Portfolio reviews?

[Dave C.]

I am 15-19 months away from retirement and was wondering if there is someplace on this site that members can review each others portfolios? I would be happy to present my AA along with my total retirement portfolio value, along with a few questions.
I respect the advice and input from this site on many topics. For that reason I think a portfolio review would have much value!

 

[pb4uski]

There is a lot on AA on this site. Your first step should be to analyze your AA using Morningstar X-Ray, Vanguard Portfolio Watch or some similar tool.

IMO there are two major things to look at. First is your total portfolio (across all accounts) by asset categories (domestic equities, international equities, bonds, etc and the credit risk and interest sensitivity of your bond portfolio). Second, is tax efficiency - the allocation of your asset classes across your taxable, tax-deferred and tax-free accounts.

Also see Asset Allocation - Bogleheads
and Principles of Tax-Efficient Fund Placement - Bogleheads

From posts that I have seen I think most people on the cusp of retirement on this site typically have 40-60% equities and 60-40% fixed income; however some are almost all fixed income and some are almost all equities - it largely comes down to risk tolerance and the magnitude of pensions/SS in relation to living expenses.

 

[Midpack]

Bogleheads will do just that in considerable detail, IF you provide your complete information in their format. I did it years ago, and was very pleased with the responses I got. If you're unsure, you can readily view what others have submitted and the responses they got.

Nothing against this site, but Bogleheads would be better. Here is the protocol and specific format they ask for:

Bogleheads • View topic - Asking Portfolio Questions

 

[Dave C.]

Bogleheads will do just that in considerable detail, IF you provide your complete information in their format. I did it years ago, and was very pleased with the responses I got. If you're unsure, you can readily view what others have submitted and the responses they got.

Nothing against this site, but Bogleheads would be better. Here is the protocol and specific format they ask for:

Bogleheads • View topic - Asking Portfolio Questions

Thank you very much. I'll take advantage of your Boglehead advice. I always benefit from another pair of eyes and viewpoint.

 

[Dave C.]

There is a lot on AA on this site. Your first step should be to analyze your AA using Morningstar X-Ray, Vanguard Portfolio Watch or some similar tool.

IMO there are two major things to look at. First is your total portfolio (across all accounts) by asset categories (domestic equities, international equities, bonds, etc and the credit risk and interest sensitivity of your bond portfolio). Second, is tax efficiency - the allocation of your asset classes across your taxable, tax-deferred and tax-free accounts.

Also see Asset Allocation - Bogleheads
and Principles of Tax-Efficient Fund Placement - Bogleheads

From posts that I have seen I think most people on the cusp of retirement on this site typically have 40-60% equities and 60-40% fixed income; however some are almost all fixed income and some are almost all equities - it largely comes down to risk tolerance and the magnitude of pensions/SS in relation to living expenses.

Thanks, good input. I already see that I am heavy in bonds within my taxable accounts. My issue (fear) in moving/selling those bonds are the capital gains generated from creating a taxable event. I (absentmindedly) rebalanced a taxable account a couple of years ago and ended up with about a 10K capital gains bill from our friends at the IRS! Oops! Now I am a bit gun-shy.

 

[pb4uski]

Thanks, good input. I already see that I am heavy in bonds within my taxable accounts. My issue (fear) in moving/selling those bonds are the capital gains generated from creating a taxable event. I (absentmindedly) rebalanced a taxable account a couple of years ago and ended up with about a 10K capital gains bill from our friends at the IRS! Oops! Now I am a bit gun-shy.

A couple things to consider. The current 15% capital gains tax rate may be lower than what we'll see in the future depending on what the clowns in DC do so if you believe that capital gains rates will increase then this may be a good time to do the repositioning. However, depending on your income in retirement if you will be in a low tax bracket them it might be better to wait. For example, since my pension and SS haven't started yet we are living on taxable accounts, my capital gains tax rate this year will be zero as long as I keep my taxable income within the 15% tax bracket (~ 70k of taxable income).

If you have losses in your taxable portfolio that you can use to offset the gains than that may be something to consider.

 

[target2019]

After doing the instant xray at M* you can share the port through your screen name there. Then you can post in one of the many forums.

There is a wide variety of opinion on Morningstar.

 

[LOL!]

Thank you very much. I'll take advantage of your Boglehead advice. I always benefit from another pair of eyes and viewpoint.

You mean, you TOOK advantage a couple days ago ...
Bogleheads • View topic - Nearing Retirement...What about this Portfolio?