Thank you for reading this and offering your expertise. I am an early retiree and recently left my financial advisor of 2.5 years to return to self-directed. I want to transition back to a simple and low-cost portfolio. My experience with investments is primarily through workplace plans. I have been doing a lot of research lately, which brought me here.
Emergency funds: Yes, ~50K
Debt: Mortgage balance 184K at 2.375%, maturity date 10/01/2035
Tax Filing Status: Single
Tax Rate: 12% or 22% Federal, 3.07% State
State of Residence: PA
Age: 59.5 in Dec. 2024
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 25% of stocks
Retirement Portfolio: ~1.2M
Current retirement assets
Taxable
None
401k at Fidelity
05.98% Vanguard Institutional 500 Index Trust (0.0104%)
01.97% Vanguard Institutional Extended Market Index Trust (0.0205%)
01.36% Vanguard Institutional Total International Stock Market Index Trust (0.0450%)
00.84% US Small-Mid Cap Value Stock Portfolio (0.4700%)
Roth IRA at Vanguard
03.64% Vanguard LifeStrategy Growth Fund Investor (VASGX) (0.14%)
Rollover IRA transferred to Fidelity when I left FA
01.84% Fidelity Government Money Market (SPAXX) (0.42%)
02.39% Abrdn ETFS Bloomberg All Commodity Strategy K-1 FRE (BCI) (0.26%)
01.31% Invesco Exchange Traded FD TR S&P500 EQL WGT (RSP) (0.20%)
01.06% Invesco Exch Traded FD TR II SR LN ETF (BKLN) (0.65%)
10.35% Ishares Inc MSCI Gbl Min Vol (ACWV) (0.20%)
01.36% Ishares TR MBS ETF (MBB) (0.04%)
01.41% Ishares TR USD INV GRDE ETF (USIG) (0.04%)
03.41% J P Morgan Exchange Traded FD Ultra Shrt Inc (JPST) (0.18%)
02.74% Spdr Ser TR Portfli High Yld (SPHY) (0.05%)
00.43% Schwab Strategic TR US Large-Cap ETF (SCHX) (0.03%)
01.27% Schwab Strategic TR US Small-Cap ETF (SCHA) (0.04%)
12.05% Schwab Strategic TR Short-Term US Treasury ETF (SCHO) (0.03%)
02.91% Schwab Strategic TR US TIPS ETF (SCHP) (0.03%)
00.84% SEI Enhanced US Large Cap Quality Factor ETF (SEIQ) (0.15%)
01.73% SEI Enhanced US Large Cap Momentum Factor ETF (SEIM) (0.15%)
01.77% SEI Enhanced US Large Cap Value Factor ETF (SEIV) (0.15%)
04.70% SEI Enhanced Low Volatility US Large Cap ETF (SELV) (0.15%)
01.45% Vaneck ETF Trust JP Mrgan EM LOC (EMLC) (0.30%)
10.43% Vanguard Balanced Index FD INC Total BND Mrkt (BND) (0.03%)
05.75% Vanguard Developed Markets Index Fund ETF (VEA) (0.06%)
01.49% Vanguard Whitehall FDS EM MK GOV BD ETF (VWOB) (0.20%)
06.41% Vanguard Sht-Term Inflation-Protected SEC IDX (VTIP) (0.04%)
05.51% Vanguard Charlotte FDS Total INTL BD ETF (BNDX) (0.07%)
03.58% Vanguard INTL Equity Index FDS FTSE EMR MKT ETF (VWO) (0.08%)
_______________________________________________________________
New Contributions
New annual Contributions
None
Available funds
Funds available 401(k)
Dodge & Cox International Stock Fund Class X (DOXFX) (0.52%)
Dodge & Cox Stock Fund Class X (DOXGX) (0.41%)
Vanguard Target Retirement 2020 Trust (0.0375%)
Vanguard Target Retirement 2025 Trust (0.0375%)
Vanguard Target Retirement 2030 Trust (0.0375%)
Vanguard Target Retirement 2035 Trust (0.0375%)
Vanguard Target Retirement 2040 Trust (0.0375%)
Vanguard Target Retirement 2045 Trust (0.0375%)
Vanguard Target Retirement 2050 Trust (0.0375%)
Vanguard Target Retirement 2055 Trust (0.0375%)
Vanguard Target Retirement 2060 Trust (0.0375%)
Vanguard Target Retirement 2065 Trust (0.0375%)
Vanguard Target Retirement 2070 Trust (0.0375%)
Vanguard Target Retirement Income Trust (0.0375%)
Vanguard Institutional 500 Index Trust (0.0104%)
Vanguard Institutional Extended Market Index Trust (0.0205%)
Vanguard Institutional Total International Stock Market Index Trust (0.0450%)
Vanguard Institutional Total Bond Market Index Trust (0.0180%)
Artisan International Separate Account (0.6600%)
Emerging Markets Stock Portfolio (0.5600%)
Fidelity Contrafund Commingled Pool Class S (0.30%)
Fidelity Growth Company Commingled Pool Class S (0.32%)
Fidelity Low-Priced Stock Commingled Pool Class O (0.41%)
Fidelity Worldwide Fund (FWWFX) (0.63%)
US Small-Mid Cap Value Stock Portfolio (0.4700%)
William Blair SMID Cap Growth Strategy (0.6600%)
Fidelity Balanced Fund Class K (FBAKX) (0.39%)
PIMCO Inflation Response Multi-National Fund Institutional (PIRMX) (0.82%)
Broad Market Bond Portfolio (0.1800%)
Galliard Stable Value Fund (0.2630%)
Note - Fidelity BrokerageLink is also available, but I have not explored using it
Questions:
1. Is turning the IRA into a three-fund portfolio a wise move for me? I am a buy and hold investor. The IRA already has BND, so I was thinking of selling everything else and buying VTI and VXUS. If I do this, should I care about timing or just get it done? I may be drawing on the IRA for living expenses in 2025.
2. Recommendations for the 401k investments? I currently draw on this account monthly for living expenses under the Rule of 55. Expenses average $4500 monthly YTD (includes mortgage and healthcare premium). Withdrawal amount is $5,772 monthly. I net $4,617 after mandatory 20% Federal tax withholding. The 401k is currently precariously positioned (my bad). I'm thinking remove the US Small-Mid Cap Value Stock Portfolio (because of expense) and add Vanguard Institutional Total Bond Market Index Trust (because currently all stocks)?
3. Thoughts on investments for the Roth? Keep VASGX or change?
I appreciate your help!
Emergency funds: Yes, ~50K
Debt: Mortgage balance 184K at 2.375%, maturity date 10/01/2035
Tax Filing Status: Single
Tax Rate: 12% or 22% Federal, 3.07% State
State of Residence: PA
Age: 59.5 in Dec. 2024
Desired Asset allocation: 60% stocks / 40% bonds
Desired International allocation: 25% of stocks
Retirement Portfolio: ~1.2M
Current retirement assets
Taxable
None
401k at Fidelity
05.98% Vanguard Institutional 500 Index Trust (0.0104%)
01.97% Vanguard Institutional Extended Market Index Trust (0.0205%)
01.36% Vanguard Institutional Total International Stock Market Index Trust (0.0450%)
00.84% US Small-Mid Cap Value Stock Portfolio (0.4700%)
Roth IRA at Vanguard
03.64% Vanguard LifeStrategy Growth Fund Investor (VASGX) (0.14%)
Rollover IRA transferred to Fidelity when I left FA
01.84% Fidelity Government Money Market (SPAXX) (0.42%)
02.39% Abrdn ETFS Bloomberg All Commodity Strategy K-1 FRE (BCI) (0.26%)
01.31% Invesco Exchange Traded FD TR S&P500 EQL WGT (RSP) (0.20%)
01.06% Invesco Exch Traded FD TR II SR LN ETF (BKLN) (0.65%)
10.35% Ishares Inc MSCI Gbl Min Vol (ACWV) (0.20%)
01.36% Ishares TR MBS ETF (MBB) (0.04%)
01.41% Ishares TR USD INV GRDE ETF (USIG) (0.04%)
03.41% J P Morgan Exchange Traded FD Ultra Shrt Inc (JPST) (0.18%)
02.74% Spdr Ser TR Portfli High Yld (SPHY) (0.05%)
00.43% Schwab Strategic TR US Large-Cap ETF (SCHX) (0.03%)
01.27% Schwab Strategic TR US Small-Cap ETF (SCHA) (0.04%)
12.05% Schwab Strategic TR Short-Term US Treasury ETF (SCHO) (0.03%)
02.91% Schwab Strategic TR US TIPS ETF (SCHP) (0.03%)
00.84% SEI Enhanced US Large Cap Quality Factor ETF (SEIQ) (0.15%)
01.73% SEI Enhanced US Large Cap Momentum Factor ETF (SEIM) (0.15%)
01.77% SEI Enhanced US Large Cap Value Factor ETF (SEIV) (0.15%)
04.70% SEI Enhanced Low Volatility US Large Cap ETF (SELV) (0.15%)
01.45% Vaneck ETF Trust JP Mrgan EM LOC (EMLC) (0.30%)
10.43% Vanguard Balanced Index FD INC Total BND Mrkt (BND) (0.03%)
05.75% Vanguard Developed Markets Index Fund ETF (VEA) (0.06%)
01.49% Vanguard Whitehall FDS EM MK GOV BD ETF (VWOB) (0.20%)
06.41% Vanguard Sht-Term Inflation-Protected SEC IDX (VTIP) (0.04%)
05.51% Vanguard Charlotte FDS Total INTL BD ETF (BNDX) (0.07%)
03.58% Vanguard INTL Equity Index FDS FTSE EMR MKT ETF (VWO) (0.08%)
_______________________________________________________________
New Contributions
New annual Contributions
None
Available funds
Funds available 401(k)
Dodge & Cox International Stock Fund Class X (DOXFX) (0.52%)
Dodge & Cox Stock Fund Class X (DOXGX) (0.41%)
Vanguard Target Retirement 2020 Trust (0.0375%)
Vanguard Target Retirement 2025 Trust (0.0375%)
Vanguard Target Retirement 2030 Trust (0.0375%)
Vanguard Target Retirement 2035 Trust (0.0375%)
Vanguard Target Retirement 2040 Trust (0.0375%)
Vanguard Target Retirement 2045 Trust (0.0375%)
Vanguard Target Retirement 2050 Trust (0.0375%)
Vanguard Target Retirement 2055 Trust (0.0375%)
Vanguard Target Retirement 2060 Trust (0.0375%)
Vanguard Target Retirement 2065 Trust (0.0375%)
Vanguard Target Retirement 2070 Trust (0.0375%)
Vanguard Target Retirement Income Trust (0.0375%)
Vanguard Institutional 500 Index Trust (0.0104%)
Vanguard Institutional Extended Market Index Trust (0.0205%)
Vanguard Institutional Total International Stock Market Index Trust (0.0450%)
Vanguard Institutional Total Bond Market Index Trust (0.0180%)
Artisan International Separate Account (0.6600%)
Emerging Markets Stock Portfolio (0.5600%)
Fidelity Contrafund Commingled Pool Class S (0.30%)
Fidelity Growth Company Commingled Pool Class S (0.32%)
Fidelity Low-Priced Stock Commingled Pool Class O (0.41%)
Fidelity Worldwide Fund (FWWFX) (0.63%)
US Small-Mid Cap Value Stock Portfolio (0.4700%)
William Blair SMID Cap Growth Strategy (0.6600%)
Fidelity Balanced Fund Class K (FBAKX) (0.39%)
PIMCO Inflation Response Multi-National Fund Institutional (PIRMX) (0.82%)
Broad Market Bond Portfolio (0.1800%)
Galliard Stable Value Fund (0.2630%)
Note - Fidelity BrokerageLink is also available, but I have not explored using it
Questions:
1. Is turning the IRA into a three-fund portfolio a wise move for me? I am a buy and hold investor. The IRA already has BND, so I was thinking of selling everything else and buying VTI and VXUS. If I do this, should I care about timing or just get it done? I may be drawing on the IRA for living expenses in 2025.
2. Recommendations for the 401k investments? I currently draw on this account monthly for living expenses under the Rule of 55. Expenses average $4500 monthly YTD (includes mortgage and healthcare premium). Withdrawal amount is $5,772 monthly. I net $4,617 after mandatory 20% Federal tax withholding. The 401k is currently precariously positioned (my bad). I'm thinking remove the US Small-Mid Cap Value Stock Portfolio (because of expense) and add Vanguard Institutional Total Bond Market Index Trust (because currently all stocks)?
3. Thoughts on investments for the Roth? Keep VASGX or change?
I appreciate your help!
Statistics: Posted by Aloe — Fri May 10, 2024 3:30 pm — Replies 2 — Views 390