to make her IRA simple? So confused and afraid I'm going to screw this up..
1) His 401k
401k current value about 1.24M (Asset Allocation 2030 fund 15%, Total Return Bond 7%, Total US Stock (large cap) 12%, AT&T US Stock Fund (large cap 10%, International Stock Index 20%, Large Cap US Stock Index 16%, SM & MD US Stock 20%). TOTAL = 1.14M
2) Her rollover IRA
Current value about 164K
Fidelity Value FDVLX 40%
Fidelity Equity Income FEQTX 30%
Janus Henderson Triton T JATTX 30%
Sure thing. I'll give you an example using her rollover and then you can do the same for your 401k and any other possible accounts. You then add up all the values for a total portfolio size and add up all the equities for total equities, divide the later by the former and multiply by 100.
Her rollover IRA $164,000
40% FDVLX is (40/100 = 0.4) ---------> 0.4 x $164,000 = $65,600
This fund is ~92% US stock/8% International/0% bonds
https://fundresearch.fidelity.com/mutua ... /316464106
$65,600 x 0.92 (this is 92% as a decimal) = $60,352 US Stock
$65,600 x 0.08 = $5,248 International
30% FEQTX x $164,000 = $49,200
~ 85% US stock/15% international
https://fundresearch.fidelity.com/mutua ... /316145101
$49,200 x 0.85 = $41,820 US
$49,200 x 0.15 = $7,380 International
30% JATTX x $164,000 = $49,200
~ 95% US/ 5% International
https://fundresearch.fidelity.com/mutua ... /471023549
$49,200 x 0.95 = $46,740 US
$49,200 x 0.05 = $2,460 International
So add up all the US:
$60,352 + $41,820 + $46,740 = $148,912
Add up international:
$5,248 + $8,380 + $2,460 = $15,088
Check your math by adding the two 148,912 + 15,088 = $164,000 (total account value BINGO!)
Now take US stock value and divide by total value:
148,912/164,000 = 0.908
Multiply that number by 100 to express it as a percentage
0.908 x 100 = 90.8%
so just call it 91% US stock
Same for international:
(15,088/164,000) x 100 = ~ 9% International stock
So just this account has a AA of 100/0 (stock/bond) and is 91% US/9% international but that's not what we are looking for yet it provides the building blocks for the process of determining a total portfolio AA.
You just need to repeat this process for all accounts and funds converting percentages to dollar amounts/asset class (US stock, international stock, bonds). Add up all the dollars for each asset class across entire portfolio and then divide that number by total portfolio value, multiply by 100 and you have your total portfolio percentage of that asset class.
If not including your cash position or lump sum, just invested money I'd guess your current total portfolio is close to 90/10 AA with around 15% of stocks in international (The AA including cash and lump sum is much lower). If you are trying to get to 60/40 then you may just want to sell everything in her IRA and buy FXNAX. It's a Fidelity low cost total bond fund and will get you about 10% closer to your desired AA but don't do that until you run the math. https://fundresearch.fidelity.com/mutua ... /316146356
The other two Fidelity funds for a 3 fund would be. (but as previously noted you don't need to have them all in all accounts)
FSKAX total US
FTIHX total international
Good luck and happy math-ing