Emergency funds: six months of expenses
Debt: $123K home mortgage @ 2.6%
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 7.65% State
State of Residence: Wisconsin
Age: mid-30s (no kids, now or in future)
Target asset allocation has been: 92% stocks / 8% bonds
Target international allocation has been: 50% of stocks
Current retirement assets--overall summary and full fund names included at end (all at Schwab, except for her 401k)
Taxable
14% VTI
8% VO
7% VBR
12% VXUS
3% VWO
His Self-Employed 401k
2% VBR
1% VXUS
2% VWO
3% VSS
Company match N/A
His Roth IRA
1% VBR
2% VXUS
2% VWO
3% VSS
3% VNQ
Her Self-Employed 401k
1% VO
1% VWO
Company match N/A
Her 401k
8% Vanguard Total Stock Market Index Trust (i.e. ~VTI)
7% Vanguard Total Intl Stock Index Trust (i.e. ~VXUS)
7% Vanguard Total Bond Market Index Trust (i.e. ~BND)
Company match = 6%
Her Roth IRA
1% VO
2% VWO
2% VSS
3% VNQI
Her HSA (no longer eligible to contribute to it, but treating it as a retirement account)
1% VTI
1% VXUS
2% VSS
1% BNDX
Her non-governmental nonqualified 457b
Not currently used, but option exists.
The above collectively results in the following overall portfolio, which we've rebalanced semi-annually to maintain since 2013:
U.S. stock funds
23% VTI (Vanguard Total Stock Market Index Fund ETF)
10% VO (Vanguard Mid-Cap Index Fund ETF)
10% VBR (Vanguard Small-Cap Value Index Fund ETF)
3% VNQ (Vanguard Real Estate Index Fund ETF)
International stock funds
23% VXUS (Vanguard Total International Stock Index Fund ETF)
10% VWO (Vanguard Emerging Markets Stock Index Fund ETF)
10% VSS (Vanguard FTSE All-World ex-US Small-Cap Index ETF)
3% VNQI (Vanguard Global ex-US Real Estate Index Fd ETF)
Bond funds
7% BND (Vanguard Total Bond Market Index Fund ETF)
1% BNDX (Vanguard Total International Bond Index Fund ETF)
Approximate size of total portfolio: $1.2 million
_______________________________________________________________
Contributions
New annual contributions
$30K his Self-Employed 401k (includes "employee" and "employer" contribution)
$7K her Self-Employed 401k (includes "employer" contribution)
$37K her 401k (includes employer match)
$7K his Roth IRA (via backdoor contribution through Traditional IRA)
$7K her Roth IRA (via backdoor contribution through Traditional IRA)
$70K taxable
Available funds
Funds available in her 401kFunds available in his and her Self-Employed 401ks
Self-directed brokerage accounts through Schwab
Questions:
1. We set-up the "slice-and-dice" portfolio above about 10 years ago due to deciding that overweighing certain market sectors (e.g. small-cap value, small-cap international, emerging markets, etc.) that had outperformed the overall market over long stretches in the past or provided diversification benefits (e.g. REIT being less correlated with the rest of the market) was compelling. Now that it has been just over 10 years of maintaining this more complex portfolio, we've been wondering:
3. Her 401k does have a Roth option. Should we be doing that, instead of the traditional 401k?
4. Should we continue to maintain our asset allocation of 8% bonds, or let that % decrease while we are still generating income (and we haven't felt the need for more bonds to temper stock losses during the 2020 market crash or other market volatility)?
5. Have Boglehead views on holding market-weight in international funds (still ~50% of global stock market?) changed significantly over the past 10 years? (Back then, I think there was a large range in % of international funds held among Bogleheads, but deciding to hold the market-weight of about 50% was considered unremarkable?)
6. We also welcome and appreciate any other feedback, as well.![:beer]( "beer")
Debt: $123K home mortgage @ 2.6%
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 7.65% State
State of Residence: Wisconsin
Age: mid-30s (no kids, now or in future)
Target asset allocation has been: 92% stocks / 8% bonds
Target international allocation has been: 50% of stocks
Current retirement assets--overall summary and full fund names included at end (all at Schwab, except for her 401k)
Taxable
14% VTI
8% VO
7% VBR
12% VXUS
3% VWO
His Self-Employed 401k
2% VBR
1% VXUS
2% VWO
3% VSS
Company match N/A
His Roth IRA
1% VBR
2% VXUS
2% VWO
3% VSS
3% VNQ
Her Self-Employed 401k
1% VO
1% VWO
Company match N/A
Her 401k
8% Vanguard Total Stock Market Index Trust (i.e. ~VTI)
7% Vanguard Total Intl Stock Index Trust (i.e. ~VXUS)
7% Vanguard Total Bond Market Index Trust (i.e. ~BND)
Company match = 6%
Her Roth IRA
1% VO
2% VWO
2% VSS
3% VNQI
Her HSA (no longer eligible to contribute to it, but treating it as a retirement account)
1% VTI
1% VXUS
2% VSS
1% BNDX
Her non-governmental nonqualified 457b
Not currently used, but option exists.
The above collectively results in the following overall portfolio, which we've rebalanced semi-annually to maintain since 2013:
U.S. stock funds
23% VTI (Vanguard Total Stock Market Index Fund ETF)
10% VO (Vanguard Mid-Cap Index Fund ETF)
10% VBR (Vanguard Small-Cap Value Index Fund ETF)
3% VNQ (Vanguard Real Estate Index Fund ETF)
International stock funds
23% VXUS (Vanguard Total International Stock Index Fund ETF)
10% VWO (Vanguard Emerging Markets Stock Index Fund ETF)
10% VSS (Vanguard FTSE All-World ex-US Small-Cap Index ETF)
3% VNQI (Vanguard Global ex-US Real Estate Index Fd ETF)
Bond funds
7% BND (Vanguard Total Bond Market Index Fund ETF)
1% BNDX (Vanguard Total International Bond Index Fund ETF)
Approximate size of total portfolio: $1.2 million
_______________________________________________________________
Contributions
New annual contributions
$30K his Self-Employed 401k (includes "employee" and "employer" contribution)
$7K her Self-Employed 401k (includes "employer" contribution)
$37K her 401k (includes employer match)
$7K his Roth IRA (via backdoor contribution through Traditional IRA)
$7K her Roth IRA (via backdoor contribution through Traditional IRA)
$70K taxable
Available funds
Funds available in her 401k
Code:
Vanguard Target Retire Inc Trust SelectVanguard Target Retire 2020 Trust Select through 2070 Trust SelectDodge & Cox International Stock X (DOXFX)Principal Diversified Real Asset Tier 2Vanguard Total Intl Stock Index TrustWilliam Blair Small-Mid Cap Core SDodge & Cox Stock X (DOXGX)Parnassus Sustainable Core Equity CITT. Rowe Price Large Cap Growth Trust DVanguard Total Stock Market Index TrustBaird Core Plus Bond Inst (BCOIX)Vanguard Total Bond Market Index TrustVanguard Retirement Savings Trust IISchwab SDB Sweep ProgramSchwab SDB SecuritiesSchwab SDB Sweep Program RothSchwab SDB Securities RothThere also is a self-directed brokerage account option through SchwabSelf-directed brokerage accounts through Schwab
Questions:
1. We set-up the "slice-and-dice" portfolio above about 10 years ago due to deciding that overweighing certain market sectors (e.g. small-cap value, small-cap international, emerging markets, etc.) that had outperformed the overall market over long stretches in the past or provided diversification benefits (e.g. REIT being less correlated with the rest of the market) was compelling. Now that it has been just over 10 years of maintaining this more complex portfolio, we've been wondering:
- Should we continue this portfolio, or should we simplify it down to the classic three-fund portfolio of just VTI, VXUS, and BND?
- How should we decide whether to continue with this portfolio or simplify it down to just VTI, VXUS, and BND?
3. Her 401k does have a Roth option. Should we be doing that, instead of the traditional 401k?
4. Should we continue to maintain our asset allocation of 8% bonds, or let that % decrease while we are still generating income (and we haven't felt the need for more bonds to temper stock losses during the 2020 market crash or other market volatility)?
5. Have Boglehead views on holding market-weight in international funds (still ~50% of global stock market?) changed significantly over the past 10 years? (Back then, I think there was a large range in % of international funds held among Bogleheads, but deciding to hold the market-weight of about 50% was considered unremarkable?)
6. We also welcome and appreciate any other feedback, as well.
Statistics: Posted by Spiffs — Wed Feb 28, 2024 10:30 pm — Replies 0 — Views 180