Two 30 year olds recently married, working on our future AA and would love some feed back from your experience to start us off right. We want to semi-retire in 10 years, planning to work part-time makes us feel our risk tolerance is high because we will live off the PT jobs while our portfolio just grows until we decide to fully retire.
Currently between Vanguard and 401k:
77.53% US Equity
12.24% International
7.75% Alternative
1.46% Bonds
We aren't too concerned with bonds yet. We like the idea of REITs and Utilities for some added growth and stability, but we are trying to determine the best AA for diversification and growth. Below I've listed our options for our overall AA. The lazy portfolio is for comparison, as we have no problem managing our portfolio across all accounts we can look at our overall portfolio and AA in a more thought out manner. Bogleheads suggests if we are going to do bonds and REITS they should go into tax-advantaged accounts. So our REITS and if we do bonds should go into the 457s while the taxable account takes on the total market and international funds, weighted appropriately to our AA. We might have to mix some total market funds into our 457 plans to get the most out of our tax-advantaged accounts. We would be able to max out both 457 plans, minus my contributions to 401k that offers a 7% match.
Best options in my 401k are:
VIEIX
VINIX
VPMAX
VTSNX
This 401k is for a part time job, so contribution levels are maxed at 40% of pay providing about 15-18% of total tax-deferred yearly contributions.
Wife's 457 options:
Vanguard Developed Markets Index Fund - Admiral Shares
Vanguard Small-Cap Index Fund - Signal Shares
Vanguard Mid-Cap Index Fund - Signal Shares
Vanguard Institutional Index Fund – Institutional Shares
Vanguard Total Bond Market Index – Institutional Shares
My 457 options with Fidelity:
SPTN 500 INDEX ADV
SPTN TOT MKT IDX ADV
SPTN EXT MKT IDX ADV
SPTN MID CAP IDX ADV
SPTN SM CAP IDX ADV
SPTN EM MKTS IDX ADV
SPTN GLB XUS IDX ADV
SPTN INTL INDEX ADV
SPTN REAL ES IDX ADV
Bonds:
SPTN INFL PR IDX ADV
SPTN INT TR IDX ADV
SPTN LT TR IDX ADV
SPTN ST TR IDX ADV
SPTN US BOND IDX ADV
Lazysymbol | description | ETF | AA | expense ratio | expenses |
VTSAX | Total Stock Market Index Fund Admiral Shares | VTI | 85% | 0.05 | 0.0425 | |
VTIAX | Total International Stock Index Fund Admiral Shares | VXUS | 15% | 0.14 | 0.0210 |
| | | | total cost | 0.032% |
Weightedsymbol | description | ETF | AA | expense ratio | expenses |
VTSAX | Total Stock Market Index Fund Admiral Shares | VTI | 55% | 0.05 | 0.0425 | |
VIMAX | Mid-Cap Index Fund Admiral Shares | VO | 20% | 0.09 | 0.0180 | |
VSMAX | Small-Cap Index Fund Admiral Shares | VBR | 10% | 0.09 | 0.0090 | |
VTIAX | Total International Stock Index Fund Admiral Shares | VXUS | 15% | 0.14 | 0.0210 |
| | | | total cost | 0.019% |
Weighted 2symbol | description | ETF | AA | expense ratio | expenses |
VTSAX | Total Stock Market Index Fund Admiral Shares | VTI | 50% | 0.05 | 0.0425 | |
VIMAX | Mid-Cap Index Fund Admiral Shares | VO | 15% | 0.09 | 0.0180 | |
VSMAX | Small-Cap Index Fund Admiral Shares | VBR | 10% | 0.09 | 0.0090 | |
VTIAX | Total International Stock Index Fund Admiral Shares | VXUS | 15% | 0.14 | 0.0210 |
VGSLX | REIT Index Fund | VNQ | 5% | 0.10 | 0.0050 | |
VUIAX | Utilities Index | VPU | 5% | 0.14 | 0.0070 |
| | | | total cost | 0.013% |
Are we on the right track and can you offer any suggestions?
Thanks