WanderALot
Full time employment: Posting here.
- Joined
- Sep 10, 2004
- Messages
- 607
Hello,
I need some help with our monthly asset allocation. Here it is currently
(both in taxable and tax deferred accounts):
1. Vanguard Total Stock Market 35% [taxable] <-- with Vanguard
2. Vanguard Extended Market Index 18% [403(b)] <-- with Vanguard
3. Vanguard Total Bond Market Adm 13% [457]
4. DFA Small/Microcap 13% [457]
5. Vanguard MidCap Index 10% [401(k)]
6. Vanguard Total Stock Market 10% [401(k)]
My 401(k) has high cost options, so the best choices were the
TSM and the Midcap (number 5/6) and I decided to split the difference.
My wife's 403(b) is with Vanguard, so we have a slew of choices there.
My wife's 457 is with a provider that has a bunch of high cost funds
but it also has the Total Bond Admiral (3) and the excellent DFA microcap
so we split the difference there to get some smallcap/bond exposure.
Number 1 is our current after tax investment allocation.
Here are the problems I see with this portfolio:
1. No international exposure, I would be comfortable with about 15-20%.
2. I think there's probably a lot of overlap between the Midcap Index and the
Extended Market. And since we actually have a lot of choice with her 403(b),
I was thinking about switching out of that into Wellington/Wellesley in order to
reduce our risk a bit.
3. Too aggressive.
Please note that this is our monthly investment allocation. I realize that this
should be no different than our overall asset allocation, but I need to tackle the
monthly investment first for my own sanity!
My first pass at this was:
1. Vanguard Tax Managed International 20% [taxable] <-- with Vanguard
2. Vanguard Total Stock Market 15% [taxable] <-- with Vanguard
3. Vanguard Wellesley 18% [403(b)] <-- with Vanguard
4. Vanguard Total Bond Market Adm 13% [457]
5. DFA Small/Microcap 13% [457]
6. Vanguard MidCap Index 10% [401(k)]
7. Vanguard Total Stock Market 10% [401(k)]
As you can see, I've only changed the allocations for investments held with Vanguard
since the others are with fund families that I can't change because of lack of investment
choices (my 401(k) and my wife's 457). So my allocation percentages can be changed in
numbers 4 - 7, but I don't have any other fund choices (or rather, none that I like)
I don't want to have too many funds in my wife's 403(b) since Vanguard charges fees
for each fund, so I thought moving everything from Extended Market into Wellesley would
reduce my volatility while keep fees low.
What do you guys/gals think?
Thanks!
p.s. We are 31/30. Looking to throttle back my work hours in 5 years and RE in maybe 10-15.
I need some help with our monthly asset allocation. Here it is currently
(both in taxable and tax deferred accounts):
1. Vanguard Total Stock Market 35% [taxable] <-- with Vanguard
2. Vanguard Extended Market Index 18% [403(b)] <-- with Vanguard
3. Vanguard Total Bond Market Adm 13% [457]
4. DFA Small/Microcap 13% [457]
5. Vanguard MidCap Index 10% [401(k)]
6. Vanguard Total Stock Market 10% [401(k)]
My 401(k) has high cost options, so the best choices were the
TSM and the Midcap (number 5/6) and I decided to split the difference.
My wife's 403(b) is with Vanguard, so we have a slew of choices there.
My wife's 457 is with a provider that has a bunch of high cost funds
but it also has the Total Bond Admiral (3) and the excellent DFA microcap
so we split the difference there to get some smallcap/bond exposure.
Number 1 is our current after tax investment allocation.
Here are the problems I see with this portfolio:
1. No international exposure, I would be comfortable with about 15-20%.
2. I think there's probably a lot of overlap between the Midcap Index and the
Extended Market. And since we actually have a lot of choice with her 403(b),
I was thinking about switching out of that into Wellington/Wellesley in order to
reduce our risk a bit.
3. Too aggressive.
Please note that this is our monthly investment allocation. I realize that this
should be no different than our overall asset allocation, but I need to tackle the
monthly investment first for my own sanity!
My first pass at this was:
1. Vanguard Tax Managed International 20% [taxable] <-- with Vanguard
2. Vanguard Total Stock Market 15% [taxable] <-- with Vanguard
3. Vanguard Wellesley 18% [403(b)] <-- with Vanguard
4. Vanguard Total Bond Market Adm 13% [457]
5. DFA Small/Microcap 13% [457]
6. Vanguard MidCap Index 10% [401(k)]
7. Vanguard Total Stock Market 10% [401(k)]
As you can see, I've only changed the allocations for investments held with Vanguard
since the others are with fund families that I can't change because of lack of investment
choices (my 401(k) and my wife's 457). So my allocation percentages can be changed in
numbers 4 - 7, but I don't have any other fund choices (or rather, none that I like)
I don't want to have too many funds in my wife's 403(b) since Vanguard charges fees
for each fund, so I thought moving everything from Extended Market into Wellesley would
reduce my volatility while keep fees low.
What do you guys/gals think?
Thanks!
p.s. We are 31/30. Looking to throttle back my work hours in 5 years and RE in maybe 10-15.