I would like to use this current market situation to do a desperately needed simplification of the taxable portion of my portfolio.
My taxable accounts (51% of my total portfolio) have the unruly and disheveled composition shown below. My overall target asset allocation is serendipitously 50/50. I want reduce the overall number of holdings to simplify future management and rebalancing.
Items shown in red are ripe for loss harvesting. I have four domestic stock ETFs because of bad advice from a Vanguard advisor, who five years ago urged me to buy 11 funds to mimic one of their standard portfolios. The Wellesley was inherited. CVX and MMM are sentimental holdings.
Holding VTI, VTV, VUG and VXF is overkill -- there is a lot of overlap. I'm not sure of what a good combination/proportion would be, so I need to learn more about that.
Thoughts on how to clean up and simplify my taxable holdings would be most welcome.
Also, suggestions/URLs for reading on portfolio composition and tax efficiency would be great as I continue to educate myself.
I've started by reading https://www.bogleheads.org/wiki/Tax-efficient_fund_placement
My taxable accounts (51% of my total portfolio) have the unruly and disheveled composition shown below. My overall target asset allocation is serendipitously 50/50. I want reduce the overall number of holdings to simplify future management and rebalancing.
Items shown in red are ripe for loss harvesting. I have four domestic stock ETFs because of bad advice from a Vanguard advisor, who five years ago urged me to buy 11 funds to mimic one of their standard portfolios. The Wellesley was inherited. CVX and MMM are sentimental holdings.
VG Balanced Idx Fund Adm Shares ..... VBIAX ........ 1.42%
VG Tax-Managed Bal Fund Adm ......... VTMFX .........1.07%
VG Wellesley Adm ........................... VWIAX .........7.07%
VG Total Stock ETF ........................... VTI .......... 27.28%
VG Value ETF ..................... ............. VTV ........... 6.93%
VG Growth ETF ................................ VUG ......... 34.22%
VG Extended Market ETF .................... VXF ........... 7.92%
VG Total Int'l Stock ETF .................... VXUS ........ 11.75%
Chevron ......................................... CVX ............ 1.59%
3M ................................................ MMM ........... 0.75%
My thought is to eliminate the holdings in VWIAX, and VXF or VTV and use the proceeds to top up VXUS (int'l stocks are below my target 25% of stocks) but that might not be wise right now. Or use the harvested losses to eliminate VBIAX and VTMFX for simplicity, and pick those up in my tax-deferred accounts.VG Tax-Managed Bal Fund Adm ......... VTMFX .........1.07%
VG Wellesley Adm ........................... VWIAX .........7.07%
VG Total Stock ETF ........................... VTI .......... 27.28%
VG Value ETF ..................... ............. VTV ........... 6.93%
VG Growth ETF ................................ VUG ......... 34.22%
VG Extended Market ETF .................... VXF ........... 7.92%
VG Total Int'l Stock ETF .................... VXUS ........ 11.75%
Chevron ......................................... CVX ............ 1.59%
3M ................................................ MMM ........... 0.75%
Holding VTI, VTV, VUG and VXF is overkill -- there is a lot of overlap. I'm not sure of what a good combination/proportion would be, so I need to learn more about that.
Thoughts on how to clean up and simplify my taxable holdings would be most welcome.
Also, suggestions/URLs for reading on portfolio composition and tax efficiency would be great as I continue to educate myself.
I've started by reading https://www.bogleheads.org/wiki/Tax-efficient_fund_placement
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