figner
Recycles dryer sheets
I've been overthinking this way too long, so it's time to just spew my current ideas and hope they make sense. My aim is to tweak the AA to be a Bernstein-style slice and dice portfolio (I just read "The Intelligent Asset Allocator" and found it very useful).
Here's what's proposed. I lean toward ETFs since I can buy in large enough chunks that the lower ERs will likely outweigh commissions and spread after holding for several years.
20% Large Market – VTI/VFINX
10% Large Value - VTV
10% Small Market – VB (and partly from VTI)
10% Small Value – VBR
5% REIT – VNQ
5% International Pacific – VPL
5% International Europe – VGK
5% Emerging Markets – VWO
5% International Small or Value – DLS or EFV
5% Random self-picked stocks ("play" money, or could substitute some other class?)
20% Bonds/FI (mix of vanguard CA tax exempt, TIPs, short term bond fund?)
About 30% of my portfolio is in tax-deferred accounts: 20% in a 401k with some decent but limited choices (TIPS fund, Lehman agg bond index, wilshire 4500 index-ish fund, EAFE index-ish fund), and 10% split between an IRA and a Roth at Schwab. Tax bracket is 28% federal, 9% state. No other assets or debt (such as mortgage) to speak of. I'm in my 30's and expect no pension.
It may take a while to shift over to the new AA, since about 50% of it is currently VTI and VFINX in taxable accounts with substantial nonrealized gains. I also have about 12% in individual small caps from a newsletter, most of which I plan on gradually selling over the next few years (waiting to make gains long-term, and to harvest some losses). Ideally I'd like to make changes only in tax-deferred accounts initially, then use new money to bring the taxable portion in line with the AA. Does that sounds reasonable?
Up till now I've had no experience picking bonds or fixed income investments, so suggestions on these would be much appreciated.
I can post my current AA if that would be useful, but this is getting long for now...
Thanks in advance for any comments!
Here's what's proposed. I lean toward ETFs since I can buy in large enough chunks that the lower ERs will likely outweigh commissions and spread after holding for several years.
20% Large Market – VTI/VFINX
10% Large Value - VTV
10% Small Market – VB (and partly from VTI)
10% Small Value – VBR
5% REIT – VNQ
5% International Pacific – VPL
5% International Europe – VGK
5% Emerging Markets – VWO
5% International Small or Value – DLS or EFV
5% Random self-picked stocks ("play" money, or could substitute some other class?)
20% Bonds/FI (mix of vanguard CA tax exempt, TIPs, short term bond fund?)
About 30% of my portfolio is in tax-deferred accounts: 20% in a 401k with some decent but limited choices (TIPS fund, Lehman agg bond index, wilshire 4500 index-ish fund, EAFE index-ish fund), and 10% split between an IRA and a Roth at Schwab. Tax bracket is 28% federal, 9% state. No other assets or debt (such as mortgage) to speak of. I'm in my 30's and expect no pension.
It may take a while to shift over to the new AA, since about 50% of it is currently VTI and VFINX in taxable accounts with substantial nonrealized gains. I also have about 12% in individual small caps from a newsletter, most of which I plan on gradually selling over the next few years (waiting to make gains long-term, and to harvest some losses). Ideally I'd like to make changes only in tax-deferred accounts initially, then use new money to bring the taxable portion in line with the AA. Does that sounds reasonable?
Up till now I've had no experience picking bonds or fixed income investments, so suggestions on these would be much appreciated.
I can post my current AA if that would be useful, but this is getting long for now...
Thanks in advance for any comments!