Was just curious what others thought of my current plan?
Background is I'm an indexer, and kinda risk-averse. If risk averse is defined as age-10-or-so-in-fixed-income/bonds I guess
His 401k: [JP Morgan]
~80% Target 2055 Blackrock fund of indexes (~55% US indexes, ~25% Foreign indexes, ~10% US REIT, ~10% bonds/cash/other) 0.04% ER or so
~20% Blackrock Debt-T fund [US total bond index fund, mid-duration, models after Barclays US Agg bond index] 0.06% ER
I have [2] funds here to make re-balancing easier. It turns out this is the bulk of our fixed income holdings, also.
Her 401k: [Fidelity]
~90% Fidelity FSTMX [total market index], 0.1% ER
~10% Fidelity FTBFX [total bond index, intermed] 0.45% ER [I am trying to minimize the bond exposure here, this is the best available in her 401k, gives us something to rebalance if/when TSHTF, I figure 10% is the minimum to take advantage of that]
His Roth: [Fidelity]
33% FSSVX [fidelity small cap/value index], 0.16% ER
67% FSITX [fidelity total bond index, intermed] 0.1% ER
Her Roth: [Fidelity]
100% FSITX [fidelity total bond index, intermed] 0.1% ER
Taxable: [Fidelity]
~50% FSGDX [fidelity foreign index] 0.18% ER
~25% Ibonds [paper and electronic]
~25% EE-bonds [woot, 3.56% APY when held for 20]
Emergency Fund: [various]
12 months expenses in MM/HY checking/laddered CDs
Housing:
We share joint ~50/50 ownership of a '20s craftsman with Provident bank , and have a nice 3.375-30 loan
Ignoring the emergency fund: Global breakdown is roughly 70% equities[50% US, 20% foreign]/30% fixed income/bonds give or take a percent or two. I rebalance once per year, and make minor tweaks for new contributions if this varies from my AA too much [my definition, more than 2% off, I'll tweak contributions slightly]
Things I'm considering:
Moving some funds in taxable and my Roth to Lending club, for up to ~25% of my fixed income/bond allocation [so 7.5% of portfolio]. Nuts?
Making a small tilt to REIT [too late?]
I already have a small/value tilt as you see in his Roth above
Otherwise this is basically a couch potatoE/3-fund portfolio. I have greatly trimmed down the # of funds in play over the years.
For my 401k I have a self-directed brokerage option but the more I look at that target 2055 index fund the more I like it. If anything I'd tweak it slightly more foreign but whatever. I dont use the self-directed brokerage option because once a year I do an in-service withdrawl of after-tax 401k contributions for direct rollover to a Roth I have @ Fidelity. If I use the self-directed brokerage option for say Vanguard index funds, I'd have to liquidate everything and transfer it back over to the 'normal' 401k side to complete the in-service withdrawl and then go back to the self directed brokerage. Every year. I did this once and the experience was terrifying [out of the market during many up days, I'm sure I would have loved it if the market was down]. That's my reasoning there, anyways.