Would you change this portfolio ??

[rkser]

Please give your opinion about our portfolio -

I am 63, DW 58, retiring in 2 years , -

My IRA -
VTABX --------- 6%
VBTLX ---------16%
DW IRA -
VBTLX-----------7%

My Roth IRA -
VTSAX -----------2%
DW Roth IRA -
VTSAX -----------2%

My Taxable -
VTSAX-----------23%
VTIAX -----------7%
VWIUX ----------2%
DW Taxable -
VTIAX ----------- 6%
VTMGX ---------- 2%
VTSAX ---------14%
VWIUX----------14%

*We have $380k in Bank CDs & Online Savings & the Asset Allocation is around Stocks 52% & Fixed Income including the savings is 48%
*We needed the Tax Exempt Bonds in Taxable to maintain the AA, although now being in 22% Tax Bracket, we may go to taxable bonds .

What do you think ? Will you change anything ?

Thanks in advance for your opinions

[DrRoy]

If you are happy with the AA then that's as good a way as any. You have rather more international than I like but that is a personal choice.

[Midpack]

I have many of the same holdings, so I like your choices. But your AA should be what you’re comfortable with, not what someone else would choose. History would suggest as long as you stay within 20:80 Equity:Fixed and 70:30, you’re probably fine. Not critical but I don’t think most people would lump cash into fixed income though.

[Retiree_Having_Fun]

Is your wife retiring too? What is your healthcare plan for her? If you are using an aca plan, you might want to double check your income vs subsidies for your wife.

[OldShooter]

My eyeball count says seven different funds. Seems like a lot, though good job that they are all Vanguard. What is the purpose of keeping track of so many funds? For equities, your favorite mix of VTSAX andVTIAX would seem to do it or, our choice, VTWAX. I avoid unnecessary complexity or even complexity with only very small theoretical payoff.

I suggest that you run your current portfolio against some simpler ones using Portfolio Visualizer. Just look at the totals and don't worry about separating by accounts. Backtesting doesn't predict anything but you can get a very useful picture of correlations between the complex and the simple. If they are highly correlated, then personally I would ditch the extra baggage. https://www.portfoliovisualizer.com/backtest-portfolio

Re 52/48 there is no way to know whether that's a good idea or not. It depends on things like the size of your portfolio and your goals for it. People will also tell you, correctly that your risk tolerance is an important factor. This is true but IMO you will not know your risk tolerance until you have been through a serious downturn. Answering risk tolerance questionnaires on the internet while sitting in your recliner chair is IMO a waste of time.

There are certain things that cannot be adequately explained to a virgin either by words or pictures. Nor can any description that I might offer here even approximate what it feels like to lose a real chunk of money that you used to own. -- Fred Schwed, "Where Are The Customers' Yachts?," 1940

The various age-based AA formulas you run into are completely brain-dead. Ignore them.

[ERD50]

Quote:

Originally Posted by Midpack ... But your AA should be what you’re comfortable with, not what someone else would choose. History would suggest as long as you stay within 20:80 Equity:Fixed and 70:30, you’re probably fine. ....

Agree with the first part, but is 20:80 to 70:30 really equivalent? Unfortunately, I can't see the graphs anymore, FIRECALC uses some old code (Flash?) for that graph, and modern browsers no longer support it. But IIRC, it was more like the drop-offs were at 35/65 and 95/5?

-ERD50

[rkser]

I am comfortable with the AA of 52/48 on its way to become 55/45 thanks to the Market returns.

I need some feedback as to the choice of funds or any other feedback I could get. It has been to my benefit checking/discussing the Portfolio on the forum.

I try to keep the Flagship Select sized Portfolio simple, straight & narrow but then making decisions alone warrants double checking with others.

Cap Gain Taxes also come in the way of reducing the number of funds, for instance in DW Taxable I am looking for a chance to exchange Developed Markets into Total International.

I am presently doing & plan to continue the Roth Conversions to maximise income up to 22% to prevent the Tax Torpedo at age 70 1/2. But that is being discussed on another thread.

[Sunset]

Quote:

Originally Posted by Midpack ... Not critical but I don’t think most people would lump cash into fixed income though.

I consider cash the same as fixed income.

Please tell me what I'm missing as I consider CD's, and cash in an account that pays 1.7% today the same as some collection of Bonds or BND.

Now cash under my mattress is not fixed income in my mind as it doesn't earn anything.

[rkser]

Retiree having fun,
We both pay for a private Blue Cross Health Insurance, I am waiting for Medicare in a year & half, but wife will continue on private HI.
Pricy but we do not qualify for Obama Care due to higher income.