Personal Investments • Beginner's Portfolio Review - Appreciate Your Input!

We just started learning about investment, following the bogleheads’ investment guide and tracking our spending and investment at the beginning of this year. We greatly appreciate any advice you may have for us!

Emergency Fund:
Yes – enough for 9 to 12 months

Debt:
None (Currently renting)

Tax Filing Status:
Married Filing Jointly (one 5 yo)

Tax Rate:
22% Federal, 5.3% State

State of Residence:
WI

Age:
A – 40 / B - 46

Desired Asset Allocation:
70% Stocks / 30% Bonds (not counting pension)
Desired International Allocation: 5% of stocks

Approximate size of total portfolio:
$345K, plus pension

Current retirement assets:
Joint brokerage at Vanguard
22% Vanguard Total Stock Market Index Fund (VTSAX) (0.04%)
14% Vanguard Total Bond Market Index Fund (VBTLX) (0.05%)

A’s Rollover 401(K) (Traditional IRA) at Vanguard
42% Vanguard Total Stock Market Index Fund (VTSAX) (0.04%)

A’s 403(b) with TIAA (vested/employee match)
12% Vanguard Mid-Cap Value Index Fund (VMVAX) (0.07%)

B’s 403(b) with TIAA
2% Vanguard Total Bond Market Index Fund (VBTIX) (0.04%)
3% Vanguard Total Internation Stock Index Fund (VTSNX) (0.09%)

B’s HSA with Optum Financial
5% Schwab S&P 500 Index Fund (SWPPX) (0.02%)
Note: we currently can cover all medical expenses so we don’t plan withdrawing money from HSA anytime soon.

New Annual Contributions:
$4,100 A’s 403(b) (employee matches the same amount of A’s contribution)
$13,000 B’s 403(b)
$9,500 B’s pension (employee matches the same amount of B’s contribution)
$1,500 B’s HSA

Available Funds:
A’s 403(b)
Vanguard Mid-Cap Value Index (VMVAX) (0.07%)
Nuveen Lifecycle Index 2065 (TFITX) (0.10%)
Nuveen Lifecycle Index 2060 (TVIIX) (0.10%)
Nuveen Lifecycle Index 2055 (TTIIX) (0.10%)
Nuveen Lifecycle Index 2050 (TLLIX) (0.10%)
Nuveen Lifecycle Index 2045 (TLXIX) (0.10%)
Nuveen Lifecycle Index 2040 (TLZIX) (0.10%)
Nuveen Lifecycle Index 2035 (TLYIX) (0.10%)
Nuveen Lifecycle Index 2030 (TLHIX) (0.10%)
Nuveen Lifecycle Index 2025 (TLQIX) (0.10%)
Nuveen Lifecycle Index 2020 (TLWIX) (0.10%)
Nuveen Lifecycle Index 2015 (TLFIX) (0.10%)
Nuveen Lifecycle Index Retirement Income (TRLIX) (0.10%)
Nuveen Lifecycle Index 2010 (TLTIX) (0.10%)
Vanguard Federal Money Market (VMFXX) (0.11%)
CREF Equity Index Account (R2) (QCEQPX) (0.25%)
CREF Money Market Account (R2) (QCMMPX) (0.26%)
CREF Inflation-Linked Bond Account(R2) (QCILPX) (0.28%)
CREF Growth Account (R2) (XCGRPX) (0.29%)
CREF Social Choice Account(R2) (QCSCPX) (0.29%)
CREF Global Equities Account (R2) (QCGLPX) (0.32%)
CREF Stock Account(R2) (QCSTPX) (0.32%)
CREF Core Bond Account (R2) (QCBMPX) (0.32%)

B’s 403(b)
Vanguard Institutional Index (VIIIX) (0.02%)
Vanguard Total Stock Market Index (VITSX) (0.03%)
Vanguard Total Bond Market Index (VBTIX) (0.04%)
Vanguard Short Term Inflation Protected Securities Index (VTSPX) (0.04%)
Vanguard Extended Market Index (VIEIX) (0.05%)
Vanguard Developed Markets Index (VTMNX) (0.06%)
Vanguard Target Retirement 2065 (VLXVX) (0.08%)
Vanguard Target Retirement 2060 (VTTSX) (0.08%)
Vanguard Target Retirement 2050 (VFIFX) (0.08%)
Vanguard Target Retirement 2055 (VFFVX) (0.08%)
Vanguard Target Retirement 2045 (VFIVX) (0.08%)
Vanguard Target Retirement 2040 (VFORX) (0.08%)
Vanguard Target Retirement 2035 (VTTHX) (0.08%)
Vanguard Target Retirement 2030 (VFIVX) (0.08%)
Vanguard Target Retirement 2025 (VFORX) (0.08%)
Vanguard Target Retirement 2020 (VTTHX) (0.08%)
Vanguard Target Retirement Income (VTINX) (0.08%)
Vanguard Target Retirement 2070 (VSVNX) (0.08%)
Vanguard International Stock Index (VTSNX) (0.09%)
Vanguard Cash Reserves Federal Money Market Fund (VMRXX) (0.10%)
Vanguard Emerging Markets Stock Index (VEMIX) (0.10%)
Vanguard FTSE Social Index (VFTNX) (0.12%)

B’s HSA
Schwab S&P 500 Index (SWPPX) (0.02%)
Schwab Small Cap Index (SWSSX) (0.04%)
Vanguard Growth Index (VIGIX) (0.04%)
Vanguard Extended Market Index (VIEIX) (0.05%)
Vanguard Total Bond Market Index (VBTLX) (0.05%)
Vanguard Treasury Money Market (VUSXX) (0.09%)
Vanguard Inflation-Protected Secs (VAIPX) (0.10%)
Vanguard Life Strategy Income (VASIX) (0.11%)
Schwab Target 2020 Index (SWYLX) (0.12%)
Schwab Target 2030 Index (SWYEX) (0.12%)
Schwab Target 2040 Index (SWYGX) (0.12%)
Schwab Target 2050 Index (SWYMX) (0.12%)
Schwab Target 2060 Index (SWYNX) (0.12%)
Vanguard LifeStrategy Cnsrv Gr (VSMGX) (0.12%)
Vanguard LifeStrategy Mod Gr (VSMGX) (0.13%)
Vanguard Emerging Mkts Stock Idx (VEMAX) (0.14%)
Vanguard LifeStrategy Growth (VASGX) (0.14%)
Vanguard Equity-Income (VEIRX) (0.18%)

Other Information:
We expect job changes in the future (probably in 2 to 3 years) and hence a huge reduction in our income in our future.

Questions:
The big question is, how should we go about to re-allocate our assets to align with our target, and make it more tax efficient?

1. A still has room to contribute to the retirement fund. One way to do this is contributing to the rollover 401(k) (Traditional IRA account) with Vanguard up to $7,000 per year, as the investment options in A’s 403(b) do not seem ideal. Any advice on this?

2. Apparently we need to increase investment in bond market and international stock index funds to align with our target portfolio. We plan to do the following:
a. For HSA,
i. increase HSA contributions
ii. put all new contributions to VBTLX
b. For B’s 403(b) with TIAA – put all the new contributions to VTSNX, until we reach the target %
Any advice on re-balancing our portfolio?

3. Any other changes that we could do to make our portfolio more tax efficient?

4. Any areas that we haven’t thought about or that we can improve? What should we stop doing or start doing?

Thank you for your input!

Statistics: Posted by nslearning — Wed Jul 31, 2024 8:49 pm — Replies 0 — Views 81

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