Originally Posted by Htown Harry
Your bond allocation right now is 19% VFSUX short-term, 15% VBTLX total bond and 7+% in the Wellesley shares. Looks a little light relative to your target 45%.
Vanguard Portfolio watch says we are 44.5% bonds (that doesn't include the 2% in cash that we have in a separate IRA elsewhere). I think you have the Wellesley a little low for its bond component. I do think I agree with you that the savings on the ER is not enough to make the tail wag the dog.
Originally Posted by teejayevans
Also, do you realize that your Dreyfus, Wellesley, and Total Stock market funds have a lot of overlap? Might want to consider moving some of your TSM to VSMAX & VIMAX.
Good point. Initially Vanguard did a financial plan for us and recommended for the Vanguard portion only total stock market, total international and total bond. I've drifted a bit from that obviously.
Looking at Portfolio Watch, The analysis says that US stock market is 66% large cap, 27% mid cap and 7% small cap while we are 89.5% large cap, 8.3% mid cap and 2.2% small cap.
So Portfolio Watch gives me a caution on that. They also note that we have a moderate emphasis on value stocks with US stocks at 10.8% value, 89.2% blend and 0% growth.
I am a little uncertain how to solve this. Originally Vanguard has me putting all my 401(k) into Fidelity Advisor Strategic Income T (FSIAX). However, We are unlikely to withdraw from the 401(k) for some years so I felt it was better to keep that in stock funds since we are more likely to withdraw from the IRA that is at Vanguard (at the time we expected to make some large house related withdrawals but those have now been made so from now on we will just be making regular living expenses type withdrawals).
Ideally I would take the money from the S&P500 fund and perhaps move some to mid-cap and small-cap funds. However, those funds in my 401(k) Options (FITIX, HRSVX, RSPFX) have higher expenses and fees than I like.
I guess I could go back to the Strategic Income Fund in my 401(k) and could reduce my total bond fund on Vanguard but then that leaves me with all of our stock funds in the IRA.
The other option as you suggest is move part of Total Stock to VSMAX & VIMAX. If I take about 80% of what is in Total Stock and put 3/4 of that into VIMAX and 1/4 into VSMAX then Portfolio Watch says I would be balanced on market capitalization although that doesn't do anything about the no growth stock although I'm not sure that should bother me.