Hello everyone, I've been on and off these forums for a few years since my father sent me a link and I decided to invest a little in VTSMX.
I have some questions about my accounts and current stock selections and wanted to get your advice.
I am 29, employed FT living in expensive Maryland, only debt is about 25 years left on my mortgage of approx. $148K (bought the house at the market bottom and expect to sell or rent it in the next 2-5 years) it is in an area that is highly rentable.
Total portfolio is about $59K (15% in 401K, 76% in Traditional IRA, 9% in ROTH and/or trading account).
I have a traditional IRA that I converted over from a SEP when I was a 1099. I have the following funds in that:
- VTSMX (bought about 2 years ago ~ 9-10% up (yay!): EXP RATIO .16%
- AWSHX (only up 3.5% as of now) EXP RATIO .58%
- CWGIX (bought some time in last 5 years, up about 6%) EXP RATIO .77%
- Assorted stocks (APPL, UA, etc.)
In my company 401K with 4% match, I have Vanguard funds. Once I take care of a few house repairs I'll set my contribution level back from 5% to 11%. As such I expect the 401K to reach the current value of the Traditional IRA in about 2 years:
- VEMAX: .15% Exp ratio (Emerging mkts)
- VIMAX: .08% Exp ratio
- VMMSX: .93% Exp ratio (Emerging mkts)
- VSMAX: .08% Exp ratio
I also have a ROTH IRA with small amount of AWSHX (original fund I bought in high school) and some assorted stocks that are up and down.
- Using Personal Capital my annual fees average out to 0.22% below the "Benchmark" of 0.50% but over time i'm losing 6% of my earnings to fees.
So, my questions are as follows:
I've spoken to financial advisers (several) over the years. When I first invested in AWSHX, I invested and left it alone. Then I went to a broker/adviser with Wells Fargo that suggested adding more AWSHX and CWGIX and some others that I've since off loaded. So, my assumption was that they suggested some of these mutual funds because A) they're good funds and B) they make more money on them than others, is that right?
Most recently, I spoke to a friend that is a broker and offered free advice (I have my IRA/ROTH through Scottrade), he suggested my current 401K setup since I was very heavy (and still am) in US markets and very limited with Foreign, hence the (2) emerging markets funds from Vanguard.
He also suggested I unload VTSMX and increase money into AWSHX and CWGIX.
I am uncertain what to do since VTSMX has performed so well over the years, and the fees are so much lower, also I believe they are both closed to new investors, so if I sell I can't get back in.
Should I unload AWSHX in one or both of my accounts? Should I wait for it to increase in value and then do so? If I keep it in my ROTH, should I continue to contribute to it or is there a better alternative?
Should I drop VMMSX with it's much higher expense ratio .93% and double down on VEMAX since it's at .15%?
Since i'm so heavy in US, should I increase the amount of my 401K that is emerging market? What is a good percentage mix?
Summary: I'm starting to be more frugal, I've always known I should invest when I can but I am still motivated by "stuff" and my girlfriend and I both want to do some traveling.
So, while the idea of FIRE is appealing to me, I am expecting to be working about another 30 years. But, as I get older I may place less value on things and put away more money. I don't hate my job but God knows, like most of the members here i'd rather be doing something else, or at least on my terms.
Thank you in advance for the input, sorry for writing a book but I feel relieved to have done it.