Hello - can i please get your feedback on a proposed portfolio of simple funds?
considering retirement or early retirement planning and want to reconfigure my current portfolio for simplicity (and an easy mechanism to put new money to work). Just really looking for feedback on some proposed fund allocation. I appreciate all responses and thanks again. I couldn't find a way to attach a photo from portfolio visualizer so here we go:
Assumptions
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 10% of stocks
Tax Rate: 20% Federal, 4% State
Age: 54
Proposed Allocation
50% VTI - total stock market
10% SCHD - US dividend fund
10% VXUS - international stock
15% VTIP - short term inf protected
15% VGIT - intermediate bond
100%
72% large cap
20% mid cap
08% small cap
100%
bond durations - average 1-10 years with most in intermediate 3-5 years
Backtest Stats
8.6% return
10.8% Standard deviation
19.0% drawdown
1.95% yield
0.04% expense ratio
Key Points
* Portfolio back test return is better than a 2040 retirement fund at 8.1%. Its lower than a 70/30 2 fund portfolio at 10.3%
* The large/mid/small cap allocation is pretty close to 2040 fund
* Equity sector has 26% technology - this is lower than S&P at 34% and 2 fund portfolio at 32% I want some tech in there but feel a little less exposure is more conservative with all the mag 7 run up. 2040 fund has 25% tech so i'm in the ballpark
* Bond duration is mostly intermediate - no LT bonds (unlike if i had BND fund,etc)
* i know i ignored tax location, but for now just looking at the allocation thoughts for starters
* i am nervous on bond directions in the long term. If interest rates lowly increase over the next 30 years bond values should decrease. Honestly, I'm still learning this and am reading other posts on the topic
Questions:
1. Thoughts on the proposed allocation for a 54 year old? the proposed portfolio return is lower than 70/30 basic fund but better than a 2040 retirement fund return. The portfolio also only has 26% technology and this is underweight current funds but in line with a 2040 retirement fund
2. is 1.95% yield ok for this stage? should i do something to bump that up to ~2.2% like a 2 fund portfolio
3. How does the cap weighting look ? is 72% large cap reasonable - seems in line a 2 fund portfolio and a 2040 retirement fund
4. Fixed income - i excluded BND to ignore long term bond risk. Am i crazy for doing this -is my 50/50 tips VGIT a reasonable substitute?
5. No VOO - i figure diversifying to VTI may help with risk at my age. Does this sound ok?
6. Any thoughts on adding a little BRK.B ? was debating this but it does bump the financial sector way up
thank you again for feedback and thoughts !
considering retirement or early retirement planning and want to reconfigure my current portfolio for simplicity (and an easy mechanism to put new money to work). Just really looking for feedback on some proposed fund allocation. I appreciate all responses and thanks again. I couldn't find a way to attach a photo from portfolio visualizer so here we go:
Assumptions
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 10% of stocks
Tax Rate: 20% Federal, 4% State
Age: 54
Proposed Allocation
50% VTI - total stock market
10% SCHD - US dividend fund
10% VXUS - international stock
15% VTIP - short term inf protected
15% VGIT - intermediate bond
100%
72% large cap
20% mid cap
08% small cap
100%
bond durations - average 1-10 years with most in intermediate 3-5 years
Backtest Stats
8.6% return
10.8% Standard deviation
19.0% drawdown
1.95% yield
0.04% expense ratio
Key Points
* Portfolio back test return is better than a 2040 retirement fund at 8.1%. Its lower than a 70/30 2 fund portfolio at 10.3%
* The large/mid/small cap allocation is pretty close to 2040 fund
* Equity sector has 26% technology - this is lower than S&P at 34% and 2 fund portfolio at 32% I want some tech in there but feel a little less exposure is more conservative with all the mag 7 run up. 2040 fund has 25% tech so i'm in the ballpark
* Bond duration is mostly intermediate - no LT bonds (unlike if i had BND fund,etc)
* i know i ignored tax location, but for now just looking at the allocation thoughts for starters
* i am nervous on bond directions in the long term. If interest rates lowly increase over the next 30 years bond values should decrease. Honestly, I'm still learning this and am reading other posts on the topic
Questions:
1. Thoughts on the proposed allocation for a 54 year old? the proposed portfolio return is lower than 70/30 basic fund but better than a 2040 retirement fund return. The portfolio also only has 26% technology and this is underweight current funds but in line with a 2040 retirement fund
2. is 1.95% yield ok for this stage? should i do something to bump that up to ~2.2% like a 2 fund portfolio
3. How does the cap weighting look ? is 72% large cap reasonable - seems in line a 2 fund portfolio and a 2040 retirement fund
4. Fixed income - i excluded BND to ignore long term bond risk. Am i crazy for doing this -is my 50/50 tips VGIT a reasonable substitute?
5. No VOO - i figure diversifying to VTI may help with risk at my age. Does this sound ok?
6. Any thoughts on adding a little BRK.B ? was debating this but it does bump the financial sector way up
thank you again for feedback and thoughts !
Statistics: Posted by tigerfan65 — Fri Jan 31, 2025 7:09 pm — Replies 0 — Views 129