Can you help me simplify my Mutual fund portfolio?

[Unionville]

 How can I simplify this down to the minimum amount of funds? I really am frustrated with having so many to keep track of (VG advisor recommendation) and I don't feel bonds should be in a retirement fund (non-growth). I was looking at their all-in-one funds. Anyone have them? thx!

My age: 60 - already retired.
Current assets as follows (52% nonretirement+ 48% retirement=100%)

Taxable at Vanguard
VCTXX California Money Market 5% cash (cash for annual living expenses but I don't use it all)
VTIAX Total international 12%
VGSLX Reit 2%
VTCLX Tax Manages Cap Appreciation 12%
VTSAX Total Stock Market 16%
VSMAX Small Cap index 5%

SEP IRA at Vanguard
VFIDX Int Term Invest Grade Bonds13%
VFSUX Short Term Invest Grade Bond 6%
VTABX Total International Bond 6%
VBTLX Bond Market Admiral 17%

Roth IRA at Vanguard
VFIDX Int Term Inv Grade Adm Bond 4%
VTIAX Total International Stock Adm 1%
VBTLX Total Bond Mkt 1%


*I’m a pretty middle of the road investor - not super high risk, not super conservative.

[Frankies Girl]

If you want super simple and want a blended/all in one, I'd suggest taking a look at either Wellesley (VWINX) or Wellington (VWELX) in the tax deferred accounts and maybe VTI or VTSAX (for the mutual fund) in your taxable (along with the money market).

Vanguard Wellesley targets 60%-65% in bonds and 35%-40% in stocks. Vanguard Wellington targets 30%-40% in bonds and 60%-70% in stocks. So Wellesley is the more conservative and Wellington is a bit more aggressive. Both are balanced funds, and both have a stellar reputation. I wouldn't be sure about holding either in a taxable account however due to the dividends thrown out and the bond holdings (not tax efficient to hold in a taxable) Article you may want to review here.

Keep in mind that any sales in the taxable may trigger taxable events depending on your tax bracket. Can I say "tax" a few more times? :D

[cool7hand]

Why not just pick a more simple asset allocation and implement it across your various investment vehicles? Here is a list of common asset allocations: https://portfoliocharts.com/portfolio/all-seasons-portfolio/. Most here go with 100% in a broad based stock fund like SCHB. We use All Seasons because of its lower volatility, but we are in the minority. Others here looking for lower volatility also use the 60/40 or Butterfly.

[MustacheAndaHalf]

I would stop contributing to the REIT and Total International, as both are inefficient.  REIT income is taxed at ordinary income tax rates, and it generates more of that income to tax (0.94% last Dec).  Total International would be okay if the foreign tax credit made up for higher dividends, but it's dividends are over twice what VTSAX generates (by percentage).

VTSAX is very tax efficient (0.4%) as is the tax-managed capital appreciation (0.35%).  Paying tax on qualified dividends is pretty minimal, so the difference between their December dividends doesn't seem that significant - I'd merge them into VTSAX.

I like that you put bond funds in the regular IRA.

[Radagast]

How can I simplify this down to the minimum amount of funds? I really am frustrated with having so many to keep track of (VG advisor recommendation) and I don't feel bonds should be in a retirement fund (non-growth). I was looking at their all-in-one funds. Anyone have them? thx!

My age: 60 - already retired.
Current assets as follows (52% nonretirement+ 48% retirement=100%)

Taxable at Vanguard
VCTXX California Money Market 5% cash (cash for annual living expenses but I don't use it all)
^Not sure what the point of this is. There is no sense avoiding taxes on 0.01% and taking on the credit risk of California municipalities to boot. You would be better off with an FDIC savings account getting 0.55% (Alliant Credit Union, see link). Paying taxes on interest is better than not making interest at all, especially because FDIC is safer. https://www.doctorofcredit.com/high-interest-savings-to-get/
VTIAX Total international 12%
^fine
VGSLX Reit 2%
^worst thing ever in taxable accounts, except maybe junk bonds
VTCLX Tax Manages Cap Appreciation 12%
^fine
VTSAX Total Stock Market 16%
^fine
VSMAX Small Cap index 5%
^fine, also look for Tax Managed Small Cap, though no real advantage over IJR except the mutual fund format

SEP IRA at Vanguard
VFIDX Int Term Invest Grade Bonds13%
VFSUX Short Term Invest Grade Bond 6%
VBTLX Bond Market Admiral 17%
^What's the point? These bond funds are very similar and I don't see much point holding all three. In practice you are getting shorter duration and more credit risk than Total Bond Market, but I don't see any long term benefit to that. Roll it all into VBTLX for a smoother ride or VFIDX to eventually have more money.
VTABX Total International Bond 6%
^Probably not much point in that. In the unlikely event that it is useful, the degree of usefulness will be very marginal. The only real reason to use it is if it is in an all-in-one fund. Perhaps swap this to a stock fund to use for rebalancing

Roth IRA at Vanguard
VFIDX Int Term Inv Grade Adm Bond 4%
VBTLX Total Bond Mkt 1%
^Again, why? The benefits of having both will be close to zero after a decade or two. Choose your favorite. VFIDX has greater return and goes down somewhat alongside stocks, VBTLX has lower return and is more steady.
VTIAX Total International Stock Adm 1%
^fine

*I’m a pretty middle of the road investor - not super high risk, not super conservative.