A few of the issues I'm having is due to asset allocation and the other piece is being a wuss.
I'm simultaneously trying to clean up my asset allocation and put the cash into the market.
Portfolio Summary:
Bonds $31,868.02 3.07%
Cash $457,051.88 43.96%
Company Stock $36,211.36 3.48%
International Stocks $110,011.57 10.58%
Stocks $404,521.33 38.91%
Total Result $1,039,664.16 100.00%
Breakdown of Investments outside of liquid cash
Bonds 31,868.02 5.37%
Cash 10,406.80 1.75%
Company Stock 36,211.36 6.11%
International Stocks 110,011.57 18.55%
Stocks 404,521.33 68.21%
Total Result 593,019.08 100.00%
I've attached a screenshot showing investments in taxable and tax advataged accounts:
In my 401k I've primarily been investing in a lifestyle fund, which I'm planning on shifting to the individual funds for lower expense ratios.
In the Taxable Brokerage and the Traditional IRA accounts I'm also planning on shifting away from the Target Retirement Funds and recreating them on my own then rebalancing once per year.
Putting together the attached took me about 2 hours and I have been putting off doing this exercise because the allocation is kind of a mess (procrastination). I used personal capital, but since a good chunk of these are in target funds I had to manually calculate the actual values and percentages for those accounts. (painful).
With regards to asset allocation I'm weighing the following options:
90% stocks (30% International, 60% Domestic) and 10% bonds
80% stocks (30% International, 50% Domestic) and 20% bonds
100% stocks (30% international, 70% Domestic)
I didn't touch anything during the 2008 downturn and continued to invest so once I have the money in the market I'm fine. The cash build up was primarily from selling ESPP company stock over time and Company stock options that didn't get reinvested yet.
A few questions:
1. Should I hold the bonds in my tax advantaged accounts or in my taxable account?
2. I should look at total allocation and not try to recreate the same allocation in each account? (how would you approach this from a tax advantaged accounts vs a taxable for the above situation? I'm planning on using all vanguard index funds in the taxable accounts.
3. I'm planning on selling the latest chunk of ESPP and putting it into the taxable account.
Any Help/Guidance would be appreciated.