Hello Bogleheads!
For background, I am 29 years old, work full time, and have a total gross income of about $ 240k USD per year from my employer, which includes wages, stocks, and options. I also have 401k (maxed contributions) and an IRA rolled over from a previous employer.
The main issue is that I currently have a portfolio of just over $1M that is managed by a fiduciary firm that is taking a 0.875% marginal rate as the management fee (1% for $ 250k, 0.9% for the next $ 250k, 0.8% for the next $ 500k, 0.7% for the next $ 500k, etc., with a custom rate at $ 5M+). I am also using their financial planning service, which is $250 per month. They helped me build the portfolio from a windfall about two years ago. The portfolio is 42% stocks, 38% bonds, 18% “alternatives” (real estate, gold, infrastructure funds), and <1% cash. All in a Charles Schwab account. I contribute to the portfolio through my salary and selling stock from my employer.
The portfolio has returned 19.8% since inception, September 2, 2022, to October 27, 2024 (almost 26 months as of writing this). The asset allocation is very Bogle-y, with a mix of US, international, small/ large cap funds, and some indexes and ETFs.
While I have been very happy with the fiduciary’s work, I just finished reading “The Bogleheads’ Guide to Investing” and feel ready to begin managing the portfolio myself, in addition to reducing the bonds allocation and matching my age (30 years old, 30% bonds). I would like to select a group of Vanguard (or similar) funds to move the assets to. My main motivation, of course, is to reduce costs and stop paying the assets under management fee.
My questions are:
1. Should I move the portfolio to Vanguard funds at all?
2. If so, how do I map my current asset categories to Vanguard funds? The portfolio viewing tool my managers use (Pontera) divides the assets into categories such as:
• Bonds - Core,Fundamental
• Stocks US - Core,Fundamental
• Stocks Non-US - Core,Fundamental
• Stocks Global - Core,Fundamental
• Alternatives - Real Assets
• Alternatives - Diversifying Strategies
• Something called "Preference, High Income" which is just HIMYX
I'm not sure how to map these to Vanguard's funds. Does Core Bonds just map to VCRB (Core Bond ETF)?
3. What tools will I be using to manage, such as for rebalancing?
4. Does anything I'm writing make sense?
Thank you for reading, and I appreciate any advice!
For background, I am 29 years old, work full time, and have a total gross income of about $ 240k USD per year from my employer, which includes wages, stocks, and options. I also have 401k (maxed contributions) and an IRA rolled over from a previous employer.
The main issue is that I currently have a portfolio of just over $1M that is managed by a fiduciary firm that is taking a 0.875% marginal rate as the management fee (1% for $ 250k, 0.9% for the next $ 250k, 0.8% for the next $ 500k, 0.7% for the next $ 500k, etc., with a custom rate at $ 5M+). I am also using their financial planning service, which is $250 per month. They helped me build the portfolio from a windfall about two years ago. The portfolio is 42% stocks, 38% bonds, 18% “alternatives” (real estate, gold, infrastructure funds), and <1% cash. All in a Charles Schwab account. I contribute to the portfolio through my salary and selling stock from my employer.
The portfolio has returned 19.8% since inception, September 2, 2022, to October 27, 2024 (almost 26 months as of writing this). The asset allocation is very Bogle-y, with a mix of US, international, small/ large cap funds, and some indexes and ETFs.
While I have been very happy with the fiduciary’s work, I just finished reading “The Bogleheads’ Guide to Investing” and feel ready to begin managing the portfolio myself, in addition to reducing the bonds allocation and matching my age (30 years old, 30% bonds). I would like to select a group of Vanguard (or similar) funds to move the assets to. My main motivation, of course, is to reduce costs and stop paying the assets under management fee.
My questions are:
1. Should I move the portfolio to Vanguard funds at all?
2. If so, how do I map my current asset categories to Vanguard funds? The portfolio viewing tool my managers use (Pontera) divides the assets into categories such as:
• Bonds - Core,Fundamental
• Stocks US - Core,Fundamental
• Stocks Non-US - Core,Fundamental
• Stocks Global - Core,Fundamental
• Alternatives - Real Assets
• Alternatives - Diversifying Strategies
• Something called "Preference, High Income" which is just HIMYX
I'm not sure how to map these to Vanguard's funds. Does Core Bonds just map to VCRB (Core Bond ETF)?
3. What tools will I be using to manage, such as for rebalancing?
4. Does anything I'm writing make sense?
Thank you for reading, and I appreciate any advice!
Statistics: Posted by blueboy64 — Sun Oct 27, 2024 9:00 pm — Replies 2 — Views 137