Hello smart people,
I'm interested in feedback/a case study of my investment allocation. I've been just buying VTI/VTSAX lately, but also have some kind of random old funds I started a while ago. I haven't yet made an investment plan when it comes to allocation. I'm looking for advice about setting up a good percentage system to stick with, and for how to transition into the new system.
Some context:
-I am 33 and not planning to withdraw for a long time, with the possible exception of a fairly small house down payment at an undetermined time, so I'm good with being aggressive/ high equity. The SEP and Roth already include this year's contributions. I do also have a separate HSA account, which has kind of crappy fund options but it's essentially an index. I'm in the 22% tax bracket. With the investment account, I would like a little more diversification, I think: definitely some internationals, maybe some smaller caps, and perhaps a small amount of real estate funds and bonds.
Questions:
-What would be your recommendations for a better allocation?
-How can I make the fund placement more tax efficient?
-What's the best way to rebalance: sell some of these while the market is down to avoid taxes, and move elsewhere? Sell when they've bounced a bit? Just leave and add new money to my preferred funds? Specificity of recommended moves is helpful, thanks.
-I started the IRA as a Roth when my income was lower; I think I should probably start using a traditional now that my taxes are fairly high. Should I recharacterize any existing shares?
Here's the current allocation:
Taxable: $112k
VDIGX = 12.3%
VOE = 16.8%
VTI = 51.25%
VWELX = 14.46%
Tax advantaged:
SEP IRA: $54k; VTSAX = 100%
ROTH IRA: $63k; VFIFX = 100%
Thank you for your insight!
