26 year old Portfolio Review + HSA Questions

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Topic Author
ditb
Posts: 18
Joined: Fri Mar 08, 2019 2:26 pm

26 year old Portfolio Review + HSA Questions

Post by ditb »

Emergency funds: Have it.

Debt: None

Tax Filing Status: Single

Tax Rate: 22% Federal, 3% State

State of Residence: Indiana

Age: 26

Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 20% of stocks

Size of your current total portfolio: 200k

Taxable
xx% fund name (ticker symbol) (expense ratio)
17% VTIAX (Taxable) Vanguard Total International Stock Index Fund Admiral Shares 0.11%
28% VTSAX (Taxable) Vanguard Total Stock Market Index Fund Admiral Shares 0.04%


His 401k
xx% fund name (ticker symbol) (expense ratio)
Company match? Yes
30% FXAIX (401k) Fidelity® 500 Index Fund 0.02%
4% FSMAX (401k) Fidelity® Extended Market Index Fund 0.05%


His Roth IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio)
4% VEXAX (Roth IRA) Vanguard Extended Market Index Fund Admiral Shares 0.08%
12% VFIAX (Roth IRA) Vanguard 500 Index Fund Admiral Shares 0.04%

HSA at Optum Bank
Uninvested

Contributions

New annual Contributions
Max + a bit (in plan roth conversion) his 401k
Max his Roth IRA
Max his HSA
Invest every couple partial pay checks taxable (for retirement, not short term goals)


Available funds (HSA)
American Funds Capital World Gr&Inc R6 RWIGX International 0.45
BlackRock Equity Dividend K MKDVX Large Cap Blend 0.6
Dodge & Cox Income DODIX Intermediate Term Bond 0.43
Fidelity Low-Priced Stock FLPSX Mid Cap Value 0.62
Invesco Oppenheimer Developing Markets Inst ODVIX International 0.87
John Hancock Fdmlt Large Cap Core JLVIX Equity 0.78
Lord Abbett High Yield F3 LHYOX Fixed Income 0.6
Neuberger Berman Genesis Fund - INST NBGIX Equity 0.85
PIMCO GNMA & Government Securities INST PDMIX Fixed Income 0.53
PIMCO Low Duration Instl PTLDX Short Term Bond 0.46
PIMCO Real Return I PRRIX Fixed Income 0.88
Schwab Target 2020 Index Fund I SWYLX Large Blend 0.08
Schwab Target 2030 Index Fund I SWYEX Large Blend 0.08
Schwab Target 2040 Index Fund I SWYGX Large Blend 0.08
Schwab Target 2050 Index Fund I SWYMX Large Blend 0.08
Schwab Target 2060 Index Fund I SWYNX Large Blend 0.08
T. Rowe Price Blue Chip - I TBCIX Large Cap Growth Stock 0.57
Vanguard 500 Index - A VFIAX Indexed 0.04
Vanguard Equity-Income - A VEIRX Large Cap Value 0.17
Vanguard Extended Market Index Inst VIEIX Mid Cap Index 0.06
Vanguard Global Equity VHGEX World Stock-Large Blend 0.48
Vanguard Healthcare VGHAX Alternative Blend 0.33
Vanguard Life Strategy-Growth VASGX Aggressive Allocation 0.14
Vanguard LifeStrategy-Conservative Growth VSCGX Conservative Allocation 0.12
Vanguard LifeStrategy-Moderate Growth VSMGX Moderate Allocation 0.13
Vanguard Mid Cap Index Inst VMCIX Mid Cap Blend 0.04
Vanguard REIT Index Inst VGSNX Alternative Blend 0.1
Vanguard Small Cap Index Inst VSCIX Small Cap Index 0.04
Vanguard Total Stock Market Inst VITSX Large Cap Blend 0.04
Vanguard Treasury Money Market VUSXX Money Market #N/A
Vanguard Wellington - A VWENX Equity 0.17

Questions:
I’d like to start investing my (small) HSA, do I need to do anything to avoid wash sales between my taxable account and IRA?

Any recommendations out of the available HSA funds? I’m leaning toward 80% VFIAX (500) and 20% VIEIX (Extended).

I’m curious where it is recommended to store cash needed in a 5 and 10 year time horizon?

Any feedback is appreciated, thanks!
User avatar
retired@50
Posts: 12821
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: 26 year old Portfolio Review + HSA Questions

Post by retired@50 »

ditb wrote: Fri Apr 16, 2021 4:23 pm
Questions:
I’d like to start investing my (small) HSA, do I need to do anything to avoid wash sales between my taxable account and IRA?

Any recommendations out of the available HSA funds? I’m leaning toward 80% VFIAX (500) and 20% VIEIX (Extended).

I’m curious where it is recommended to store cash needed in a 5 and 10 year time horizon?

Any feedback is appreciated, thanks!
I'm actually not certain if an HSA is subject to the same rules for wash sales as IRAs are, but if you use the proposed funds (VFIAX & VIEIX) you won't have problems since you don't hold either of those funds in your taxable account.

Everything else about your portfolio looks fine.

With regard to cash needed in 5 or 10 years, you need to decide how much, if any, risk you're willing to take. Maybe something like 80% intermediate treasuries and 20% stock index would be suitable... This is an often asked, but seldom answered, question here on Bogleheads.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
JBTX
Posts: 11227
Joined: Wed Jul 26, 2017 12:46 pm

Re: 26 year old Portfolio Review + HSA Questions

Post by JBTX »

ditb wrote: Fri Apr 16, 2021 4:23 pm Emergency funds: Have it.

Debt: None

Tax Filing Status: Single

Tax Rate: 22% Federal, 3% State

State of Residence: Indiana

Age: 26

Desired Asset allocation: 100% stocks / 0% bonds
Desired International allocation: 20% of stocks

Size of your current total portfolio: 200k

Taxable
xx% fund name (ticker symbol) (expense ratio)
17% VTIAX (Taxable) Vanguard Total International Stock Index Fund Admiral Shares 0.11%
28% VTSAX (Taxable) Vanguard Total Stock Market Index Fund Admiral Shares 0.04%


His 401k
xx% fund name (ticker symbol) (expense ratio)
Company match? Yes
30% FXAIX (401k) Fidelity® 500 Index Fund 0.02%
4% FSMAX (401k) Fidelity® Extended Market Index Fund 0.05%


His Roth IRA at Vanguard
xx% fund name (ticker symbol) (expense ratio)
4% VEXAX (Roth IRA) Vanguard Extended Market Index Fund Admiral Shares 0.08%
12% VFIAX (Roth IRA) Vanguard 500 Index Fund Admiral Shares 0.04%

HSA at Optum Bank
Uninvested

Contributions

New annual Contributions
Max + a bit (in plan roth conversion) his 401k
Max his Roth IRA
Max his HSA
Invest every couple partial pay checks taxable (for retirement, not short term goals)


Available funds (HSA)
American Funds Capital World Gr&Inc R6 RWIGX International 0.45
BlackRock Equity Dividend K MKDVX Large Cap Blend 0.6
Dodge & Cox Income DODIX Intermediate Term Bond 0.43
Fidelity Low-Priced Stock FLPSX Mid Cap Value 0.62
Invesco Oppenheimer Developing Markets Inst ODVIX International 0.87
John Hancock Fdmlt Large Cap Core JLVIX Equity 0.78
Lord Abbett High Yield F3 LHYOX Fixed Income 0.6
Neuberger Berman Genesis Fund - INST NBGIX Equity 0.85
PIMCO GNMA & Government Securities INST PDMIX Fixed Income 0.53
PIMCO Low Duration Instl PTLDX Short Term Bond 0.46
PIMCO Real Return I PRRIX Fixed Income 0.88
Schwab Target 2020 Index Fund I SWYLX Large Blend 0.08
Schwab Target 2030 Index Fund I SWYEX Large Blend 0.08
Schwab Target 2040 Index Fund I SWYGX Large Blend 0.08
Schwab Target 2050 Index Fund I SWYMX Large Blend 0.08
Schwab Target 2060 Index Fund I SWYNX Large Blend 0.08
T. Rowe Price Blue Chip - I TBCIX Large Cap Growth Stock 0.57
Vanguard 500 Index - A VFIAX Indexed 0.04
Vanguard Equity-Income - A VEIRX Large Cap Value 0.17
Vanguard Extended Market Index Inst VIEIX Mid Cap Index 0.06
Vanguard Global Equity VHGEX World Stock-Large Blend 0.48
Vanguard Healthcare VGHAX Alternative Blend 0.33
Vanguard Life Strategy-Growth VASGX Aggressive Allocation 0.14
Vanguard LifeStrategy-Conservative Growth VSCGX Conservative Allocation 0.12
Vanguard LifeStrategy-Moderate Growth VSMGX Moderate Allocation 0.13
Vanguard Mid Cap Index Inst VMCIX Mid Cap Blend 0.04
Vanguard REIT Index Inst VGSNX Alternative Blend 0.1
Vanguard Small Cap Index Inst VSCIX Small Cap Index 0.04
Vanguard Total Stock Market Inst VITSX Large Cap Blend 0.04
Vanguard Treasury Money Market VUSXX Money Market #N/A
Vanguard Wellington - A VWENX Equity 0.17

Questions:
I’d like to start investing my (small) HSA, do I need to do anything to avoid wash sales between my taxable account and IRA?
Why are you needing to worry about wash sales? Do you plan to be trading a lot? If you are going to be using HSA funds for medical expenses in the near future I wouldnt invest those funds. Id only invest what you plan on holding longer term.
Any recommendations out of the available HSA funds? I’m leaning toward 80% VFIAX (500) and 20% VIEIX (Extended).
Personally I like the target date funds. Good expense ratio on those. But the two you picked are good too.
I’m curious where it is recommended to store cash needed in a 5 and 10 year time horizon?

Any feedback is appreciated, thanks!
It depends on how much flexibility you have in that time frame. If you have flexibility, such that you don't need it in a downturn, and can wait it out a few years, maybe up to 50% stocks. If you think you will need it at a specific time, regardless, I'd go less or even 0%. Alternatives are ibonds, high yield bank accounts, etc.
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