I've received some great advice here. Some I've implemented but I've yet to address the low percentage in bonds. Before I get to my main question, here's our assets & allocation.
Two 401k's (Both administered by Voya and with the same exact funds)
812k Large Cap Index Fund that seeks to match S&P 500
213k Small-Mid Cap Index Fund that seeks to match the Russell 2500 Index
253k International Index Fund that seeks to match the MSCI AII Country World (ACWI) ex-US Index
354k Bond Index Fund that seeks to match the Barclays Capital Aggregate Bond Index
Two Roth IRAs (Both held in Fidelity with the same exact funds)
363k FXAIX FIDELITY 500 INDEX FUND
Joint WROS - TOD
153k FXAIX FIDELITY 500 INDEX FUND
Other
79k High Interest Savings Account
That gives us an overall allocation of
59.64% Large Cap
9.56% Small Cap
11.35% International
15.91% Bonds
3.55% Cash
Our desired mix is to have 25% Bonds & 5% cash. Also, I've received suggestions to consider a Total Market Fund instead of having separate funds for Small Cap & International. Unfortunately there is not a Total Market fund in our 401ks.
Other information:
I'm 55 and retired. My wife is turning 54 shortly and plans to retire from her current job at 55. As of right now, her plan is to remain in the workforce at least on a part time basis. We purchased a new home a few months ago for $320k cash. No debts and our 79k in cash more than covers a year of expenses.
As you can see, I haven't done a good job of keeping the bond allocation in line with the desired mix. The reality is that I struggle with moving money from high performing assets to low and now we're over $200k short in bonds. Should I bite the bullet and do a strict reallocation? Make monthly or quarterly moves to chop away at it? I'm mulling over moving 3% from stocks to bonds quarterly until it's back in line.
Any and all input is great appreciated.
Thanks
Two 401k's (Both administered by Voya and with the same exact funds)
812k Large Cap Index Fund that seeks to match S&P 500
213k Small-Mid Cap Index Fund that seeks to match the Russell 2500 Index
253k International Index Fund that seeks to match the MSCI AII Country World (ACWI) ex-US Index
354k Bond Index Fund that seeks to match the Barclays Capital Aggregate Bond Index
Two Roth IRAs (Both held in Fidelity with the same exact funds)
363k FXAIX FIDELITY 500 INDEX FUND
Joint WROS - TOD
153k FXAIX FIDELITY 500 INDEX FUND
Other
79k High Interest Savings Account
That gives us an overall allocation of
59.64% Large Cap
9.56% Small Cap
11.35% International
15.91% Bonds
3.55% Cash
Our desired mix is to have 25% Bonds & 5% cash. Also, I've received suggestions to consider a Total Market Fund instead of having separate funds for Small Cap & International. Unfortunately there is not a Total Market fund in our 401ks.
Other information:
I'm 55 and retired. My wife is turning 54 shortly and plans to retire from her current job at 55. As of right now, her plan is to remain in the workforce at least on a part time basis. We purchased a new home a few months ago for $320k cash. No debts and our 79k in cash more than covers a year of expenses.
As you can see, I haven't done a good job of keeping the bond allocation in line with the desired mix. The reality is that I struggle with moving money from high performing assets to low and now we're over $200k short in bonds. Should I bite the bullet and do a strict reallocation? Make monthly or quarterly moves to chop away at it? I'm mulling over moving 3% from stocks to bonds quarterly until it's back in line.
Any and all input is great appreciated.
Thanks
Statistics: Posted by DaveInPgh — Fri Nov 15, 2024 4:34 am — Replies 1 — Views 84