Author Topic: NEW PORTFOLIO ADVICE  (Read 2038 times)

xnyjets80x

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NEW PORTFOLIO ADVICE
« on: January 13, 2019, 03:19:05 PM »
Hello, I am new to this forum but I would like to thank everyone in advance I really appreciate everyone's insight. I have a new portfolio that I was seeing what everyone's thoughts were and if there are any recommendations. (A little information about myself I am 31 single with no children. I am tolerable to risk as I do not plan on touching the money in my accounts until at least 25 years from now).

40% Vanguard Total US stocks Index Admiral- VTSAX (ER: 0.04%)
15% Vanguard Small Cap Value Index Admiral - VSIAX (ER: 0.07%)
10% Vanguard Real Estate Index Fund Admiral -VGSLX (ER: 0.12%)
15% Vanguard Total International Stock Index Admiral - VTIAX (ER: 0.11%)
5% Vanguard FTSE All-World ex-US Small-Cap Index Fund Investor Shares - VFSVX (ER: 0.25%)
10% Vanguard Total Bond Market Index Admiral - VBTLX (ER: 0.05%)

I was wondering what peoples general thoughts are and if they had any recommendations?

Rob_bob

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Re: NEW PORTFOLIO ADVICE
« Reply #1 on: January 13, 2019, 06:42:09 PM »
Looks fine to me  :)

COEE

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Re: NEW PORTFOLIO ADVICE
« Reply #2 on: January 13, 2019, 07:59:34 PM »
Small Points:
1) Total Stock holds small and micro caps so you're heavily small cap tilted, but you probably know that based on your other post.
2) With total international being both developed and emerging markets, the ex-US small-cap is also opening you up to substantial risk and volatility.  Similar to how you're tilting the small caps.  You probably also know this.
3) I personally refuse to hold REIT's since I own a home and have enough real estate exposure that way.  Others here disagree with me.  That's fine.  But still consider your exposure to the real estate market if you own your home.
4) Consider more bonds so you can have some money to rebalance your portfolio when the market tanks (sell high, buy low).

Overall:
You're taking a lot of unnecessary risk, IMHO.  If you small-cap tilt, when do you remove the tilt?  Age?  Portfolio size?  When the market tanks?  What if small-caps don't perform the way you hope they will?  What if they just continue to lose value over the next 20 years?  Do you realize this is market timing?  I'm not against making educated decisions if you feel you know what you're doing and have a plan for both the entry and the exit and you stick to the plan.

You could have a much simpler portfolio, less volatility, and potentially better returns.  KISS.

The good news is you're young, so if you want to throw the dice...

mrmoonymartian

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Re: NEW PORTFOLIO ADVICE
« Reply #3 on: January 14, 2019, 01:31:22 AM »
What's the other 5%?

xnyjets80x

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Re: NEW PORTFOLIO ADVICE
« Reply #4 on: January 14, 2019, 07:58:58 AM »
Thank you for everyones insight. My apologizes the other 5% is in VTSAX so it's 45% VTSAX not 40%. I do have a small cap tilt and as I currently have 15% in VSIAX (vanguard small cap value), I was wondering what everyone thought of that allocation as compared to a small cap blend fund such as VTMSX (vanguard tax managed small cap, tracks sp600). I know alot of people are in small cap value and cite the Fama and French article but I was wondering what peoples thoughts are on that today why they would lean towards the SVC as opposed to small cap blend such as VTMSX or vice versa.  Also was wondering what everyone thought of the percentage of allocation towards small caps in general as I have it now I have 15%.