Personal Investments • Send help! Hung up on how to set up my portfolio

Hi Bogleheads,

I'm new to the forum and looking for suggestions on how best to set up my portfolio, BH style. I'm not sure how to proceed as I'm hung up on how my 401K fund options and home buying fit into the overall portfolio picture. For context

Age: 29
Tax filing: single
Tax rate: 24% federal, 5% state
Debt: none

Income: $118K
Expenses: $4400/month

Savings: $177.6K, split between MMF and traditional savings/checking accounts
Emergency fund: $25K in HYSA
Roth IRA: $26.1K in FDRXX, maxed out
HSA: $2.2K in FDRXX, maxed out
401K: $92.2K in target date fund
Maxed out starting 2024 with 0% employer match (formerly 8% contribution with 6% employer match)
Fidelity Target Retirement 2060 Fund
5% Total Bond Market Fund[/list]
5% High Yield & Emerging Markets Bond Fund
5% Global Real Estate Stock Index Fund
51% Total Stock Market Index Fund
34% Total International Stock Market Index Fund

Goals
Three fund portfolio across tax advantaged accounts and a new taxable brokerage account (using $166K of existing savings)
Asset allocation of 90% stock/10% bonds (not sure whether I should reduce the bond allocation)
Long term goal: save and invest for retirement
Medium (and very fluid) term goal: home purchase in the next 5-10 years

Questions

• I originally wanted funds from only the US total stock market index, international total stock market index, and US total bond market index. However, the majority of my 401K options have high ERs. The target date fund seems like the best option (0.08% ER) but I'm unsure how to factor the 5% High Yield & Emerging Markets Bond Fund, 5% Global Real Estate Stock Index Fund, and 5% Global Real Estate Stock Index Fund into the equation.

• What are your suggestions on how to set up which funds across which accounts? Do I need any bonds in my late twenties?

• What is the best way to approach my medium term home purchasing goal? Do I sell stocks from a taxable account when I need cash for a future down payment? Do I put cash towards something less risky? Again this goal is fluid and I don't have a set timeline.

• Do folks typically have one asset allocation across their entire portfolio for all their goals? Or should each goal type (ie. retirement vs home buying) have its own allocation?

• Should I max out my 401K first and contribute the remaining monthly savings to a taxable account? Any advantages/disadvantages to not maxing out my 401K and instead contributing more to the taxable?

• Anything else I should consider?

Thanks!

Statistics: Posted by irunforfun — Mon Jan 29, 2024 6:52 pm — Replies 0 — Views 168

---