Author Topic: Readjusting my portfolio percentages  (Read 3255 times)

MrD

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Readjusting my portfolio percentages
« on: July 18, 2012, 01:00:11 PM »
ROTH IRA Balance (5k a year):

100% - VFIFX

(20% of Pre-Tax Income) 401k Balance:

35% - NT RUSSELL 3000 INDX
35% - NTGI SP500 EQ INDEX
20% - NTGI COLL EAFE INDX (international)
10% - NTGI AGGR BOND INDEX

(5% of Pre-Tax Income) Employee stock purchase program which gives a 15% discount. The company I work for has more than doubled in the last year and I truly believe it will continue to grow.

Age: 23
Retirement goal: 50-55

I am doing a rebalance in my Fidelity account on my 401k and want to reset everything to a good %, as when I first started with this company I had a terrible portfolio %. In my 401k I currently have 60% in company stock and the other 40% in a 2050 retiremenet plan index.

Any advice for what my 401k balance should be?

Also note that I will begin saving more once I find out my monthly expenses after moving. I recently just bought a house so I am not 100% sure what % of my income I can invest at this point but I am sure I can get closer to 40-45%.


arebelspy

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Re: Readjusting my portfolio percentages
« Reply #1 on: July 18, 2012, 01:10:26 PM »
Any advice for what my 401k balance should be?

As large as possible.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
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MrD

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Re: Readjusting my portfolio percentages
« Reply #2 on: July 18, 2012, 01:16:29 PM »
Any advice for what my 401k balance should be?

As large as possible.

I mean the actual balance.

Like:

X% in X
X% in X
X% in X

I currently have over 60% of my 401k in company stock which I now know to be stupid.

I am looking how to rebalance and make better decisions.

arebelspy

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Re: Readjusting my portfolio percentages
« Reply #3 on: July 18, 2012, 01:19:05 PM »
Ah.  This handy chart might help. (Click picture to enlarge.)
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

MrD

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Re: Readjusting my portfolio percentages
« Reply #4 on: July 18, 2012, 01:23:22 PM »
Ah.  This handy chart might help. (Click picture to enlarge.)

Thanks for this! Looks like I have some reading to do as I am not sure which each of my options fall into. There are only so many different things I can place my 401k money into as it through my company and Fidelity.

James

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Re: Readjusting my portfolio percentages
« Reply #5 on: July 18, 2012, 02:46:28 PM »
http://www.bogleheads.org/wiki/Three-fund_portfolio


I keep it simple, though I'm not saying this will provide the absolute best returns.  You might be able to slightly improve on it with some further diversity, but not by a whole lot.