Please give me feedback on my portfolio's asset mix

[target2019]

From 13 to 11 moving pieces is great.
When I add a fund (and I spend a lot of time thinking about that), I look for opportunity to combine two existing pieces, so that coming out I still have the same number of funds.
After you goose the small cap in 401K, in time you might combine the IRA small cap with US or Int'l funds there.

[HI Bill]

The expense ratio for the Target Retirement 2050 fund is 0.15%, which is about 3X what holding a balance of BND (0.05%) and VTI (0.04%) would be. If you don't mind rebalancing, then you'll save money (likely) holding individual funds over a Target Date fund.

This fund has 10% bonds. At your age, I'd be 100% in equities, unless you plan to retire within the next 8-10 years, or are at risk of panicking and selling during a downturn. But I'm higher risk taker than most. I've been 100% equities until this year (age 52), when I am within 1 year of retirement. Now, I hold 10% bonds, LOL.

[ChaseThatDream]

Quote:

Originally Posted by HNL Bill The expense ratio for the Target Retirement 2050 fund is 0.15%, which is about 3X what holding a balance of BND (0.05%) and VTI (0.04%) would be. If you don't mind rebalancing, then you'll save money (likely) holding individual funds over a Target Date fund. This fund has 10% bonds. At your age, I'd be 100% in equities, unless you plan to retire within the next 8-10 years, or are at risk of panicking and selling during a downturn. But I'm higher risk taker than most. I've been 100% equities until this year (age 52), when I am within 1 year of retirement. Now, I hold 10% bonds, LOL.

I agree with you. I really don't have many hobbies outside of work. I enjoy being at the office. Even if I'm FI at 47 I don't see myself heading to pasture. However I realize that as I get into my 40's that certainly may change.

[target2019]

A chart to help calculate the difference between two investments, such as the target fund and two constituents (such as mentioned above).

[ChaseThatDream]

Quote:

Originally Posted by target2019 A chart to help calculate the difference between two investments, such as the target fund and two constituents (such as mentioned above).

Thanks for all of your help and making all the charts!

[ESRwannabe]

Quote:

Originally Posted by ChaseThatDream Hello all, I have 80k in an IRA with Vanguard, 390k in a taxable acct with Vanguard, 8k in a 401(k) with empower retirement, and 80k in cash. We rent in a HCOL area. No debt of any kind. My income is to high for her to have an IRA. Please let me know how my asset mix looks and where I should allocate future contributions. Thanks!

Your portfolio is fine. I do have a suggestion though. I would suggest that you try to optimize things for tax efficiency.

In the 401k and Traditional IRA I would fill it up with taxable fixed income and/or REITs (or really anything that is tax inefficient. there are a lot more options out there than just stocks and bonds). In taxable I would trade the STAR fund for the tax managed balanced fund. The other stuff is fine. Index funds are tax efficient as is.

You might want to consider increasing your fixed income. I personally like 50/50 stocks and fixed income. I also use leverage (CEFs).

For someone in your tax bracket I would be loading up on municipal bond funds and CEFs. You can buy high credit quality municipal bond CEFs that have better 10 year returns than most balanced funds. Likewise you can buy CEFs of 100% qualified-dividend preferred stocks with better 10 yr total returns than most stock funds.

P.S. I only read the first post. So I don't know if my suggestions were already mentioned or not.

[DrRoy]

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Originally Posted by ChaseThatDream I make 480k and my wife makes 100k. I don't qualify for much. I can't have a roth. We can't deduct for her IRA. We don't have much in terms of deductions anymore either. Any other options out there?

That does limit things. Perhaps just put all future $ into the new options, and let the others ride. You can then cash out the small accounts first when you start to spend down after RE.

[target2019]

Quote:

Originally Posted by ChaseThatDream Thanks for all of your help and making all the charts!

You're welcome.
Tax-exempt fund was a good suggestion, too, by someone else.

[LOL!]

As noted, it looks like tax efficiency is the bugaboo here. Consider that if you had a hot fund, but all the profits/gains were taxed away leaving you less money than you would have had in a Total US Stock Market index fund and/or a Total International Stock Index fund, then what's the point?

Also consider the future: It may be harder to unwind tax inefficient positions in the future because they may have more gains than they do now.

So you are on the path to better tax efficiency, but not simplicity in the taxable account. You can make things complicated in the tax-advantaged accounts if you want because buying, selling, exchanging in the tax-advantaged accounts have no tax consequences.

So the taxable accounts should probably have only 3 investments:
Total US Stock Market Index
Total International Stock Market Index
A tax-exempt bond fund of your choice, maybe one from your state to avoid state taxes, too.

You don't need every fund in every account either.