Hello,
I am new to the forum, looking for your analysis of our financial life below. In your recommendation, please be specific to the fund(s) you might recommend as I am a novice. Thanks in advance.
Emergency Funds:
$120k - Capital One Saving @4.35% (Emergency, Vacations)
Debt: $0
Condo approx value $350k paid off
Tax Filing Status:
Married Filing Jointly
Tax Rate:
Federal - 9.31%
State - 6.0%
State Of Residence:
CT
Age/Health:
Myself 65 - 5 vessel bypass 2016, longevity in question
Spouse 75 - Arthritis
Social Security: $39k myself and $15k spouse
Pensions (no survivor benefits): $29k myself and $24k spouse (yearly cola), addtl small pension $4k
Expenses are roughly $6k per month average.
Healthcare: United Healthcare Medicare Advantage Plans (Subsidized)
Long-Term Care: No LTC Insurance, looking at options of home care vs CCRC if/when needed
Wills, Healthcare Directives, POA in place.
Desired/Current Asset Allocation:
50% stocks / 50% bonds
Total Portfolio at Vanguard:
Approx. $1.2M
Taxable Joint Account: ($492,897)
$5,849 Vanguard Money Market
$109,325 CD 5.5% 10/24/24
$75,236 CD 5.45% 11/3/24
$49,984 CD 4.6% 1/30/24
$57,877 Apple AAPL
$31,824 Amazon AMZN
$23,124 Berkshire Hathaway B BRKB
$8,069 Visa V
$19,548 TR Price Blue Chip Growth TRCBX (exp .71)
$16,937 Vanguard Midcap 400 Growth Ind ETF IOVG (exp .15)
$15,680 Vanguard Small Cap Index Admiral VSMAX (exp .05)
$5,522 ARK 3D Printing ETF PRNT (exp .66)
$13,990 Fidelity International Capital Appreciation FIVFX (exp .80)
$25,318 TR Price International Discovery PRIDX (exp 1.23)
$14,588 TR Price Health Sciences Fund PRHSX (exp .80)
$10,801Fidelity Select Software FSCSX (exp .69)
$6,564 Global X Lithium and Battery ETF LIT (exp .75)
Myself:
Vanguard Taxable Brokerage: ($24,999)
$7,613 Vanguard Federal Money Market
$4,445 ABB Limited ABB
$158 Accelleron ACCLY
$6,230 Tesla TSLA
$6,552 Uber UBER
Vanguard Rollover IRA: ($591,545)
$4,528 Vanguard Federal Money Market
$99,965 CD 5.05% 2/2/24
$99,861 CD 5.0% 4/30/24
$105,254 CD 5.45% 10/17/24
$28,263 CD 5.1% 12/5/25
$7,846 Vanguard Short Term Inv Grade FD VFSTX (exp 0.2)
$23,068 Google GOOG
$20,277 Microsoft MSFT
$34,376 TR Price Blue Chip Growth TRCBX (exp .71)
$10,181 Moderna MRNA
$19,075 Vanguard Mid Cap Value Admiral VMVAX (exp 0.7)
$16,722 Vanguard Mid Cap Growth Admiral VMGMX (exp 0.7)
$22,750 Beyond Inc. BYON
$25,109 Fidelity International Capital Appreciation FIVFX (exp .80)
$26,849 TR Price Small Cap Growth PRDSX (exp 0.8)
$6,072 ISShares Self Driving EV ETF IDRV (exp 0.47)
$7,444 Vaneck Rare Earth Strategic Metals ETF REMX (exp 0.54)
$10,373 TR Price Health Sciences Fund PRHSX (exp .80)
$16,601 Fidelity Select Software FSCSX (exp .69)
$6,484 Invesco Solar ETF TAN (exp .67)
Vanguard Roth IRA: ($54,027)
$8,967 Federal Money Market
$10,605 Apple AAPL
$4,258 Uber UBER
$2,562 Trimble Inc TRMB
$5,669 Fiserv FISV
$4,393 Microchip Tech MCHP
$1,515 Aeva Tech AEVA
$3,397 Zeus Steel
$3,969/Marathon Pete MPC
$3,490 Pioneer Nat Res PXD
$2,728 HF Sinclair DINO
$2,119 Select SPDR Energy XLE
Spouse:
Vanguard Roth IRA: ($30,619)
$410 Federal Money Market
$3,012 Vanguard Cash Reserves VMMXX
$8,666 Apple AAPL
$10,885 Microsoft MSFT
$2,949 Uber UBER
$5,042 Lynas Corp LYSCF
$448 Texas Minerals Corp TMRC
Our FA (self-employed, .55 aum) is retiring in the near future. Spouse and I are both novices. FA suggested vpas as an option. We had a few meetings with vanguard, the plan was a bit confusing, used a historical rate of return of 8.35% for a 50/50 stock & bond plan. However, said the return was more in the 6% range. It seemed to me then the available dollars projected by the plan and its success was misleading using the higher %, this was not a cause of concern for vanguard ( you had to read the small fine print). The AA, specifically international and bonds % are areas I am still learning. Current FA as you can see uses CDs rather than bond funds. Vanguard suggested the reverse, though I am apprehensive on BND after the last year bond selloff. I am reading articles and forum posts to get a better understanding.
For us, Vanguard suggests a 50/50 six-fund portfolio, basically selling most of the current portfolio, triggering 50k in capital gains and reallocating to the 6 fund portfolio. He said if we didn’t want to sell all positions, we could manage those not under pas contract. Suggested as the CDs mature to reallocate them.
With both being of us being novices and simplification our goal, the pending retirement of our FA has created an opportunity for us to simplify and either take over management of the portfolio or use PAS or like service.
Vanguard’s 6 fund portfolio mix as follows:
Vanguard Total Stock Market ETF
Vanguard S&P 500 ETF
Vanguard Federal Money Market Fund
Vanguard Total International Stock ETF
Vanguard Value ETF
Vanguard Long-Term Bond ETF
Vanguard Intermediate-Term Bond ETF
Note: I am not sure how to add the pie chart as a picture?
Questions:
1. From the Bogleheads perspective what are the takeaways on the current portfolio. I ask for my own education. It seems one thing is the fees? What are the overall fees for the portfolio? How do the compare to a BH portfolio?
3. How to get from the current portfolio to a simplified portfolio? What are the pros/cons of going with PAS and the 6 fund portfolio?
4. What Lifestyle Or TDF would we use to create a 1 or 2 fund portfolio with a AA of 50/50? As we age, the AA would automatically adjust, correct?
5. Regarding the 50k in capital gains to simplify the portfolio, do in one shot or sell over a couple of years?
6. We would have to determine withdrawal and RMD, correct?
7. I am not familiar tax efficiencies as mentioned in many of the BH posts, it is another area that I need to bone up on. It seems to factor in when selecting the fund. I am not sure if any of the FAs I have had in the past made use of this. If they did it was never mentioned. I use TurboTax to our returns, the software carries forward the losses. What should I focus on when it comes to this topic?
8. I know it’s our decision if we simplify to a one fund portfolio. I assume FA and PAS would try to discourage us. How would a BH respond?
Much Appreciated.
MisterCruise
I am new to the forum, looking for your analysis of our financial life below. In your recommendation, please be specific to the fund(s) you might recommend as I am a novice. Thanks in advance.
Emergency Funds:
$120k - Capital One Saving @4.35% (Emergency, Vacations)
Debt: $0
Condo approx value $350k paid off
Tax Filing Status:
Married Filing Jointly
Tax Rate:
Federal - 9.31%
State - 6.0%
State Of Residence:
CT
Age/Health:
Myself 65 - 5 vessel bypass 2016, longevity in question
Spouse 75 - Arthritis
Social Security: $39k myself and $15k spouse
Pensions (no survivor benefits): $29k myself and $24k spouse (yearly cola), addtl small pension $4k
Expenses are roughly $6k per month average.
Healthcare: United Healthcare Medicare Advantage Plans (Subsidized)
Long-Term Care: No LTC Insurance, looking at options of home care vs CCRC if/when needed
Wills, Healthcare Directives, POA in place.
Desired/Current Asset Allocation:
50% stocks / 50% bonds
Total Portfolio at Vanguard:
Approx. $1.2M
Taxable Joint Account: ($492,897)
$5,849 Vanguard Money Market
$109,325 CD 5.5% 10/24/24
$75,236 CD 5.45% 11/3/24
$49,984 CD 4.6% 1/30/24
$57,877 Apple AAPL
$31,824 Amazon AMZN
$23,124 Berkshire Hathaway B BRKB
$8,069 Visa V
$19,548 TR Price Blue Chip Growth TRCBX (exp .71)
$16,937 Vanguard Midcap 400 Growth Ind ETF IOVG (exp .15)
$15,680 Vanguard Small Cap Index Admiral VSMAX (exp .05)
$5,522 ARK 3D Printing ETF PRNT (exp .66)
$13,990 Fidelity International Capital Appreciation FIVFX (exp .80)
$25,318 TR Price International Discovery PRIDX (exp 1.23)
$14,588 TR Price Health Sciences Fund PRHSX (exp .80)
$10,801Fidelity Select Software FSCSX (exp .69)
$6,564 Global X Lithium and Battery ETF LIT (exp .75)
Myself:
Vanguard Taxable Brokerage: ($24,999)
$7,613 Vanguard Federal Money Market
$4,445 ABB Limited ABB
$158 Accelleron ACCLY
$6,230 Tesla TSLA
$6,552 Uber UBER
Vanguard Rollover IRA: ($591,545)
$4,528 Vanguard Federal Money Market
$99,965 CD 5.05% 2/2/24
$99,861 CD 5.0% 4/30/24
$105,254 CD 5.45% 10/17/24
$28,263 CD 5.1% 12/5/25
$7,846 Vanguard Short Term Inv Grade FD VFSTX (exp 0.2)
$23,068 Google GOOG
$20,277 Microsoft MSFT
$34,376 TR Price Blue Chip Growth TRCBX (exp .71)
$10,181 Moderna MRNA
$19,075 Vanguard Mid Cap Value Admiral VMVAX (exp 0.7)
$16,722 Vanguard Mid Cap Growth Admiral VMGMX (exp 0.7)
$22,750 Beyond Inc. BYON
$25,109 Fidelity International Capital Appreciation FIVFX (exp .80)
$26,849 TR Price Small Cap Growth PRDSX (exp 0.8)
$6,072 ISShares Self Driving EV ETF IDRV (exp 0.47)
$7,444 Vaneck Rare Earth Strategic Metals ETF REMX (exp 0.54)
$10,373 TR Price Health Sciences Fund PRHSX (exp .80)
$16,601 Fidelity Select Software FSCSX (exp .69)
$6,484 Invesco Solar ETF TAN (exp .67)
Vanguard Roth IRA: ($54,027)
$8,967 Federal Money Market
$10,605 Apple AAPL
$4,258 Uber UBER
$2,562 Trimble Inc TRMB
$5,669 Fiserv FISV
$4,393 Microchip Tech MCHP
$1,515 Aeva Tech AEVA
$3,397 Zeus Steel
$3,969/Marathon Pete MPC
$3,490 Pioneer Nat Res PXD
$2,728 HF Sinclair DINO
$2,119 Select SPDR Energy XLE
Spouse:
Vanguard Roth IRA: ($30,619)
$410 Federal Money Market
$3,012 Vanguard Cash Reserves VMMXX
$8,666 Apple AAPL
$10,885 Microsoft MSFT
$2,949 Uber UBER
$5,042 Lynas Corp LYSCF
$448 Texas Minerals Corp TMRC
Our FA (self-employed, .55 aum) is retiring in the near future. Spouse and I are both novices. FA suggested vpas as an option. We had a few meetings with vanguard, the plan was a bit confusing, used a historical rate of return of 8.35% for a 50/50 stock & bond plan. However, said the return was more in the 6% range. It seemed to me then the available dollars projected by the plan and its success was misleading using the higher %, this was not a cause of concern for vanguard ( you had to read the small fine print). The AA, specifically international and bonds % are areas I am still learning. Current FA as you can see uses CDs rather than bond funds. Vanguard suggested the reverse, though I am apprehensive on BND after the last year bond selloff. I am reading articles and forum posts to get a better understanding.
For us, Vanguard suggests a 50/50 six-fund portfolio, basically selling most of the current portfolio, triggering 50k in capital gains and reallocating to the 6 fund portfolio. He said if we didn’t want to sell all positions, we could manage those not under pas contract. Suggested as the CDs mature to reallocate them.
With both being of us being novices and simplification our goal, the pending retirement of our FA has created an opportunity for us to simplify and either take over management of the portfolio or use PAS or like service.
Vanguard’s 6 fund portfolio mix as follows:
Vanguard Total Stock Market ETF
Vanguard S&P 500 ETF
Vanguard Federal Money Market Fund
Vanguard Total International Stock ETF
Vanguard Value ETF
Vanguard Long-Term Bond ETF
Vanguard Intermediate-Term Bond ETF
Note: I am not sure how to add the pie chart as a picture?
Questions:
1. From the Bogleheads perspective what are the takeaways on the current portfolio. I ask for my own education. It seems one thing is the fees? What are the overall fees for the portfolio? How do the compare to a BH portfolio?
3. How to get from the current portfolio to a simplified portfolio? What are the pros/cons of going with PAS and the 6 fund portfolio?
4. What Lifestyle Or TDF would we use to create a 1 or 2 fund portfolio with a AA of 50/50? As we age, the AA would automatically adjust, correct?
5. Regarding the 50k in capital gains to simplify the portfolio, do in one shot or sell over a couple of years?
6. We would have to determine withdrawal and RMD, correct?
7. I am not familiar tax efficiencies as mentioned in many of the BH posts, it is another area that I need to bone up on. It seems to factor in when selecting the fund. I am not sure if any of the FAs I have had in the past made use of this. If they did it was never mentioned. I use TurboTax to our returns, the software carries forward the losses. What should I focus on when it comes to this topic?
8. I know it’s our decision if we simplify to a one fund portfolio. I assume FA and PAS would try to discourage us. How would a BH respond?
Much Appreciated.
MisterCruise
Statistics: Posted by MisterCruise — Sun Jan 28, 2024 4:29 pm — Replies 0 — Views 63