Author Topic: Seeking Your Investment Advice: 29 year old couple trying to grow their stache  (Read 1594 times)

bigskyrookie

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Hello,

We need your advice. My wife and are 29 years old and we are currently saving/investing about 35% of our income. We desire to gain financial freedom and need your help with our tax advantaged Defined Contribution Account allocation  (We also have a taxable Wealthfront account and a 401k with very few fund options). Below is our DC account's current allocation as well as all of our fund options. Please tell us your recommended allocation and why. Thank you so much for your guidance. 

Sincerely,

Bigskyrookie



Our current allocation:

DODFX  10.00%  Dodge & Cox International Stock       
VSGIX   35.00%  Vanguard Small Cap Growth Index Instl
VINIX   43.00%     Vanguard Institutional Index I
PTRQX  12.00%   Prudential Total Return Bond Q

Fund Options:

T. Rowe Price Balanced Fund                      TRRIX
American Funds New Perspective R6                   RNPGX
Artisan International Inv                              ARTIX
Dodge & Cox International Stock                           DODFX
Franklin Mutual Global Discovery Z              MDISX
Oppenheimer Developing Markets Y                   ODVYX
Vanguard Total Intl Stock Index Admiral      VTIAX
Neuberger Berman Genesis Fund - Trust      NBGEX
Vanguard Small Cap Growth Index Instl      VSGIX
Vanguard Small Cap Index Instl                      VSCIX
Janus Henderson Enterprise N                      JDMNX
MFS Mid Cap Value R6                              MVCKX
Vanguard Mid Cap Index Admiral                      VIMAX
Fidelity Contrafund                                      FCNTX
Parnassus Core Equity - Inst                      PRILX
Vanguard Equity-Income Adm                      VEIRX
Vanguard Institutional Index I                      VINIX
Vanguard Balanced Index Fund - Inst'l              VBAIX
Neuberger Berman High Income Bond Instl           NHILX
Prudential Total Return Bond Q                           PTRQX

« Last Edit: February 24, 2018, 10:03:39 AM by bigskyrookie »

SeattleCPA

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Re: 29 year old couple trying to grow their stache -Investment advice needed
« Reply #1 on: February 22, 2018, 07:34:11 PM »
My suggestion, which I elaborate on in the free downloadable ebook blurbed in my sig, is that you use a cheap target retirement fund.

It's hard, IMHO, to come up with a better or easier option than that.


bigskyrookie

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Re: 29 year old couple trying to grow their stache -Investment advice needed
« Reply #2 on: February 22, 2018, 07:48:20 PM »
Thank you for your responses.  SeattleCPA, unfortunately a low cost target date fund inst an option in this plan. Any other ideas?
L.A.S., thank you for the recommendation. I have read the stock series, its great. However, I am wondering why you are thinking 100% VINIX?

Thanks!

SeattleCPA

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Re: 29 year old couple trying to grow their stache -Investment advice needed
« Reply #3 on: February 22, 2018, 09:41:34 PM »
Thank you for your responses.  SeattleCPA, unfortunately a low cost target date fund inst an option in this plan. Any other ideas?
L.A.S., thank you for the recommendation. I have read the stock series, its great. However, I am wondering why you are thinking 100% VINIX?

Thanks!

A balanced fund, I think, would be preferable to a 100% stocks.

Also, the 100% stocks fund is imperfect but maybe if its only cheapo option, you go with that.

talltexan

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The target data advice is fine, you won't go wrong if you stop there.

Paul Merriman has advocated adding a stake in Small Cap Value, and I see that you have a fund of that type available to you. So 80% target date, 20% small cap value would work.

See his article here https://paulmerriman.com/double-target-date-retirement-funds-return-single-move/, you may not have the risk tolerance for the 40% SCV that the article seems to advocate.

bigskyrookie

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L.A.S., thank you for the explanation. I was wondering what percentage of VTSAX was comprised of the S.P. 500.


bigskyrookie

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I am a little hesitant of only investing in VINIX in this account. Is there any upside to investing in both VINIX and VSGIX? I would like a little more diversification. Any other ideas?

Thank you,

Bigskyrookie

RWD

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Going 100% VINIX is fine. If you want to be diversified more you might want to consider VTIAX (international). Once you've figured out your desired asset allocation consider writing it down as an investment policy statement.

bigskyrookie

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Thank you for all the suggestions. I have a couple questions-

Does anyone know if there is overlap between the following:
    - VIMAX and VBAIX
    - VEIRX and VBAIX
    - VIMAX and VINIX
    - VEIRX and VINIX
   

Thanks!

 - Bigskyrookie