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Learning, Sharing, and Teaching => Investor Alley => Topic started by: GUNDERSON on November 21, 2018, 12:30:39 PM

Title: Investment accounts case study
Post by: GUNDERSON on November 21, 2018, 12:30:39 PM
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.

-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!
Title: Re: Investment accounts case study
Post by: jacoavluha on November 21, 2018, 10:18:57 PM
Please post the fund names. Otherwise I and I assume others have to look up the symbols of we want to understand and help. Also if you’re considering rebalancing the taxable assets, knowing the cost basis is helpful, because tax implications factor into a decision to hold or not.

Also where’s the HSA? You know you can move those funds to another HSA right? Fidelity has a free HSA. If you’re of the crowd that just wants to invest the funds, and pay health expenses out of pocket.
Title: Re: Investment accounts case study
Post by: MustacheAndaHalf on November 22, 2018, 03:34:30 AM
With no international, consider shifting 20% equities into international, like VXUS (Vanguard Total International ETF).