Author Topic: Portfolio Help  (Read 2132 times)


  • 5 O'Clock Shadow
  • *
  • Posts: 11
Portfolio Help
« on: April 15, 2016, 08:09:56 PM »
Income $160yr
Age: 40
Current Budget:
Mortgage Owe: $45,000 @ 4% worth $100k (only debt @$500mo)
Max 401K - $18,000  Overall Total: $40,000 VTSMX
Max Roth A & B (mine and my wife's who is not working) Combined Overall Total: $45,000 VTSAX
Taxable Account: Overall Total: $60,000 VTSAX
529s - Two accounts. Just started. Both under $1000 with 17+years remaining.
Cash $20,000

Just got going maybe 3-4 yrs ago. Late start in life getting my act together. Recently moved from EJ. I need help as I have time but yet, I'm getting older. All I have is basically one fund for all my accounts and I'm nervous that I'm not spread out at all, or should I be? My 401K does not offer the admiral share. I can invest roughly $6Kmo. I'd like to save for a bigger house someday. Pay off Mortgage? Additional funds?


  • Magnum Stache
  • ******
  • Posts: 4168
  • Location: California
Re: Portfolio Help
« Reply #1 on: April 15, 2016, 08:46:06 PM »
You're doing pretty good so far.  At 4% I'd stay the course with your mortgage and ramp up investing.  Have you looked into a bond fund to stick in your 401K? 


  • Walrus Stache
  • *******
  • Posts: 7374
  • Senior Mustachian
Re: Portfolio Help
« Reply #2 on: April 16, 2016, 10:48:16 AM »
At 4%, especially in today's low rate environment, I would lean towards paying off the mortgage more quickly while still continuing to accumulate some taxable savings too. But you're generally doing well.

Mrs. Healthywealth

  • Bristles
  • ***
  • Posts: 409
Re: Portfolio Help
« Reply #3 on: April 16, 2016, 12:08:07 PM »
It depends on whether you like debt or not. Can you find a middle ground instead w/ a little extra towards mortgage and the rest towards investments.

I would add in some bonds since if you're close to FIRE'ing.  I find JCollins helpful, he gives his perspective on AA in retirement. He is also a big believer in 100% stocks. also lets you see what it's like to hold various assets
« Last Edit: April 16, 2016, 04:49:05 PM by Mrs. Healthywealth »


  • Walrus Stache
  • *******
  • Posts: 6264
Re: Portfolio Help
« Reply #4 on: April 16, 2016, 07:38:01 PM »
"... and I'm nervous that I'm not spread out at all ..."

I think I just heard Warren Buffet and John Bogle laughing.  Both recommend just the S&P 500 for the entire stock portion of the portfolio, which is less diverse than your portfolio.  Don't be fooled by owning just one fund - you own a sample of the entire public US stock market.  Not every single public company, but very close to it.

Since I'm tired of repeating "for U.S. stocks", above, let me explain that you could also diversify to international stocks.  If you're nervous, start with 20% international.  You can have one fund to capture it all: Total International (VGTSX or VXUS) or you can spread out over the developed and emerging markets (VEA and VWO are ETFs for that).  So if you want to diversify by owning a sample of every market in the world, you can put 1/5th of your stock investing into VGTSX.

Note that diversification is mostly about spreading your investment over many different companies, in different markets and of different types.  The U.S. Total Stock market may not feel diverse because it's just one fund, but it holds ~3800 stocks within it and is actually very diverse - expand to international and your portfolio gets international diversification.