So a long time ago I decided to use Scott Burn's AssetBuilder as my RIA to get access to Dimensional Funds. In hindsight, I should have just copied one of his couch potato allocations and used Vanguard funds.
About 5 years ago I got smart (or so I thought) and decided to terminate AssetBuilder as my RIA and self-manage my portfolio. As time passed, I was busy and I never rebalanced my portfolio. Now my portfolio is all out of whack and I want to clean things up.
I'm thinking of going with a very simple three fund portfolio:
- Vanguard Total Stock Market
- Vanguard Total International
- Vanguard Total Bond Market
I have about 25% of my assets in a 401k, the rest is in a taxable account. I was planning to put the total bond market fund in my 401k and set the option to reinvest dividends and reinvest capital gains. I read this is smart because those dividends can be taxable if they were earned in my taxable account.
I was then going to put the total stock and total international in my taxable account. I plan to buy and hold these for a long time, I don't day trade.
I'm just looking for a really simple solution that I don't need to check in on for 5-10 years. Does this sound like a reasonable approach? Should I consider a target retirement date fund where the allocation will change a little over time as the target date gets closer?
Which assets should I put in my 401k vs my taxable account? Does it make sense to put my total market bonds in there as described above? Historically I always thought you put equities into the 401k so if you bought and sold you would not trigger long-term capital gains. I see the logic to put in dividend distributing assets too. Will I be bummed later when it's time to take distributions if I do one or the other?
Thanks in advance for your advice/input.
Andy
About 5 years ago I got smart (or so I thought) and decided to terminate AssetBuilder as my RIA and self-manage my portfolio. As time passed, I was busy and I never rebalanced my portfolio. Now my portfolio is all out of whack and I want to clean things up.
I'm thinking of going with a very simple three fund portfolio:
- Vanguard Total Stock Market
- Vanguard Total International
- Vanguard Total Bond Market
I have about 25% of my assets in a 401k, the rest is in a taxable account. I was planning to put the total bond market fund in my 401k and set the option to reinvest dividends and reinvest capital gains. I read this is smart because those dividends can be taxable if they were earned in my taxable account.
I was then going to put the total stock and total international in my taxable account. I plan to buy and hold these for a long time, I don't day trade.
I'm just looking for a really simple solution that I don't need to check in on for 5-10 years. Does this sound like a reasonable approach? Should I consider a target retirement date fund where the allocation will change a little over time as the target date gets closer?
Which assets should I put in my 401k vs my taxable account? Does it make sense to put my total market bonds in there as described above? Historically I always thought you put equities into the 401k so if you bought and sold you would not trigger long-term capital gains. I see the logic to put in dividend distributing assets too. Will I be bummed later when it's time to take distributions if I do one or the other?
Thanks in advance for your advice/input.
Andy
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