Author Topic: Questions on Optimizing My Little Green Army  (Read 1736 times)

kskillz

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Questions on Optimizing My Little Green Army
« on: March 24, 2016, 09:41:06 PM »
Greetings MMM friends!

After a particularly rough day at my job as a chair moistener in an IT department for a major retailer, I humbly turn to the MMM community for sage advice in putting my assets to work for me.

I certainly don't have an FU stache yet, but I'd like to think that sometime in the next 10 years I could politely inform my job that I just want to be friends.  However, I have a feeling that I am not properly putting my stache to work for me, and my mismanagement of said stache could be adding extra years to my corporate servitude. 

Between my wife and I, we have a number of Roth IRAs, rollover IRAs, traditional IRAs, and 401ks from various jobs.  I was hoping for some advice to see if consolidating and changing some investment allocations could help grow the stache, or at least put it to work more effectively.

Life Situation:  Me, main wage earner (age 39), wife (age 38) has a couple side hustles but is primarily a stay at home Mom to our lovely daughter (age 4).

Retirement timeline:  If I get laid off or outsourced at any time, I'm retiring from the IT racket.  If I can stay employed, I'd like to retire within 10 years max.

Gross Salary/Wages: ~$130k a year

Current major debt:  No debt except for mortgage, we owe ~$179k at 2.875%, we have 11 years left in a 15 year loan.  Our household expenses are fairly low, we enjoy the simple life.

Assets:  ~$650k invested, and this is the meat of my question, I am wondering if I should consolidate some of these accounts or change any investment options:

Investments:

This 401k is from my previous employer is at ~$385k.  I left the job in 2013 and have just let the money sit in the 401k.  It is managed by Fidelity.

Allocation:

AGGRESSIVE LS               Tier 1 - Life Strategy    18.87%   $72,695.61   $51,146.40   0.39%
LARGE COMPANY IDX      Large-Cap Stocks            14.78%   $56,930.80   $30,900.91   0.15%
INTL STOCK MKT IDX      International Stocks        14.66%   $56,477.11   $51,124.75   -1.92%
TOTAL STOCK MKT IDX      Domestic Stocks            14.02%   $54,006.62   $30,184.36   -0.53%
REIT IDX   12/28/2007        Real Estate                  13.96%   $53,761.79   $27,797.59   2.66%
SMALL-CAP VALUE IDX      Small-Cap Stocks             9.99%   $38,491.69   $23,213.74   -0.97%
SMALL-CAP GROWTH IDX Small-Cap Stocks             8.45%   $32,536.05   $18,992.14   -8.18%
IBM STOCK                         Company Stock             5.27%   $20,300.94   $18,570.65   8.46%

I see that I have a lot of overlap, before I think about rolling this into Vanguard, should I do something like re balance it all into the life strategy fund?

Current 401k:

~$54k invested in Fidelity Spartan 500 Index Inv

Vanguard Accounts:

Roth IRA, ~$77k invested in VTTHX    Vanguard Target Retirement 2035 Fund
Rollover tIRA, ~$35k nvested in VTTHX    Vanguard Target Retirement 2035 Fund (rolled over from pension from previous job)

Wife:

Roth IRA at Vanguard, ~$8.5k invested in:

50% in VEIEX    Vanguard Emerging Markets Stock Index Fund Investor Shares 
50% in VTRIX    Vanguard International Value Fund 

American Funds tIRA:

~$20k Invested in New Perspective Fund.  (I'm considering liquidating this and rolling it over to a Vanguard tIRA invested in VTSAX)

Fidelity Rollover IRA from her job before our child was born:

~$56k invested in FIDELITY FREEDOM 2045.

We've got about $13k left over in ESPP plans, a 529 plan, and a brokerage account for speculation (gambling) stock.  Not too worried about these monies.

So what do you think friends?  Are there are any easy pickings here to optimizing our stache?  Should I roll over my old 401k into something at Vanguard?  Since my longest timeline to retirement is 10 years, and the earliest is tomorrow, should I be re-balancing into more income producing allocations?

Thanks!

MustacheAndaHalf

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Re: Questions on Optimizing My Little Green Army
« Reply #1 on: March 24, 2016, 10:47:53 PM »
Could you provide the field names for the allocation you show?
IBM STOCK                         Company Stock             5.27%   $20,300.94   $18,570.65   8.46%

Fortunately I can figure out the first two fields, or I shouldn't even be trying to help.  Here is my guess work:
1st field is fund name/type.  Need to know the specific fund name to look up more (Vanguard, Fidelity, etc)
2nd field looks like category.
3rd field is percent of portfolio?
4th field is current value?
5th field is cost basis / contribution?  (I think for 401k this doesn't matter so much, since it's all pre-tax)
6th field is performance for past year?


In figuring out what you've got, people will need to know the full name of the fund and your percentage allocation.  The past performance won't be as interesting as the expense ratio, which has more impact on your returns.  Last year's winner can be next year's loser, but low expense ratios tend to remain the same (and save you money).

After your IT job, you should really consider taking up writing.  Very enjoyable post to read.  :)

stashgrower

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Re: Questions on Optimizing My Little Green Army
« Reply #2 on: March 24, 2016, 11:34:23 PM »
I'm no help (different country), but I greatly enjoyed your writing too!

MDM

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Re: Questions on Optimizing My Little Green Army
« Reply #3 on: March 24, 2016, 11:46:18 PM »
The past performance won't be as interesting as the expense ratio, which has more impact on your returns.
+1

Also, what are your current pre-tax and post-tax investment contribution rates?  Current spending?  See http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/ if you want feedback on more than asset allocation.