Author Topic: help fix my retirement portfolio  (Read 298 times)

thisisjeopardy

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help fix my retirement portfolio
« on: September 30, 2020, 09:28:57 AM »
Traditional IRA is 60% Growth stocks, 40% Vanguard ETFs. The VG ETF composition:

VOO 70% (S&P 500 Index)
BND 10% (Total Bond)
VYM 10% (Divident/Income)
VNQ 10% (REIT)

I have learned now that VYM+VNQ definitely need to go into the Roth so it can grow tax free. REITs are garbage right now and in fact I think I will just get off that position that entirely.

I have my Roth currently in VTTHX in Vanguard but I'm rolling it over into M1 Finance and am building the 'pie' over there as follows:

67% high growth individual stocks
33% Vanguard portfolio (50% VOO, 50% VYM)

I have an individual post tax brokerage its all growth/value stocks from The Motley Fool stock recommendation service and I'm quite happy with it, have been for years. I will not be dumping those and going straight index funds everywhere. I do have index funds in 401k, 529, and HSA (maxing all) so I have plenty of exposure in addition to the above.

I see conflicting info online regarding growth stocks in a Roth. My strategy in the stocks is to be invest long everywhere, (2-5 years). There will be some selling on occasion and in a Roth as I understand it, the tax-free growth would enable me to not pay any capital gains on a sale.

I'm thinking I'll make the Vanguard portion of the tIRA just entirely the S&P 500 ETF or better yet, whatever VG's total stock market ETF index is.

Would a mix of dividend (re-invested) and growth stocks in the Roth IRA make sense? My stock holdings in each IRA are the same as in my individual after tax brokerage. I have a core set of  stock holdings I want to remain invested long term and I have more capital in the IRAs so that's why I'm investing in the same across my brokerage and both IRAs. I'm currently getting close to 60% returns. I don't flip stocks that often. I have full faith in the recommendation service to sell when needed.

Any advice greatly appreciated, thanks

AdrianC

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Re: help fix my retirement portfolio
« Reply #1 on: September 30, 2020, 10:56:33 AM »
I have an individual post tax brokerage its all growth/value stocks from The Motley Fool stock recommendation service and I'm quite happy with it, have been for years. I will not be dumping those and going straight index funds everywhere. I do have index funds in 401k, 529, and HSA (maxing all) so I have plenty of exposure in addition to the above.
You're doing your active investing in post tax and index funds in pre-tax. If you're going to do active (not recommended) it's best to do in pre-tax or Roth.

MDM

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Re: help fix my retirement portfolio
« Reply #2 on: September 30, 2020, 01:47:44 PM »
Consider the suggestions in Tax-efficient fund placement - Bogleheads.

cool7hand

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Re: help fix my retirement portfolio
« Reply #3 on: September 30, 2020, 01:59:47 PM »
MDM has helped me, and I would not dare to second-guess MDM's advice. With that caveat, also take a look at this, particularly as it relates to the risk of losses and volatility: https://www.bridgewater.com/research-and-insights/the-all-weather-story.

MDM

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Re: help fix my retirement portfolio
« Reply #4 on: September 30, 2020, 02:35:32 PM »
In the end, one has to make one's own choices.  Considering different viewpoints is generally a good thing to do along the way. :)