Author Topic: NEW PORTFOLIO ADVICE  (Read 443 times)

xnyjets80x

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NEW PORTFOLIO ADVICE
« on: January 13, 2019, 03:15:19 PM »
Hello, I am new to this forum but I would like to thank everyone in advance I really appreciate everyone's insight. I have a new portfolio that I was seeing what everyone's thoughts were and if there are any recommendations. (A little information about myself I am 31 single with no children. I am tolerable to risk as I do not plan on touching the money in my accounts until at least 25 years from now).

40% Vanguard Total US stocks Index Admiral- VTSAX (ER: 0.04%)
15% Vanguard Small Cap Value Index Admiral - VSIAX (ER: 0.07%)
10% Vanguard Real Estate Index Fund Admiral -VGSLX (ER: 0.12%)
15% Vanguard Total International Stock Index Admiral - VTIAX (ER: 0.11%)
5% Vanguard FTSE All-World ex-US Small-Cap Index Fund Investor Shares - VFSVX (ER: 0.25%)
10% Vanguard Total Bond Market Index Admiral - VBTLX (ER: 0.05%)

I was wondering what peoples general thoughts are and if they had any recommendations?

Steeze

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Re: NEW PORTFOLIO ADVICE
« Reply #1 on: January 13, 2019, 04:34:15 PM »
all seems reasonable- I would personally drop VFSVX and add it to VTIAX for simplicity. Otherwise seems decent, obviously tilted toward small cap and REITs, the merits of which can be argued either way.

Radagast

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Re: NEW PORTFOLIO ADVICE
« Reply #2 on: January 13, 2019, 05:46:16 PM »
First consider how to implement this. Will this all be in tax sheltered accounts? How much space do they have and how many are there? You will need a way to allocate them. If you end up using this across 10 accounts for two people consider whether and you will be able to do it. Do you have enough money to afford proportional initial investments in all of these with $3,000 minimum in VFSVX? That being said, once you have a basic Google spreadsheet going and automatic transfers set up, it should not be particularly hard to manage. For simplicity consider keeping the smaller slices each in their own account, and use VTSAX everywhere to keep them in balance.

For the actual allocation, it's mostly OK. You might try and find a way to bump VFSVX to 10% for two reasons, 1) 25% international stocks historically been a little less volatile per unit return, and 2) 5% is almost too small to be worth the trouble. You might get better results using long term and/or treasury only bonds for your little bond allocation. It also might not be needed at all at this point. I don't know why you included it though. If in your mind it is doubling as an emergency fund then VBTLX is good.