Author Topic: Check my portfolio before I wreck my portfolio  (Read 2714 times)

DenverStache

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Check my portfolio before I wreck my portfolio
« on: April 30, 2014, 02:03:34 PM »
Hello All,

I am working to move my portfolio to a more mustachian allocation.  Through this process I wanted to have some of the more seasoned investors look over my portfolio and give suggestions.  I also have a few specific questions below.

My current strategy is to have my (John's) 401k invested in Vanguards Target 2060 (the lowest cost fund in my plan) and have the remainder of the portfolio  to be at 70% domestic stock and 30% foreign stock through index funds.  Since we are both working with Fidelity I have been buying FSTVX and FSIVX.  I am 32 years old and still in the accumulation stage although sometimes I worry about already having enough in retirement account.  But I figure I should continue to take advantage of the tax advantanges.

1.  I have 16K sitting in cash right now that I need to get invested.  I am a little concerned about just purchasing all at once.  Should I just jump in and buy or should I force DCA through monthly purchases?  The lowest cost index funds require a 10K purchase.

2.  I still have a few accounts that are a bunch of mutual funds that are higher expense ratios than index funds.  I am planning to sell all of these to purchase FSTVX and FSIVX.  Similar question, should I just move them all at once or is there a reason I should space out my sells and purchases?  Are there any issues with putting everything into these two index funds?

3.  Feedback on the overall strategy?

Any other comments or suggestions?

Jane
-Rollover IRA: 5500 cash(just rolled over)
-Roth IRA: 10500 cash (deposited but forgot to purchase *face punch*)
-403B: 67K (A bunch of fidelity mutual funds 64% domestic stock, 18% foreign stock, 8% bond, 6% short term)
-401A: 38K (A bunch of fidelity mutual funds 63% domestic stock, 19% foreign stock, 10% bond, 4% short term)
-457B: 15K 70% FSTVX, 30% FSIVX


John
-401k: 226K 100% Vanguard Target 2060 (VTSMX 62%, VGTSX 27%, VBMFX 8%, VTIBX 2%)
-Rollover IRA: 72K (A bunch of mutual funds 68% domestic stock, 25% foreign stock, 6% short term)
-Roth IRA: 20K 100% FSTVX
-ESPP: 81K 42% FSTVX, 15% FSIVX, 43% company stock - sold every 6 months as it turns long term.




griffin

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Re: Check my portfolio before I wreck my portfolio
« Reply #1 on: April 30, 2014, 03:40:45 PM »
I don't really feel qualified to give advice on your portfolio allocation, but statistically you will be better off immediately investing all your cash lump-sum style instead of DCA'ing. Emotionally, perhaps less so :) Pretty straight forward breakdown of it here: http://lazytraders.com/insights/dca-or-lump-sum-dollar-cost-averaging-vs-all-at-once-investing/

ZiziPB

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Re: Check my portfolio before I wreck my portfolio
« Reply #2 on: May 01, 2014, 11:19:40 AM »
What is the overall allocation that you are trying to achieve with your portfolio?  And what is your risk appetite?  Sounds like you will be close to 100% in stock funds after you move things around.  Are you comfortable with that?

matchewed

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Re: Check my portfolio before I wreck my portfolio
« Reply #3 on: May 01, 2014, 11:25:57 AM »
1. Invest now. Lump sum almost always works out to be better than sitting on a pile of cash and doling it out.

2. Same as 1. No no issue with those two funds as long as you understand the risks and are comfortable with them.

3. If it works for you and you have a reasonable plan which you've tested against various calculators and changed assumptions to see how various scenarios would affect the plan... nope no feedback.

foobar

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Re: Check my portfolio before I wreck my portfolio
« Reply #4 on: May 01, 2014, 12:00:40 PM »
The expense ratios difference between the 10k class and the 3k class just don't matter over a 12-24 month period when your talking <10k balances. They should not drive investment decisions. When you get to 10k, they will convert to the better share class automatically. If you feel more comfortable with the 3k now and 1k/month do it.  Anything is better than waiting.

If your in a 401(k) or IRA and can do the transaction tax and fee free (fidelity has a lot of short term trading restriction), go ahead and do it today. If you like the funds and aren't an index purist, managed funds in tax deferred accounts are not the end of the world but it makes your life a bit easier if you only have to track 3 or 4 funds. My only concern with doing things slowly is that you can end up with portfolios that are overweight (nothing wrong with that but be aware that you are doing it) in certain categories.

Personally i would aim to simplify it by trying to hold only 1 or 2 funds in each account. Maybe your 403(k) gets all the  US, the 401(a) gets international and 457 gets the bonds. In reality you never get that simplified since you tend to need 2 funds per account for balancing (403 gets bonds and us, 401 gets bonds and international, 457 is US and international stocks) and maintaining mins is tricky until the accounts all get to 20k+. It is largely personal preference. I know some people in your boat would try and have each account reflect their total portfolio.

Hello All,

I am working to move my portfolio to a more mustachian allocation.  Through this process I wanted to have some of the more seasoned investors look over my portfolio and give suggestions.  I also have a few specific questions below.

My current strategy is to have my (John's) 401k invested in Vanguards Target 2060 (the lowest cost fund in my plan) and have the remainder of the portfolio  to be at 70% domestic stock and 30% foreign stock through index funds.  Since we are both working with Fidelity I have been buying FSTVX and FSIVX.  I am 32 years old and still in the accumulation stage although sometimes I worry about already having enough in retirement account.  But I figure I should continue to take advantage of the tax advantanges.

1.  I have 16K sitting in cash right now that I need to get invested.  I am a little concerned about just purchasing all at once.  Should I just jump in and buy or should I force DCA through monthly purchases?  The lowest cost index funds require a 10K purchase.

2.  I still have a few accounts that are a bunch of mutual funds that are higher expense ratios than index funds.  I am planning to sell all of these to purchase FSTVX and FSIVX.  Similar question, should I just move them all at once or is there a reason I should space out my sells and purchases?  Are there any issues with putting everything into these two index funds?

3.  Feedback on the overall strategy?

Any other comments or suggestions?

Jane
-Rollover IRA: 5500 cash(just rolled over)
-Roth IRA: 10500 cash (deposited but forgot to purchase *face punch*)
-403B: 67K (A bunch of fidelity mutual funds 64% domestic stock, 18% foreign stock, 8% bond, 6% short term)
-401A: 38K (A bunch of fidelity mutual funds 63% domestic stock, 19% foreign stock, 10% bond, 4% short term)
-457B: 15K 70% FSTVX, 30% FSIVX


John
-401k: 226K 100% Vanguard Target 2060 (VTSMX 62%, VGTSX 27%, VBMFX 8%, VTIBX 2%)
-Rollover IRA: 72K (A bunch of mutual funds 68% domestic stock, 25% foreign stock, 6% short term)
-Roth IRA: 20K 100% FSTVX
-ESPP: 81K 42% FSTVX, 15% FSIVX, 43% company stock - sold every 6 months as it turns long term.