Portfolio Advice Requested, please!

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Topic Author
kmb727
Posts: 19
Joined: Mon May 25, 2015 2:52 pm
Location: NC

Portfolio Advice Requested, please!

Post by kmb727 »

We are working on making sure our financial house is in order and would love the forum's input / advice, based on our fund options, etc.
About us: Married, 38/37 years old, with one child. HH income for 2022 around 230-240k.

Emergency funds: 6 months

Debt: Mortgage: 160k remaining @ 2.875%. Equity is around 300k. No other debt. We do plan to purchase a new home in the near future; down payment will be covered by equity from sale, so no additional cash needed there.

Tax Filing Status: Married Filing Jointly

Tax Rate: 24% Federal, 5.25% State

State of Residence:North Carolina

Age: Him: 38 / Her: 37

Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: Unsure

Current Portfolio Size: $850k

Current retirement assets

Taxable
6.62% cash - ready to invest. Planning to open Vanguard taxable acct

His 403b
19.22% VANG EXT MKT IDX ISP (VEMPX) (0.04%)
14.89% VANG TOT BD MK IS PL (VBMPX)(0.03%)
Company match? Yes - 11% match

His Roth IRA at Vanguard
8.40% VTIAX Vanguard Total International Stock Index Fund Admiral Shares (0.11%)


Her 401k - Company recently changed 401k providers and all funds were rolled into American Funds 2050 Target fund, so need to get out of this.
40.24% AF TRGT DATE 2050 R6 (RFITX)02/01/2007 (0.37%)
Company match? Yes - 3% match


Her Roth IRA at Vanguard
6.92% VTIAX Vanguard Total International Stock Index Fund Admiral Shares (0.11%)

Her HSA
3.71% cash - ready to invest
_______________________________________________________________


Contributions

New annual Contributions
$20,500 his 403b (+ 11% company match))
$20,500 her 401k (+ 3% company match)
$6,000 Roth IRA
$6,000 her Roth IRA
$7,300 her HSA
$TBD taxable

Available funds

Funds available in his 403b
VANG INST TR 2015 (VITVX)06/26/2015 (0.09%)
VANG INST TR 2020 (VITWX)06/26/2015 (0.09%)
VANG INST TR 2025 (VRIVX)06/26/2015 (0.09%)
VANG INST TR 2030 (VTTWX)06/26/2015 (0.09%)
VANG INST TR 2035 (VITFX)06/26/2015 (0.09%)
VANG INST TR 2040 (VIRSX)06/26/2015 (0.09%)
VANG INST TR 2045 (VITLX)06/26/2015 (0.09%)
VANG INST TR 2050 (VTRLX)06/26/2015 (0.09%)
VANG INST TR 2055 (VIVLX)06/26/2015 (0.09%)
VANG INST TR 2060 (VILVX)06/26/2015 (0.09%)
VANG INST TR INCOME (VITRX)06/26/2015 (0.09%)
VANG INST TR 2065 (VSXFX)07/12/2017 (0.09%)
FID CONTRAFUND K6 (FLCNX)05/25/2017 (0.45%)
TRP GROWTH STOCK I (PRUFX)04/11/1950 (0.52%)
VANG FTSE SOC IDX IS (VFTNX)01/14/2003 (0.12%)
VANG INST INDEX PLUS (VIIIX)07/31/1990 (0.02%)
VANG PRIMECAP ADM (VPMAX)11/01/1984 (0.31%)
MFS VALUE R6 (MEIKX)01/02/1996 (0.45%)
VANG EQUITY INC ADM (VEIRX)03/21/1988 (0.19%)
MM MID CAP GRTH I (MEFZX)05/31/2000 (0.71%)
VANG EXT MKT IDX ISP (VEMPX)12/21/1987 (0.04%)
AM CENT MD CP VAL R6 (AMDVX)03/31/2004 (0.63%)
FID LOW-PRICED ST K6 (FLKSX)05/26/2017 (0.50%)
MFS MID CAP VALUE R6 (MVCKX)08/31/2001 (0.68%)
FID SMALL CAP GR K6 (FOCSX)05/25/2017 (0.60%)
J H TRITON N (JGMNX)02/25/2005 (0.66%)
GS SM CAP VALUE R6 (GSSUX)10/22/1992 (0.98%)
FID SMALL CAP VALUE (FCPVX)11/03/2004 (0.98%)
AF EUROPAC GROWTH R6 (RERGX)04/16/1984 (0.46%)
FID INTL SMALL CAP (FISMX)09/18/2002 (1.01%)
VANG INTL GROWTH ADM (VWILX)09/30/1981 (0.32%)
VANG TOT INTL STK IS (VTSNX)04/29/1996 (0.08%)
VAN EM MKT ST IDX IS (VEMIX)05/04/1994 (0.10%)
VAN REAL EST IDX IS (VGSNX)05/13/1996 (0.10%)
METWEST TOT RTN BD P (MWTSX)03/31/1997 (0.37%)
VANG TOT BD MK IS PL (VBMPX)12/11/1986 (0.03%)
PIMCO INCOME INST (PIMIX)03/30/2007 (0.62%)
TIAA TRAD ANNUITY (FA)06/01/2006 (N/A)
VALIC FIXED INTEREST (--)
VANG VMMR-FED MMKT (VMFXX)07/13/1981 7 day yield as of12/31/2021 0.01% (0.11%)

Funds available in her 401(k)
FID BLUE CHIP GR K (FBGKX)12/31/1987 (0.71%)
INVS DIVRS DIVD R5 (DDFIX)12/31/2001 (0.53%)
VANG 500 INDEX ADM (VFIAX)08/31/1976 (0.04%)
VANG TOT STK MKT ADM (VTSAX)04/27/1992 (0.04%)
AS SPL MID CP VAL IS (WFMIX)04/08/2005 (0.81%)
J H ENTERPRISE N (JDMNX)09/01/1992 (0.66%)
VANG MIDCAP IDX ADM (VIMAX)05/21/1998 (0.05%)
AB SM CAP GRTH Z (QUAZX)02/12/1969 (0.75%)
DFA US SM CAP VALUE (DFSVX)03/02/1993 (0.39%)
VANG SM CAP IDX ADM (VSMAX)10/03/1960 (0.05%)
FID DIVERSIFD INTL K (FDIKX)12/27/1991 (0.91%)
C&S INST REALTY SHS (CSRIX)02/14/2000 (0.76%)
AF TRGT DATE 2015 R6 (RFJTX)02/01/2007 (0.29%)
AF TRGT DATE 2020 R6 (RRCTX)02/01/2007 (0.30%)
AF TRGT DATE 2025 R6 (RFDTX)02/01/2007 (0.31%)
AF TRGT DATE 2030 R6 (RFETX)02/01/2007 (0.33%)
AF TRGT DATE 2035 R6 (RFFTX)02/01/2007 (0.35%)
AF TRGT DATE 2040 R6 (RFGTX)02/01/2007 (0.36%)
AF TRGT DATE 2045 R6 (RFHTX)02/01/2007 (0.37%)
AF TRGT DATE 2050 R6 (RFITX)02/01/2007 (0.37%)
AF TRGT DATE 2055 R6 (RFKTX)02/01/2010 (0.38%)
AF CAP WORLD BOND R6 (RCWGX)08/04/1987 (0.48%)
VANG TOT BD MKT ADM (VBTLX)12/11/1986 (0.05%)
BAIRD CORE PLUS INV (BCOSX)09/29/2000 (0.55%)
VANG TREASURY MM (VUSXX)12/14/1992 7 day yield as of12/31/2021 0.01% (0.09%)

Funds available in her HSA
AMERICAN FUNDS BALANCED FND R6 (RLBGX) (0.26)
AMER FUNDS CAPITAL INC BLDR R6 (RIRGX) (0.27)
DFA US LARGE CAP VALUE PORT I (DFLVX) (0.32)
VANGUARD 500 INDEX ADMIRAL (VFIAX) (0.04)
AMERICAN GROWTH FND OF AMER R6 (RGAGX) (0.30)
VANGUARD MID CAP INDEX INST (VMCIX) (0.04)
JPMORGAN MARKET EXP ENH IDX R6 (OMYGX) (0.35)
NEUBERGER BERMAN MID CAP GR I (NBMLX) (0.67)
VANGUARD SMALL CAP INDEX INST (VSCIX) (0.04)
VANGUARD SMALL CP GROWTH IDX I (VSGIX) (0.06)
NORTHERN SMALL CAP VALUE (NOSGX) (1.13)
VANGUARD TOTAL INTL STK IDX I (VTSNX) (0.08)
AMERICAN EUROPACIFIC GROWTH R6 (RERGX) (0.46)
FIDELITY ADV DIVRSFD INTL I (FDVIX) (0.92)
VANGUARD EMG MKTS STK IDX INTL (VEMIX) (0.10)
VANGUARD TOTAL WORLD STK IDX I (VTWIX) (0.08)
LOOMIS SAYLES GLOBAL ALLOC N (LGMNX) (0.82)
VANGUARD RETIREMENT 2020 INV (VTWNX) (0.13)
VANGUARD RETIREMENT 2030 INV (VTHRX) (0.14)
VANGUARD RETIREMENT 2040 INV (VFORX) (0.14)
VANGUARD RETIREMENT 2050 INV (VFIFX) (0.15)
VANGUARD RETIREMENT 2060 INV (VTTSX) (0.15)
VANGUARD TGT RETIREMNT INC INV (VTINX) (0.12)
NUVEEN REALESTATE SECURITIES I (FARCX) (1.05)
PIMCO INTL BOND USD-HDGD INSTL (PFORX) (0.52)
LORD ABBETT HIGH YIELD I (LAHYX) (0.70)
VAN INFLATION PROTECTED SEC AD (VAIPX) (0.10)
VANGUARD INTERM TERM BND IDX I (VBIMX) (0.05)
PIMCO TOTAL RETURN INST (PTTRX) (0.47)
VANGUARD TOTAL BOND MRKT IDX I (VBTIX) (0.04)

Questions:
1. Want to make sure our overall asset allocation is around 80/20

2.Need to move Her 401k funds out of target fund (they were put here when our 401k provider changed)

3. Want to get our taxable account opened and funded with Vanguard - best fund choice?

4. We have not opened a 529 for our daughter - a little hesitant to lock those funds into education and considering just cash flowing her education expenses…but convince me otherwise? Our state does not have any tax deductions for 529 contributions.

5. We would like to retire early (50-55); we really need to start focusing more on making sure we’ll have accessible funds to cover the gap before taking any retirement account distributions.

THANK YOU in advance for your advice! :sharebeer
User avatar
Duckie
Posts: 9777
Joined: Thu Mar 08, 2007 1:55 pm

Re: Portfolio Advice Requested, please!

Post by Duckie »

kmb727 wrote: Fri Jan 28, 2022 10:53 am Age: Him: 38 / Her: 37

Desired Asset allocation: 80% stocks / 20% bonds
That is reasonable.
Desired International allocation: Unsure
Any percentage between 0% and 50% of stocks can be reasonable depending. Vanguard has found between 20% and 40% of stocks in international to be the "sweet spot". See the Vanguard paper link and the discussion. I usually split the difference and recommend 30% of stocks.
Funds available in his 403b
The best options are:
  • VANG INST INDEX (VIIIX) (0.02%) -- Large caps, 80% of US stocks
  • VANG EXT MKT INDEX (VEMPX) (0.04%) -- Mid/small caps, 20% of US stocks
  • VANG TOT INTL STK INDEX (VTSNX) (0.08%) -- Complete international stocks
  • VANG TOT BD MK INDEX (VBMPX) (0.03%) -- US bonds
Funds available in her 401(k)
The best options are:
  • VANG TOT STK MKT INDEX (VTSAX) (0.04%) -- Complete US stocks
  • VANG TOT BD MKT INDEX (VBTLX) (0.05%) -- US bonds
Funds available in her HSA
The best options are:
  • VANGUARD 500 INDEX (VFIAX) (0.04) -- Large caps, 80% of US stocks
  • VANGUARD TOTAL INTL STK INDEX (VTSNX) (0.08) -- Complete international stocks
  • VANGUARD TOTAL BOND MRKT INDEX (VBTIX) (0.04) -- US bonds
What you choose here depends on how you intend to use your HSA. If your plan to use it to pay current medical expenses then pick just the bond fund. If your plan is to hold it for retirement and pay your expenses out of other assets then pick just the 500 Index.
______________________________

The following portfolio example has an AA of 80% stocks, 20% bonds, with 30% of stocks in international. That breaks down to 56% US stocks, 24% international stocks, and 20% bonds. You could have something like this:

Taxable at Vanguard -- 7%
7% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.04%)

His 403b -- 34%
19% (VIIIX) Vanguard Institutional Index Fund Institutional Plus Shares (0.02%)
6% (VEMPX) Vanguard Extended Market Index Fund Institutional Plus Shares (0.04%)
9% (VTSNX) Vanguard Total International Stock Index Fund Institutional Shares (0.08%)

Her 401k -- 40%
20% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.04%)
20% (VBTLX) Vanguard Total Bond Market Index Fund Admiral Shares (0.05%)

His Roth IRA at Vanguard -- 8%
8% (VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.11%)

Her Roth IRA at Vanguard -- 7%
7% (VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.11%)

Her HSA -- 4%
4% (VFIAX) Vanguard 500 Index Fund Admiral Shares (0.04%)

Just some possibilities.
chassis
Posts: 2183
Joined: Tue Mar 24, 2020 4:28 pm

Re: Portfolio Advice Requested, please!

Post by chassis »

kmb727 wrote: Fri Jan 28, 2022 10:53 am We are working on making sure our financial house is in order and would love the forum's input / advice, based on our fund options, etc.
About us: Married, 38/37 years old, with one child. HH income for 2022 around 230-240k.

Emergency funds: 6 months

Debt: Mortgage: 160k remaining @ 2.875%. Equity is around 300k. No other debt. We do plan to purchase a new home in the near future; down payment will be covered by equity from sale, so no additional cash needed there.

Tax Filing Status: Married Filing Jointly

Tax Rate: 24% Federal, 5.25% State

State of Residence:North Carolina

Age: Him: 38 / Her: 37

Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: Unsure

Current Portfolio Size: $850k

Current retirement assets

Taxable
6.62% cash - ready to invest. Planning to open Vanguard taxable acct

His 403b
19.22% VANG EXT MKT IDX ISP (VEMPX) (0.04%)
14.89% VANG TOT BD MK IS PL (VBMPX)(0.03%)
Company match? Yes - 11% match

His Roth IRA at Vanguard
8.40% VTIAX Vanguard Total International Stock Index Fund Admiral Shares (0.11%)


Her 401k - Company recently changed 401k providers and all funds were rolled into American Funds 2050 Target fund, so need to get out of this.
40.24% AF TRGT DATE 2050 R6 (RFITX)02/01/2007 (0.37%)
Company match? Yes - 3% match


Her Roth IRA at Vanguard
6.92% VTIAX Vanguard Total International Stock Index Fund Admiral Shares (0.11%)

Her HSA
3.71% cash - ready to invest
_______________________________________________________________


Contributions

New annual Contributions
$20,500 his 403b (+ 11% company match))
$20,500 her 401k (+ 3% company match)
$6,000 Roth IRA
$6,000 her Roth IRA
$7,300 her HSA
$TBD taxable

Available funds

Funds available in his 403b
VANG INST TR 2015 (VITVX)06/26/2015 (0.09%)
VANG INST TR 2020 (VITWX)06/26/2015 (0.09%)
VANG INST TR 2025 (VRIVX)06/26/2015 (0.09%)
VANG INST TR 2030 (VTTWX)06/26/2015 (0.09%)
VANG INST TR 2035 (VITFX)06/26/2015 (0.09%)
VANG INST TR 2040 (VIRSX)06/26/2015 (0.09%)
VANG INST TR 2045 (VITLX)06/26/2015 (0.09%)
VANG INST TR 2050 (VTRLX)06/26/2015 (0.09%)
VANG INST TR 2055 (VIVLX)06/26/2015 (0.09%)
VANG INST TR 2060 (VILVX)06/26/2015 (0.09%)
VANG INST TR INCOME (VITRX)06/26/2015 (0.09%)
VANG INST TR 2065 (VSXFX)07/12/2017 (0.09%)
FID CONTRAFUND K6 (FLCNX)05/25/2017 (0.45%)
TRP GROWTH STOCK I (PRUFX)04/11/1950 (0.52%)
VANG FTSE SOC IDX IS (VFTNX)01/14/2003 (0.12%)
VANG INST INDEX PLUS (VIIIX)07/31/1990 (0.02%)
VANG PRIMECAP ADM (VPMAX)11/01/1984 (0.31%)
MFS VALUE R6 (MEIKX)01/02/1996 (0.45%)
VANG EQUITY INC ADM (VEIRX)03/21/1988 (0.19%)
MM MID CAP GRTH I (MEFZX)05/31/2000 (0.71%)
VANG EXT MKT IDX ISP (VEMPX)12/21/1987 (0.04%)
AM CENT MD CP VAL R6 (AMDVX)03/31/2004 (0.63%)
FID LOW-PRICED ST K6 (FLKSX)05/26/2017 (0.50%)
MFS MID CAP VALUE R6 (MVCKX)08/31/2001 (0.68%)
FID SMALL CAP GR K6 (FOCSX)05/25/2017 (0.60%)
J H TRITON N (JGMNX)02/25/2005 (0.66%)
GS SM CAP VALUE R6 (GSSUX)10/22/1992 (0.98%)
FID SMALL CAP VALUE (FCPVX)11/03/2004 (0.98%)
AF EUROPAC GROWTH R6 (RERGX)04/16/1984 (0.46%)
FID INTL SMALL CAP (FISMX)09/18/2002 (1.01%)
VANG INTL GROWTH ADM (VWILX)09/30/1981 (0.32%)
VANG TOT INTL STK IS (VTSNX)04/29/1996 (0.08%)
VAN EM MKT ST IDX IS (VEMIX)05/04/1994 (0.10%)
VAN REAL EST IDX IS (VGSNX)05/13/1996 (0.10%)
METWEST TOT RTN BD P (MWTSX)03/31/1997 (0.37%)
VANG TOT BD MK IS PL (VBMPX)12/11/1986 (0.03%)
PIMCO INCOME INST (PIMIX)03/30/2007 (0.62%)
TIAA TRAD ANNUITY (FA)06/01/2006 (N/A)
VALIC FIXED INTEREST (--)
VANG VMMR-FED MMKT (VMFXX)07/13/1981 7 day yield as of12/31/2021 0.01% (0.11%)

Funds available in her 401(k)
FID BLUE CHIP GR K (FBGKX)12/31/1987 (0.71%)
INVS DIVRS DIVD R5 (DDFIX)12/31/2001 (0.53%)
VANG 500 INDEX ADM (VFIAX)08/31/1976 (0.04%)
VANG TOT STK MKT ADM (VTSAX)04/27/1992 (0.04%)
AS SPL MID CP VAL IS (WFMIX)04/08/2005 (0.81%)
J H ENTERPRISE N (JDMNX)09/01/1992 (0.66%)
VANG MIDCAP IDX ADM (VIMAX)05/21/1998 (0.05%)
AB SM CAP GRTH Z (QUAZX)02/12/1969 (0.75%)
DFA US SM CAP VALUE (DFSVX)03/02/1993 (0.39%)
VANG SM CAP IDX ADM (VSMAX)10/03/1960 (0.05%)
FID DIVERSIFD INTL K (FDIKX)12/27/1991 (0.91%)
C&S INST REALTY SHS (CSRIX)02/14/2000 (0.76%)
AF TRGT DATE 2015 R6 (RFJTX)02/01/2007 (0.29%)
AF TRGT DATE 2020 R6 (RRCTX)02/01/2007 (0.30%)
AF TRGT DATE 2025 R6 (RFDTX)02/01/2007 (0.31%)
AF TRGT DATE 2030 R6 (RFETX)02/01/2007 (0.33%)
AF TRGT DATE 2035 R6 (RFFTX)02/01/2007 (0.35%)
AF TRGT DATE 2040 R6 (RFGTX)02/01/2007 (0.36%)
AF TRGT DATE 2045 R6 (RFHTX)02/01/2007 (0.37%)
AF TRGT DATE 2050 R6 (RFITX)02/01/2007 (0.37%)
AF TRGT DATE 2055 R6 (RFKTX)02/01/2010 (0.38%)
AF CAP WORLD BOND R6 (RCWGX)08/04/1987 (0.48%)
VANG TOT BD MKT ADM (VBTLX)12/11/1986 (0.05%)
BAIRD CORE PLUS INV (BCOSX)09/29/2000 (0.55%)
VANG TREASURY MM (VUSXX)12/14/1992 7 day yield as of12/31/2021 0.01% (0.09%)

Funds available in her HSA
AMERICAN FUNDS BALANCED FND R6 (RLBGX) (0.26)
AMER FUNDS CAPITAL INC BLDR R6 (RIRGX) (0.27)
DFA US LARGE CAP VALUE PORT I (DFLVX) (0.32)
VANGUARD 500 INDEX ADMIRAL (VFIAX) (0.04)
AMERICAN GROWTH FND OF AMER R6 (RGAGX) (0.30)
VANGUARD MID CAP INDEX INST (VMCIX) (0.04)
JPMORGAN MARKET EXP ENH IDX R6 (OMYGX) (0.35)
NEUBERGER BERMAN MID CAP GR I (NBMLX) (0.67)
VANGUARD SMALL CAP INDEX INST (VSCIX) (0.04)
VANGUARD SMALL CP GROWTH IDX I (VSGIX) (0.06)
NORTHERN SMALL CAP VALUE (NOSGX) (1.13)
VANGUARD TOTAL INTL STK IDX I (VTSNX) (0.08)
AMERICAN EUROPACIFIC GROWTH R6 (RERGX) (0.46)
FIDELITY ADV DIVRSFD INTL I (FDVIX) (0.92)
VANGUARD EMG MKTS STK IDX INTL (VEMIX) (0.10)
VANGUARD TOTAL WORLD STK IDX I (VTWIX) (0.08)
LOOMIS SAYLES GLOBAL ALLOC N (LGMNX) (0.82)
VANGUARD RETIREMENT 2020 INV (VTWNX) (0.13)
VANGUARD RETIREMENT 2030 INV (VTHRX) (0.14)
VANGUARD RETIREMENT 2040 INV (VFORX) (0.14)
VANGUARD RETIREMENT 2050 INV (VFIFX) (0.15)
VANGUARD RETIREMENT 2060 INV (VTTSX) (0.15)
VANGUARD TGT RETIREMNT INC INV (VTINX) (0.12)
NUVEEN REALESTATE SECURITIES I (FARCX) (1.05)
PIMCO INTL BOND USD-HDGD INSTL (PFORX) (0.52)
LORD ABBETT HIGH YIELD I (LAHYX) (0.70)
VAN INFLATION PROTECTED SEC AD (VAIPX) (0.10)
VANGUARD INTERM TERM BND IDX I (VBIMX) (0.05)
PIMCO TOTAL RETURN INST (PTTRX) (0.47)
VANGUARD TOTAL BOND MRKT IDX I (VBTIX) (0.04)

Questions:
1. Want to make sure our overall asset allocation is around 80/20

2.Need to move Her 401k funds out of target fund (they were put here when our 401k provider changed)

3. Want to get our taxable account opened and funded with Vanguard - best fund choice?

4. We have not opened a 529 for our daughter - a little hesitant to lock those funds into education and considering just cash flowing her education expenses…but convince me otherwise? Our state does not have any tax deductions for 529 contributions.

5. We would like to retire early (50-55); we really need to start focusing more on making sure we’ll have accessible funds to cover the gap before taking any retirement account distributions.

THANK YOU in advance for your advice! :sharebeer
1. Good. 80%-100% equities is good - you have time in the market ahead of you to your advantage.

2. Good. Target date funds are horribly conservative, many people aren’t aware of this. It sounds like you are aware, well done.

3. Good. I’m a Fidelity person but the equivalent funds at Vanguard are fine.

4. If you can cash flow, this is better. 529 advantages have dwindled in the decades since they were first offered. The programs were too juicy for the investor/saver when initially introduced and states have taken out the juice. There is insufficient benefit that justifies locking the money up. I abhor handcuffs of any kind on my money.

5. Retiring early is possible. It requires living below your means and plowing money into the market at a high equity allocation, as close to 100% as you can.
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